The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-01-17

United States shows large increase as COM
pared with those of previous years, while
the proportionste liability is somewhat less
than the average. The following are the
figures:
Years. No. OF Gross Average
Isz5..- A 7.7so saSIoso.sss @s sa5,ssc
lS7l...-.....-.- $3.50 I55,2S0000 26,S26
lSI2..............- 5,lS3 22S,ss9,0oe 44,O85
Is7I..,................. 2.9i5 s5.2S2'0O0 6sOio
An increase of fifty per cent. liz sbA num-
Ter OF failures within the last year would
at hrst glance appear very startling, and as
Indicative of the condition oftrsde Is q most
Important revelation. But the circular
urges some suggestions on this pcint that
should not be lost sight Of. 1t says. AS
compared with the number of pertlos in
business, the proportion of failures dses zOt
seem excessive, esp ecially bearing il mind
how long continued the depression in ali
interest has been. The number of persons
now reported in business in the United
States on the books of the agency are $780,
600. OF this number $40 have tailed dur
ing the year, indicating proportion of one
in every So. j. is true this is a higher per-
centsge than usual; but we question very
much II il IL higher than prevails in other
countries under similar circumstances. In
our previous quar- erly circulars we took oc--
caslon to prove. 10y figures then adduced,
the general correctness of this position, and
ne believe If tee statistics OF the failures in
other countries-for instance thcse of Great
Britain or Germsny-wele accessible
LOT the past year, the number of
failures in the United States would
be found not proporIionstely excessive.
We are entitled TO whatever comfort this
reflection may bring to US, ek pecially to
meet the frequent allegations that our mis-
fortunes are the result of a monetary sys EN-
differing from that of the rest OF the world.
The figures in the above table from Cali
tornis, where business is done on gold
basis, indicate that one trader in every
torty-two has failed; while in Canada, with
low tariff a most admirable backing sys-
tenn on a gold foundation, and a light tax
alton, the figures are even more sug estive,
the number of failures having been one in
every twenty-eight. This latter proportion
is very extreme, and is in a measure &C
counted for by certain amendments to the
local bankrupt law, to avail themselves of
which large number both in and out of
business made application for relief before
the expiration of g given period. Stilllit is
undeniable that, allowing for this circum-
stance, the failures in Canada are far in ex-
cess in proportion to those in the United
States. 1t is interesting to remark the To-
cations of the failures of the year as COM
pared with previous similar periods, and for
this purpose they have been grouped into
the four distinctive sections of the country
as follows:
LOCAL DIVISION.
No. of Am'nt of No. of Am mt OF
STATES. Fall Liabiii- Fall Liabiii-
New Eng stat'si.sss s46,Ss.ls4 Tso s5,sssoOO
Middle sta . Ss5 s2522$s6 2gS5 s26SL90
Southern ststesisss SSaaI LIS SS SsS,S
In the above comparison it will be seen to
what extent New England has suffered, and
that the increase in the number of failures
has not occurred largely either in the West
ern or Southern states. Some interesting
olr L.
liabilities arising from the years failures, 10
be charged to profit and loss. The circular
saws: "The liabilities of the z ,740 who failed
in 1875 are in round humber two hundred
million of dollars. From this amount should
be deducted ten per cent. for advance On
original stock of goods sold to these parties,
leaving an apparent lookup OF one hundred
and eighty millions. Estimating the aver
age yield of failed estates to be thirty-thcee
and q third per cent, (under the operations
of the new bankrupt law it will tall far short
OF that, the actual loss TO capital account
by the failures of the year will
stand at about one hundred and
twenty millions of dollars. This
amount is equivalent to the value of one
half of the cotton crop, and is more by 20
per cent. than the entire yield of all the
gold and silver mines in the country. II is
a serious loss that individuals have to bear,
TO be deducted from the profits of business
or to trench upon accumulations of previous
years. This 120 millions of loss represents
profit of ten per cent. on 200 millions OF
dollars OF business; in other words, that
amount of business of the country for the
past year has been done for nothing, the
profits having teen absorbed by losses.
This loss OF 10 millions of dollars is luckily
diffused over good many centers of trade,
and has been pretty equally divided be-
tween individual concerns; but il is ssfo to
infer that, coupled with the decline in
values, the loss by bad debts must have
caused shrinksge more apparent than in
any year since the panic" In this connec-
ton reference is made to the facility which
such periods as the present afford for
MAKING MONEY BY FAILING.
The system OF compromising Indebted
ness at a large deduction, while in many
cases commemorate, is open to the greatest
abuse; and our observation for the past
year conyinces us that serious results will
follow the indiscriminste practice of it re-
Gently apparent. AS rule q settlement
with an unfortunate but unworthy debtor
furnishes him with no additional element of
success. Neither capacity nor capital,
neither character nor conservatism are Inn
parted by a compromise, and in. six cases
out of nine the same result will follow in
the course OF time. Meanwhile the dis
honest trader who gets his settlement at
thirty or fifty cents can very well afford to
und6rsell the sOiYent merchant VINO desires
to pay one hundred cents on the collar.
The entire trade of towns, especially
| in the South, has been demoralized by
settlements with parties entirely unworthy
of confidence, who, by imposing on the
good nature or fear of creditors, are able to
tempt the local cash trade by prices far be-
| low what an honest merchant dare accept.
The result of competition between them will
i be to impair the fortunes OF the solvent man,
unsettle the community, and destroy the
chances of a profitable business. OF course
IL must not be understood that reference is
here made TO the numerous cases where I'M
favorable circumstances and other msfor-
tunes compel honest and worthy men to ask
/ indulgence of their creditors, who in grant,