The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-01-20
Business Failures.

That the business community of the
United States was compelled to encoun.
ter disasters during the year just closed
Us known of all men. The failures of
1876 were greater in number than in any
former year of our history, being 7,740.
But the amount Of liabilities in the fail
ing concerns was not 30 great as In the
panic year, 1873. The liabilities under
failures In 1873 amounted to $22S, 500, 900;
in 1875 the amount was $201, ,O6O, 1858. In
1874 the number of failures was greater
than in 1878, being $3.50 against s, 1888 in
the year of the panic. But the amount
of liabilities in 1874 was $155, ,239, 900;
being about $48, 600, 900 less than in 1875.
1t is estimated that the assets in the
failing cases paid about one-third Of the
liabilities.
Our State of Ohio stands very fair
among the States in this regard. We
had $3.50 failures, with liabilities amount
ing to $4,000, 900. New York had 1857
failures, with liabilities amounting to
SCI, ,1S4, ,4S9. Massachusetts had twice
the number Of failures Ohio had, 772, and
liabilities amounting to $27, ,494, 943, Ibeing
more than three times the amount in
Ohio. Pennsylvania had 6S3 failures,
with liabilities to the amount of$1S, ,247,-
b72, more than twice the amount in Ohio.
These statistics, derived from the
Commercial Agency books of Dun, Bar
low Il Co., likewise show that in Califor-
mia, where business is done on gold
oasis, no less than 237 failures occurred
in 1875, with liabilities amounting to
B5,2S1,111. So too In Canada, where the
Larif is low and taxation light, and
a coin currency, the proportion of fail
ures has been even greater than in the
States.
: There are 6S0,000 persons reported on
the Agency books as engaged in busi-
ness in the United States. or this whole
number the failures Of 1875 amounted to
one in every eighty-two. But in Cali
fornia the ratio of failures was one to
every forty-two; while in Canada the
number of failures amounted to one to
every twenty-eight persons in business.
The details of the statistics show that
the failures, though numerous, have not
fallen in any marked degree upon any
particular lines Of trade; but have been
scattered among them all. 1t is further
shown that the active surplus or capital
now employed in the legitimate CONNER
cial business of the country is in larger
proportion to the business done, and to
the amount of liabilities existing, than at
any time in the previous history of the
country; and, as is believed, larger than
that of any other country having equal
extent Of domestic or internal trade.
This is considered as indicating a
sounder condition for future business
than the country has presented for many
years before.
In addition 10 these signs OF future
soundness, it is found that the producers
OF the West and South have within Inc
last sixth months received Tor grain,
cotton, tobacco, pork, &c., over $3.50, ,OOO,-
600. This immense amount is regarded
as materially strengthening the purchas-
ing ability of those sections; and that
there will be a corresponding demand
for goods of every kind, that can not all
to quicken trade as the season. opens.
1t will nevertheless be.,ooye business
men to keep elise hand ON extra ex.
penses, ts scrutinize credits closely, and
,rork close TO the wind in the extent oi
trade, in order to inaugurate the pros
perity that all men desire.