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

tettNha " NfeolA aNoNe I'VE or ACu POUNDS Hternng
deposit securities 70 the amount Of their letters
Of credit These deposits are special deposits
and me securities cannot be used for any other
purpose than meeting the drafs made on such
circular letters Therefore. IN the event Of
the failure q the banking house wnicn has
Issued tnem, tha holders o. the letters
can telegraph % tneir irsnds a. home 90 with
draw me unexpended amount OF the securities
on deposit place them In am other Dannng
house AMI tcisgrapa new letters OF eredit 20
them. A. this h ths recognized law among
banfsrs there wa be nttleor ~ ineonvenieaee
70 travellers abroaa.
IN reference 90 me eject on excnanre. Brown.
Brothers A CO. sald mat the business for tee day
had been very duL No changes hAd Deen made
nom toe opening price &c ten A. NJ. party because
there vas no Steamer TO-DAY ana parity because
everybody waa wuiuug Coz fartHer dsvsloDneEts.
MKssA4 MoHros. nLIss a 60.
The reporIer earned from tha nrm that the
suspension vas nos ane pected. Duncan. sher
man A 60. had been carrying cotton, NOBLE Aud
Quo, Great westsrn and Ere ana held large
amounts Of securities that taey coui1 NOS
promptly realize ron. Tbat the arm knew this
was evident IRON the fact that M ". D. Duncan
went 70 Europe 90 see his faGhsr. Mr.. Asxander
Duncan. me founder o. tts house. vac has been
living IN europe ior several yeara IL vas under-
stood the street mat TIE Wait vas Tor the pur
pose u obtaining "a extension o. credit Tor the
New York house. A an plia drawn on London
we're made payable at Barring Brothers Is was sup
posed thai they would extend the required coar-
tesy. SO far a. u En0wn Banng Brothers declined,
other arms declined % maze advances on q fall
ing cotton martet, ana. therefore. Mt. william
Butler Duncan returned. accompanies ~ M
Alexander Duncan, both arriving mere sone days
ago. what has been aOne since We 90 not snow.
DRAKK HRoTuENa
the prominent Dsnksrs, OF No. "A Broadway. had
their parlors fun OF excited specu ators al day.
From the conversation going on there q was
learned that Two wseks ago Duncan, sherman
Co. decided 10 reduce their clerical force. First
the CLERKS having wealthy parents who ooaid pro-
vide for them we're discharged; then the next
class followed, 90 that during the week twenty
accountants we're told that tbeT services would
be no longer required.
JOSEPH sELIGMAN on THE SITUATION.
This gentleman. OF the nrm Oh. W. seigman a
Co., bankers stated that IN MS opinion me failure
OF Duncan. sherman Co. was 10 say the least Of
IL, most unhappy circumstance. II had he
said, always been looked upon a. particularly
solid nrm. although there might ne found. now
that disaster had overtaKen IL, plenty OF people
who would start up and say they had feared. and
even expected, just such q result had occurred.
lie was az loss, he stated, 70 account for
the sudden collapse, although be snrmised that
the occasion OF II could. with justice attributed
to heavy losses on cotton. The failure OF the
several large firms largely engaged IN the cotton
trade in England, OF which notice has lately been
published, was probably, he thought primary
cause OF this SUSPENSION, for the that Qua
can, Sherman Co. had made large shipments 10
them OF cotton from both New York aud Southern
ports The failure OF these parties 10 meet their
drafts when presented for payment IN the ordi-
nary course OF business must naturally have con-
siderably embarrassed them. Then, again, said
Mr.. Seligman,
MISFORTUNE NEVER CONES ALONE.
When one thing goes crooked everything else
goes the same way. they nad, doubtless, large
lines of cotton, both anoat and for future deliv-
ery to carry, and the recent heavy decline In
values has peen too much for them, especially
when the fact is taken into confederation that
| they were also largely interested In southern
railroads, whose securities they held. The prin-
cipal losses In this latter regard, however
should put down at not more than $780, eco,
which ought not TO have affected a nrm IKE
! Duncan, Sherman Il Co. Their liabilities In this
class OF securities included, / believe, a large
amount OF Mobile and Ohio Railroad bonds aud
Alabama State bonds. 1t is also said that tney
| carried few Atlantic and Great western RAIL
road and Erie Railway BONDS. These. however.
think, were very small part OF the general
losses. OF course am, said Mr. Seligman. merely
giving you my opinion and tue general talk that
near, Tor | have no positive knowledge on tho
subject. l cannot give any estimate as to the
probable liabilities or assets.
| THEIR GENERAL BUSINESS
as bankers lay, should say, among the smaller
bankers and brokers in Wall street, who were the
| principal depositors, and alse large number or
planters and merchants in the Southern States to
| urt..
failure is not likely to affect any people in very
modest circumstances, such as would be the case
were the firm q national bank, although there
may be few OF the smaller fry'' on "the stree"
who Will have TO Ego by the board.n There may
| possibly be- too, large number Of travellers aud
tourists abroad who will be suddenly called upon
to return home rough failure TO get their drafts
casned, and who have paid into the firm the money
they expected to draw for use on their trips. The
losses principally Will be felt, think by foreign
houses. The firm has acted honorably in the mat
ter for, had it pleased, 1t could have undoubtedly
gone on selling drafts on London for several days
to q large amount. The journey OF Mr.. W. Butler
Duncan to Europe was undoubtedly made In vie W
OF the complications that he saw arising from the
! failures OF houses with which the firm was con-
! nected, and to endeavor to secure the co-opera-
ton OF his father, Mr.. Alexander Duncan, and
others to help the concern through, and To obtain
extensions OF credit. His return, after unsats.
factory conclusion TO his endeavors In this regard.
doubtless precipitated matters. am Of opinion,
however, that the failure will turn cut an honor
able one and without discredit TO any or the 1rm.n
A PROMINENT BANKERS VIEWS.
The representative Of prominent banking
house In william street was called on. and was
asked II the suspension OF Duncan, Sherman Il
Co. would affect the Barring Brothers. OF London,
or II the former could have been pulled down By
troubles Of the Union Bank of London, rumor OF
which was current. In reply to the nrst question
the banker said There was a gentleman once
went to Rothschid IN England aud expressed
sympathy for him In a recent heavy loss OF money
he HAD sustained. Il am sorry,' said the gentle
man, you have lost such large sum OF money
'wel SAID Rothschild, laconically; my dear sir,
don't be can AFFORD to lose it, And 60 IL is with