Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-18
THE BUSINESS OUTLOOK.

Failures for the F5rst Half Of 1S79-The
Marked Improvement MGnifssted.
Among numerous signs that the condition
of trade has materially improved through
out the country, none are more important
than that business failures have largely de-
creased. That the number of these misfor-
tunes were fewer than in previous years, the
public were prepared to believe, from the
fact that announcements 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 Il
the definite figures in relation to this 90 :
ject is left to the Mercantile Agency uf
Messrs. R. g. Dunn & Co., we are glad 70
be able to present in advance of the publi-
cation of their semi-annual circular, the
actual statistics for the half year lust COM
pleted.
From the figures furnished by the Agency
We CLEAN the following:
''The failures for the second quarter in the
present year are l.534 in number and $22, OOO.-
OOO in amornt Of liabilities. These figures
are notably less than in any single quarter Of
the past five years. As compared with the
second quarter of 1878 the difference in favor
OF the last three months is.very marked, indi-
eating decrease of over 900 failures in that
period, with decline in liabilities of $3.50
900 in the quarters iessened loss or lock up
by bad debts Of over So OOO, 900 per week.
For the first six months of 1879, the fail
ures in the United States were 1868 in num-
Der, as against 5,825 for the first SIX months
of 1873. The liabilities. in the same period
of this year, are only $65,0OO. 900, as against
$13O, OOO, 600 for the first six months Of last
year. The difference in favor of 1879 is,
therefore, that there have been nearly 1000
u 1869 less failures, while the extent of liza
oilitles shows decrease of over $65, 900, 600
precisely one half of what they were in
the first six months of 1878. Not the least
gratifying feature is the marked reduction
in the average indebtedness of each failure
Upon the facts as revealed by these figures.
Messrs. r. G. Dun & Co. remark:
ITO show how completely reversed is the con-
| dltion Of trade, so far as indicated by these
| statistics, as compared with last year, we quote
sentence contained IN our circular issued this
day one year ago, IT ferring to the failures Of
the first half of 1878: these figures of increase
in failures and liabilities are of very grave i'm.
It, Tor never before in an equal period in
the history of the country have business mis-.
| fortunes been so numerous or aggregate an
| amount of loss by bad debts SO great To-
day, in contradistlnction to this gloomy pic
| ture, 1t is our great good fortune to say that
| never before in our experience in the compila-
ton Of these statistics, has the decrease in mer
| camille casualties been SO marked: in no pre-.
| vious period has the comparison of losses 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 de-
crease in failures. Aside from the direct
losses of large sums through misfortunes OF
this character, the amount locked up in es-
tates awaiting adjustment is most serious
withdrawal from active capital. But even
greater than this is the effect upon the con-
| idence so essential to business pursuits.
Numerous failures retard business ventures
in greater ratio than any other single cir
cumstance; while the probability of lessened
disasters begets faith In the future, ana this
feeling of safety contributes almost az much
as an incentive to transactions as the hope
of gain.
In relation to the growth in the volume of
business in the last six months, as compared
with the transactions of the same period in
1873, the circular before us contains returns
from all the clearing houses in the country,
some twenty-five in number, located in the
chief centers of finance. From figures it
appears that the total settlements, or bal
ances to be adjusted between the various
banks, indicated an increase of business all
over the country exceeding twenty per cent.
There are seven out of the twenty-five cities
whose returns show decrease in the six
months from local causes which in the next
six months may not prevail; but that the to-
tai result should in the six months show q
gain of one-ffth, notwithstanding these To-
Cal influences, is, next to the failure figures
themselves, very satisfactory showing.
The circular before us contains brief but
explicit reports from forty or fifty repre-
sentative cities, furnished by the branch
managers of the agency at each locality, after
G sulting the best local authorities. The
st. Paul Office makes the following report:
The existing conditions at this point are
most encouraging, for, Notwithstanding the
cruel disappointment incurred by the loss of
at lesst one-halt of our wheat crop from ex-
cessive heat last summer, and the consequent
depression of trade and carrying over of stocks,
spring sales. though light, healthy, and on the
hole. satisfactory. The present crop pros
poets are bright in the extreme. An average
c,op-from an Estimated 3 00l 900 acres sown
to wheaton which the present indications
are most favorable, will give this State a yield
unprecedented in any State at any time. But
the unfortunate experience of last year, when
able, has taught both jobber and dealer les
son NOT readily forgotten. and more than ordi-
nary caution is being exercised at this time by
buyer and seller. Apart from our own State
resources. an immense field is being opened to
this market, by the extension of the several
lines OF railroad into territory from which we
have hitherto been debarred. Large Gales have
already been made from this point in those
directions, with still larger expectations.