New-York tribune., 1876-10-14

of firms failing, which. if general, he properly
regards as an indication of q sOunder condl-
ton of business. The average during the
quarter Just closed is $40, ,533, more than one
third less than the average for the correspond
ing quarter last year.
Vpon closer scrutiny however, the report
does not seem, even in this point OF view, to
Justify hopeful conclusion as to the condition
of business, excepting in this city. For 1t APP
pears that the average Indebtedness OF nSol-
vent firms in New-Yorll City has been reduced
from $143, SAB i'll 1878, and S5S,O52 during
the first three quarters OF 1870, to S4l''0j
during the three quarters of 1876. But Ill the
whole country outside of New Ork there has
been only a trifling change for the better the
average in 1875 being $2O,776 for the three
quarters, and in 1876 only $50, ,195. In effect
there has been quite as much of increase as OF
decrcasr IN the average of commercial indebted
ness outside of this city, so far as these
rcports serve as an indication; III New
York City. as we know from the bank reports
the loars have much diminished, but not alto
gcthcr because of an improvement in the con-
dit0n of business. Hopeful antiCipatiOns based
upon tie decline in the general average OF in
dcbtcdness are therefore not very well founded.
1t is noteworthy, too, that the average indcbt-
edness of inSOlvcnt firms has materially in
creased in Illinois and Missouri, in this State
outside ai the city, in Connecticut, and Ill
Wisconsin, while there has been no cOnSidcra-
ble change in Massachusetts,. A large decrease
in PENNSYLVANIA, Louisiana. and California,
and moderate decrease i'll Ohio and Rhode
sland. may perhaps Indicate more healthy
condition of business, but it is not impossible
that it may be due, as in this city IN part, Ia
the dullness of business, and the inability to
employ borrowed money adyantageOuHly.
The circular properly calls attention to the
fact that the improvement in business dld not
appear until the quarter had nearly ended so
that it could not be expected to affect the re-
turn of failures Beyond question, the three
months of July, August, and September, II we
except par1 of the latter month"; were de-
cdedly more trying to firms with impaired
capial and credit than any other period SINCE
the Immediate force of the panic was spent
There is much reason to hope that improve
ment i'm trade may bring less diScOumging re-
turns for the last quarter OF the year. but
even as 10 this it is well not to indulge III
excessive confidence.
are proof that weak and unsOund firms are
being pushed ont of the 0vcrcrowdcd ranks.
In many departments we have too many per-
sons irving to do business. Thousands are
competing for the traffic which hundreds
could do quite as well, and with profit to all
instead of loss to most. The rigorous laws OF
nature correct this evil by forcing the less
competent to Withdraw. More room remains !;
the firms which excel in strength or connec-
tions or skill have a larger traffic placed
within reach the same exchanges, performed
by fewer persons can be performed with more
economy and with narrower margins OF proht.
SO the country gains because OF the wedding
out process The change is harsh and un-
welcome but it is necessary. The very re-
turns which show that 1000 individuals have
suffered prove that the country is IN a better
position to transact its business with economy
and profit.