The Centre reporter. [volume] (Centre Hall, Pa.) 1871-1940, 1877-02-08

s,.-... ,a :. ,...-:.. 81 3. f;si;s' i'siii'.:' 3
\. =. States. 1859 l,n4 sg7,c57,oo2
Middle States Bose 1876 Is4 29u9 ~ "a, ,6sl
Western State DO. x25 800 s. 8I39 81 $40 81
Southern States. - 40 1851 3.0s3 26G
Pacific States ..- ~ Si3 aog .Gdl 80
Canada ......... $1,000 LIS 2s5l7.99l
An examination Of the above table
confirms the impression, which has been
very general, that the trade IN the West
EN- and Southern States has been less
disastrous than that 81 the Eastern and
Middle States. Ia this connection the
agency draws attention 10 the following
1T is \ significant circumstance. that tie
failures ia the Middle States are one ia eyeic
nfty-s-Yen names reported ia business, while
IN the Western States the proportion h one
ln every scveuty-tuo. Lut the comparison be-
tween the East and the south is even more
significant. for in New England with al IL
wealth and slhdity. one in every hfty-Hine Lss
welded O. she pressure - tie umes. while IN
the South, with all lie poverty il political and
other disabilities. the percentage ~ failures ir
only one lu every sl1ty-fuur. kyeu IA Canada.
where there j. . gold haEs, light TAXATION,
freedom from political complications, and All
other fAVufiug conditions the above showing ls
tho United States thr failures IN the Dominion
being uuu la every thuty-two. In England nO
very accurate figures arr uhtAiuAble. and none
II course ~ vet for the past year, but for 1915
q return Nah made Il J. zoo failures among CO.
600 firms prumineat ia trade indicating one
failure faf every tl4lrty-sir firms reported In
business with an average liability 81 ss7.
The fgurcs for the Disicd States, showing
failure % one ln every slAfy-illrcc, with al
average Aahllity Of s2i,o5o Indicate that the
pressure - the times has been either not sg
Frczt in ills country ~ elsewhere. ~ that d
haf been Iorne with les disastrous results.
But reyerting to the palpable and
painful fact that the failures IN the
United States, instead uf showing a de
crease as resulting from the economy and
conservatism everywhere evident, actu-
ally have increased in 1876 10 the extent
uf $50. even over those Of 1875. which
Iu it, turn showed an increase oi nearly
two Thousand. some explanation is neces-
sary This. the circular before us seeks
30 furnish as follows
We're IL not To- the reflection tia; DISASTER
arc the uc-ults of circumstances not directly
chArgcalac 20 the business operations ui tie
year ulc prospect would bo well nigh die
hrartentng. But that q large number ~ these
failures are the results 81 departure from cor
rect business prgnclplcs ia voar~ gone by. there
can D. 10 doubt. The crisis ~ ls1S, and the
cundtluu % expansion and uxcr-NAluAi3on
which it revealed havr had far more 30 do with
causing the numerous failures % 1870, than
have the business operations Of that wear The
rTccts II the depression and necessary con-
tractious ~ isT4 and 1875 we're hardly NOR.
apparent iu the failures ~ those wears than
they are ia those 81 1870 X would be entirely
Urlfoa safaltic % expect that the restricted and
- la D.
sufficient 81 sustain the large number 81 ttadcrs
which former prosperous seasons s,duccd into
business while even those long time "a trade
and possessing all other elements 81 succcss
found Il impossible 20 solve that most difficult
81 problems OF reducing expenses with the
same rapidity as their trade and proats d.
minisllcd. To inircnch on capital and large
ly reduce IT, was of course the necessary con
sequence but unfortunately very large num-
br! % traders. uumiudful Of tie axiom that
20 depart from legitimate trade ~ % lose
money had in the good times invested their
surplus in outside operations, such a. real
estate and other permanent assets, 30 that
when the need for active capital came upon
them. they were ia no position 10 respond 10
pressing obligations. The consequence ls seen
IN the augmented list of failures above pre-
sruted IL is true many of these failures arc
the result of other influences. hereinafter re-
fcrrcd %. hut Il will be readily admitted from
ihcfuregoing. that 20 other causcs than those
which have originated and prevailed during
the past year, may ho attributed large
share Of the misfurtuncs which have been our
unhappy duty 20 chronicle.
From this Il might be unfair 10 con
clude that the trade Is in an unpromising
condition because the failures show
such a marked increase. A wider view
would probably include circumstances
more encouraging, and the circular from
which We are quoting supplies some
facts conhrmatory Of that impression
For instance. II is uudonialc that the past
wear has witnessed marked improvement IN
the values of many leading staples, IS compar-
Cd with the prices prevailing IN 1873 II Is
equally true that IN extent of profitable trade
there has been n perccptlhle gain, and there D.
no DENYING the fact that, IN many branches of
business a much larger number have added 20
their available surplus during 1916 Than IN 1878.
Many articles had reached par value. IN Illus
trntion Of which the statement may be vcnturcd
that. a. far A. further depreciation ia prices
was concerned, specie payments might have
hccn resumed IN the early part 81 1876 without
causing any material disturbance in values. Not
only had some prices reached psr-and in some
cases below it-but Il was settled conviction
that the stock of goods Ia all hands nearest the
consumer had reached the lowest possible point.
Production. warned by previous losses, had
been regulated 90 the extent ~ positive wants /;
and the pressure Go sell, Eo apparent in 1873
was largely diminished. Thus, barely the uist
half Of 1876 was reached. when all the condi-
tious Of stock. supply, demand and price favored
an improved condition Of business. That this
Improvement did take place IN september and
October was everywhere evident but the heat
"a Presidential contest. and the miserable mud
die as 81 the result Of that contest which has
since prevailed. has almost completely paraly lyEed
business The last two months OF the year,
therefore, we're most Disappointing, and from
causes exceptional aud temporary in character,
the promise Of the early autumn Of improve
mcut in business was not fulfilled. IL s slgnlh-
can't however, that the failures in tho last
quarter Of 1876 are less by twenty per cent. IN
number than for the last quarter in 1875, while
the total liabilities for the last quarter Of lS76
are not one-half of those of the corresponding
quarter of 1878 The same favorable compari-
son also holds good as to the decreased number
Of failures which occurred in the fourth quarter
Of 1876, as compared with the larger number of
the third quarter.
After attributing to the National Bank
rupt Kaw a most pernicious influence in
cansing failures and the encouragement
of frauds upon creditors, the agency very
clearly photographs, in few lines, the
salient points in favor of better busi-
ness future
"The same conditions which favored an inn
proyement in trade. in the autumn of the year
lust closed, and which TO some extent were
participated in, still prevail II is true that the
gloomy cloud of the political contest obscures
these conditions somewhat, and that winter
Of exSeme severity, with difficulty Of trans
portatiOn and other causes, retards their action
TO some extent. But that these favoring condi.
tions not only exist, and continue 10 increase,
none can doubt. The year just closed has
the wealth Of the country. Cotton, grain,
sugar, tobacco, gold and silver, petroleum anc