Savannah morning news. [volume] (Savannah) 1868-1887, 1882-07-08

Dominion Of Canada 1890. 81 4,li6,5iO
The failures in the United States for the
first half of 1882, according to the above,
were 1887, as compared with 2,S62 for the
first six months OF 1881. The liabilities for
first half Of the present year are fifty mil
lions, as against forty millions for same pc
Rod in 1881.
Although the failures exhibit eousldera-
BILE increase in number and amount, the fig
ures reached are yet so Droportionstely lin
tied that they furnish no real ground for
apprehension. Judged by the comparisons
which are possible with previous years, both
in number Of casualties and 10 the amOuOt
of liabilities. the figures indicate a sound
ness OF trade In proportion to its extent,
which Is in the main satisfactory. Thus,
in 1878 the failures for the first half OF the
year were .. S25. with liabilities Of $4,000.
OOO-an increase of y per cent. over the
year previous. For the first half of 1879 the
failures were 4. 05S, with liabilities OF $780,
100000. Subsequently, in 1850 and 1881.
the failures fell to very moderate fl cures,
viz: 2, 497 and , S62, respectively, but this
was because the storm had spent itself, and
because trade had become restricted to very
narrow limits; now, however, the figures for
the past half of the present year amount to
1891
In view of the enormous increase in trans
actions which the last eighteen mouths
have witnessed, the high prices which have
been touched for almost every species Of
property, and, above all, the speculative
excuses which prevailed towards The close
of 1881, It is a marvellous revelation of the
strength and stability of the trade Of the
country. that so few failures, comparatively,
have occurred. It must b. borne in mind
that the number engaged In business has
greatly Increased; our own records show
that there $50 600 persons in business IN
1878, while In 1882 there are 500, 000 an in
crease OF 139 0O0 The prOpurtionate
number OF failures IN 1878 was l in every
| ~ traders, while in the present year, ending
with June, the failures have not been more
than ! 10 every lbs traders. These statistics,
therefore, judged by comparison with pre-
/ ceding years, indicate condition of bust
/ ness so healthy as to create surprise that so
/ much apprehension should be entertained
| as seems to have been prevalent of late. The
losses by bad deb,s IN proportion to the
| volume of business transacted never were
| so small. The sigrihcance also OF the faii-
| ures that have occurred has been signt' as
/ the rank aud nfe or casualties are confined
/ to the smaller class. regarding whom some
| specific cause for failure can almost always
| be assigned. Excessive competition pre-
walls in certain localities, and the absence
Of capacity and adequate capital will always
result in disaster, but that any general
| blight or want OF favorable conditions exist
seem to be entirely without foundation.
For some reason hardly explainable there
appears to have been in the last few months
a degree OF anxiety respecting the future
which the circumstances of the present do
not warrant. 1t is true that the partial
failure OF the crops last year resulted In
large diminutiOn of exports but II must be
remembered that the comparisons instituted
are with recent years OF extraordinary pro
duction, and that the figures OF even the last
year are far in excess OF those of average
periods Of the same length extending over
the last decade. l. is true also that the i'm
ports show a very considerable increase; but,
in proportion TO the ability OF the country to
absorb aud pay for the goods thus brought in,
as compared with previous years, the figures
are bYno means discouraeing. In view of the
magnitude Of the operations between this
country and the rest OF the world, an ad-
verse balance OF trade, even greater than
now exists, is Insignificant, especially when
It is borne in mind that the country pos
sesses within itself all the elements of self
support, and that there is hsr ily any variety
OF product, or source OF wealth or power,
but what IS available within its own bounds.
The enormous growth OF the home market,
which absOrbs yearly an increasing proper
ton of the products of the country, is rarely
consider ed as the great factor in the pros
perity OF the community, when 50 much is
kdlu UPON LuE lucIG 1uEstlOu Vi EApOEbb 10
and imports from foreign parts, and SO
much is made out OF the bugbear of an ad-
verse trade balance against this country.
Another element urged as ground for ap-
prehensIOn has been the extraordinary &C
tivity in railroad construction. Because It
is claimed a similar condition preceded the
financial panic OF 1873 it is argued that a
like result may follow in 1888. Bus the
conditions surrounding these two periods
are widely different. Il is a suggestive fact
that the railway construetiLn Of the present
Is being carried forward by capital, mainly
furnished By large individual railway opera
tors and constructors. and that It does not
represent money withdrawn from the usual
channels OF trade. There seems to be an
especial absence Of indeb' edness resulting
from these extensions In the localities
chiefly benefited. Thus the State, county
and town bonds, which, IN previous years,
were an essential element In local improve |
meuts of this character, seem now TO |
be rarely considered, and the great |
public works which are going for |
ward are, It is eyiden', mainly |
promoted by capita forming possibly por.
ton of the Indebtedness Of the G ne-sl |
Government, States and muuicipaf ies, |
which in recent years has been so largely |
wiped out. 1t is safe to say that not only /
Is the internal commercial Indebtedness OF |
the country extremely small In proportion /
to the volume OF trade done, but the mass of
the public indebtedness is within limit mar
rover 10 proper ion to the growth Of national
aud local wealth than ever before. Tfis as
sertion has a continuation In the extremely |
low rates of interest which continue to pre-
vail, and the vast sums OF unemployed /
capital, which, in almost every community,
are to be found to greater or less extent,
and VIII. oh is vaiDly seeking investment, at
a rate yielding q sufficient retu to beget
its employment.
Another significant indication Is the small
amount of interest which is payable abroad.
As compared with previous years, the
amount now RENTED by the government
for this purpose is tri1ing, and the same
NAV be said to 8 great extent OF fOIeifn in
debtedness generally. Certain it is, that IN
proportion to the enormous material i'm
DrOvement of the country In the last five
years, the amount Of local capital employed
Il far In excess of that drawn from abroad.
Especially Is this the case as compared with
The five years preceding 1873 All tndics-
ions, therefore, point 10 the possession Of
capital ADEQUATE to the engagements which
have been undertaken IN connection With
he extensions OF railroads and other enter
lrises. That this capital is not pledging
he future, and is not being Withdrawn from
he ordinary channels OF business, are ele-
nents which ten years ago were conspicu-
Dusly absent.
It is somewhat difficult 10 account for the
extreme anxiety which has prevailed 10
lmOst all circles during the last few months,
except IL be attributed to the decrease In
he volume Of transactions, and the cessa-
ion of the speculative excitement which
'revailed this time last year. This absence
f speculative fever is perhaps one OF the
most favorable indications of the time, for,
ad It continued, the most fatal results
Tould certainly have occurred. But what
yer may be the ground for the apprehen-
lon which has been INDUCED In regarding
be future, the promises WHICH the produc-
Vensss OF the soil nov holds out are OF
lost reassuring character. 1t would be
itieult to imagine a condition more gen
rally favorable than that which the reports
rom nearly all sections of the country
ldicate. As will be seen by the testimony
hitch Is given in the accompanying reports,
rom the leading cities of the Union, the
niversality OF the favorable condition is
These reports are the result OF
close analysis, by wen posted parties, after
btalniug reports from almost every county
, aoafr- 81 nfrTffv and nffar rnnRulfQrf0n with J