The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-07-16
The Business Outlook.
FAILURES FOR THE FIRST HALF OF
1879.
What the Condition of Portland Is.

What the Condition of Portland Is.
Among numerous signs that the condition OF
trade has materially improved throughout the
country, none are more important than that
business failures have largely decreased. That
the number of these misfortunes were fewer
than in previous years the public were prepared
to believe from the fact that the announce
ments OF business troubles through the press
were far less frequent than during the early
part of last year. But as by common consent
the compilation Of the definite figures in re!a-
ton to the subject is left to the Mercantile
Agency of Messrs. f. Russell q Co., we are
glad to be able to present IN advance oil ptioll,
cation of their semi-annual circular the actuai
statistics for the half year just completed.
From the figures furnished by the Agency
we CLEAN the following:
"The failures for the second quarter IN lne
present year arc ,534 in number and y mil
lions of dollars in amount of liabilities. THESE
figures are notably less than in any single quar-
ter of the past five years, AS compared WIN
the second quarter of 1878 the difference IN
favor of the last three months is very marked,
indicating decrease of over 900 failures in
that period, with decline in liabilities OF 70
millions in the quarter-a lessened loss OF lock
up by bad debts of over two millions per
week"
A'A
months of 1879 the failures in the United States
were LOSS in number, as against 5,S25 for the
first six months of 1878. The liabilities in the
same period of this year are only 65 millions OF
dollars as against 100 millions for the first six
| months of last year. The difference in favor
of 1879 is, therefore, that there have been near
| ly two thousand 1860 less failures, while the
| extent of liabilities shows decrease OF over TO
| milions-precisely one-half of what they were
| in the first six months of 1878. Not the least
GRATIFYING fnaturnS is the marked reduction
| the average Indebtedness of each failure. Upon
the facts as revealed by the figures Messrs. Il.
Russell & Co. remark:
''To show how completely reversed is the
condition of trade, so far as indicated by these
statistics, as compared with last year, we quote
a sentence contained in our circular issued this
| day one year ago, referring to the failures OF
| the first of 1878: These figures of increase III
| failures and liabilities are of very grave I'M
| port, for never before in an equal period in the
| history of the country have business misfor-
| tunes been so numerous, or aggregate an
amount of loss by bad debts so great. Today,
in contradistinction to this gloomy picture, it Is
| our great good fortune to say that never be-
| fore in our experience in the compilation of
these statistics, has the decrease in mercantile
| casualties been so marked; in no previous pc
riod has the comparison of losses by bad debts
been so favorable as at the present hour"
| The indications are numerous on every hand
of an improved condition of business, yet none
are more significant than the decrease in fail
ures Aside from the direct losses of large
sums through misfortunes of this character,
the amount locked up in real estate awaiting
| adjustment is most serious withdrawal from
active capital. But even greater than this is
the effect upon the confidence SO essential to
business pursuits Numerous failures retard
business ventures in greater ratio than any
other single circumstance; while the probable
ity of lessened disasters begets faith in the fu-
ture, and this feeling of safety contributes al
most as much as an incentive to transactions
as the hope of gain. The decline in values,
and the absence of remunerative profits expe-
rienced in all branches of business during the
last two years, served to intensity the anxiety
always felt when losses by failure are frequent
or even probable; but now that the figures
above submitted reveal such a marked i'm
provement, as compared with the losses chron-
iced in previous years by bad debts, another
element is added to the growing confidence l.
ready manifesting itself; especially when ia k
en- in connection with the present steadinesS in
prices, improvement in value in many staples
and the evident growth in the volume OF bust
| ness.
In relation to the growth in the volume Of
business in the past six months, as compared
with the transactions of the same period III
1878, the circular before us contains returns
from all the clearing houses in the country
some twenty-five in number located in the
chief centres of finance. From figures it ap
pears that the total settlements, or balances tG
be adjusted between the various banks, indica
ted an increase of business all over the country
exceeding twenty per cent. There are sever
out OF the twenty-five cities whose returns show
o decrease in the six months from local causes
which in the next six months may not prevail
but that the total result should i'll the Si1
months show a gain of one-fifth notwithstand
ing these local influences, is next to the failure
/ figures themselves, very satisfactory showing
The circular before us contains brlef bu
explicit reports from forty or fifty representa-
tive cities, furnished by the branch manager
of the Agency at each locality, after consulting
the best local authorities. The result is a pho
tograph of the business of the entire country
of a most encouraging character, and as thu
Agency says:
E'No one can peruse them without being con
WINGED that not only is the dawn of bette
days upon us, but that country so blessed
with abundant resources, in the hands of
skillful and intelligent people to apply them t
the best advantage, must soon, now that tn
tide is changed, achieve marked and perma
nent prosperity.V
In Portland the prediction last fall of a revi
val of business this spring and summer is nov
: being pretty generally realized. Our stat
, having been one of the last to experience TIL
depression and shrinkage so universally sui
fered by all business communities, we ar
7 consequently more backward in feeling til
improvement which is Enthusiastically assured
[ The volume of business, and quantity of mel
7 chandise handled the past six months here
. show conclusively that the tide has turned i
our favor. Failures have been fewer, an
payments from country traders show health
, Ter state of affairs financially. A backwar
spring and summer have affected some local
, ties, but our hay, grain, and other crops bi
fair to average we'll Observers feel Statistic
that our state, as whole, is thrifty, and tha
l the next few years will develop rich miners
| wealth heretofore undiscovered, from whic
we shall reap rich harvest.