Connecticut western news., 1876-01-28

to be able to present to our readers the exact figures from most reliable source the mercantile agency of Messrs. R. G. Dun < Co.-from whose annual circular we gather some important facts.
 The number of failures in all the United States show large increase as compared with those of previous years, while the proportionate liability is somewhat less than the average. The following are the figures
 Fears raIPsst. Es2z Gross s.!. ..a' 1tssg assrsg: 1875. .....574o s2O1, ,O6O, 1858 s25, ,967 1874 5, ,83O 155,239, 900 26,626 1873 22S 449 OOO 44085 1872 4 069 121O56, ,OOO 29,996 1871 2.915 85,252 900 29,245
 An increase of fifty per cent. in the number of failures within the last year would at first glance appear very start ling, and us indicative of the condition of trade is @ most important revelation. But the circular before us urges some suggestions on this point that should not be lost sight of. It says:
 AS compared with the number of parties in business, the proportion of failures does not seem excessive, especially bearing in mind how continued the depression in all interests nAS D00Q. 1n0 HuulO0E Ol p0r6OuS uOW TO" ported in business in the United States on the books of the agency are 630,000. Of this number ', TAO have failed during the year, in dicAting 8 proportion of one in every eighty two. It is true this is higher percentage than usual but we question very much if it | is higher than prevails in other countries | under similar circumstances. In our previous | quarterly circulars we took occasion to prove, 1 by figures then adduced, the general correct | ness of this position, and we believed If the Inko aofk Fail 0%1, | for instance those of Great Britain or Ger many-were accessible for the past year, the number of failures in the United States would | be found not proportionately excessive. We | are entitled to whatever comfort this reflection | may bring to us, especially to meet the fre- l quent allegations that our misfortunes are the | result of monetary system differing from | that of the rest of the Sorld. The figures in the above table from California, where busi- ness is done on gold basis indicate that one trader in every forty-tw has failed; while in | Canada, with low tariff, 8 most admirable banking system on gold foundation, and 8 light taxation, the figures are even more sug- | gestive, the number of failures having been one in every twenty-eight. This latter pro | portion is very extreme, and is in 8 measure accounted for by certain amendments to the | local bankrupt law, to avail themselves of which large number both in and out of busi- ness made application for relief before the ex- piration of given period. Still it is undeni- able that, allowing for this circumstance, the | failures in Canada are far in excess in propor- tion to those in the United States.
 It is interesting to remark the loca- tions of the failures of the year as com pared with previous similar periods, and for this purpose they have been grouped into four distinctive sections of the country. Want of space prevents us from extending the comparison beyond the past and previous years.
 States 5ss1.. 4GsSss. 4sS.s. % rs!lsys. s g 4:ss. New Eng'd. ,s35I $4o, ,O15, ,164 79oI$15 845, GOO Middle. 9, 395I 82,522, ,s46 ,O35 82,O81, ,OOO Western. . 9, 336| 36,473, ,864 1,744 s. O73. .OeO Southern. I, 333 36,277, 777 1, 126 20,69O,OOO
 In the above comparison it will be seen to what extent New England has suffered, and tha the increase in the number of failures has not occurred largely either in the Western or Southern States.
 Some interesting conclusions are drawn by the agency, from the amount of liabilities arising from the years fail ures, to be charged to profit and loss.
 The circular says:
 The liabilities of 7.740 who failed in 1875 are HI IOuuO nunD0rb two hundred mlll1OnB OI OOl- lars. From this amount should be deducted ten per cent. for advance on original cost of
 goods sold to these parties, leaving an apparent lookup of one hundred and eighty millions.
 Estimating the average yield of failed estates
 to be thirty-three and one-third per cent
 (under the operations of the new bankrupt
 law it will fall far short of that the actual loss
 to capital account by the failures of the yeal
 will stand at about one hundred and twenty
 millions of dollars. This amt mt is equivalent
 Gn hn ol1n rRn .ho1f o$ Il,
 and is more by thirty per cent. than the entire
 yield of all the gold and silver mines of the
 country. It is & serious loss that individuals have to bear, to be deducted from the
 profits of business or to trench upon accumu.
 lstions of previous years. This one hundred
 and twenty millions cf loss represents prof
 at ten per cent. on one thousand two hu undreG
 millions of dollars of business; in other words
 that amount of business of the country for tho , past year has been done for nothing the pro sfts being absorbed by losses. This loss of ont , hundred and twenty millions of dollars ii luckily diffused over good many centers o
 trade, and has been pretty equally divided be
 tween individual concerns but it is safe tt infer that, coupled with the decline in values l the loss by bad debts must have caused } shrinkage more apparent than in any yea , since the panic.
 The system of compromising indebtedness . at 8 large deduction, while in many cases com 5 mendable, is open to the greatest abuse an(
  3 that serious results will follow the indiscrimi s nate practice of it recently apparent. AS , rule settlement with an unfortunate but un
 worthy debtor furnishes him with no addi , nor capital, neither character nor conserva . tism are imparted by compromise, and il q six cases out of nine the same result will fol low in the course of time. Meanwhile thu dishonest trader who gets his settlement 8 thirty or fifty cents can very we'll afford to un a0IVAnk 00rHhant t pay one hundred cents on the dollar Tn F entire trade of towns, especially in the South
 has been demoralized by settlements with par
 ties entirely unworthy of confidence, who, b.
 tors, are able to tempt the local cash trade b :. prices far below what an honest merchan s dare accept. The result of competition between - them will be to impair the fortunes of the sol ? vent man, unsettle the community, and de | stroy the chances of 8 profitable business ' reference is here made to the numerous case s where unfavorable circumstances, and othe @ misfortunes, compel honest and worthy men u ask indulgence of their creditors who i n granting it act both generously and wisel
 for the interest of all concerned, but the closes '. scrutiny is urged in respect to antecedentt 1T causes of failure and the actual condition ( @ the debtor, and especially ss 60 the effect o d the community, of his being continued i d business. compensating advantage for a h these hard times should be found in the ra wedding out of the unworthy traders, who
 from lack of capacity, character, or some othe l. qualification, do no good to themselves, the d neighbors, or their creditors If the numbt Of producers could thus be increased by col responding diminuticn of retailers ar impo
 tant step would be taken toward soundt condition of mercantile trade than now exist J The Gold Yield.
 s,~ T