Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1875-01-07
THE FAILURES OF 1874.


From a review of the last years
business, in the Commercial Agency
Register of December 26, we extract
the following: lin the beginning OF
he year The effects of the heavy fail
ures and resulting panic in the tall OF
1873 were still felt. Distrust con-
tinued, and many houses were under
EXTENSION, some of which afterward
failed These things, with the geG-
eral depreciation of values, made the
first six months of 1874 very general
ly Improbable to our. mesga,y'e e.
The second part of the year ia aany
lines of business has, on the contrary. .
yielded profitable results. The footg
ings of sales-books may show d.
minished aggregate in many cases,
but the fact that goods are so much
reduced being borne in mind, it viii
be evident that the quantity gone in
to actual consumption during the
past six months has been fair aver
age. In Sc me lines prices are down
TO dnte.beltum rates, and this must
make the amount of sales compare
more unfavorably than the quantity
actually sold. There can be no
doubG that liquidation has been more
general than customary. This will
ID some extent, account for the
cheapness of money. 1t is not re-
CURED to the same extent for the
payment of business obligations. Il,
ls also fact that during the year
economy has been prscticed to an
unusual extent. So much has this
been the case, that probabl y not less
than four hundred millions of dollars
nay be put down as economic I'D DUR
ing the year. Take, then, the reduc-
lions in values, the reduction of in
debtedness, the amount economical,
aud add to these considerations the
fact of good crops for the year, and
the conclusion is inevitable - the
country throughout is in a sound
condition. In view Of this, it can
not be wrong to anticipate a general
improvement in business for 1875.
As the prospect for the resumption
of specie payment increases, prudent
merchants will begin at once TO Cal
culate values and profits by specie
standard, thus meeting the change
in advance. When, therefore, gold
and our currency become equalized,
the transition will hardly create a
ripple on the surface Of business.
With the exception of the financial
question, we can see little in the fu-
ture 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 doub,
teach merchants the wisdom Of
avoiding outside operations and over
trading for the future, from which
causes many failures have occurred.
The expense, however. of doing bust.
ness 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 legitimatelg be-
long to 1873, being houses which
were weakened during the panic OF
the fall of that year. The number
of these would reduce the aggregate
of 1874 below that of 1873, while the
amount would be less, and the actual
loss less sti |. the per centum PAID
by failed concerns having shown q
better average. In some instances
debtors have been forced TO seek re-
lief through the bankrupt court, not
being able to induce creditors to &C
cept the proffered compromise. ln
every case of this character with
which we are acquainted, the resul
has been heavy loss TO creditors.
There is one provision of the bank
rupt act of which creditors have been
slow to avail themselves, and yet it,
ludicious use must enure to their
benefit. We refer to that which
enables creditors, under certain re-
strictions, TO take an estate out OF
the court and place it in the hands
of trustees chosen by themselves. A
settlement thus effected would en-
tail less loss than one made by court
officials, having no interest aside
from bills and costs. Frauds are still
numerous, but not MOI 80 than usual.
The Southern states, though sui
feriDg severely in some portions
have on the whole done well. More
| attention has been given to their
grain crops, and as result they arr
not now dependent on others for
their breadstuffs. Another thing bas
worked to their advantage, At the
beginning of the year their credit
was low 10 the northern and eastern
markets, and the consequence is not
only a reduction in the indie btedness
of their merchants, but an unusually
sound financial condition, though
guinness with that section during the
year has not been profitable. In
the w est, though the fever of specu
lation continues, it is by no means
as severe as in past years. The
business men are not so easily led
into operations aside from their gen.
eral business, though the disposition
to overtrade is still too prevalent.
The survey of the whole, we thius,
nstifies us in expressing satisfaction
with the status and prt spects of bust
ness"
Carpenter.