Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-04-17
QaiIu NrnHtbrt sournaI
Az u - IA.
Tuesday Morning, April Il, 1877.
Business Failures.

appeared Saturday and is not an encour-
aging statement. In number oil failures
there il slight increase comparing with
the first quarter of Sl0000,000. The cir
cular observes that 1.-TWO railroad operators
who really stopped payment long ago for
mally suspended within the past Two
MONTHS" and that the liabilities of these
amount to nearly four millions. But it does
not appear says the Tribune, "that during
the first qunterof 1876 there were not fail
ures of equal Importance which really be-
long to an earlier period. These statistics
have value only as records OF the number
and magnitude of failures finally ascer-
tanned within a certain period, and would
be valueless If it were attempted to ascer-
tain at what time the losses were sustained
which brought them about.
The first quarter of 1877 yields 2,S09
commercial wrecks. with liabilities of
S54.539, 074. or Sl9. 0l0 for each firm. The
average of liabilities is very low, and in
that respect the report indicates an i'm
proved condition. Whenever the average
of mercantile liabilities is small. the ay-
erase of liabilities to each fall ure is cor
respondingly small, and the return there
fore indicates a reduction of indebted
ness amounting to about $1,000 per firm
since the quarter of 1876. But the losses
have not been equally distributed; in New
York, for example, the average OF liabili-
ties is greater than it was during the first
quarter of 1876. No doubt, as the circu-
lar states, this is due to the formal fail
ure of firms previously crippled. but in
almost every quarter this is the case. As
has been well remarked, the report of
failures is only a record of the wrecks
which come ashore within a given time /;
it shows rather the point beyond which
credit cannot be pushed to support certain
firms, than the measure of losses sustain
ed. 1t is important TO bear this fact in
mind. because a large proportion Of the
failures now recorded, and very large
proportion of the liabilities, are due to
losses sustained in previous years.
The excess Of failures in comparison
with the first quarter of 1876 is due main
ly to California. where the increase is
more than 100 per cent; to Connecticut,
where it is more than 80 per cent; to
Chicago where it is nearly 40 per cent !;
to st. Louis, where it is about 80 per cent,
and to small States or territories. In Bos-
ton there has been decrease of over 60
per cent; In Georgia of so per cent; in
North Carolina of nearly 60 per cent,
and 10 Rhode Island of nearly 80 per
cent. Comparisons of quarterly failures
are not of much value, but the returns
indicate generally improved condition
of business in Georgia, Maine. Boston,
Michigan, New York City, North Caro-
lima, Rhode Island. Virginia, and Wiscon-
sin, while in other localities the number
of failures is generally nearly as large or
larger than 1t was during the first quar-
ter of last year.
1t is not possible to draw any just con-
illusions OF importance from these reports.
They clearly do not show that the condi-
ton of general health has been reached.
Nor do they indicate general decline in
commercial stability. They point rather to
an adjustment of business 10 new condi-
tions; TO loss where business has been
speculative and rash, and to gradual i'm
provement where the gambling element
has been duly eliminated. The losses are
not over where honest exchange has given
place to dice throwing"