The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-01-04
DVN'S REVIEW OF TRADE.
An Explanation Of the Causes That Pro-
duccd Over.prOduetion and Also Scr
iously Injured the Wheat and Cotton

iOnsly Injured the Wheat and Cotton
Interests.
New York. Jan. 3.-R. q. Dun and
company will say tomorrow In their
weekly review of trade:
The commercial failures during the
complete year 1895 number 13,191,
against 1885 In 1894. but the aggregate
Of liabilities Is slightly greater-$173.-
1876, ,O60 against $172.99e,S66, The bright
promises offered by Il la:SL decrease
in the first quarter was followed by q
small increase In the second and third
quarters, and u large increase in the
last quarter of the year In that quar-
ter also the deferred liabilities to each
firm In business increased and also the
proportion of deferred liabilities to pay
ments through clearing houses. The
effects of unreasonable speculation in
materials, rapid advance In prices Of
goods. heavy purchases ahead of dis
tributlOn. and enormous increase I'm
production clearly appear in the re-
turns.
Produce markets have been the thea
ter of surprising changes which have
influenced all business. The acreage i'm
cotton was wisely restricted in order to
give producers a better chance for fair
returns. and the crop was further re-
growers were injured still more by fran
tic speculation. which checked exports.
and by false information and advice.
Wheat producers suffered i'm like man
ner from wild speculation which pre-
vented the exporting of many million
bushels. and false reports which en-
cOuraged farmers to keep back their
grain until the cream had been taken
off the market by SPECTATORS. The
inevitable consequence has been a very
low range of prices. the yield being
clearly In excess of all demands. The
great crop of corn has materially af-
fected the price of meats. The course
Of industries during 1895 has been ma
terlally affected by speculation in ma
terials. Midsummer witnessed a tre-
mendous advance with q rush to but
FAR exceeding the ordinary demand for
consumption. Prices rose beyond all
reason, exciting still more the anxiety
to buy beyond actual needs. Thou
sands of producers strangely mistook
the extraordinary buying for q vast in
crease In consuming ability. and ex-
tended plants. opened mills, increased
force. and pushed production in many
lines far beyond actual consumption.
The Effect Of Initiation.
Inevitably both traders and mann.
facturers were left toward the close
with considerable stocks unsold and
claims against customers who were
themselves tied up by purchases beyond
their distributing power. Hence the
general shrnkage in prices for the pa st
three months. and though in scarcely
any department did prices rise higher
than in former years. they were found
out of relation to existing demand.
Railroad earnings show decided i'm
provement over last year Sc per cent.
for the year and 60 per cent. for De-
'cembcr. though 4.6 per cent. smaller
than in 1892
Rapid outflow of gold with high rates
of interest caused anxiety. which was
checked by decision to issue clearing
house certificates at New York. Boston
and Philadelphia and by prompt atten-
tion to financial questions in congress,
but at the close another issue of bonds
is expected. Offers already exceed the
amount Of the issue proposed The re-
cent decreases i'm imports of merchan-
disc and some increase in exports war;
rant hone that trade balances may be
more favorable hereafter. but much de-
pends upon the course of securities
which foreign holders are selling to
some extent in order to share in the eX-
pected profits on bonds. Rarely has
there been a situation so complicated
and the near future is difficult to fore
cast. but it is the widely prevalent i'm
preston that a large sale of bonds will
speedily revive confidence and activity.