Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-04

anu previous years, DOtn as 10 the
number Of failures and the amount OF
liabilities, the result is not unfavorable.
II should also be recollected that while the
failures and liabilities OF 1881 are only
slightly more than one-hslf those Of 1878,
the volume OF trade is probably now four or
five times as great as it was then, while the
number Of persons engaged IN business is
certainly eighteen to twenty five per cent.
greater. As to the proportion of failures to
those engaged In business, our statistics
show that in 1876 the failures were l in
every 63 persons; in 1877, in 70; in 1878, l
IN "a; in 1879, 'ih 105; in 1880, 1 in 15S,
while in 1881 the proportion was l in 40.
The advantage IN favor of the year lust
closed over the average Of years is therefore
very marked"
There is no class of statistics which more
truthfully illustrates the condition OF trade
than the figures relating to business disas-
ters, and the worst that can be said In re-
gard to the prosperity Of the country finds
its expression in a compilation. II, there
fore, the figures which are presented can
only he interpreted in one wav, and that In
the direction of confirming the general i'm
preston as to the safety aud prosperity Of
the country, 1t is surely matter for CON
graduation that such Is the result of the
year Just closed.
Messrs. R. G. Dun & Co. very fully re-
view the condition of business, and from
the opportunities which they possess their
views are generally pretty well grounded.
Thev say:
"There is a vague sense of uncertainty re-
gardiug the future, grounded upon the ex-
periences of 1872-1S73 The conditions
which preceded the last crisis. It Is claimed,
resemble those which now prevail, viz:
enormous extension of trade, great expen-
ditures on railways and public works; in
creased growth and ease of credit, as illus
trated by the large loans of the banks: and
a general disposition to lock up quick
capital IN assets of an uureaiized character.
This feeling of apprehension finds some
support In the partial failure of the grain
crops in the West; In the decrease of ex-
ports; the increase in imports; the large re-
duction in the earnings of leading rail-
roads, involving lsssened income TO the
investors In this class OF property, and the
great decline In the resllzable prices Of Sc
curities represented on the Stock Exchange
as compared with six months ago.
"While 1t Is true that all these elements
are suggestive of changing condition of
things, it is doubtful If they can be inter
preted adversely to the general prosperity
of the trade Of the country. The extension
of business seems, on every hand, to be OF a
most healthy character. There is little or no
accumulation of stocks of manufactures in
any locality, while in numerous depart
ments of activity orders are far ahead of the
greatly increased productive power Though
1t is true that the grain crop has not been I'D
to its usual average, 1t should be borne in
mind that for several years very ample re-
wards have been realized blythe agricultural
community; while in nearly all products, ,ex-
cept grain, the yields Of previous years have
been maintained. Prices, too, continue so
high that the result to the agricultural pro-
ducer is not far short OF the average of late
years.
"With regard to the extent OF railroad
building, it should not be forgotten that the
vast undertakings now in progress are no
longer the result, as in previous wears, of
local effort and local indebtedness, but are
mainly achieved by individual capitalists.
with large following, by combinations
and cancellations of existing interests. and
almost invariably without calling upon the
localities chiefly benefited for material aid
in the construction. 1t is safe to say, that
the increase In local bonded Indebtedness
for railway purposes is far less In proper.
tiOn than it was in 1873. So far as the
volume of Indebtedness is concerned. the
general tendency now is precisely oppo-
site to what it was In 1872, and the reduc-
ton OF the national debts no less marked
than that Of almost every municipality ia
the country. The amount OF money thus
set free has gone into circulation and i'm
provements, not only Immediately bene-
fiting trade, but permanently adding
to the value OF property by the
additional facilities afforded. So, too, with
regard to private obligations. We question
very much whether the lines Of credit for
the internal commerce Of the country have
increased anything Ike in proportion To tbe
growth OF trade in the last two YEAR ond
certainly our indebtedness abroad is nncb nc
less than in 1872 On the other band. there
has oeen DEVELOPMENT of the productive
IoIces OI re country which has never been
go oSaalled in the same time. The steady
stream OF Immigration which has flowed To
our shores, the opening up Of new regions
for cultivation, and generally the favorable
conditions which prevail for the develop
ment and growth Of material resources. all
point in the direction of continued pros
perity. Tho large decline in the rates for
transportation OF freight and passengers. nv
rail, is benefit just to that extent to pro
ducers and consumers alike, while the
decline In the value OF securities
largely speculated IN, may be a lreven-
tive OF the calamity which some seem
TO anticipate as the result Of the activity
which prevails In other departments of
commerce, but which are really unaffected
hV the rise or fall of values on the Stock
Exchange There Is some ground for
anxiety that the failures in the West and
Northwest rasy be somewhat Increased.
owing 10 the conditions OF the country
ROADS, caused By the extremely mild
weather ana the absence of frost thus in
terferiDg with the deliveries Of produce. the
extent OF business, and the collection OF
outstandings. 1t Is said continuance nf
the present temperature for thirty dsVs will
greatly retard business and tag the re-
sources 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 KEY TO
The Immediate situstion in this region is.
therefore, in the elements"
Notwithstanding these local conditions.
the main result as seen from an A9epty
point OF view is favorable. It is reported
that the losses by bad debts In the wear
which is now closing, bear tut a meagre
proportion TO the profits realized in legiti-
mate trade. The additions which have been
made to the surplus of almost every prudent
business man are larger than have ever been
realized In any previous year, and that this
increase OF surplus is moro the result of
honest, legitimate profit than of any specu-
lsttve success must be universally admitted.
The circular, which is very full and com
plete Ia it's statistical details, concludes as
follows:
''The political and financial outlook seems
equally without disturbing element. With
some additional legislation by which the
laws re ating to bankruptcy can be regu-
lated and made uniform, and with favora-
bic conditions as to weather, crops and
trade generally, the opposite of which there
is no reason to anticipate, the prospect for
the future seems certainly most promising.
1t is true that failures may increase and in
dividuals suffer the penalties Of a de-
parture from legitimate business princf-
pies, from undue competition of unwise
expansion. Some viii by failure seek to
increase their store, and still more may be
the victims Of loss OF confidence, the result
OF the absence of protective law. But that
these casualties win be large in proportion
to the number Of people engaged in busi-
ness or to the magnitude of the tTansae-
tions, seems as unlikely now as at any time
in the last four years. The prospect is that,
as compared With any 0ther country In the
world, failures viii continue not only to be
Tess numerous in proportion to the number
engaged In ira e, but far less In amount OF
average liabilities, and in far smaller ratio
to the extent of business transacted, so that
the safety OF the mercantile, manufacturing
and banking communities may be set down
as better assured than that OF the same
classes In any other community"