River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1879-01-23

d Quarter .247O 4S,T53,940 1880 45,06s,097
sd Quarter 1853 60,37S,363 1876 42,S46,0S6
4th Quarter ) 500 s7,l73,oo3 2807 48,7l76sO
The agency states that IL is very easy to ac-
count for the increase of l.51l failures among
700, 000 business men within year in which
the circumstances have been peculiarly infiu-
entail il encouraging casualties of this charac
ter" These circumstances 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 was unreasonable. and thus most
unfavorable for sales and collections; the dis
cussions in and ont 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; lhe existence of the
epidemic in the South; and finally, more lntiu-
entail than all others, the abolition of the
bankrupt law and the long delay permitted TO
eapse before its repeal. The circular then
proceeds:
I'm view, therefore, of the peculiarities of
the year under review, it is submitte1 that an
increase of failures to the extent only of l.57l
in number, and forty millions IN money, is
even much less than might have been antici-
pated. 1t is significant that out of the six
leading circumstances above enumerated as
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 1878"
These favorable conditions are as follows:
''First--The fact that without 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. Ii
we have bid goodbye TO all the uncertainty III
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 entalled--
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. A balance of trade implying cash re-
ceipts over disbursements of nearly million
dollars for every working day in the year, is an
achievement of vast consequence to numer-
GUS vital interests of the country. IL is true
that prices for agricultural products have
reached 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. 1t Is
doubted if in the history of the present gene
ration the first cost of the necessaries of life
ent moment. When it is considered
that ont of the forty-ive 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 blc yea uuS NAtuG5Stu
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 year ago.
sThird-The changing character of the in
dustries of a large number of the people is one
I / H.. n,11
is nowhere so visible as in the increase IN the
amount of land taken mp for actual settle
ment. As an instance the sales of land by the
national government for the year ending June
go 1877, 8, 1888, 600 acres while for the year
ending the same date in 1878, the figures were
1852 600 acres. In the various state land agen-
cies and railroad land offices an equal proper
tionate increase is noted, especially as COM
pared Nth 1878. Such States as Texas, Mime
sofa, Colorado, and indeed all the fertile re-
gons, have had large additions to their popu-
lations during the year. 1t must be borne IA
mind that this liner ease in the farming popula-
ton is not in consequence of immigration from
abroad which, though increasing, still contin-
ues at minimum; but that the new settlers
are largely made up of those whose pursuits in
the older States have failed them owing to the
depression"
The agency very frankly admits, 1T is true
that in formcr years there were present condi-
tions which were interpreted quite as favorably
as the foregoing, and that disappointment
the result of relying upon Them" But it is
claimed that "unfufilled predictions o. 'e
past do not weaken the force of existing cir
cumstances."
Having drawn the bright side of the picture,
the writer of this very comprehensive review
gives a 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
serious character. The utter extinction of
profits, the result of the decline in values; the
difficulty of avoiding bad debts; and, above
all the expenses and charges of business, with
the excessive competition that pervades every
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
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 46, 200 fall
ures, involving liabilities of ZOO 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 a point in which its advantages IN re-
duciug profits are ten times more 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. 1t will
not be surprising, therefore, if the failures for
the current year continue at high average"