New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-07-28

known Yesterday Investments in railway stocks
Il il understood, were the primary cause OF the
failure About three millions of the Indebtedness
Of the firm are known to be abroad good proper
ton of the amount being in bills of credit in the
hands Of Americans travelling in Europe and else
where The principal creditor abroad, the Union
Bank of London. is understood to have been secured
Is also the Bank of the State of Ncw-fork In tins
city, principal home creditor.
THUNDER OUT OF A CLEAR SKY.
rpr "srgrFrn AsroyIsHED-A MONETARY PANIC
IN THE STOCK ExcHANGE-GESERAL DEPRESSION
IN THE MARKET-CARD FROM THE SUSPENDED
BASKERs
The midsummer dullness Of Wall-st which the
fall in gold last week had served TO relieve tempo
rarily, was suddenly dispellcd yesterday little
before noon by the most sensational and unexpected
announcement made in financial circles since the
panic of 1873. 1.-THE Street" was listlessly gazing
at a procession of detachment of the Knights oi
Pythias on the way to Brooklyn by the Wall Street
Ferry. when the announcement was made in the
Stock Exchange of the suspension of Duncan,
"
doors of their banking house, the south
west corner of Pine and Nassau-sts.,
one block away from the Exchange were closed,
thus conveying the news to those outside the Ex-
change A rush was made to the banking house
from Exchange and street. greatly TO the surprise
and somewhat to the discomposure of the ranks of
the marching Knights who did not clearly know
whether they the objects of admiration or at
tack A great crowd gathered in front of the build
ing eaper to know the cause Of the disaster, and
some Of the multitude, probably deeply interested,
were camor0us for admission. The bank had
opened az the usual hour and far can be ascor-
tanned conducted business, although it is denied
that any deposits were received. The sudden clos
ing at 11:25 a. m. was therefore, all the more
mysterious and perplexing. The inquiries at the
bank were, however, of little avail. The
members of the firm left the building early, and
during the entire day refused TO their most
intimate friends, sending word. in reply 10 all in
quiries for information, that they could give
The crowd around the building, unaware of the fact
that the firm had resolved on absolute silence, be-
sieged not only doors, but windows, and finally the
private entrance in the But only the clerks OF
the house in charge and these one and all de-
elared that they could give details of the failure
nor any hints as to its causes. Throughout the day.
and until late hour in the afternoon the crowd,
still unsatisficd, fingered before the building, but
was essened in plumbers by the departure of the
anxious persons Of lie morning. so that only the
aAxions and wond Ing remained when the street
closed business.
The excitement he Stock Exchange was the
greatest known there in many months, and for a
time the utmost confusion, and not little con-
sternaton prevailed From all parts of the building
and from the street the brokers gathered the floor
and the visitors in the gallery, until the latter
crowded that il necessary to refuse further adj
mission. The floor also filed and for the first
half hour after the news announced the sales of
stock were brisk and prices decidedly "panicky."
OF course other reports set aoat in the interests
Of the bears" and the feeling Of doubt and depres-
sion was increased by reports of the failure of the
Union Bank of London, the impending suspension
Of other houses, which il was asserted would imme-
diately follow, and finally by that last of "roor-
backs"-the death of Commodore Vanderbilt.
II was known that Mr. Vanderbilt was un-
well on Saturday last, and this helped
30 give a shadow of probability to the
Old story as freshly told The effect of all tina:
stocks were much depressed during the morning
hours but nearly recovered during the closing hours,
80 that the average decline OF the day was about
two per cent below the closing quotations of Mon
day Western Union was the most active stock,
and immediately after the announcement of the
failure fell of from S2l2 10 73. but rs quickly re-
covered to 40, and finally closed at 79is. Lake
Shore was similarly affected, but not TO such a de-
gree declining the receipt of the news from 6l's
to IS and finally closing at 80 after having sold at
5912 Panama, in which it was rumored Duncan,
Sherman & Co. had been largely involved, in
az ;o;,, L. wit ~ n tn
control the stock sold at FIVE per cent below Mon
days quotations, but it not active. Erie, to
which it was known the firM had at one time made
heavy advances, was dull and inactive at l41, fell
10 H. and finally closed at t4is
In the Gold Room the news of the failure had been
preceded by the rumor Of the deitth of Commodore
Vanderbilt, and when the announcement of the sus-
pension came il was received rather increduNusly.
The first effect there advance in gold, which
was maintained until near the close of the day,
when the price fell of slightly At the Cotton and
other Exchanges the was received with sur
prise and regret for the character of the house had
created confidence in its stability and III the hour OF
Misfortune aroused sympathy.
The excitement in the Street after the first shock
Vt the rapidly subsidized, and the feel
ing became intense rather than wild Even this was
in a large measure allayed and the "Street" went
home in comparative mental quiet after the publea-
ton of the following card from the firm:
N.wYoRK, July 27, 1873:
careful examination. NJ oiii 1asesS ali. LARS
shows us most UNEXPECTEDLY that through losses and
misforunes our available assets are reduced that
We are compelled to go into liquidation.
We reach this conclusion with the deepest regret,
but the fact that up to the latest moment our most
unexanpled credit remained uniInpafred would have
compelled us, II we continued business, 10 hazard
new obligations and incur new condolences, which
Were unwdnng to- assume.