Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-07-28
Liabilities Over $4,000, OOO-A General
Assignment, Without Distinction
Of Greed, CelOr or Pre-
TiOus Condition.
Effect of the PGi,Gre-Pauic Ia New
York and BOstOn-EIssWhcre No
More Than a Passing
Breeze Created,

]
| and the rumored embarrassment Of 9TH
| er houses, but il soon fell to ia
The Evening Post has the following in
| its financial column: "The quietnsss
| Of Wall street wSs broken in the second
| hour Of business by the announcement
! that the clearinghouse Of Duncan, Sher-
/ man d Co. had closed their doors and
suspended payment. A clap OF thunder
! in q clear sky could not have caused
more CONSERVATION, and at the stock GX-
| change, gold exchange and cotton eX-
! change there was the greatest excite
ment. The liabilities of the house are
| given at inside of six millions Of dollars,
and the assets far below this amount.
! The losses which weak ened the house
are not of recent making, but cover sew
| eTal years"
The following statement to creditors
was prepared by Mr.. Duncan, and read
TO the stock exchange:
NEW YORK, July q, 1873.
A careful examination of our business
and affairs shows US, most Unexpectedly,
| that through losses and misfOrtunes, cur
available assets are so reduced that we
are compelled TO go into liquidation.
| We reach this conclusion with the deep
| est regret, but the fact that up to the
| latest moment our most uneXampled
! credit, which has hitherto re-
manned unimpRired, Would have
! compelled US, if we continued
IN businessss, to hazard new obli-
| cations and incur new condolences,
which we were unwilling to assume.
| Fer the protection of all our creditors,
without distinction or preference, we
have this day made a general assign
II
of this city, whose address for all mat.
tiers connected with our affairs will be at
our late banking house, No. IL Nassau
street. DUNCAN, SHERMAN d co.
The greatest excitement prevailed in
the lower part OF the city as soon as the
rumor Of the suspension began to be
circulated. 1t was at first hardly be-
lieved, as no suspicion of the weakness
OF the house had been entertained. The
truth, however, was soon apparent by
the closing of the iron doors OF the great
stone building On Nassau street. A
large crowd OF people soon collected, the
majority of whom were attracted 10y
motives of curiosity rather than interest.
The suspension was everywhere the SUBJ
ject of conversation, and most contra
dictofy and absurd Tumors were in
circulation. Many attempts were made
to gain admission to the building, but
the doors remained obstinately closed.
Inside numerous clerks could be seen at
their desks busily engaged with their
books. Many absurd stories were set
sflOat to &C count for the general excite
ment. Among them was one to the
effect that Commodore Vanderbilt was
dead. 1t is admitted that the house has
lost very largely on cotton; in fact, that
is its principal loss. Investments with
various railroad enterprises, old and
new, also entailed losses on the house.
The liabilities are understood to be be-
tween S., 600, 600 and $4,000 600.
MT.Duncan, who returned from Europe
about two weeks ago, has been since
making a careful examination of the S.
sets, and finds that they are largely in
adequate. He resolved to endeavor to
get new cash capital, and having failed
10 do so he determined it was best to
suspend, and make a general assign
ment for the benefit Of all creditors, the
assignee being Exhibited States Judge
William Shipman. The Indebtedness is
distributed all over this country and
Europe, q considerable amount being in
the form Of letters OF credit held by
travellers. The house was founded ia
1850 by Alexander Duncan, Watts Sher-
man and W. Butler Duncan, the latter
the present head of the house. The
present firm has been in operation about
ten years. Great sympathy is felt for the
firm, and particularly for w. B. Duncan.
The credit Of the house was good up to
the hour Of suspension, and had Mr..
Duncan chosen to avail himself of this,
his house need not have suspended. The
principal correspondents abroad were
the Union bank of London and Barring
Bros. Their bankers here were the bank
of the State of New York, which, it is
understood, is fully protected.
The effect Of the suspension of Dun
can, Sherman & Co. upon the stock
market was, as usual, q sudden panic,
much more serious for a short time than
the circumstances Of the failure, in their
bearing upon Wall street ought to have
created. The fall in Western Union
telegraph was as much as nine per cent,
but five and one. half or six per cent. Of
this decline WIS soon recovered; Pacific
Mail, five per cent, and half this fall
was recovered. The western railroads
fell from two to four per cent, and New
York Central three per cent, and the
last was partially Knocked off before
the false TumOTs Of Nanderbilps death.
By hali-past twelve O'Clock the excite
ment in the gold room had somewhat
sbated, and sales were making at ll43
@Il4s. Stocks were also on recovery,
and the sober second thought of brokers
and spectators seemed to be in the d.
rection OF more rational opinion as to
the effect Of the failure. Exchange is up
to the full shipping rates, and the prob
ability is that shipments OF gold will lie
resumed. 1t is thought the re-
cent heavy failures in the
Manchester cotton trade have
something to do with the immediate
embarrassment Of the house. They had
been by far the heaviest DuyeTs Of cotton
in American markets for several years,
mostly, it WAS understood, for MRnches-
ter. The belief was that orders were
generally executed on London banks or
bankers credits, but il 1t tuIns out that
they trusted to Rny extent the direct
credits OF such concerns as Messrs.
Callie, in Manchester, il will be & mis-
fortune which no ordinary prudence can
guard against, seeing that these houses
had the confidence Of London to the eX-
tent Of untold millions sterling. There
Is a belief that most Of the bills now
running are under strong acceptance on
the other side, say by Messrs. Barring
aud the Union bank Of LOndJn. The
outstanding travellers credits Of Dun
can, Sherman Il Co. are on different
footing, and may cause serious inconve-
nience tosOme Of our people now abroad.
1t is understood that full statement OF
the affairs Of the house is in preparation.
EVENING DISPATCHES.
The failure Of Duncan, Sherman &
Co., which was announced soon after
eleven o'clock, caused the most intense
excitemant on the street. The direct
cause Of the suspension is not 81 yet as
certained, and various TUmOrs are atioat,
among which one to the effect that their
difficulties hsYe been pTecipitsted by the
failure Of Messrs. Z. w. Callie, Of Lon
don, and Barring Brothers, in 1873. Ar
rRngements were made with the Barring
firm by which Duncan, Sherman d Co.
were to be protected. 1t is supposed that
the withdrawal Of that protection, this