New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-14


The circular of Dun, Barlow & Co., stating
the number of failures and amount OF habil-
tiles for the first quarter of 1877, appears to-
day and is not an encouraging statement. In
number of failures there is slight increase
comparing with the first quarter OF 1876, ana
in amount OF liabilities decrease OF
sic, 100000. The circular observes that
two railroad operators who really stopped
"pavmen, long ago formally suspended within
the past two months" and that the liabil-
tiles of these amount to nearly four millions
But it does not appear that during the hIst
quarter of 1876 there were not failures OF
eoual importance which really belong to an
earlier period. These statistics have value
only as records of the number and magnitude
of failures finally asccrtained within certain
period. and would be yalucless if ii were at
tempted to ascertain at what time the losses
were sustained which brought them about.
The first quarter of 1877 yields 2,S09 COM
mcrcial wrecks, with liabilities of $51,53S.O74,
or $1,000 for each firm. The average of
liabilities cry low, and IN that respect the
report indicates an improved conflIiol. When
ever the average OF neicantile Liabilities Is
small, the average of liabilities to each failure
il colrcspondingly small, and the return there
fore indicates a reduction OF Indebtedness
amounting to about $4,000 per firm since the
first quarter of 1876 But the losses have not
bee, equally distributed in New York, for
example. the average of liabilities is greater
than il was during the first quarter of 1875
no DOUBT as the circular states this Is due to
the formal failure of firms previously crippled.
but in almost every quarter this is the case.
As has been well remarked, the report of fail
ures is only a record of the wrecks which come
ashore within given time; it shows rather
the point beyond which credit cannot he
pushed TO support certain firms, than the
measure of losses sustained. II is important
TO bear this fact in mind, because a large
proportion of the failures now recorded, and a
very large proportion of the liabilities, are due
70 losses sustained in previous years.
TIE excess of failures in comparison with
the fist quarter of iS7G is due mainly to
California, where the increase is more than
100 per cent to Connecticut, where it Is more
than 30 per cent; to Chicago, where it is nearly
40 per cent to st. Louis, whore it is about
so per cent, and to small States ar Terrific
rias. In Boston there has been decrease of
over 60 per cent i'll Georgia of so per cent;
in North Carolina of nearly 60 per cent. and
in Rhode Island of nearly 30 per cent. Com
parscns of quarterly failures are not of much
value, but the returns indicate generally i'm
proved condition of business in Georgia, Maine,
Boston, Michigan, NcwYork City, North Caro-
lima, Rhode Island Virginia, and Wisconsin,
while in other localities the number of failures
is generally nearly as large or larger than it
was during the first quarter of last year.
II is not possible to draw any inst cOnclu-
sions of importance from these reports. They
clearly do not show that the condition of
general health has been reached. Nor do they
Indicate a general decline in commercial sta
bity. They point rather to an adjustment of
| business to new conditions; to loss where bust
ness has been speculative and rash, and to
Gradual improvement where the gambling cle-
ment has been duly eliminated. The losses
are not over where honest exchange has gwen
place to dice-throwng.