The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1879-01-22

the last four years, those for 1877 and 1878,
being as follows:
Fail 1': fiaoil- Fail -'S' Iia6ii-
st Quarter ss ss sseS7ss2s ssss s54' $751;
Quarter. q 47O 4S,75s94O 1850 45,O6SO97
Sd Quarter. ...2,s5s 6O,37s,36s 1876 42,s46,os5
Attn Quarter. 800 37,l72,OO3 1907 4S,717, $50
The agency states that 1T is very easy to &C
count for the increase of 1871 failures among
100000 business men within year in which
the circumstances have been peculiarly inhu-
entail in encouragin casualties OF this charac-
ter These circumstances n1 are stated at six in
number. as follows: 1878 is the fifth year of
depression unparalleled in extent, character
and duration; the weather for the first quarter
of the year unreasonable, and thus most
unfavorable for sales and collections; the dis
cussions in and out of Congress as to financial
matters and the tariff. impaired confidence for
the time being; the notable decline in the value
of staples the world over; the existence of the
epidemic in the South; and, finally, more influ-
entail than all others, was the abolition of the
bankrupt law and the long delay permitted to
elapse before its repeal The circular then
proceeds:
I'm view therefore, of the pecuiarities of
the year under review, it is submitte,. that an
increase of failures to the extent only of l.57l
In mum Der, aud forty millions in money is
even much less than might have been antici-
pated. 1t is significant that out of the six
contributing to failures during the year. five
no longer exist. In the room of these disturb
Ing elements other favorable conditions are
present, which ought, in the immediate future
to so much improve business as to make the
decrease of failures in 1879 much more marked
than the increase in 1875"
These favorable conditions are as follows:
''First-The fact that without a ripple of
disturbance in the vast commercial transactions
OF the time gold standard has been reached,
and specie payments once more resumed, is
circumstance of the utmost Importance. If
we have bid goodbye to ali the uncertainty in
values, all the evils of experimental legislation
in finance, and all anxiety and apprehension as
to the financial policy of the country-which
the suspension of specie payments entailed--
it is surely ground for the sincerest gratitude
Second-Another most important indication
OF the possible approach of better times is the
continued prosperity of the vast class who
till the soil, and of those dependent upon
them. balance of trade implying cash re-
celpts over disbursements of nearly a million
dollars for every working day in the year. is an
achievement of vast consequence to numer-
GUS vital interests of the country. It is true
that prices for agricultural products have
reached a point SO low as to make the profit of
the producer very small; but the disadvantage
to the farmer is the gain of an equally large
class of operatives and laborers, to whom
cheap food is the greatest of boons. It is
ration the first cost of the necessaries of life
was ever less than at the pres
ent moment. When it is considered
that out of the forty-fve millions of our popu-
lation the life-struggle of at least thirty mil
lions is for food and clothing, the reduction of
the cost of living which the year has witnessed
is most important, and significant of future re-
suits: Comparing the condition of this class
In this country at the present moment with the
same class IN Great Britain or any other Euro
pean country, the contrast is startling; for
wages have not been reduced nearly in the
same proportion that the cost of food has les
sened; while the number unemployed is con-
siderably less than at this time a year ago.
'Ihlrd-The changing character of the in
dustrles Of large number of the people is one
OF the most hopeful signs of the past year, and
is nowhere SO visible as in the increase in the
amount of land taken up for actual settle
ment. AS an instance, the sales of land by the
national government for the year ending June
~, 1877, were $685., 900 acres while for the wear
ending the same date in 1878, the figures were
1862 600 acres. In the various state land agen-
cies and railroad land offices an equal propor-
tionate increase is noted, especially as com
pared with 1878. Such States az Texas Mime
sofa, Colorado, and indeed all the fertile re-
glons, have had large additions to their popu-
latlons during the year. It must be borne in
mind that this increase in the farming popula-
ton is not in consequence of immigration from
abroad, which, though increasing, still contin-
ues at q minimum; but that the new settlers
are largely made up of those whose pursuits in
the older States have failed them owing to the
depresson.''
The agency very frankly admits, 1T is true
that in former years there were present condi-
tions which were interpreted quite as favorably
as the foregoing, and that disappointment was
the result Of relying upon them" But it is
claimed that "unfulflled predictions of the
YOQG dn T1nf woo ny1 %Io
cumstances.'
Having drawn the bright side IF the picture,
the writer OF this very comprehensive review
gives view not quite so favorable, but no
doubt equally correct
Notwithstanding these generally favorable
conclusions, there is no denying that the trade
OF the country has to cope with difficulties of a
serious character. The utter extinction of
profits, the result of the decline in values: the
difficulty Of avoiding bad debts; and, abnve
all, the expenses and charges of business, with
the excessive competition that pervades everv
department, are all still too potent as obstacles
to success. longer time may, therefore,
elapse in which the conditions above set forth
will have full play before anticipations of a
genuine and safe prosperity can be INDUCED
in by the vast army engaged in business. The
difficulties of dispensing credit are unusually
great; for notwithstanding the fact that, with
in the last six years there have been 900 fail
ures. involving liabilities Of 1000 millions of
dollars, the number remaining in trade is too
great by far in proportion to the volume of
business to be transacted. The cost to the con-
sumner Of maintaining this great number adds
immensely to prices, and competition has
reached point in which it's advantages in re-
ducing profits are ten times moro than alb
sorbed in the maintenance of traders unneces-
sary to the trade. The number of desirable
houses to whom it is safe to sell is yearly
diminishing, as the result of this undue COM
petition for a trade barely sufficient for the
support of one-half of the number engaged
Now that preferences in failures are permitted
by law, and relatives and friends can be pro-
tected, the dispensing of credit is attended
with more than the usual difficulties. It will
not be surprising, therefore, if the failures for
the current year continue at high average"