The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-07-14

ONO oldteo lOT Juc HT5J TWO Quarters of
the year have been forwarded to us by the
Mercantile Agency Of Messrs. r. G. Dunn &
Co. The total for the past six months, as COM
pared with same period of last year.s far from
reassuring, as the following will show:
First quarter. Second quarter.
1875 sisoSOooc S%Us sSi Ss sasSS1 ATSSns; aco
1S76...2,sO6 6i,OOO,OOO 1874 100000
Sir months.
100 '.''''''''''''''......'.. ,563 76,000,000
ieI6''''''... ..'................4,6 .4,6OO 1O7,O0O,OOO
This shows startling increase, both in the
number of failures and amount of liabilities for
the six months just concluded but attention is
drawn to the fact that this increase mainly oc-
CURED in the first quarter of the year. AL
though the figures for the three months Just
closed are somewhat larger thaa those in the
corresponding quartsr of 1875, there is a mark
ed decline in the figures for the second quarter
OF the current year. In other words, the num-
Der of failures in the last three months are less
in number by one thousand than in the pre-
cedng three months of this year, while the
liabilities show decline of S21, ZOO, 900, both
items showing an improvement of over forty
per cent. This variation is greater than ever
SN'NAS a. "hS '"ihO pOhiOus duu III luis
instance, the variation is in the right direction
1t appears from the circular before us, that the
average liabilities of each quarter in the past
eighteen months are SOL 100000; so that the
liabilities of the quarter just closed (S43, ,0OO,-
sO0) are $S,OOO,0OO less than the average
From these figures the Agency is inclined to
encourage the belief that we have seen the
worst effects of the present depression. so far
as failures are concerned. The circular saws:
ut is true that business continues in very
depressed condition; that the results of trade
with rare exceptions, have been exceedingly
unsatisfactory; that values continue to decline,
and that uncertainty and anxiety exists inc ali
quarters. Yet in the face of all this, there is
comfort in the reflection that the causes which
produced this condition of things have been al
ost completely reversed. In the place OF
reckless er-trading, we have now lessened
sales guided by caution, and also prudence in
purchasing Instead of enormous over pro-
ducton of all descriptions of manufactures.
there is now the strongest tendency to limit the
product, and thus lessen the possibility of a
still further decline in prices. Vastly increased
expenditure on public works has been succeed
ed by the almost complete cessation of con
struction. Economy in business and personal
expenses has taken the place. to a very large
extent, OF extravaga nee and reckless liberality
and this very tendency while it is the cause of
restricted business, is one of the best signs of
an early return of prosperity. So that in all
departments there is evidently a change, and
such change as it was necessary for the three
years OF depression to produce, and without
winch 1t was hopeless to expect revival of
business on sound basis. Having reached
this condition, is there not ground for hope that
better state of things may now prevail?
1t would be idle to expect that very marked inn
provement will be evident in the immediate
future. Things have reached too desperate a
state to permit such hope. The circumstan-
ces OF an exciting political campaign are not
favorable to the growth of confidence, aud the
return OF business to its wOnted channels. But
the coming Autumn will, it is believed afford
hopeful indications for the future. Another
year of great productive power has been given
to farmers and planters, and the country must
be greatly enriched by the realization of the
agricultural wealth with which it now teems
Internal Indebtedness is not excessive; stocks
OF goods in all quarters have seldom been so
small; prices have touched point so far below
cost of production, that an improvement in
value can hardly fail to take place, and it seems
impossible that circumstances could exist, more
tayorat lie to improve the condition OF the ligiti-
mate trade of supplying the wants of the peo-
pie, than now prevail. Speculation, and ex-
panded operations involving large and perma-
nent investments, are not likely to receive
much encouragement. But, there ought to be
an increased demand for goods of necessity and
merit, and with this should follow better re-
ports OF the condition of the various parts of
tue country than we are now able to present.
The power OF absorption by vast people in
condition to purchase and pay for merchandise
is very great; that power has reached its lowest
exercise now; yet, as will be seen, we have had
less failures in the last three months than for
the previous quarter, and the fact that there
are many signs of more hopeful condition of
business is undeniable."
The Bankrupt Law, as it at present stands
is charged with largely increasing the failures.
and with Congress rests the responsibility of
failure to meet the strong demand which exists
in the mercantile community, for either an
amendment or repeal of the law.
The circular contains returns from the Lead
ing centres of business also the condition of
trade, promise of crops, ETC., some of which are
very sensible and encouragings others pointless
and vague.
1t is a significant commentary upon tho
change that has taken place in the supposed
wealth and resources of the mercantile COM
munty, that Messrs. II G. Dunn & Co., have
under consideration change in their key to
ratings, or estimates, by which these ratings
will be made to conform to the large shrinkage
in values everywhere apparent. In other
words, so great and general has been the de-
cline in assets of all kinds, that it is proposed
to reduce the Agency estimates from twenty to
twenty-five per cent. throughout This is
bold and important step for the Agency to take,
but it is a step in the right direction, agreeing,
as it does with the actual condition of things
as they really exist, and with the con servative
tone of the present time.