The herald., 1897-01-02
AS seen and Reported BY Ex-
pert Observers
THE LONG LIST OF FAILURES
Reaches Climax In an Epidemic of
Failures
Yet There Is Almost Universal Conf
dence That Business VIII Soon Be-
come Both Larger and Safer
Associated Press Spccial Wire

| There have been more commercial fall-
ures in 1896 than in any previous year
except 1898, about 1880, against 1917
last year, with liabilities of $225,000,O 600,
against $173 ,0S0 last year, an in
crease In number of about IL per cent,
| and in liabilities of 20 per cent. The hol-
| iday makes it impossible to gite exact
J figures until next week, but the monthly
returns heretofore prepared show that
| sl6,000,o0O excess over last year was in
| two months, August and September. in
, which manufacturing liabilities were
| $15 600, 900 larger than last year, trading
| $40, 900 and brokers and other COM
mercial $40, 800, 900 larger. OF the latter
class $11 ,041, ,416 out of about S,600,0 900
We're in those two months; of the manu-
featuring class s24910,S56 out of about
sos, 260, 900 for the whole year were in
those two months. For the trading class.
S.. S31 $50 out of about S10S, 500, 900 in the
Wnole year.
The ratio of defaulted liabilities to
clearing house exchanges We're $4.S7 per
$1,000, against s3.05 last year and $685. in
1898. The average defaulted liabilities
per firm in business was $19057, against
S145 last year and $290.65 in 1898. For the
first time detailed monthly statements
are also published for the last year of
the panic year. 1898. showing commercial
liabilities amounting to s64oO0,000. The
year closes with an epidemic of failures.
mainly at the west. and in banks. loan
| and trust companies or concerns de-
pendent on them.
The action of clearing house on the
various places indicate no want of con-
hdence, and several banks which have
failed will be enabled to pay in full, but
disclosures of unsoundness in widely
separated institutions. in the abnormal
state of popular feeling after an excit-
ing contest on monetary issues, has
caused distrust and suspicion where it
is frequently undeserved. There has
been no monetary pressure to cause
trouble nor have important western
products declined in value. There has
evidently been too liberal assistance
given by some fiduciary concerns to spec
ulative operations.
NO drain on eastern funds has result
ed since the first alarm at two large fall
ures. and the money then sent has all
returned. Failures often grow more fire.
Quent as annual settlements approach.
Holiday dullness has been intensified by
the failures and the efforts of great
combinations to make new arrange
ments. With iron, coke. wool, cotton
and hides all somewhat lower. there is
almost universal confidence that busi-
ness will soon become larger and safer
than before for long time. and several
large establishments, among them the
Yonkers carpet works, which employs
i00O hands when running full time and
the Maryland Steel company, will now
start operations Wool sales decreased,
"A per cent in the first four months and
were smaller than for five years; de-
creased Sc per cent in the second four
hat, ~ n e..
ward, and were much the smallest ever
known, except in the panic of 1873, but
enormous sales, mainly speculative
made the aggreg gate during the last four
months nearly equal to that of last
year
Wheat has risen to the highest point
since June. 1892, because western re-
ceipts in five weeks have been but 49,
2S0000 bushels against 22,606, 367 bushels
last year Atlantic exports. flour in
clud'ed, have been, in five weeks, 9, 900. 600
bushels against 10613249 last year. The
exports from New York in December
We're per cent larger and imports 12
per cent smaller than last year.
BRADSTREET'S REPORTS.
Bradstreet's on Saturday will say:
General trade has been rather more
quiet and this week proves one of the
dullest of the dull season, which has fol-
loWeu Lie fortnight oI revived ueIlldIQ
early in November. The uneasiness last
week, caused by northwest bank fail
ures, is continued by similar embarrass-
ments at Chicago and Minneapolis.
These bank failures seem to be the out
come of conditions originating in the
banks, and not due to the situation of
general trade. Unreasonable weather
the marking of inventories and the GUS
tomary absence of demand in wholesale
in N or IN y1rndIIra
than the usual 6'ullness. More favorable
reports include heavy exports of flour
and general merchandise from Tacoma
and Japan.
Exports of wheat, flour included as
wheat, from both coasts of the United
States amount to 2,707, 1893 bushels as
compared with 2,111 900 bushels last
week, 3,457 900 in the week a year ago,
1,S14,00 bushels two years ago. and with
100000 in the corresponding week of
1898. Exports of Indian corn this week
amount to 2.656994 bushels against o.
1858 600 last week. 1,S39000 bushels in the
week year ago and GAO, 900 bushels two
years ago, $4,000 bushels three years
ago, and as compared with PA GOO BUSH
els in the like week of 1892.
The total business failures in the
United States in 1896 lin which liabili-
ties exceed assets) number 10, 112, an in
crease of 16 per cent over 1895, when the
total increased two per cent compared
with 1894 in which year failures fell off
is per cent from 1893, when the total was
1850, the largest on record. Total liza
bilities of those failing in 1896 amounted
to $247 900, 900; 55 per cent more than last
year and 60 per cent more than in the
year 1894, being exceeded only by the to-
tai liabilities in the year 1S93-S402, 600 0O0.
The ratio of assets to liabilities among
those failing in 1896 was so per cent, an
evidence Of an unusually high rate of
mortality, which is exceeded only by the
corresponding exhibit for 1893.
The commercial death rate was in 1896,
1.4O per cent, by which is meant that
140 per cent of every one hundred in
divduals, firms and corporations in
business last year failed. This death
rate was exceeded only by that in 1895,
when it was 1.51 per cent In 1895 the
commercial death rate was 1.23, and IN
1894, 1.21 per cent.
There are 2fT0 business failures re-
ported for Canada for 1896, an increase of
303. The larger proportion of the gain
is accounted for by an increase Of 1870
business failures in Ontario and 21 in the
province of Quebec and Al in Nova SEQ
tia
The increase of about II per cent in
number of business failures in the Do
lninion is accompanied by gain of only
seven per cent in aggregate loans, which
in 1896 amounted to SIG, ,20S,000.
Bradstreet's review of the stock mar
ket tomorrow will say: Trading on the
stock exchange continues to be entirely
professional in character and origin
There has however, been a noticea bic