The daily morning journal and courier., 1902-01-06
THE YEAR 1901

1 Superlatives of the most emphatic
 kind are needed in delineating the fi-
 nancial and commercial progress of this 1 nation during 1901, Despite the elements
 strikes, speculative panics, foreign dis
 asters and the assassination of Presi- dent Mckinley, the first year of the new century was productive of many new
 high records of prices, output and dis tribution. It was in this last respect that results were most satisfactory, for prices have often been inflated beyond
 reason, and heavy production exceeded
 needs until accumulated stocks caused
 disastrous reactions. In the year just
 ended, however, the unparalleled out
 put of manufactured goods did not re-
 suit disastrously, consumptive demand
 not only keeping pace with, but often
 running far ahead of available supplies.
 Phenomenal shipments brought the
 greatest railway earnings ever attained,
 yet the year closed with congestion at
 many points because transporting fa-
 cilities were utterly inadequate. Bank
 exchanges, the best measure of trade af-
 ter making due allowance for specula-
 tive activity, far surpassed all previous
 records. Labor disputes were numerous
 and stubborn. yet all reached amicable
 conclusion with less bloodshed and de-
 struction of property than in earlier
 years while the formation of commit
 tee of conciliation promises fewer pro-
 longed controversies hereafter. The new year opens most auspiciously, and
 the rising tide of prosperity should
 bring many new high water marks.
 With labor well employed at the high est wages ever paid, the cost of living
 logically moved to higher level. Dun's
 Index Number on January 1, 1902,
 shows that the prices of all commodi-
 ties, when multiplied by the amount an-
 nually consumed per capita, aggregated
 $lOl.5S, surpassing all recent records by large margin. The gain during the year amounted to 6.2 per cent, while compared with the times of severest de- precision, eliminating July 1, 1897, there has been an advance of 40 per cent. Notwithstanding the greatly increased demand, all manufactured articles rose only about 20 per cent, and wearing apparel alone but Ii per cent. Improv- ed methods of manufacture and wise management have been effective in holding these products well within reach of the consumer. The most strik- ing gains over the lowest point on rec ord were 90 per cent in breadstuffs, 75 per cent. in dairy and garden products and 30 per cent. in meats Weather in- huences were in great measure respon- sible for these changes, drouth injuring corn oats and many other farm pro- ducts, but it is safe to say that it would not be possible to secure present high prices if general business condi- tions were not sound.
 Failures during 1901 were larger in number than in 1900, which was to be expected in view of the many new firms organized. Prosperity has an unavoid- able tendency to enlarge the number of defaults, since a moderate degree of success induces many inexperienced men to go into business on their own account These do not materially af- feet the volume of liabilities, however nor are they calculated to disturb the general situation by involving stronger houses. Thus, while the Il 002 commer- cial failures in 1901 exceeded the 10,774 in the previous year, there was most decrease in amount of de- faulted indebtedness to $113092;376, l against $13S, ,495 ,673 in 1900. Banking liabilities aggregated but S1SO1S,774, | against $35,617563 in thep revious year. The ratio of defaults to solvent pay ments through clearing houses was but | 95 cents to $1,000, the lowest mercan- tile death rate since these records were first compiled. Dividing total liabilities by the number of concerns in business shows that the average loss was about | So4.55, by no means serious burden, | and nearly S200 less than in 1893.
 In the leading manufacturing indus try there was most phenomenal activ- | ty, blast furnaces reaching new high | record of weekly capacity at 324, ,761 tons f )f pig iron, while of all finished steel | products the output was, remarkable. 1 Two months interrunton hv 2 strike ! put the domestic demand so far ahead | )t supplies that foreign orders have | since received scanty attention In- stead of violent imitation of prices there s a degree of conservatism never be- ore witnessed, giving the best reasons Or anticipating continued activity In act, the volume of business already booked for 1902 assures full time and 'orce at most mills for many months. The one drawback is the failure of rail- way faciliteis to keep pace with indus rial expansion Cars and engines, es- ,ecially the latter, are utterly inade- luate. Coke cannot be taken to fur laces and famine conditions prevail as 0 fuel Both coal and coke attained lew records of production. Textile mills began the year rather unsteady,