The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-01-25
BUSINESS FAILURES.
Interesting Analysis Of the
Causes Of Embarrassment
Made by Brad
Streets"

In an article headed "A Statistical Bal
ance Sheet" published in "Bradstreet's's
OF January p, tie following interesting
analysis of business failures is given:-
In reporting business failures, causes
OF embarrassment have been recorded,
and as these data have been collected for
a series of years, they acquire more
value. 1t should be borne in mind that
causes of business failure assigned are
those to which failures are primarily
due. For this examination eleven prirn-
airy causes of business embarrassments
are classified as follows:-
A.-Due to faults Of those failing.
I. Incompetence-N Incompetence fir-
respective of other causes; G) I~nexperi-
ence. without other incompetence- q,
LACK OF capital, or the reverse Il. e.3' try
ing 10 DO too much business for CAPITAL
emgi4yed' n % Unwise granting Of
II. Neglect of businesszD Speculate lion
{outside regular business): l2] NegIent
Gu to doubtful habits; % Personal <
III. Fraudulent disposition of properfv
B.-Not due to faults of those failing.
~. Disaster. (hood, fire. rope failure
commercial ~crisis).
v. Failure of others. Of anna ran+,v col
vent debtors. @
VI Special or undue competition.
Lack Of capital continues a primary
obstacle in the path of those in business
contributing one-third of the whole num-
Der OF failures in 1896, which was also due
IN several preceding years. Next in I'M
portance as a u of failure, more par
tlcu.arly since 1893. is that referred to az
d1saster. in which business embarrass-
mentS due to commereiaJ crisas 6,o...3
Hcods are included. This total amounts
to more than ona-fo,,rth u Na
number Of fail,,res = me Wnoie
winch was also true in 1895 and 1894 al
though the proportion was sonamha4
smaller in 1909 +ha ~nat
in that vaar ha.na n.. : OF the panic
-. cot pe-Hs primarily responsible
TOT the increased proportion since Tn
experience or incomnetanoa IN h,,.:.a -
respective Of otbar $500 :. BUSINESS n
Of capital or trvina Z such as lack
hess Tor capital EMPLOYED or ,nu,.sa
granting Of credfts was ~
increase If 49, - ~ cause OF an
number ~ r. IT, one-lnlrd OF the totas
The fotaI ~ lures 81 IN this class in 1898,
that m 1904 hS,t peing nearly equal to
total in isas Thooul ~ per cent. of the
failures due to FRS, 7 ness comfort in
property in 1SSel1 oas u,sn, disposition OF
y per cent. rbe to ~ q Jump OF nearly
mpa win / no q. ~ 1870 was l,l54,
1893. These four Classes 3 q LIZ IN
stitute three-fourths Of tba angrss con
reported. ~ sHe total number
The proportion of failures a,,o
OF caDital was Sf.1 her can3 I ~ ~ iacR
1872 per cent. in 1895. against "a u = ae9o anu
the year before and 81 < No. oa.o per csma-
pointing to a decreasine pei oene. IN 1873,
from this cause durine the reoon+ lailuies
of special causes Of fail1,re Sele perloa
embarrassInents which were tba o o,,s = !
of commercial crisis and = .ne ouicome
upon such Disturbance amn,,n4od eas e =
per cent in 1885. 24s nar nantu 20 20
whole number in 1895 against u eI INC
cent. in 1884 and 81 ner anS Ao.s per
Failures due to s1nmoter cent. IN ie9a
| amounted to hon IS IN business