The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-28


| established in 1851. by Alexander Duncan, sr.,
| Watts Sherman and william Butler Duncan. The
first named was before this connected with lead
ing banking house at Providence, r. l. Mr.. Sher-
man had also carried on o large banking business
a. Albany.
The present 1rm. which consists OF VIM B. Dun
can VIM. w. Sherman and r. H. Grain was formed
some ten years since, on the death OF Mr. Watts
Sherman, and the retirement OF Mr.. Alexander
Duncan. The principal correspondents OF the
firm In England were Messrs. Barring Bros. x Co.
ana the Union Bank OF London. They also had
numerous correspondents throughout the United
States, although their principal business lay with
the South. They banked here with the Bank OF
the State OF New York. and up TO the time OF their
failure yesterday were supposed 10 possess unlim-
tied credit.
IN THE STOCK EXCHANGE.
Just after the first Call the situation was as
calm as summer evening. The idle brokers
c1atted and cnafred and bethought themselves OF
no more serious business than the passing away
OF pleasant hour. The races at Saratoga oc-
cupied their thoughts rather than the relative
values oil shares, Tor the market had opened
with about the quotations oil the previous even
Ing. and there was no indication OF any "move
ment." Murmurings OF
LAKE SHORE AND .. p.
opinions about the chances of ontipa, Countess
and Trouble. Trouble came In second in the
steeplecnase, but nrst by long odds in the Stock
Exchange. The rumor that the banking house,
which had withstood the terror OF Black Friday
and had maintained It's credit intact during the
trying panic Of September. 1873, had at last sue
cumbed to financial difficulties gained credence
but slowly. 1t was whispered about cautiously at
first, and the effects produced may be compared,
nguratively, to those Of the gusts OF wind which
precede the hurricane. Groups OF confidential
brokers gathered ana discussed as 10 the possible
truth OF the rumor. When, at last, 1t was con-
irmed, the scene was simply indescribable. such
a scramble TO get rid OF stocks Is only rarely wit
messed in lifetime. western Union Telegraph,
which opened at S2h, during the quiet hour pre-
cedng the storm advanced d per cent, but in the
whir which followed it sold as low as 70, fall of
over per cent; and, as it appeared TO be the
most active stock on the list the losses or gains,
as the case may be, OF the operators must have
been enormous. '1'l sell thousand Western
Union, 80, seller three,n shouted excited look
ing CUBAN ''Sold," cried tall, 1.-THE individual,
well known for the length of his limbs, and the
memorandum was made; but, lew moments
after, ". U. went begging at rs, and somebody
Gel tainly WAS ''out." The group in which Union
Pacific is usually dealt in were also to all appear
ances on pins and needles, and the positive riot
in the Pacific Mail crowd showed that the "boysn
were having a very lively time among themselves
In the Board there was little speculation as to
the causes OF the failure The interests at stake
were too large and the business to be transacted
was limited as to time. While the excitement
lasted 1t was indeed terrific But, as every one
knows who has had experience in Wall street
matters, the recovery s even more rapid than the
beginning, and before the hour for closing the Ex-
cnange order not only 'reigned in Warsaw" but
stocks had recovered TO almost their opening fig
ures and hopeful and confident feeling prevailed
THE GOLD ROOM
was almost entirely deserted between ten ana
haIfpast ten O'Clock. ''The American Deern was
sadly missed, as his tall form has hitherto been
relied upon to Ill any momentarY vacuum. John
Schultz stood at the en- trance talking to the door
keeper, when boy handed HIM amemorandum.
All OF a sudden "the blonde OF the Gold Room"
jumped into the inner circle, and, brandishing
mis- note book at Jake Rubino. offered
l13X for 100000. war dance was
Immediately inaugurated around the foun-
tam All the gold that the mines OF California
ever produced changed hands over and over again
IN the brief space OF half an hour. The Belcher
and Virginia Consolidated were exhausted OF their
precious metal almost before price could be
made. The days of the old FISK combi-
nation, when the indicator marked changes
at each revolution OF the Wheel were recalled and
the excitement was almost as intense as then.
The apathy In the gold market has been so pro-
longed that wnen the sudden change did come even
the old hands were for the moment at their Wits
end. Fourteen for twenty one quar- ter, half fifteen,
half, sixteen; nve-elghths, shouted an agltator,
and as an imperturabe genius cried ''sold," and
booked the transaction, the highest point In the
market was reached. Thus, in the space of three
minutes, at the lowest calculation, the price Of
gold had Infatuated over two per cent. ana many
fortune had been made and lost. But during all
this mad whirl there was no clink OF coin. A nod,
a motion or wink concluded purchase or sale.
and It is to-day, when the differences are to be
made and the balances adjusted, that the wisdom
or Jolly OF the operators will become apparent.
AT THE COTTON EXCHANGE.
At the Cotton Exchange, when the nnounce-
ment was made OF the failure there was great ex-
element among the members; in fact. so much,
that for the moment all business was suspended
In order that the situation might be talked over.
Time, however, was too precious to be lost In dis
cusslng the misfortunes Of others, and business
was resumed.
The market at the opening had shown signs Of
weakness, and up to the time OF the announce
ment OF the failure had fallen of about three
eighths on future deliveries and one-sxteenth on
"spotn cotton. The market then showed signs OF
steadytng, but as soon as the dealers got
to work again, after the pause, there
was another stampede. ana prices again
went of, with all sellers and no buyers. Three
eighths were added to the morning decline on
contracts for forward delivery, and from six
teenth to a quarter more for parcels on the spot
and for immediate shipment There was then
slight rally and the market closed steady, but
without any recovery. The general feeling ap-
peared to be an unwilliDgness to ADMIT that Dun
can, Sherman & Co. were In any way whatever
interested in transactions in the cotton market.
The impression sought to be conveyed in answer
to eacn ana every inquiry was that the failure
was rather to be attributed to speculations or adj
vances on southern railroad securities. 1t was.
however, admitted that the nrm had, doubtless,
large dealings with the Southern States, and had
nnssihlv made larra