New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-19

The reports from the Territories are in
Guided with those of the Pacific States fOr the
later years; for 1871 there were reports from
California only. Now-Eneland, the Middle
and the Southern States, It will bc seen, did
not quite return in 1879 to the low ratio Of
failures which existed in those sections in
1871, but the Western States report ratio
even lower last year than during the
best year before the panic. In the
Pacific States and Territories the ratio Is
more than twice as large as in California
in 1871. but this is in part because
the facilities Of an agency for asccr-
tanning and reporting upon the standing of all
dealers in new aud sparsely settled States and
Territories are loss efficient than they are else
where. A surprising feature OF the returns is
that the rate of failure in Canada is So much
larger than i'm any section of the United States,
and was larger last year than ever before. Ii
is probable. however, that this Is in part due
10 differences in the mode Of reporting. In
this county. the Improvement in every section
has been considerable. though small IN
California The workingmen who are
driving capital ont of business in
that State viii be forced in time 20 con-
slder whether il pays. In 1870, about Do. 900
workers, male and female, were employed by
about 1900 firms and dealers in that State,
or fifteen 10 each concern. Bat 1855 firms
or dealers have been forced to failure within
the past three years, and it is fair TO infer
that at least -, 900 persons have in consc-
auence been driven ont of employment.
The improvement since 1878, measured by
the proportion OF failures, has been twice as
great in the Western as in the Southern
States, and relatively greater in New
England than in any other section, because
New England had suffered more from The panic
than any other. It is fair to say, however
that the proportion of failures reported is al
WAYS greatest IN the old and thicllly settled
communities, where the competition in bust
ness is very sharp. For this reason the high
average mt the South, in some States even ex-
ceeding the average in this city, where every
foilurr i known and where competition is
most intense, appears the more remarkable
II il not easy to escape the conclusion that
there is n connection between the repudiatng
spirit, which prevails so generally at the South
and those modes OF business conduct which
lead to frequent failures. In some of the
Southern States, as in Tennessee, where repu-
dlltlOn mas Delu hlSH cdIuINu' tic fdllo vi
failures is more than three times rs great as in
Illinois. Indiana, Missouri or Kansas, agricul-
tural communities of the West which have been
not more greatly prOspcred in abundance of
crops. Much probably depends, however upon
the comparative effectiveness Of laws for the
collection of debts and in some OF the States,
where creditor has virtually no redress 1t
NAV be presumed that the number of those
who have obtained credit at all is relatively
small.
The average liabilities OF firms failing last
wear were only $14,741. In this particular
the report is remarkably significant. The
average has never been rs low in any previous
wear since 1868, and has never been 10 wer,
except in that year and 1862. The obvious
| inference is that business was tran sacted more
nearly upon cash basis last year than in any
preyious year since the currency became
greatly inflated. Several causes have con-
trbuted to produce this more healthful
condition of business. The Bankrupt act un-
ouestionably encouraged large debts for it vir-
tually enabled debtors TO defy their creditors and
TO continue dealings as4ong as they could get
ANYBODY else to trust them. Under the laws
of the different States credit Is extended with
much more caution and safety. On the other
hand, the steady advance in prices during the
year 1870 enabled nearly all dealers to carry
On good business with much less straining
of their credit than usual. Hence II
would not be safe to infer that
credit may not be again strained and