Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-08-13
DUNCAN. SHERMAN d co.
The Great Banking house - Sad and
Heart-FendiGz Results of i's Failure
-SWIndleS EODafug 90 i.ishE

New York, August I2-The discov-
cry has been made that large amount
Of the Indebtedness Of Duncan, Sher-
man d Co. is in accommodation paper,
in the form Of drafts, drawn on Them by
a confidential CLERK IN their office, &C
cepted by them and sold to various banks
through nOte-brOkers. or this specie Of
paper, probably not less than five hun
dred thousand dollars is now held in
Providence, where the family Of MIR
Duncan has been long and fevOrably
known, and the agent met with little
difficulty in disposing Of it. One bank
in this city holds fifty thousand dollars
Ofthese acceptances; another, thirty-fivo
thousand dollars; and still smother, thir-
" thousand dollars, besides smaller
amounts in the hands of numerous per-
sons. One banker characteTlZes this is
susnce Of accommodation paper as the
shaTpest kind Of q sharp game, the i'm
preston of the acceptor being that it was
drawn against merchandise and secured;
but Mr.. Duncan says the proceeding
was entirely straight, and was more or
less the practice OF the house for twenty
years. The announcement is made that
the letters Of credit for which the father
Of Mr.. Duncan has become responsible
amount only to about thirty thousand
dollars.
A correspondent, writing from Paris,
says: Not a half-hOUr passes that do
not hear Of cases Of distress arising from
this failure. Probably the msj5rity of
los ses are persons 10 whom the event
will be real hgIdship, as theysnave no
reserve fund upon which 10 rely. A
widow, who came to Europe a few
months ago, to reside here and educate
her children, deposited sll her money
with Duncan, Sherman & Co, and took
letters of credit. She mas not ten dollars
in her possession, and there are reDtsnd
school bills due. Her excitement and
alarm are so great that her friends ap-
prehend insanity There are many
teachers, students, and others in exactly
the same condition, and they are not
only in Paris, but all over the continent
At least four Americans, who heard of
the failure before the news reached the
ROthschilds' agency, secured their mOn-
ey and have retired from Paris 70 avoid
trouble. One Of the fOur was visited by
the cashier Of the agency, who demand
ed the return of the money, which was
refused. A policeman subsequently es-
cOrted the gentleman 10 the American
embassy, where Minister Washburne
told the cashier he could not make the
arrest. "You can only seize his bag
gage, and | advise you not t. do that"
The cashier concluded he would wait,
apologized and departed.
The Evening Post has called on Dun
can, Sherman q Co. in regard to their
accommodation paper, about which so
much was said this morning. \ MEM
Der of the firm informed the reporter
that the bills were placed on the mar
ket in manner which appesred perfect
iy Legitimate to the firm and according
to the practices that prevails with
bOuses OF good and extensive credit.
The total amount Of acceptance Issued
WAS estimated to be about one million
two hundred thousand dollars. o. this
five hundred and fifty thousand dollars
were held in Rhode Island A consider
able part of the remainder in other parts
Of New England. In regard to the let
ters OF credit for which Alex. Dun can
had become re JpOnsible, reported in the
morning journals TO be but thirty thou
sand dollars, il was sSid the aggregate
ildeb, edness of the firm would reach
about one hundred and thirty thousand
dollars, for which Alex Duncan usd de-
posted about two hundred thousand
dollars,