The St. Louis Republic., 1904-01-01
CHANGES MADE GRADUALLY.
Increased Number OF Failures Re.
ported, Especially in the Last
Quarter, With Liabilities
Much Greater.

| 1903. From the lowest point OF depression
| In 1S96-T to the zenith of prosperity and
commercial activity in 1929 the course
OF business was well defined and unin.er-
rupted. although numerous events occurred
that were calculated to check even this
great momentum.
but five years of expansion In trade
and manufacture brought financial and in
dustrial excess. The result was the build
ing Of bigger barns the preparation for
more business than appeared, and the
capitalization of the hopes and expecta-
tions of the future.
The last year has chiefly been devoted
to retrenchment. Assimilation of secur-
tiles was only accomplished by the dras-
tic remedy Of 80 per cent reduction in
prices. Accumulation of iron and steel
found market only with the aid Of low
er prices and curtailed production.
FAILURES NUMEROUS.
In the process Of readjustment there
were many failures, the number especially
large in the last quarter. Some industries
have not shared in the reaction to any
appreciable extent and this provides an
element OF uncertainty regarding the fu-
tnre; But In many sections Of the coun-
try and IN numerous walk: of life the set
back has reached such proportions that
there is reason to look ior recovery in
1901.
In iron and steel. starting with the
heaviest production on record, the furnace
stocks OF piS-iron practically wiped out,
the year 19t3 has brought some startling
developments. Prices declined and produc-
tion was curtailed. Labor troubles. es-
pecially in the building trades. tied up
work on buildings, costing many millions
Of dollars. and cautious investors cam
ceieo many plans for work. The decline
in quotations continued through the fa.l,
but at the recent meetings OF managers
former price lists were reafflrmed and
even Southern foundries declined future
contracts.
FARMERS FORTUNATE.
"Asriculturally the year has not fallen
short OF expectations. smaller yield of
cotton was accompanied by more than an
equivalent rise IN prices. while the yield
of corn was abundant, and the livestock
shortage Of recent poor corn years was
fully made UP. Neither corn nor oats
equaied the record-br eaking crops OF l9V2,
out there was an enormous wheat crop,
part of which was lost because Of made
Quate facilities for handling.
Artificial Quotations for meats were dis
sipated during the past year, many Of the
declines reaching striking amounts, and
restoring the situation to a much more
healthy position, although less profitable
to the grower. Abnormally high prices,
however, curtailed demand, especially for
through the maturity of loans.e
COTTON'S STRENGTH.
''The last two years saw cotton In a
strong position, averaging or cents a
pound for Iniddling uplands in the New
York market. Floods and other climatic
conditions proved adverse and injury by
Insects was very severe, so THAI as the
season advanced estimates of the crop
were gradually reduced until about TO-.
50o.UOo bales were generally anticipated.
Meanwhile spectators became active and
prices moved steadily upward until the
highest figures since 1873 were attained.
Hides and leather during the year of
1868 were characterized by severe decline
in hide values, which, continuing into
the late fall, carried prices down to a
lower point in the Chicago packer mar
ket than had been reached at any time in
several years. Prices on hides touched
the bottom during the early part of No
vember. Since then rates have been ad-
vancing and the market at the close of
the year was 1cc to lc higher than two
months previous.
BUSINESS IN SHOES
THE shoe business Of 1863 exceeded in
volume that of any year in the history of
the industry. More shoes were made and
sold than ever before. and this was rath-
er unexpected, owing to the decreased ac-
uyity in most oil the other large trades.
ut is estimated that the shipments OF
shoes from Boston for 1903 will exceed
tlOSe VI Dy cases, ana
up to the last week of 1903 these ship
ments slightly exceeded 5,o50,000 cases for
the year, which makes the first time that
the 100000 mark has been reached and
passed.
COTTON GOODS
I'm cotton goods The year opened with
a fair degree of promise. There was an
average demand from the home trade and
a considerable amount of business done
in january. Stocks were moderate and in
some departments mills We're sold ahead.
Prices were low, compared with cotton
but were advancing i'll a way to encour-
age manufacturers in hopes Of reaching
a normal parity later on.
In January spectators took a strong
hold of the cotton market and from then
until now they have practically dominated
the situation at all times.
In mems wear. woolens and worsteds
manufacturers have not had to contend
against such manipulation of raw ma
terial. but they have still had to face a
high market for wool. with no responsive
movement in the prices of finished goods.
On the other hand. prices in many direc-
tions are lower at the close than at the
opening of the year.
THE silk goods division continues the
story OF high-priced raw material, unsat-
isfactory prices of silk fabrics and heavy
curtailment of production. Early in the
year a meeting of broad silk manufncti,r-
ers was held. at which it was resolved In
advance prices.
FINANCIAL CONDITIONS.
Financial conditions were precar;ous
Tor time during 1903. but the season Of
pressure was passed with light mortality
and the year closes with less than the
customary stringency in preparation for
exports of gold were made early in the |
year, effset by very large imports during
the autumn. Withdrawals of funds for |
movmg the crops began earlier than usual |
and reached very large figures chiefly be- |
cause of the abnormal cotton market.
The readJustment Of stock prices that |
occurred during the year 1903 caused no |
ket. Prices had arisen far above all nre !
vious records during 1902, the sixty most |
active railroad stocks averaging sll6.Y AT |
the top point; The decline was well under |
way when the year opened. and II con- |
tlnued until the same securities averaged |
sS262. There were no sharp breaks such |
as occurred during the Northern Pacific |
panic In 1901. nor was there anything of a
'pasmodic nature about the reaction.
YEARS rNsOLvENcTEs.
Incomplete returns of commercial insol. |
vencies during the year 1903. reported by
R. G. Dun & Co., show that I200l concerns |
suspended. having liabilities of s156 s33 $50.
Inese nsures compare with final returns |
q 1i,sls failures for s17!7s,7es in 1902
there were fewer failures but always
arger defauited Indebtedness. than In 1909
:, In addition To these figures, there was
included under the classificat.ons
into which these failure statistics are d.
vided, notably the United States Ship-
building Company. Although no great set
back has occurred In husinesr air s.,L-
ng losses were actually smaller than IN
the preceding year. the large incresse IN
commercial liabilities indicates that the
progress In the Industrial world and in
iistributive trade has had a very pro-
bounced check. ss,-'-s
Labor troubles in the building trades