The Portland daily press., 1876-04-14
The Business Of 1875.
The Failures thus far i'm 1s76.---A Large
Increase for the First Quarter.

The Failures thus far i'm 1s76.--A Large
Increase for the First Quarter.
The statistics of failures throughout the
United States, for the three months ending
with March, are furnished by Messrs. E. Rus
sell 81 Co.'s Agency, and indicate a very dis
heartening result. The figures show an in
crease in mercantile casualties, which, though
expected, is larger than was anticipated The
number of failures are set down at 2,8O6, with
liabilities of $64,oO0,oOO. Compared with the
same quarter in 1876 in which the number was
1885, with liabilities of 49, 900 900, the increase
is very marke1-amounting to 1,O73 in number,
and $40, 000, GOO in liabilities But as compared
with the statistics for the previous quarter, or
the last three months for 1875, the showing is
not so bad. In order to present the figures in
more intelligent shape for comparison, we
group them as follows:
Number. Liabilities.
First Quarter in 1875. ,733 3SOO00O0
Last Quarter in 1875. 2,4O5 7O,OOOOOO
While. therefore, there is slight increase in
the last quarter over that just previous to it in
number, there is positive decrease in liabili-
ties. Still, for the last six months the failures
have been exceptionally numerous, and do not
give much encouragement to the hope that the
return of prosperous condition is any nearer
except in the passage of time, than it was
year ago. The quarterly circular, from which
the foregoing figures are taken, remarks:
"The business of the country, in every de-
partment. continues to be restricted to the mar.
rowest limits; without corresponding reduc-
tion in expenses, and in the face of declining
prices of all staples, the possibilities of profit
have been slight indeed. 1t u.s. therefore, not a
matter of surprise that so many have succumb-
ed to the pressure of the times; the wonder
rather is, that with all the disbursement
which in the past two or three years have been
experienced, so many survive in a condition of
stances are considered it should not create
surprise that the statistics of failures show
marked increase in seasons like the present. A
condition OF expansion, such as the large ex-
penditures of the war induced, and which
vastly increased currency caused to be perpetu-
ated, could not take place without stimulating
trade unduly, and causing such large numbers
to enter commercial pursuits as to crowd all
avenues of business with more than an ade-
quate number even when trade is at its best.
But now that there is but little business to be
done beyond supplying the restricted wants of
the people, the excessive number in trade must
be lessened, and in the struggle for existence
the doctrine of the survival of the fittest re-
ceives fresh illustration. 1t is to be deplored
that the large army OF traders, whose services
are no longer required, cannot retire from the
field, except through failure. The voluntary
Withdrawals from business are in far less pro-
portion than they should be, in view of the
great reduction in its extent
Although failures are generally regarded as
the most marked indication of a bad condition
OF trade, from the foregoing it appears that
this is the only process by which the number
engaged can be lessened, SO that those who re-
main may make profit enough to yield them a
living. Yet even from this process there
seems very little prospect of a lessened number
in business. owing to the facility with which
compromises after failure are effected. In re-
lation to this the Agency remarks:
1.-THE very men who have demonstrated their
lack of success are those only who make money
in these hard times. BY purchasing their as
sets from their creditors at a low figure, sufi-
Gent capital is not unfrequently yielded to coz
OF those who are eudeavoring to discharge their
obligations In full. In this view it is national
calamity that the Bankrupt Law is in its pres
emit condition. The wise and liberal principle
which this law is intended to maintain is
abused by the mistakes in its enactment,
and the facility which it affords to the debtor,
by Judicious manipulation, to dictate terms
to the creditor, who thereby loses control of
his own property, and disposition is not I'M
frequently made of it. entirely foreign to. his
The many considerations which cause creditors
to yield to the solicitations of debtors for a
compromise Of their Indebtedness, are suffi-
GENTLY strong to keep the ranks full of those
to fraudulent failures, and well-defined at
tempts to make money by this class of mis-
fortunes, were certainly never contemplated by
the law. Such, however, is the result, and,
aided by all the limitations and difficulties of
business at the present time, is this misfortune,
that while failures are numerous, the excessive
number engaged in restricted trade lessen
slowly, fraud is encouraged, and the chance
Tor success for upright and capable merchants
are diminished by the failure and subsequent
settlement at a trifiing dividend Of the weak in
capacity and the poor in capital
With regard to the general condition of trade
and the prospect for the future, the circular be-
fore us does not shed much light beyond the
photograph furnished by the valuable figures
above presented. 1t is to be presumed the
Agency people have got tired of predicting re.
vival of trade with each coming season, and
wisely refrain from dealing in vain decisions.
AS to what is needed to produce better con-
dition of business, the circular says;
Notwithstanding that all the ability of this
great nation of inventors has for the past three
years been intent upon the discovery of some
plan whereby trade can be revived to normal
condition. no theory has yet been found that
exactly fits the case or accomplishes the result.
The progress towards prosperous condition,
which at first was thought might be rapid, it is
now generally considered must be exceedingly
gradual Still further, it is growing convic-
ton that better and safer condition of trade
can only be brought about by a reduction of
values to their lowest possible point, and hence
there are those who hail as good sign every
quotation of lower prices indicating a possibii-
ity of economy in living, and a return to rates
for all staples such as prevail in other quarters
OF the globe. How far a restricted currency,
and an approach to specie payments, will con-
tribute to this sesut, it is needless to say; but
even in anticipation of that most desirable con.
SUMMATION the tendency to lower nrices for