The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1876-05-10
THE FINANCIAL PROSPECT.
The Failures thus Far In lS76-A Largo In
crease for tho First Quarter.

The figures show an increase in mercan-
tile casualties, which, though expected,
is larger than was anticipated. The
number of failures sre Get down at 1905,
with liabilities of $64, ,000,0 900. Compar-
ed with the same quarter in 1876, in
which the number was 1,733, with liza
biities of $38, ,000, 900, the increase is
very marked mounting to l,073 in
number, and $26, 600, 900 in liabilities.
But as compared with the statistics for
the previous quarter, or the last three
months of 1875, the showing is not 80
bad, In order to present the figures in
more intelligent shape for comparison
We group them as follows 81
First quarter in 1876. ......2,S06 $64, ,000, 600
First quarter in 1875. 1,7ss $1,000 900
Last quarter in 1875. 80: .2,405 7o,000,0Oo
While, therefore, there is slight In
crease in the Last quarter over that just
previous to it in number, there is posi.
live decrease in liabilities. 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 a prosperous condition is
any nearer, except in the passage OF
time, than it was q year sgo. The quar-
terly circular, from which the foregoing
figures are taken, remarks: 81 Et&.ati
"Ths business Of the country, in every de-
partnent, continues to be restricted to the
narrowest limits without ! corresponding re-
duction in expenses, and In the face Of declin-
inga prices Of all staples, the possibilities Of
profit have been slight indeed. It is, therefore,
not 9 matter OF, surprise, that 80 many have
succumbed to the pressure Of the times; the
wonder rather Is, that with all the discourage
menA which In the past two or three years
haye been experienced; go many survive In .
condition Of apparent ability. When all the
circumBtancesI are considered it should not
create surprise that the statistics Of failures
show q marked increase In seasons like the
\ present A condition. OF expansion. such 81
the large expenditures Of the war induced and
which 9 vastly increased currency caused to be
pefpetuated, could not take place without
Stimulating trade 'unduiy, and causing such
large numbers to enter commercial pursuits -
TO crowd all avenues Of businees with more
! than an adequate number even when trade
was Mt its best But now that there is but
little business to be done beyond supplying
the restricted wants OF the people the exces-
siye number in trade must be lessened, and In
the struggle for existence the doctrine OF the
survival of the ittest receives fresh iluatra,
ton. IEis to be deplored that the large army
Of traders, whose services are no longer re-
quired, cannot! retire from the field, except
through failures The voluntary Withdrawals
from business are in fay less proportion than
they should be, in view Of the great reduction
in its extent" - ,..sI.t..;..g.r- ~. !
Although failures are generally re-
garded as the most marked indication OF
q bad condition Of trade, from the fore
going it appears that this is the only
process by which the number engaged
can be .1essened, so that those who re-
main may make profit enough to yield
them a living. Yet, even from this pro-
cess there seems very little prospect of a
lessened number in business, owing to
the facility with which compromises
after failure are Effected In relation to
this the agency remarks: y -. '',,t' 81
EaThe very men who have demonstrated
| their lack Of success are those only who make
money In these hard times. By purchasing
their assets from their creditors at low figure,
o sufficient capital is not unfrequently yielded
| to continue In business, but always to the
detriment Of those who are endea7oring- to
discharge their obligations In full In this
view It Is q national calamity that the bankrupt
| law is in its present condition, The wise and
liberal principle which this law is intended to
maintain, is abused by the mistakes In its
enactment, aud the facility which 1t affords to
the debtor, by judielouss smanipuls ulstion, to die
tate terms to the ,creditor, who.thereby loses
control Of his oWn property, and . disposinon
is not unfrequently made Of it, entirely foreign
to his wishes and opposed to bis convictions.
The many considerations which cause creditors
TO yield to the. solicitations Of debtors for q
compromise Of their indebtedness are sufh-
ciently strong to keep the ranks full OF those
who have failed to succeed; but encourage
ment to fraudulent failures, snd well-dehned
attempts to make money BY. this class OF mis-.
fortunes, were certainly never contemplated
By the law. Suoh, however, is the result, and,
added, to all the limitations and difficulties OF
business OF the present time, Is this misfor-
tune, that while failures are numerous, the e1-
eessive number engaged in . restricted trace
lessen -slowly, fraud is encouraged, and the
chances of success for upright and capable
subsequent settlement at trihmg dividend o.
the weak In capacitv and the poor In capital
With regard To the general condition
of trade and the prospect for the future,
the circular before us does not shed
much light beyond the photograph fur.
nished By the valuable figures above pre-;
sented. It is to be presumed the agency
people have got tired predicting q reviy:
al OF trade with each coming season, and
wisely refrain from dealing in vain de-
lusions. AS to what is needed to pro.
duce better condition of business, the
circular says :. - ..:..j 40
Notwithstanding that all the ability Of thii
great nation Of inventors has for the pas
three years been intent upon the discovery o,
some plan whereby trade can be restored to
normal condition, no theory has yet been found
that exactly fits the case or eccompi1shes the
result The progress toward prosperous
condition, which at first was thought might be
rapid, it Is now generally considered must be
exceedingly gradual. Still further. 1t is grow
ing conviction that a better and safer con-
dition Of trade can only be brought about by .
points, and hence there are those who hail as
q good sign every quotation Of lower prices In
dloating q possibility Of economy in living. and
q return to rates for all staples such as pre-
vail in other quarters Of the globe. How far q
restricted currency, and an approach to specie
payments, will contribute to this result, it il
needless to say but evon in anticipation ol
that most desirable contamination the ten.
tency to lower prices for everything Is to many
the most hopeful sign Of the times.
To show to what extent prices have
been reduced, an interest table is given,
with quotations in April of 1873, as com
pared with those in April, 1876, OF sever
al leading articles, for which we have
not space. Notwithstanding reduction
in the price of numerous staples enter
ing into the everyday wants OF the peo
pie, the agency pertinently asks:
"Yet, IN the face of all this decline, what i
the real percentage Of decrease In living ex
penses in 1876 as compared with 1878? Itcer
tainly ought to be much more than 1t is. Tn
profits OF retailers continne to bear the sam
relative high percentage that they did in bette
times; and, indeed, it looks as il restricted
trade was atoned for by higher profits, as it |
certain that goods are bought at wholesal
much cheaper, and sold at retail almost q
high as in 1878. All this must, however
right itself in time. Competition and th
lessened expense Of retailers themselves wi
accomplish the result Of adjusting the cost Q
living to proportionate cost Of production
When this is reached, an important step tc
ward q healthier condition of things will hav
been attained. .-.-.. r..
Respecting the future there does nc
appear much in the present outlook t
encourage the hope of immediate revivf
- 1,,o;ro,, nbo airo,, ior frop, ,vhso