The Providence news. (Providence [R.I.]) 1891-1906, 1904-02-05
MANY FAILURES
IN JANUARY.
Increase in Indebtedness Over
Same Month Last Year.
ELEVEN BANKS SUSPENDED.
Heaviest Losses Were Due to Retrenchmeni
and Rsadjusiment With The Advent
Of The New Year.

Come mid winter information of special
interest Is presented in the latest reports
from the branch Offices of r. c. Dun &
Co, throughout the United States rela-
tive 20 commercial failures during the
month OF January. The total numbered
1906 with an aggregate defaulted indebted
ness of sls.4ss.B73 as compared with 1863
failures and indebtedness Of s12,g7s97s.
during the month OF January, 1908. In
January. 1902, the defaulted indebtedness
was N4.312,5Oi.
OF manufactures there were "a defaults
last month. involving an indebtedness OF
S. es7, ,sSs, against 24s for 1885, sle in Janu-
sry 1908.
In trading 1919 failures for s., ,224.96
largely exceeded the S6s year ago when
liabilities were s5.343.179 other CONNER
caI failures numbered So for $S57l 200. as
compared with 81 for $685. 4s4 year ago.
ELEVEN BANKS SUSPENDED.
In addition to these strictly commercial
failures there were eleven banking sus-
pensions for 81. .223O 900. also the Clarion
Steel company involving $500, 900 and the
International Fire Engine company FOR
10000. Banking and other huuciary fall
ures during January, 1903, numbered ten
and the amount involved was 81 453, e5t
while two years ago last month there
we're II failures in this class for sll,olo,-
s2s
IL IL customary for the opening month
OF year To bring heavy insolvencies for
the inability to meet annual payments
forces many concerns to the wall, and
II is we'll known that weak spots are dis
closed by inventories and stock taking
.I..w eaarn Rf
the year. This would explain the fact
that liabilities in January were larger
than I'm any month of those Immediately
preceding, with the exception OF "A slight
excess In December. hut careful COM
parison discloses the fact that losses in
January were heavier than I'm the corre-
spending month OF any year since 1896,
and, with the single exception of last De-
cember IL j. necessary To go back to
May. 1900, to find any month with as heavy
liabilities while I'm the trading class no
other month has made as poor a showing
since December, 1899.
HEAVY LOSSES
No special analysis or explanation OF
the heavy losses In needed In view OF the
facts shown at the close OF 1908 I'm annual
reviews OF that years events IL Was a
period OF readjustment and retrenchment;
of return To normal conditions after a
fcdSOn Oh lllldllOn' VI lhi oh'
nancial excesses. AT the termination OF
such a year Il was To be expected that
many concerns wond find the balance on
the wrong side of the ledger.
1t does not necessarily mean that the
new year will continue To witness abnor-
msly heavy losses. although the outlook
cannot be considered bright until there Is
a pronounced increase In confidence. Very
profitable agricultural results have re-
vived trade i'm some sections and strength
ened this nations internatio position
through phenomenal exports. Money mas
become abundant and easy, and this is
calculated 10 revive postponed business.
In the separation OF failures for 100000
or more from the great mass of smaller
insoiyencdes, Il appears that twelve manu-
featuring suspensions provided consider
ably more than half the total liabilities
and the remaining &9 failures averaged
only l0,67p esoh, which ID less than I'm slN
OF the ten preceding years. Nine trading
failures accounted for over fourth oi
the January losses in that GLASS, and the
other f.of0 failures averaged only s6,7S9
which was smaller than the average IN
January Of seven years of the previous
decade.
of all commercial failures, y provided
liabilities OF g. SSS 4l9 leaving only ts,59o, l6
for the other l. 3s failures; an average
of $3.50 against G,ds last year, and still
more as the average Tor the same Ihohl'
in the decade back TO 1894 This subtrac
tion OF the few abnormally large failures
produces a very instructive comparison
and prevents the distortion of the return
by single suspension Of great size.
Analysis of January insolvencies b.
branches OF business disclosed the fac
that while the aggregate manuiacturin
io.ses were much heavier than in TN
same month last year, nine OF the four
teen classes recorded smaller labilitie-
the large Increase in machinery. glass
liquors and tobacco accounting for IN
the difference.
As to textiles aud printing there Wa
notable improvements, and also ~ mls
cellaneovs losses on the other nan
only four OF the fourteen trading classe
showed smaller liabilities than in Jan,
ary. 1893 These were liquors, clothini
furniture and hardware.
The heaviest increase occurred In On
roods. where losses were almost double
bv two very large failures. and I'm ho,e
there was also a striking increase ID
cause of a single suspension for siS2" "'.
more than two thirds the total loss I'm tn
class In number there was an increa
IN nearly every trading class, notab
general stores and groceries.