Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-01-02
THE FAILURES OF 1874.
A General improvement I'm Business
Antfci Pased fer this Year.

A1GANz ANaaC4 AGE lAAAa ~ car
From a review of the last vars business
in the Commercial AgeRey REGISTER we ex-
tract the following: 'sIn the beAnning Of
the year the effects of the heavy failures
and resulting panic in the fall Of 1s73 were
still felt. Distrust continued, and many
houses were under extension, sone Of
which afterward failed. These things,
with the general depreciation of values,
made the first six months Of 1874 very gan
orally improbable to our merchants. Tae
second part of the year in many lines q
business has, on the contrary, yielded
profitable returns. The fOotings Of sales
books may show a diminished aggregate
in many cases, bit the fact that goods
are so much reduced being borne in
mind, it will be evident that the quantity
gone into actual consumption during the
past six months has been a fair average.
In some liEes prices are dos.lI to GRte-
beliluR rates, and this T. st make the
amount of sales compare more unfavOrably
than the quantity actually sold. There
can be no doubt that liquidation has been
much more general than customary. This
will, to some extent, account for the cheap
ness Of money. 1t is not required TO the
same extent for the payment Of business
obligations. 1t is also a fact that during
the year economy has been practiced to an
unusual extent. So much has this been
the case, that probably not less than four
hundred millions of dollars may be put
down as economical during the year.
Take, then, the reduction in values,
the reduction Of Indebtedness,
the amount economical, and add
to these considerations the fact of good
crops for the year, and the conclusion
is ineyitable-the country throughout
is in a sound condition. In view
to anticipate a general improvement in
business for 1875. As the prospect for the
resumption OF specie payment increases,
prudent merchants viii begin at once to
calculate values and profits by a specie
standard, thus meeting the change in ad-
vance. When, therefore, gold and our cur
rency become equalized, the transition will
hardly create ripple on the surface of
business. With the exception Of the finan-
cial question, we can see little in thefuture
which would justify doubt as to prospects
for business being good; and, as We have
stated, we can see little danger from that
quarter. The experience Of the past will
no doubt teach merchants the wisdom of
avoiding outside operations and Overtrading
for the future, from which causes many
failures have occurred. The expense, how
ever, Of doing business in any Of our large
cities is much too great.
"The failures in 1874 will aggregate
about the same number as those of 1873:
but in this will be included many which
more legitimately belong 10 1873, being
houses which were weakened during the
panic Of the fall Of that year. The number
of these wOC.d reduce the aggregate for
1874 below that of 1873, while the amount
would be less, and the actual loss less still,
the per centum paid by failed concerns
having shown better average. In some
instances debtors have been forced to seek
relief through the bankrupt court, not be-
ing able to induce creditors to accept the
profered compromise. In every case Of
this character with which we are acquaint-
ed, the result has been heavy loss TO cred
itOrs.
"There is one provision of the bankrupt
act Of which creditors have been slow to
avail themselves, and yet its judicious use
must enure to their benefit. We refer to
that which enables creditors, under certain
restrictions, to take an estate out Of the
court and place it in the hands Of trustees
chosen by themselves. A settlement thus
effected would entail less loss than one
made by court officials, having no interest
aside from bills Of costs. Frauds are still
numerous, but not more so than usual.
@The Southern States, though suffering
severely in some portions, have on the
whole done well. More attention has
been given to their grain crops, and as
result they are not now dependent on
others for their bTeadstuffs. Another thing
has worked TO their advantage. At the be-
ginning Of the year their credit was low in
the Northern and Eastern markets, and
the consequence is not only a reduction in
the Indebtedness Of their merchants, but
an unusually sound financial condition,
though business with that section during
the year has not been profitable. In the
West, though the fever Of speculation con-
tinues, it is by no means as severe as in
past years. The business men are not gen
orally so easily led into, operations aside
from their general business, though the
disposition 10 oveT-trade is still prevalent.
"The surrey Of the whole, we think, JUS
titles Us in expressing satisfaction with the
status and prospects of business"