The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-07-09
SIX MONTHS FAILURES.

r. G. Dun & Co. report 5,62S CONNER
cial failures during the first half of 1908
for $685. 797. $50 in amount of liabilities,
compared with 6,165 bankruptcies in the
corresponding months last year. when
the defaulted indebtedness amounted to
$50, 374 $50. While the decrease in num-
Der was about per cent, the sum in
volved increased a similar percentage.
This is due to several large failures
Separating the half yearly record into
the three chief divisions, it is found that
there occurred 1880 defaults in manu-
featuring, with a total loss of 1926 1876, 144,
as compared with 1,41S last year for
1924. 940, 020. Traders suspended to the
number Of 4,O3S. against 4.410 year ago.
and liabilities were SIC, 544. 445 against
$29, 145, 622. The third commercial sub
division contains brokers, transporters
other than railways. and similar con-
Germs that cannot properly be included
in either of the two principal classes.
OF these firms 80 failed with debts ag-
gregating $10,117,673, as compared with
3O5 in 1902 with liabilities of So 249, 435.
Banks and other fiduciary institutions
suspended with defaulted Indebtedness
of Sc 495, 716, a most gratifying return
when compared with similar liabilities
of $16.797.763 last year or SIS, 1888, SS9 in
1901 There was an increase of ten in
number over the banking defaults last
year.
These statistics of commercial and
financial mortality are most encourag
ing, for the events of the past six
months were not such as to encourage
expectation of a small number of in
solvencies. On the contrary, while no
great crisis or widespread calamity
menaced the nations business, there
were many exceedingly unfortunate oc-
currences, some of sufficiently disturb
ing character to produce extreme con-
servatism. Doubtless this very caution
is responsible for the comparatively
light insolvency returns. Disasters due
to the elements were more numerous
than usual, floods devastating many
sections. while tornadoes. fires and
drouth caused havoc at other points.
Industrial wars were frequent and cost
ly a vast army of wage earners volun-
tarily reducing their purchasing power.
and of necessity curtailing the consump-
ton of all products except the bare
necessaries of life. Sensational manipu-
lation of the staple commodities, notably
cotton exerted much influence beyond
the immediate vicinity of the leading
exchanges. Liquidation of securities.
averaging SIS per share for the sixty
active railways during the half year,
followed fall of about $40 a share dur
ing the closing months of 1902. yet this
enormous shrinkage in the market value
of stocks brought no such failures as
would have occurred under similar cir
cumstances in preceding years.
Consequently, the lesson taught by the
economic factors in evidence for the
first half of the current year is that the
country's trade and finances were too
strongly established during the extreme
ly favorable years preceding to react
under influences calculated to produce
a severe strain. AS the turning point
appears to be almost reached, there is
reason for sanguine feelings regarding
the future, and the business community
has good cause for congratulation that
there is so little wreckage to be removed
or financial house cleaning to be done
at the opening of a new fiscal year In
so far as failure statistics are evidence
of the situation there is warrant for
increasing confidence, especially in view
of the fact that the June liabilities were
much smaller than any earlier month
of 1908.