The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1877-01-24

An examination Of the above table
confirms the impression, which has
been very general, that the trade In
the Western aud Southern States has
been less disastrous than that of the
Eastern and Middle States. In this
connection the agency draws atten-
ton to the following:
at Is u significant circumstance,
that the failures in the Middle States
are one In every tifty-seven names re-
ported In business, while In the Vest
ern States the proportion ID one In
every seventy-tw0, but the compare
son between the East and the South is
even more significant, for Ia New
England, with all It's wealth aud solid
ity, one In every ilfty-nlne has yielded
to the pressure OF the times, while In
the South, with all its poverty, its POI
litical and other disabilities, the per-
centage of failures 10 only one In every
sixty-four. Even In Canada, where
there is gold basis, light taxation,
freedom from political complications,
and oil other favoring conditions, the
above showing IL indicative Of much
greater pressure than in the United
States, the failures In the Dominion
being one In every thirty-iwo. In
England no very accurate figures are
obtainable, and none OF course as yet
for the past year, but for 1876 return
was made of LOO failures among co.
600 firlns prominent In trade, indicat.
ing one failure for every thirty-six
firms reported in business, with an nv.
erage liability Of $S7,S70. The figures
for the United States, showing a fall
ure OF one In every sixty.three, with
on average liability OF $1,000, indicate
that the pressure OF the times has been
either not 30 great In this country as
elsewhere, or that II has borne with
less disastrous results"
But reverting to the palpable and
painful fact that the failures In the
United States. instead Of showing n
decrease as resulting from the econo-
my and conservatism everywhere EVIL
dent, actually have increased In 1879
to the extent Of 1850, even over those
of 1875, which In It's turn showed an
increase of nearly 1000, some expla-
nation is necessary. This the circular
before US seeks to furnish as follows:
Were II not for the reflection that
these disasters are tho results Of cir
cumstances not directly chnrgeable to
the business operations of the year,
the prospect would be well-nigh dis
heartt ming. But that large number
Of these failures are the results Of de-
parture from correct business princi-
Piles In years gone by, there can be no
doubt. The crisis OF 1873. and the CON-
ditiOn Of expansion and generalization
which II revealed, have had far more
to do with causing the numerous fall
ures OF 1876, than have the business
operations Of that year. The effects OF
the depression and necessary cOntrac-
ii ms of 1874 and 1876. were hardly
more apparent In the failures OF those
years than they are In those OF 1875.
| II would be entirely unreasonable 70
expect that the restricted and profit
less trade Of these later years would be
sufficient to sustain the large number
OF traders which former prosperous
seasons seduced into business; while
even those long time In trade, and
possessing all other elements OF suc-
cess, found 1t impossible 10 solve that
most difficult of problems --of reducing
expenses with the same rapidity as
their trade and profits diminished. To
intrench on capital and largely reduce
IL, was OF course the necessary conse-
quence; but unfortunately, very
large number of traders, unnindful Of
the axiom that TO depart from legitl-
mate trade is to lose money hpd In
tn good times invested their surplus
| In outside operations, such az real es-
tate and other permanent assets. 30
that when the need for active capital
came upon them, they were In no pc
sition to respond 10 pressing obliga-
tions. The consequence 10 seen In the
augmented list OF failures above pro.
sented. II IL true many OF these fall
ures are the result OF other Influences,
hereinafter referred to, but 1t will be
readily admitted from the foregoing,
that TO other causes than those which
have origisated and prevailed during
the past year, may be attributed =
large share Of the misfortunes which
Il has been our unhappy duty to
chronicle
After attributing 10 tho national
| bankrupt law . most pornicIous In