The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1875-02-20
FAILURES IN Isy4--TME MERCAN-
TILE OUTLOOK.


the total number of failures In the
United States during the year 1874,
was five thousand eight hundred and
thirty, with an aggregate liability Of
$3.50, 239,O Of this amount there
were in this state one hundred
and forty-wo failures, with liza
bilities reaching S2,20l,OOO. AS
compared with the previous three
years, they are as follows, In Texas
1871, failures, 3s, liabilities S673,oOO::
1872, failures rs, Liabilities $s80,VN;
1873, failures ll6, liabilities 81, ,75l 900.
In publishing this statement for the
information of their patrons, Messrs.
Dunn q Co. append the following re-
marks:
The noticeable feature in the above
is that, while the number OF failures
exceeds that Of last year, there IL Q
marked diminution In the amount OF
liabilities. Two causes are assigned
for this, viz: First, that the panic of
1873 caused the failure of an unusual
number Of large houses, thus raising
very much the average amount of liza
bilities over all previous years. Second,
that the volume of business had been
greatly diminished during 1874, so
that, when failures did OCCUR the lia-
bilities were comparatively Light anq,
further, that the houses which sue
cumbed during the year We're In great
degree a smaller class of traders than
those of 1873, and, indeed, we may
add than the average of those OF pre-
ceding years.
From the past and its experienceswe
naturally turn to the future with its
hopes, and, although we are not among
those who see nothing but brightness
therein, we certainly do discern some
ground for encouragement, and think
It will not be difficult to place it in an
apprecieble light for Others. Chief
among the favorable signs of the times
Is the general tendency toward econO-
nv. Extravagant expenditure, up to
the end of 1873, was one OF the most
alarming phases noticeable In the COM
munity, and even had the process of
reversing that tendency been more
rude and disastrous, the panic and
its succeeding months of depres-
sion will not have been In vain
if the necessity for retrenchment has
been made apparent. That this reduce
duction in expenditure has heen al
most universal is evidenced by the re-
striction of trade during the year of
which so many complain. Otherwise
it is difficult to account for the dull
times in country 80 abundantly sup
piled with every essential of prosperity
with crops unsurpassed, and an area
under cultivation never equaiied; with
productive power In It's manifold in
dlistries beyond belief twenty years
ago, and rnarked progress in all ma-
terial elements. Had there been any
widespread distress, any failure of
production, scarcity of labor, or con-
tinued disturbance of the monetary
system of the country, the depression
of the past year might he attributed to
other causes than now appear.
What is the legitimate trade of the
country foppled on but the actual de-
mands' Of the community? lfthese
wants are less In extent In one year, or
series ofyears, than In another, the
legitimate trade Is just SO much influ-
enced. 1t is obvious, therefore, If the
depression of the year can be attribu-
ted to no worse cause than a judiciOus
economy, there Is no great ground for
apprehension. On the contrary, the
only true path back to renewed activi-
ty and safe prosperity is In this d.
rection. 1t is true that the purchasing
power of the people in many localities
is impaired by the condition of Dumer-
Gus industries now paralyZed from pre-
vious over production. Time is need
ed to restore these interests to their
normal condition, and we must wait
until tho equilibrium between supply
and demand for these products adjusts
ITSELF If in the delay no greater calam-
tiles occur than have been apparent In
the past year, there will be cause for
congratulatiOn.
Still another hopeful sign is the
steady effort to at least largely reduce
Indebtedness, II not entirely to liqui-
date IL. While among railroads and
largely expanded corporations this has
been found next to impossible, we are
pursuaded that, among merchants and
traders, the amount of current indebt-
edness, as compared with this time
last year, is vastly decreased. We have
had abundant opportunity to note this
process Of liquidation, and though 1t
had very nearly reached its minimum
prior to the purchases for the spring
trade, we are pursuaded there has been
many prosperous time in the history
of the country when the realizatle as
sets of the mercantile community were
far less In proportion to the liabilities
than now.
A close conservatism In the granting
of credits Is another prominent feature
of encouragement, and in this our PEI
culiar position enables us to speak
somewhat authoritatively, We find
the shrewdest merchants not content,
as they formerly were, with markings
and ratings of credit, with mere gener-
alities and meager reports but they
demand close estimates, the fullest de-
tails as to assets and liabilities, partic.
ulars as to antecedents, character AID
capacity, which in the large majority
of cases we are not only able but only
too glad to supply.
We are conscious that there Is much
in the past year to discourage, and,
seemingly, to delay return to
healthy condition OF trade. Prices for
many products have materially de-
clined, large losses have been submit
ted to, and sales have been largely re-
stricted Those cases are rare In which
the surplus in business has been much
IlCIchScu 6c bnC iCoahb Va th0 yCoAB
while the cases are numerous where
parties have barely held their own,
and many, jfthey honestly look their
affairs In the face, must admit loss.
Yetif, as we have tried above to show,
the cause for the depression Of the
trade Of the country Is to be found in
the enforcement of economy and the
reduction OF Indebtedness, more than
7, in disaster or loss Of wealth. producing
power, surely I'VE should not quarrel
with what In individual cases would
be- no commendable; II that depres-
sion, liquidation aud restriction Of
business ihas been submitted toawith-
. out serious. disaster, surely there is
ground for hope that In the near future
there is not only safety, but . gradual
aud sure improvement in the cl1arne-
ter, extent and prefitAbleness Of legiti-
mate trade. esr ~ - -.lal
There may be causss at work todefer
tand indefinitely postpone this inn
provemeBt, but 70 b difficult 70 discover
or enumerate them. Unwise lcgisIa-
tion may retard Il, some sudden quirk
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