The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-01-07
FAILURES IN 1859.

Annual Circular OF the Mercantile Agency.
The Mercantile Agency has just submitted its
usual statement OF failures and liabilities reported
during 1869, as compared with 1868. 1t will be found
expressed in this tablet
1s6S-Number Of failures 260s: amount OF liabill-
ties, f68, IA, 900.
jSes-Number OF failures 2790; amount OF lIablll-
ues SI6654, 900.
The report goes on to say
"Whlle we strongly deprecate the attempt to
create alarm when no reasonable ground Tor alarm
exists, we are not unmindful OF the existence OF
many circumstances demanding grave consldera-
tion in the conduct Of business for the future we
them II strikes us that the excessive competition Ia
business forms an important pcint. Not only in the
cities, but all over the country, there Is growing
disposition for trade, and 1t is no exaggeration te
say that there are now three stores and places OF
local business Of a place Is divided up between a
dozen that would barely suilce for half that nam
Der. This difficulty is, In its turn, exaggerated
by the enormous expenses OF business, the
extravagant habits of too many, and the general
tendency towards expenditure which Is one OF the
worst herltages OF the war Following tnis eXces-
sive competition, agaia, we have q too rapid expan-
sion Of creditwhch, to mind, is an evn not suf-
iclently considered nor guarded against The pc
culiar position which we occupy in the community
enables us to note this tendency and to anticipate
were not more instructive than those OF 1894 and
1866. In two former years, the failures were
porous condition While in s6l and 1856 the failures
were few and the losses insignificant Following upon
devastating war that had cost millions
was the difTerence In the former
case, credits had been granted indscrlmnatcly in
amount, time, and risk; while during the war, many
circumstances consplred to limit, and indeed almost
abolish, credit business IL viii, for all time, be q
standing wonder in the history or the nation that the
stupendOus events Of 1864 occurred without creating
panic OF the most terrible character; but Its eX-
planaton is found in the fact that, where there
few liabilities, there could OF necessity be few fall
| ures. We know that 1t would keep the country in
swaddling clothes to confne its credit business TO
the narrow limits OF the years we have named; but
| from one extreme 1t Is most unwise to rush to
another. A low standard of morality, an absence OF
done loca'ityare all things TO be avoided and the
merchant or banker who seeks to push his trade to a
| limit where it must include any of
| these elements is obviously unwse But even the
most honest men, the most capable the most frugal,
and those with adequate capital for a legitimate
| business, cannot stand too much credit; and a
| pressure to sell by drummers and travellers, the
| enough from Peter to pay Paul. soon have their
legitimate effect and collapse Is the consequence
All these considerations sufficiently patent to the
| "master OF the long arithmetic" as Emerson calls
the successful merchant, but it seems proper just
now to counsel the most careful discrimination and
conservatism In credits that Is certain to bear the
best fruits. We can and Will gladly aid our sub
scribers in their efforts in this direction.
"a rigid reduction OF business and private expenses
is an absolute necessity If success is to be achieved
The division OF trade before referred II among AT
| increased number and the refining Of profits K
their lowest possible level make 1t more than eve
imperative that expenses should be cut down in pro
should be, and we have no doubt viii be, more KEEP
in view and care taken to ascertain what proportion
the cost OF living and expenses of business bears K
the amount OF trade done and the profit it yields"