The herald., 1897-07-13
OFFICE OF THE HERALD,
Los Angeles, July IL, 1897.


Los Angeles, July u, 1897.
The business failures for six months are
epitomized by Bradstreets in a lengthy
article from which the following extracts
are made:
The record of business failures through
out the United States during the past six
months is not as favorable as was antici-
pated at the close of the first quarter of
the current calendar year. particularly
with reference to the aggregate liabilities,
which have been unexpectedly increased
by the embarrassment of several large
manufacturing and other concerns in New
England. The six months exhibit includes
7024 failures of individuals. firms and cor
porations in business, compared with 1902
in the first half of 1856, falling off of 578,
yet the aggregate number of failures since
January 1st, with that exception, is larger
than during a corresponding period in any
preceding year. AS compared with the
first half of 1885, the total for six months
ending June 80. 1897. shows an increase of
l27, and as compared with a like portion of
1894 the gain is 1856; contrasted with the like
portion Of 1893, including two months at
the beginning Of the panic, it is 1856, and
as compared with the first half of the
calendar year 1892 the gain is 1878. The
1924 business failures during the past six
months record $93, 4s5 liabilities, s11,
$4,000 less than in the corresponding period
of last year, $77,204, 900 less than in the first
half of the panic of 1898, but s13, ,949, 900 more
than in the corresponding period of 1895,
S11, ,101, GOO more than in the like portion of
1894, and 1000 more than in the first
half of the calendar year 1892 While the
business failures for the period under con-
sideration are the most numerous for any
year since these records have been COM
piled, with the single exception Of the first
six months of 1885, total liabilities are the
largest during the past eighteen years, ex-
cept during the six months period in 1886
and in the panic years 1893 and 1884.
An additional evidence that the liquida-
ton consequent upon the disturbance
caused by the panic of 1898 had not been
completed prior to the current year is found
in the ratio of assets to liabilities among
failing traders, the proportion amounting
to IS per cent since the first of January.
as compared with 81 per cent in the first
half of 1896. IS per cent in the like period
of 1895 and 54 per cent in the correspond
ing period of 1894. But as compared with
the like portion of 1893, when the panic pro-
duced embarrassments among large
number of heavily capitalized concerns
which were relatively solvent the ratio
of total assets to liabilities was 81 per
cent, the largest ever recorded. With this
exception the proportion of assets to liza
bilities of failing traders during the past
o;v he 10 no Ia raC0rded the
responding ratio in the panic year 1884 hav-
ing been only 56 per cent
On the Pacific coast there have been
fewer failures in Oregon and Washington
and more in California Nevada and Idaho,
while the total liabilities, $4,794 900, are
about $45 900 smaller than last year. Among
the territories there are fewer failures in
Arizona, New Mexico and Alaska, but
more in Indian territory and Oklahoma.
Total liabilities of embarrassed concerns
in this group $654,611. show a decrease Of
little more than one-half from the like
total last year.
+ + 4
June bank clearings reflect an enlarged
volume of speculation and trade in a total
which is 6S per cent larger than that of
May, 81 per cent more than in June year
ago, L2 per cent more than in June, 1895,
and "a per cent more than in June, 1894. The
decrease compared with the January total
this year is less than per cent, while the
falling off from June 1892, is only 10 per
cent. Southwestern and New England
cities show the largest gains as compared
with year ago, 1915 and 1913 per cent re-
spectively, while the heaviest decrease is
that of the northwestern group, is per cent.
The entire gain at all cities in June over a
year ago is accounted for by the increases
at the cities Of New York and Boston, re-
spectively 6 and - per cent. For six
months clearings are still behind those
of q year ago. The total clearings at
seventy-six cities are $24,964 43O,2s2, a de-
crease of 90 per cent from the like total in
1896 and 1 per cent from 1885, but gain of
10 per cent over the total for 1894. Com
pared with 1892 and 1893 the decrease is
about Is per cent.
In reviewing the condition of the iron and
steel market for the first half of 1897 the
Philadelphia Press says that consider
able amount of business has been done, but
at figures SO low as to preclude the possi-
bility of even fair profits. Two or three
weeks ago q slight turn for the better was
witnessed, but conditions reacted with
the result that prices now are virtually
as low as they have ever been. Compar-
ing present prices with those ruling in the
last week of 1896, it will be found that pig
iron is about 81, billets $3.50, bar iron $4
plates 50 and beams s6 to IS ton lower
Considering the fact that at that time the
various pools contributed to the buoyancy
of the market the decline is less notable.
There are no trusts now to lend artificial
support to the market. Some in the iron
trade are of the opinion that it is difficult
to find any substantial basis for believing
more than that it is easier to make sales,
that prices are steadier and that the out
look is more favorable. Meanwhile quota
tions remain at the lowest figures on
record.
r + 4
During June the market for anthracite
coal has shown a tendency to improve
ment. According to the July letter of the
Anthracite Coal Operators association the
action of some of the companies in advance
ing prices at tidewater and along the line
will undoubtedly cause more or less activ
ity in the trade. This same letter further
says that the market in it's present position
fully justifes the advance that has been
made, and it is altogether improbable that,
after the struggle for six months to keep
the output within the market require
ments, at undoubted loss to the transporta-
tion companies, advantage will not be
taken of the good results obtained and
prices held firmly and advancing to the
new circular. 1t is believed that anthra-
tta xrrf1 ,,Af All g.