The Providence news. (Providence [R.I.]) 1891-1906, 1906-03-02
There We're Fewer Failures Than
In Same Month Last Year.
LIABILITIES A MILLION MORE
Spanish War Year the Only One sIass
1894 In Which More Favorable
Showing Was Made.


February were 93S in number and sloss.-
6ls In amount OF defaulted Indebtedness
This compares with 1913 failures In the
corresponding month last year when liza
bilities were s97sO.S7O
While the amount involved was ABOUT
million dollars more than in the same
month last year II was 5000, 600 smaller
than in February, 1894. and also compared
favorably with the three preceding years.
while the humber OF failures was the
Smallest in over a decade. With the ex-
ception OF 1899 and 1900
Manufacturing failures were 22s in num-
Der and s4.65S. $50 I'm amount. against 234
last year for S3,S26.S54. Improvement was
most striking IN trading failures, 6SS com
pairing with 749 last year and liabilities %
S,b66,SSl falling much below the S.i1s,9ss
~ February, 1906.
The Increase IN liabilities was provided
by the third class embracing brokerage,
real estate and Insurance. 81, ,6Ss,goS largely
exceeding the S53s.ts in the previous year.
although the number OF failures in this
class was the same in each year
SEVEN SUSPENSIONS.
OF banks and other fduciary institutions
there were seven suspensions involving
last year, but the amount of defaulted
Indebtedness was only $Ss9 AS
Although February Is a short month IL
has been an eventful one In recent years,
particularly as TO insolvencies, this year
showing notably large lossee In Banking.
brokerage, and few manufacturing
classes. while last year there were heavy
trading losses at the south because OF the
sharp decline in price OF cotton. and in
1904 the Baltimore FIRE produced many
large disasters, especially among the
minor Insurance companies
Comparison of February liabilities by
branches OF business with similar figures
for the corresponding month OF 1906 shows
many wide changes in both directions. out
o the IA manufacturing classes six
7 cording heavier losses than last year
while eight made more satisfactory ex-
hibits.
The largest Increase was 500 OC0 In mis-
cellaneous manufacturing failures while |
In the leather industry there was an in
crease OF over $4,000, and in lumber about !
soo0. 900
The only significant decrease was in the |
machinery class, amounting 10 about 80 |
per cent, or $4,000 Only three OF the IL |
trading classes reported heavier losses |
than In 1906, and in no case was the diff !
ference significant. But many OF the de- |
creases from last years figures were OF !
considerable size. IN miscellaneous almost |
tG00,OO0, in clothing about $4,000. and in
general stores $4,000.
Yet clothing failures were just double |
the number of those last year, u com
pairing with &c. but decreases OF over 70 |
were recorded IN general stores and |
liquors and tobacco.
MORE FAVORABLE SHOWING
Elimination OF the few failures for 800 |
600 or more makes the February exhibit /
much more satisfactory than In any recent |
year. and 1898 Is the only year since sta
tistics were first compiled In this form,
which dates back 10 1894, that made |
more favorable showing
In the manufacturing division there /
we're nine failures with liabilities OF 81
16s.0l4 leaving an average OF only $SS12 /
for the remaining "a insolvencles against |
a similar average last year OF S0A4O, and |
no other year records as low an average |
except 1896.
Although there was but one large trad
ing failure, the total losses In this class
were so small that the average for the |
remaining 6si failures was only $506S.
which is smaller than in any other year
except 1898.
or all commercial failures there were
l2 for $4,000 each or more. with an ag-
gregate OF almost 5000 900. leaving scarce
~ more than half the total liabilities TO
be divided among the. remaining 926 fall
ures. which made the average $3.50,
against $40 last year and over 5000 in
each of the four preceding years.
Here also appears that 1898 alone OF
the l2 preceding years recorded smaller |
average. and IN that case the difference
was only Sis.
Aside from few large failures IN bank
ing brokerage. building promoters and
similar concerns that cannot properly be |
termed mercantile. the insolvency returns
FOR February maintain the encouraging
evidence OF sound business conditions
with which the year opened. and there is
no reason for anxiety In the percentage of |
mercantile mortality.
P.-RIICULARI.Y GRATIFYING.
In view OF the fact that the number of |
firms in business has steadily increased
OF late. it Is particularly gratifying 10
note that coniderably less than a thou
sand abandoned the struggle during Feb
ruary. and a similar comparison OF the
defaulted Indebtedness TO solvent pay
ments through the clearing houses is
equally satisfactory
IL must always be remembered that |
brisk competition and peculiar local con-
ditions. together with the fact that many 1
incompetents embark on mercantile ca |
reers, VIII continue 10 furnish a large /
number OF failures irrespective OF Ia, |
general prosperity OF the country, and. ar |
long ne this proportion Is not over about |
one per cent per annum. the death rate !
may be regarded with equa nimity.
Liabilities OF failures In leading |
branches OF business In February are |