, 1900-02-15
SOUNDEST OF HEALTH
UNEoUALED SHOWING OF
PROSPEROUS CONDITIONS.
Record of Business Failures for 1893
Gives the Smallest Average of De-
fauIted Liabilities Ever Known In the
United States.

United states.
In spite of the casualties among
financial concerns in the closing days
of the old year, produced by purely
speculative causes. the fact remains,
according to Dun's Review, thai the
failures of 1899, the great year OF Ding
ley tariff prosperity, were in amount
smaller than in any other year OF the
past twenty-five, excepting 1886 and
1881. while the average OF liabilities
SIT. so per irm-was smaller than In
any previous year; and, most impor-
tant test of all, the ratio of efaul to
solvent payments through clearing
houses. 81 cents per $1,000, is not only
the smallest ever known in any year.
but smaller than In any quarter save
one, the third of 1881. The failures
for 800, 900 or more In the past six
years have ranged between s3l, 622, 1856
in 1899 and sos, sos, 1892 in 1896. the de-
crease being more than two-thirds, but
the small failures ranged W
s5e, 1856, 703 In 1895 and 1927 ,592 ,9O2 in
1896, the decrease being more than one
half.
But from the nest of failures result
ing from the speculative collapse In
Boston In the latter part Of December,
the aggregate for the year would have
been about s21 900 900 less than 1t was.
As the record stands, however, n IN
Guiding the failures incident to over
speculation in New England and HI
brief but severe panic in Wall street.
the failures in 1899 are the smallest
ever reported since 1881, with the low
EFT average of commercial liabilities
ever reported. and with greater evil
dence of commercial soundness n
| dustrial prosperity than has ever be-
fore appeared In an nnual statement.
Not only have failures been smaller in
tie aggregate than In 1898 or previous
years, but they have been smaller In
every section of the country. Such uni
formity Of improvement throughout
tae country is extremely rare, and
would scarcely be possible unless bust
ness OF all sections was exceptionally
sound and prosperous.
The Massachusetts, manufacturing
defaults, in spite of The influence of
the late December banking collapses.
were the smallest in any year, as were
those of the other New England states.
New York and the middle and central
states. The New England disaster
swelled trading defaults by s3,92o.0 900
in five provision failures, besides two
banks, with liabilities Of about 3d.
500, 900, nj two brokerage firms for
$3.50, 900. In New York the manufac-
turing failures were only about a quar-
ter OF those in two years of the pre-
vious FIVE, and not half those OF two
other years, while the trading failures
were also much less than half those
of tour previous years, but in broker
age the liabilities were nearly as large
as in two other years, and in banking
larger than in any previous year.
But in other middle states manufac-
turing and trading liabilities presented
the same bright contrast, while In both
other lines the failures would have
been almost nothing but for that OF a
single large stock concern at Phila-
delphia wrecked by crime. and in no
way caused by business conditions. The
central states also showed trading de-
faults from IS, 1000, 900 to S11, O0O. 900
smaller han In any previous year,
though some brokerage and promoting
failures at Chicago swelled the other
commercial" defaults above the returns
of previous years except one.
The average of ~defaulted liabilities
per firm is a test which serves better
than most to show how the defaults
ompar with the extension of bust
ness, but this year that average is for
the first time less than $50, the lowest in
n previous year, having been s93.63
in 1880. A much better test is the ra-
to of defaults to actual payments in
solvent business through the clearing
houses. Here the ratio for 1899 Is less
than 81 per 1000. namely, only 81
cents, the lowest by more than a fifth
ever reported in any year, and the low
est ever reported until this year in any
quarter, save the third quarter of 1881.
The failures for 500 900 or more
were only 34.7 per cent of the aggregate
last year, $3.50 per cent in 1898, and
80 per cent in 1897, but 1915 per cent
in the bad year. 1896. and 42.2 per cent
in 1895, and 3S.3 per cent in 1894. The
amount of such failures, and of the re-
mainder for less than 500 900 each,
are here shown for six years, and de-
serve especial attention:
IarRa Gp,an