The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1882-01-03
In remarking on the above figures, the Mer-

The above figures Indlcat5 material III
crease in the number of failures for the year
1881, and a growth in the loss by bad debts
considerably over last year. An indication OIL
this sort can hardly be interpreted to be a
favorable sign as to the condition OF the coun-
try, yet, when a comparison is lnsiltuled De-
tween the failure figures of last year and those
of previous years, for instance, 1878, 1t Will DO
seen that in the proportion they bear to the
casualties of that and previous years, both as
TO the number of failures and the amount Oh
liabilities, the result is not unTaYoraDie. II
should also be rocollected, that while the
failures and liabilities of 1881 are only Slightly
more than one-half those of 1878, the volume
of trade is probably now four or five times as
great as it was then, while the number OF per-
sons engaged in business is certainly elghteen
to twenty-five per cent. greater. AS 10 tne
proportion of failure to those engaged in BUSH
ness, our statistics show that in 1876 the
failures were l in every GO persons; in 1877.
in rs; in 1878, l in "a; in 1879, IN lOo; In
$780, / in 1853, while in 1881 the proportion was
in 40. The advantage in favor OF the year
juSr closed over the average OF years Is tllero-
fore very marked.
There is no class of statistics which more
truthfnlly illustrate the condition of trade
than the figures relating to business disasters,
and the worst that can be said in regard to the
prosperity of the country finds its expression
in compilation. IF, therefore, the figures
which are presented can only be interpreted in
one way, and that in the direction OF confirm
ing the general impression as to the safety ana
prosperity of the country it is surely matter for
congratulation that such is the result OF the
year just closed.
Messrs R. G. Dun & Co. very fully review
the condition of business, and from the oppor-
tunities which they possess. their views are
generally pretty we'll Srounded They say:
There is a vagues sense of uncertainty re-
garding the future, grounded upon the expe-
riences of 1872-1873. The conditions which
proceeded the last coisis, it is claimed resem-
BILE those which now prevail, viz: enormous
extension of trade, great expenditures on rail-
ways and public works; increased growth and
ease of credit, as illustrated by the large loans
of the banks: and general disposition to lock
up quick capital in assets OF an unrealIzed
character. This feeling OF apprehension mas
some support in the partial failure OF the grain
crops in the West in the decrease OF exports;
the increase in import; the large reduction IN
the earnings of leading railroads, involving
lessened income to the investors in this class of
property, and the great decline IN the realiza-
bic prices of securities represented on the Stock
Exchange, as compared with six months ago.
Whileit is true that all these elements are sug-
gestiye of changing condition OF things, IL IS
doubtful if they can be interpreted adversely
to the general prosperity of the trade OF the
country, The extension of business seems on
every hand to be of most healthy character.
There is little or no accumulation OF stocks OF
manufactures in any LEGALITY, While IN numer-
GUS departments of activity orders are far
ahead of the greatly increased productive pow
err. Though it is true that the grain crop has
not been up to its usual average, IL snoulu De
borne in mind that for several years very am
pie rewards have been realized by the agricul-
tural community; while in nearly all products,
IA vialdg 0f DrAVi0uS wears nave
been maintained. Prices, too, continue SO high
that the result to the agricultural producer is
not far short of the average OF late years;
With regard to the extent of railroad build
ing, it should not be forgotten that the vast
undertakings now in progress are no longer the
result, as in previous years, OF local EFFORT
and local Indebtedness, but are mainly &C
cheved by individual capitalists, with large
following. by combinations and consultations
of existing interests, and almost invariably
without calling upon the localities chiefly Den-
Gifted for material aid in the construction. 1t
is safe to say, that the increase in local bonded
Indebtedness for railway purposes IS lar less ID
proportion than it was in 1873 so far as the
volume Of Indebtedness is concerned, the gen
eral tendency now is precisely opposite to what
it was in 1872, and the reduction OF the national
debt is no less marked than that of Almost eve
ry municipality in the country. The
amount of money thus set free has gone into
circulation and improvements, not only i'm
adding to the value Of property by the addi-
tional facilities afforded. So, too, with re-
gard to private obligations. We question very
much, whether the lines OF credit Tor the IN
ternal commerce of the country have increased
ANYTHING like in proportion to the growth OF
trade in the last two years, and certainly our
Indebtedness abroad is much less than IN loIz.
On the other hand, there has been develop
ment of the productive forces OF the country
which has never been equalled in the same
has flowed to our shores, the opening up OF new
regions for cultivation, and generally, the fay-
orable conditions which prevail for the deyop-
ment and growth of material resources, all
point in the direction of continued prosperity.
The large decline in the rates for transporta-
ton of freight and passengers, by rail, is BEN
eft just to that extent 10 producers and con-
sumers alike, while the decline IN the value Oh
securities largely speculated in, may be pre-
ventive of the calamity which some seem 70
anticipate as the result of the activity which
prevails in other departments of commerce,
but which are really unaffected by tho rise or
fab of values on the stock exchanges. Thei
is some ground for anxiesy that the failures IN
the West and Northwest may be somewhat IN
creased, owing to the conditions OF the coun-
try roads, caused by the extremely mild
weather and the absence of frost, thus inter
fering wi.li the deliveries OF produce, the ex
tent oi business, and the collection OF out
standings. 1t is said q continuance OF the
present temperature ICE tuirby uhyo WI SIOooiy
retard business and tax the resources OF the
weaker houses On the other hand, sharp
winter weather the next few weeks
will go far towards bringing about
the good results expected from such large
and increased volume of trade. The koy to
the immediate situation in this region is,
therefore, in the elements
Notwithstanding these local conditions, the
main result as seen from an Agency point of
view is favorable. 1t is reported that the losses
by bad debts in the year which is now closing
bear but a meagre proportion to the profits re-
allied in legitimate trade. The additions
which have been made TO the surplus OF al
most every prudent business man are larger
than have ever been realized in any previous
year, and that this increase Of surplus is more
the result of honest, legitimate profit than OF
any speculate success must be universally adj
mitted.
The circular, which is very full and COM
plete in its statistical details, concludes as fol-
lows:
The political and financial outlook seems
equally without a disturbing element. With
some additional legislation by which the laws
relating to bankruptcy can be regulated and
made uniform, and with favorable conditions
as to weather, crops ana tfaue seheIahy, .no
opposite of which there is no reason to antlel-
nate. the prospect for the future seems certain
" most promising. 1t is true that failures may
increase and individuals suffer the penalties of
departure from legitimate business principles,
from undue competition or unwise expansion.
Some will by failure seek to increase their
store. and still more may be the victims of loss
of confidence, the result of the absence of a
protective law. But that these casualties will
be large in proportion to the number OF people
engaged in business, or to the magnitude OF the
transactions, seems as unlikely now as at any
that, as compared with any other country in
the world, failures will continue not only to be
less numerous in proportion to the number en-
gagged in trade, but far less in amount OF aver
age liabilities and in a far smaller ratio to the
extent of business transacted, so that the safe
ty of the mercantile, manufacturing and bank
ing communities may be set down as better as
snred than that of the same classes in any