Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1895-01-17
rha year,s Failures.

finally reported by Dunn % o., are
not only less than half the failures OF
1893, in magnitude.of liabilities, but
are also smaller than in eleven OF the
previous thirty-eight years Ii ~
true, the statement is now carefully
classified, and banking and railroad
failures are excluded, as they we're
not always in former years, and owing
to the relatively large Liabilities OF
such concerns, the admission of few
failures of these classes may easily
have increased by one-half or even
more the total liabilities in years pri-
or to 1893. That this was actually
the fact with all reports OF failures
until two years ago, the Mercantile
Agency publicly states, so that the
purely commercial liabilities, now re-
ported by themselves, may be some
what larger in comparison with those
of previous years than they appear.
On the other hand, the number OF
failures increases naturally with the
number of firms covered by the re-
port. This is quite different from
the number OF firms in business, be-
cause the Agency returns covered
10000 more firms at the end of 1884,
and $4,000 more at the end Of 1893,
than the year before, though beyond
doubt there was u considerable de-
crease in the number actually en-
gagged in trade and manufacturing.
The proportion Of failures in 1000
firms in the business was 125 last
year, against IS in 1899, 10 in 1884,
and 10 to Is 5 IN each Of the years
'1e7B to 1878 inclusive. If only six
wears out Of twenty-five have shown q
larger percentage OF commercial NOR
tally, Notwithstanding the probable
inclusion Of some concerns not strict
ly commercial in the earlier years, it
is fair to infer that the year was real
" much less disastrous, WI respects
actual failures, than it has seemed to
many. Doubtless this is the essen
tial truth. that liquidation went so
far and was so general in 1898, and
the indisposition to take new risks
was SO great in 1894, that the failures
were to q large extent mere relics OF
the storm Of The previous year. After
the manic g. 1873 failures continued
larger in number in every year until
1879, and after the much less import :
ant commercial disturbance in 1884
the number Of failures was nearly as
large in 1885.
The proportion of liabilities to the
entire amount of solvent business
fully represented by payments
through the clearance houses through
out the country is one Of the most in
teresting and important comparisons
ever made. The total volume of ex-
changes prior to 1875 is not known,
and as the number of clearing houses
has enormously increased since that
time, and out of all proportion to the
actual business of the country, it is
not unreasonable to infer that the
actual business is much more fully
reported now than it was twenty
years ago. by the payments through
such institutions. But even with
large allowance for this fact, the pro-
portion of deferred liabilities IN 1894
to the aggregate of clearing house
payments, was only $2 63 in $1,000,
and this proportion was exceeded in
1893 when the ratio was $33S in
$1,000, in each of the three years
1S89-91; in each of the five years
1S89-87, and Ia each of the four years
l875-78. In other words, the proper
ton has been smaller in only seven
800 of the last twenty than it was
in 1894. After 'N "AN ~ "
lowance for the change In
of solvent business represented L.,
clearing hoase exchanges, it will
probably be agreed that while the
year 1893 was the worst of the entire
period, the year 1894 was rather bet
ter than the average st. Joseph
HernLd