Weekly expositor. (Brockway Centre, Mich.) 1882-1894, 1884-01-24
Business Disasters for One Year.

In their annual circular Messrs. II
G.. Dun q Co. state that during 1883 tn,
business failures in tho United States
have reached the almost. unusual toia
OF 8 1874. The failures in 1882 were il
number 6,738. SO that last year an in
crease is shown of 8 800, or equal 10 81
per cent. AS compared With 1880 il
which wear the failures were only 4 1915
the increase in 1883 To 9,1S4 shows &
difference of over 100 per cent. AS in
1880 the failures reached the lowest
point, so in 1878 they reached the high
est, the number attaining 10,478.
The liabilities of 1883 failures amount
to S173 600. 600 as against S10l 900, OOC
in 1882, showing that the increase in
failures has been greater in number chan
in the amount of indebtedness. Com
pared with 1880, when rhe liabilities
we're only sos, 900, 900. this shows Il very
great advance. But they were far less
than in 1873 wheE the Indebtedness
of the 10.478 parties failing amounted
10 1924, 000. 000. In their review OF last
years showing of business disasters
Messrs. Dun g. Co. say;
That over 5000 traders have failed
during the year 1888 is circumstance
OF marked significance, The number
is greater than in any year since 1878
which was the eliminating point OF
live years of depression and liquidation
succeeding the panic of 1873. AS COM
pared with 1878. the circumstances of
1883 widely differ. 1t would have been
impossible to expect anything else but
disasters in 1878 rs the result o. many
years of loss, depreciation of assets,
and exhaustion, with n restricted trade,
a universal want of confidence. and,
above all, the impending repeal of the
national bankrupt law, which fact
caused hundreds in business to fail be-
cause of their anxiety to avail them
selves of clearance from indebted
ness which previous years of misfortune
had rendered them unable to discharge
In 1882 vastly different condition OF
things is found. The country is in the
highest degree prosperous. so far as
productive forces are concerned. The
development of large portions of the
continent has gone forward with great
rapidity IN the west and in the north-
west, while in the south steady growth
or material prosperity is everywhere
visible. There are no disturbing polit-
zeal elements. and financial problems
which formerly threatened the country
seem to be working themselves out
without agitation or loss. Succeeding
Sc -eral wears of unwonted prosperity,
large immigration, and great growth,
the startling fact presents itself that, in
the midst of all this, 10000 failures oc-
cur in IL months. 1t indicates that en-
tire safety in business is not always CO.
incident with largely increased trade,
augmented productive forces, and the
presence of all the conditions of n gen.
orally widespread prosperity.
Under such circumstances. the in
quiry is a most anxiousDne as TO what
is the actual business outlook for the
opening year. If, with all that has
happened in thu past of n favorable
character, disasters of such magnitude
have occurred. what il to be expected
with the loss of confidence which these
calamities have caused, with restricted
credit accommodation, ,lessened BUSH
ness. and the steady depreciation in,
values which seems to be the daily ex-
perience? These considerations force
themselves upon prudent BUSINESS
men, and the result, is "a very general
apprehension, which the foregoing fig
ures tend to increase, but which, when
the circumstances are >all considered,
ought not to seriously alarm the COM
munity or create disiIriust among bank
ers and others. 1t {sIiopld not be for
gotten that wEile'tle aggregate Of tail
ures is large the nulfber of traders do
ing business, has increased in an almost
similar proportion. Thus. in 1878 there
were go. 0Ou names reportedias in busi-.
ness in the United States, while at the
present moment the number exceeds
900, 900 active (, aders. Thus it will be
seen that the traders of the past year
large as they are, do not bear any pro-
portion to those occurring in the worst
years Tor failures in the history OF tn,
country: for while there arc about 30
per cent. more names reported, the
number of q. ~altirs is not largely In
excess of those of 1878 IL is true that,
as compared with 1S78--an exceeding.
~ prosperous year, when there were
less than 600 failures-they are about
double in 1888; but the last three years
have witnessed greater increase in The
number of people who have gone into
business than any three years in the
history of the country. This circum-
stance alone will account in no small
degree for the excessive number OF
small failures. so that we are not onl,
now reaping the harvest which was to
be expected from the undue expansion
of 1880. but also all the results of fierce
competition, unfortunate speculation
outside of legitimate business, inexpe.
perience, and, above all, the results OF
over-prodnction, which really seems to
he the chief cause of numerous disasters.
Unlike previous years in which mer-
camille casualties have been most nu-
merous, the country, far from present,
ing symptoms of exhaustion, seems to
lack no single element contrihutory to
its growth and prosperity.
a nj for