The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-03-20
COMMERCIAL FAILURES.
,e Mercantile Journal,

from the Mefcd1A1te journal.
A comparison of the failures in the United
States in 1870, with the annual statistics for
the two previous years, exhibit an alarming
increase in the aggregate losses of the entire
country. In 1868, the failures in the United
States showedlosses amounting to 1868, 754, 900,
as compared with 1904, 0G0 in 1869 and
$SS, 272, 900 in 1870. This statement is GER
tainly startling one, showing as it does an
increase of nearly twenty per cent. over the
losses involved by the disasters of the two
former years, and over thirty-three per cent.
more last year than during 1868. 1t would
certainly be unwise to attribute the majority
of these losses to any one cause, where 1t is
quite certain that most of them arise from
a combination of circumstances, prominent
among which are the laxity with which credit
is regulated, the enormous expense of carry
ing on business, and the constantly dimi-
nished profits that are paid to traders. The
real absolute wealth of q community is alone
attainable from the SOIL and when the num-
ber of producers is exceeded by the number
of consumers, there must always be dull
times, to be followed by depression and bank
ruptcy. The war entailed upon society an
unnatural spirit of speculation, while it inau-
gurated system depending for its success on
inflated values, the services of an army of
middlemen, and enormous gains.
1t is the effort to continue this system that
prevents the accumulation of surplus wealth,
which is so necessary to material prosperity.
Heavy expenses, high rates, excessive taxes,
and the increased hazards that have unfavo-
rably influenced personal property for the last
few years, all contribute their quota to de-
stroy men of limited capital and slender re-
sources The fact is apparent to the most
superficial observer that the big fish are
swallowing up the little ones. Monopolists
are having their way in almost every field
OF domestic pursuit Not that the
fault is beyond remedy, but
much of the trouble may be attributed to
unwise cooperation, foolish strikes, extra
VACANT expenditures, and ver-trading. There
are too many sellers of merchandise, and too
few buyers; too many consumers, and too
few producers. Reverse the present order of
things. Allow economy to be the rule and
not the exception; do not build up anticipa-
tions of success on fictitious basis; employ
capital in business only so far as it will be
safe and profitable, and we shall have fewer
causes of alarm from the advancing tide of
commercial misfortunes.
We must not expect In many years to wit
ness a time of unexampled prosperity; but
very reasonably hope to advance gradually in
wealth, and in the course of a few years, if
unrestrained in the natural development OF
our vast and constantly accumulating re-
sources, We shall have gained that position
IN INDUSTRIAL prosperity tnat we SHOULD lonB
since have attained, had it not been for the
happening of the Southern Rebellion.
The country at large appears to be very
slow in learning these lessons of prudence
that are so necessary to permanent success;
much slower, in fact, than the commercial
men who do business in our midst. As evil
dence of this fact we need only point to the
table of statistics before referred to, in which
it is set forth that the aggregate losses by
failures of New York and Brooklyn in 1868
amounted to $31, ,634, ,008, against $21,-
$40, 900 in 1869, and 500, ,373, 900; being re-
duction of $11, ,O61, 900 in the three years.
1t is very plain to perceive what dire con-
sequences must result to our national wealth,
providing the present imprudent management
of commercial affairs is suffered to go on
unchecked However cautious we of the city
may be, we are too dependent upon the
country at large for our general prosperity,
not to be seriously affected, while the evils
that would affiiet the nation would prove
almost incalculable.
THE PITTSBTTRG AND CONNEI T ,SVTTJ n