Daily Kennebec journal., 1902-01-03
The Failures o! 1901.

Yesterdays Geographic dispatches
as published in the Journal contained
brief summary of the past years
failures in this country, compiled by
the Enacial agency Of Il. G. Dun & Co
It is of interest to go more into detail
in this matter and make a few COM
PARSONS with earlier years. The re-
suit is impressive evidence of our un-
precedented prosperity. Though the
report is based solely on actual bus-
ness conditions. and is wholly unparti-
paiyn document. During The year
there were 11,0o2 failures with liabil-
ties aggregating sI13 3.092,376. In 1900
the failures were fewer. 1914, but the
total of liabilities was much larger
4I3s, ,t95.sT3.
In New England there Were almost
exactly thc same number of failures
tor the two years. In Maine there were
in 1901 49, with liabilities Of $3.50, rs
- -
s9i3.I63
So many elements enter into the conf
bosition of a years failures that there
Is little instruction in a mere tompari-
son Of aggregates. When IRaken in
connection with the solvent payments
through the clearing houses. one inn
i
just ps the physical death rate is
shown uy the ratio Of deaths to the live
population. In this light, 1901 makes a
better showing than any previous year
in the Nations history. for tn" de-
faultcd liabilities were bu, 96 cents To
each $1,000 of bank exchanges. Similar
Is. a ratio to the number Of firms in
business. shows that the entire amount
oc d.taulted Indebtedness averaged
rncars an onerous burden. This
amount compares with $ll9.'3 in 1900,
while going back to 1893 the average
was s2Gn.fT.
The increase in number Of inSol-
vcucics is by no means evidence of poor
business conditions. but. on the con-
trary may be the direct result Of eX-
rep,ional prosperity. A greater num-
her Of new firms were organized than
In any previous year owing 10 the
larger earnings by men In salaried
positions and the better returns from
email Investments. This great increase
in competition naturally affected old
established concerns, while numerous
new ventures, backed by inSufflcient
capital ard sadly deficient in expert
cnCed managers. were soon driven l"
the wall. In this way the number of
small defaults was swelled. but these
insignificant disasters We're not ex
tensive in influence, involving but
few hundred dollars each.
That the liabilities of all failures
should exhibit n large decrease. as
compared with 1900. is especially sig
nitlcant in view of the many events
that might be expected to cause heavy
losses. The clements We're most un-
kind. fires and storms destroying
much property. while heat and drouth
caused extensive injury to corn and
oats. and some reduction in the yield
Of cotton 4 violent upheaval in Wall
Street was sustained with practically
no bankruptcies of size. and the two
months strike Of steel workers did not
produce nearly the disturbance that
might have resulted in a year when the
general situation was less satisfactory.
No panic followed the assassination OF
President Mckinley, and. in fact the
solid foundation on which the coun-
t,y's business and industries are now
established was made conspicuous by
many untoward occurrences calculated
to shake confidence
The number Of failures each year
since 49,. the amount Of liabilities
each year. and average amount OF
liabilities are given below: