New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-07-29

element. The officers OF the BlEk Of Commerce dc.
clincd TO give any details OF the arrangement entered
into by them aud referred all inQuirers 10 Duncan sher
man Co.. the ground that the bank disclosed
the business OF It's customers.
relief to the perturbeS gD's Of many persons
when the announcement made that the California
drafts on Duncan. Sherman 4 Go. would he paid when
presented. All the drafts thus issued by the Messrs
Hckox Spear bankers OF San Francisco, will DE paid
by Ladlaw Co at No 33 Pincst., and tho drafts and
checks ~ the First National Gold Bank Of San Francisco
will &C paid by Eugene key Co. At No As Exchange
place. Mr.. Laidlaw stated To TRIBUNE reporter that
the failure would not at all affect their friends in Fan
Francisco, and that the relations Of the failed firm
did not extend beyond the two houses mentioned
above. The firm Of HickOx Il spear stood very
high in San Francisco; under all circumstances they
would have protected those who had purchased Newlork
exchanges from them. no matter upon whom they had
been drawn. Mr.. Ladlaw could not tell exactly the
amount Of bills thus drawn upon Duncan Sherman Co.
by Hckox spear He did not think IL would 90 over
10000 In gold and currency lie believed that the ii
would not have any marked effect upon business gu
orally with ptiontha occarioned chanee OF
loans, which wOuld make better market in money.
Mr.. Plunket OF the firm Of Eugene Kelly Co. did not
feel disposed give the amount Of bills and checks now
under way from the First National Gold Bank Of san
Francisco on Duncan. Sherman & Co. Neither could he
do II he would lie said because the firm had not yet
received the list The announcement WAS however, cor
that the firm would pay oil drafts ana checks ths
issued.
The firm of Gosslcr Co, No. 1874 Pcarlst. made the
announcement early yesterday morning that they would
pay all drafts II Messrs L. B'ircns sons in Hamburg
Duncan, shcrrn Co. One OF the gentlemen con
nccied with the firm OF G0sser Co. stated that he ala
not believe these drafts would he In the aggregate over
500 600 p raps mach they could not as yet tell
the exact amount lie believed that several OF these
small bills were held in Toronto and other places In Can
ada and were in possession Of travellers and Others who
had recently left Germany. The relations OF the sus
pended firm with HembuIg not extensive, and
would not nj all business there They had no other
correspondents there than l.. BobIens IL ca.
Martin II. Dennis " Newark yesterday gave notice
that he was ready refund In full the cash on any OF
Duncan Sherman Co.'S drafts obtained through him.
and that very little if any loss woud result TO him By
the failure.
In regard 70 The letter. OF credit that have been issued
ny duncan Sherman Co. 70 persons travelling abroad
leading banker 0 the city stated that 1t was customary!
in purchasing Of credit, either to deposit secir
ties with the bank AGAINST which the traveller cOuld draw,
or To arrange friend here 10 meet any drafts OF
this kind they due hcnc" the securities mus
left with the bank were not deposits IN the usual sense,
and did not any constitute" part ~ Tie assets "t
The firm. The only tronbc, therefore, that can he expert
onced by persons travelling with thee letters OF credit
Will bc the delay incurred IN transferring The securities
10 another bank and obtaining letter from fhc lat
ter The gentleman stated, however, that IL was also
customary 10 issue what are known us cifcu'
lar notes which are usually made in dcnomina-
tons Of - each and which practically drafts or
notes o; tic bank ~i.ing them for that amount The
purcLa Sc money Of these becomes part OF the
assets of the firm, and the holders will consequently
share with the rest OF tie creditors i'll Of failure OF
the firm Mr. Mcuto.h, who has been at the head OF the
srOncnce dcpartn ut OF the firm OF Duncan Sner-
man Coz stated tina, the firm had Issued very large
number Of tn, sc circular notes He was not willing to
say however whether the views sscd by the
banker above referred to agreed with those OF his firm
II was question: he said that still renamed somewhat
undecided az TO what would be- adopted in settling
with the holders OF tlese letters.