The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-11-17
BUSINESS FAILUREs.

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Agencies are frequently cited, Of late, to
show the pressure OF the times in busi-
ness circles. From these reports 1t is
made to appear that business failures
have been more numerous and for larger
amounts, during the present year than
in any preceding years; and the COM
mon inference has been that business is
becoming still more seriously depressed
than at any former time.
Granting that those Agency reports
are, in the main, reliable, still 1t may
not follow that business depression
throughout the country is greater than
heretofore. The facts may be true as re-
ported, and yet the inference may be al
together erroneous. For it Is equally
fact that very large proportion Of the
failures reported have occurred among
business houses which have been strug-
Cling and staggering under their finan-
cial burdens for two years past; and
have been kept afioat thus long only by
struggling in the hope Of some lucky
turn in their affairs. Failing I'm this,
they must 60 down. Such houses re-
ceived their wounds long ago, perhaps
in the panic of 1878, and it has taken
them this long to die. Consequently, al
though the number Of failures may be
greater, it is not SO much that they are
victims of the business depression Of
1876, as that. they fell victims to the
troubles of former years. 1t is in this
way that 1875 has become the strand
whereon are found the wrecks OF pre-
yious storm, and with whose disasters
the present year had little or nothing to
do.
In almost every instance Of failure or
suspension it will be found that the en-
barrassments originated in transactions
altogether antecedent to the business OF
the present year. Consequently, 1t
would not be conclusive of the fact that
the business depression of this year is
more excessive than heretofore. Indeed,
the occurrence of those failures, which
In reality commenced two years ago
may not be inconsistent with the gradual
Improvement of business during the lat
ter months Of the present year.
Another fact in connection with these
failures is of equal Significance, viz: thai
in very large majority OF cases, esti
mated in some quarters as nigh as seven
eighths, the direct cause of the failures
did not originate with the legitimate
h,.ai of Al nf than.
selves, but in outside speculations int'
which their capital had been too largely
diverted. Instead of pursuing the regn
lar channel OF their business, they have
turned aside to dabble in fancy stocks,
10 take their oh ances in s'cornering'
lard, or whisky, or grain, or in mutua
exchanges of accommodation endorse
ments for speculative purposes. In suct
condition of things, when one fails, al
standing on this line must go down with
him. The initial brick sets the whole
row a-tumbling.
1t is this demon Of speculation that
has brought ruin into our business
world, and all our financial woe. N,
sooner do men find themselves in com
mand OF good business positions, sur
rounded by prosperity, and on the roat
to competency or fortune, than they ar
beset by this lnvidious fend, who come
and sets squat at their ear, and whis
pers schemes OF avarioe and ambition
infinitely beyond the reach Of ploddin
industry in business affairs. Even pru
dent mems minds become intoxicate
by these venomous influences; an
they are ruined by their erratic scheme
In Fastening to get rich. The presen
year is reaping harvest, wofull,
abundant, from seed OF such sowing |
former years. And yet it were unjust Il
the business of the country to faster
upon the business of this year the nu
merous failures Of which 1t is not 81
much the parent as it 10 the heir.
This is the lesson most needful, an,
yet the most difficult. for our business
men to learn, 1. e., that outside specula
tion 10 the canker which 10 sure to ca
away the substantial resources OF legiti
mate business. Like the tgnts fatuus
that fits over the morass, 1t Is both de
lusive and dangerous. 1t is beyond tn
scope of any mans mind o>watch wit
appropriate scrutiny all the details .
legitimate trade in his particular line
while his thoughts are wandering wit
the will-o-the-wisp of speculation. HI
business fails because the man has him
self failed.
1t is not true to say that the country
now poor. 1t never before held NOR
substantial wealth. 1t never before ha
more abundant crops. The people ne'
er had greater call to industry. tn
people OF the Old World are coming Q
buyers to our markets. We were rul
ming wild in the mad race OF speeul'
tion. We were brought to sudde
halt. 1t produced shock, but it d.
stroyed nothing but what was itself III
real and delusiye. We have seen til
cause and witnessed the result. ]
those events Of the past lie our lesson
for the future.