The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-01-08
Eailnras for 1890


The statistical information contained in the
circular of r. G. Dun s. Co., whose associate
office in this city is under the management of
Mr. I. Frank Jones, relative to the failures of
of the past year, has already in substance been
published, Some of the remarks G. the agency
may prove valuable,
Referring to the large expansion in credits,
the Agency pertinently remarks:
"We must, therefore, look to other causes to
account for the increased failures than those
that are discoverable in the condition of the
country. The chief of those, beyond question,
is the alarming extension of the lines of credit,
which the last two years have witnessed.
This is, OF course, the result of undue anxiety
to dispose of goods without sufficiently careful
scrutiny as to the ability to pay for them, and
is directly traceable to overproduction in man.
ufacturing centres, in anticipation that the
volume of business would be maintained at a
ratio OF increase as great as that which marked
the recovery from years of depression, economy.
and restricted business, to state of the high
est prosperity. If the growth in the extent
and duration OF credit increases, in proportion
SO much greater than the growth in the vol
ume of business, the result must be in
continued increase in the number of failures"
But, with the foregoing in view, the Agency
is inclined ty take a hopeful view of the condi-
tions of trade, as it thinks that
IL WOUlu Do Impossible TO Imagine C0nQl-
ton of the country more favorable than at
present for safe, restricted business career
A year Of unbounded production in almost ev-
cry department of industrial activity has just
closed; the accessions to the population by inn
migration have been beyond all precedent;
the late autumnal season was so extremely
favorable as to add greatly to the value of the
hockS and herds scattered over the country,
while the early winter, thus far, has been ex-
tremely propitious for numerous interests. AS
10 aoprr ,1rnit houa roo Irad
on but very small portion Of the vast stores
with which the year has repleniShed their
granaries, and the exports, which already be-
gin to climb to very respectable dimensions,
next few months. Railroad earnings must
grow in proportion, and the whole condition of
the commerce of the country promises great
er safety, magnitude, and success than have
ever before been attainable. A condition of
preparedness to take advantage of the favor
able circumstances now existing, is found in
the fact that speculation, to an unwise extent,
has perhaps spent itself, and that the results
OF large decline in values, as consequence
have not been attended with very Numerous
disasters, though the surplus of many has been
lessened thereby. 1t is a testimony to the gen.
orally sound condition of the country, that q
reduction SO large in the price of securities and
leading staples conld be endured, with conse-
quences not more hurtful than are apparent
from the figures of failures we herewith pres
emit.
SIT is difficult to discover any element of
disturbing character, except perhaps, over
production by manufacture, pressure to sell
goods, tendency to extend credits unduly,
and the dangers that results to individuals
owing more than they can readily pay. 1t is
not too late to reform this single sinister fea-
ture in the fair prospect which greets the
whole community at the opening of the New
Year. Merchants, bankers, and manufactur-
ers have 1t within their power to limit, and
bring within safe bounds, these SO lie existing
elements of danger.