The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-07-07


In view OF the great difficulty exper-
fenced by many prominent concerns in
raising the money necessary to carry
cut contracts. IL Is most gratifying 10
find that the pressure during the past
six months did not produce many more
important bankruptcies The moderate
increase over liabilities in the cores
pOnding six months OF 1906 was prac-
tically all supplied by the single failure
OF the Milliken Company. while there
were several ether suspensions OF IN
usual magnitude that were offset by
the better showing among the great
mass OF smaller firms. The spring sea-
son was so very backward that many
dealers were compelled 10 settle &C
counts long before the goods had gone
into consumption, and Il was often
necessary TO seek extensions OF credits,
but the statistics indicate that the COM
mercial situation had become established
on so sound a founda ton that the period
Of stress was weathered with no Increase
in the number OF failures and no change
in liabilities beyond the single exception
al assignment already mentioned
Security Prices Declined.
Another event OF the FIRST half Of 1907
was the decline in prices Of securities
TO q position calculated TO produce
heavy losses. II was not temporary
decline such as the Northern Pacific
corner six years previously. from which
the market recovered rapidly, but long
and tedious gradual reaction. that took
the average OF the singly most active
railway securieties $50 per share below
the high record established last year.
and several months Of inactivity brought
little recovery up TO the end OF June.
II IS another evidence OF the strong
position that had been attained during
previous years Of prosperity that the
discouraging security market OF the past
six months provided scarcely more than
q third OF the liabilities OF the previous
year in the class embracing that variety
OF failure.
Considering the returns geographically
the comparison with last years failures
shows Improvement in almost every sec
ton except the three Middle States.
where the increase in liabilities was over
100 per cent, while in the five Central
States the decrease in amount of de-
faulted Indebtedness was so striking as
20 call for special mention. In Illinois
alone there was decrease Of i2S in num-
Der Of failures and S7.OO0.O00 in amount
Of Liabilities. and most other Western
States showed the same general tend
ency. although in less marked manner.
Decrease in New England
In New England the decrease OF over
100 in number of failures and about
81 100000 in amount of liabilities was
provided by Massachusetts, alone the
moderate decrease in liabilities in Maine
and New Hampshire being Offset by
small gains in Connecticut. Rhode Island
and Vermont. The Improvement in this
section was fairly well divided between
the two quarters. both three-month
periods comparing favorably with the
returns last year. Although each of the
three Middle States reported larger La
bilities than a year ago. the Increase OF
over $l6.OO0.O00 in the Empire State made
other changes appear Insignificant New
York also reported an increase Of 122 in
number of failures. while PENNSYLVANIA
made a gain almost as heavy, but New
Jersey showed a small decrease of u in
number. although liabilities were about
100000 larger. Compared by quarters,
the increase over last year ngureS In
the Middle States was less than so per
cent for the first three months, but al
most 200 per cent for the second quarter.
Carrying this analysis little further, Il
is found that the numerical change was
about the same in all branches OF bust
ness. but practically all the Increase In
1 liabilities was reported In manufactur-
ing occupations.
Increase in South.
The South reported 125 more failures
than last year, but small decrease in
amount of defaulted indebtedness The
change in number occurred chiefly In
Tennessee, Alabama. North Carolina.
and Kentucky. while the decrease in
amount OF liabilities was wholly due 10
much better report by Maryland. Other
favorable statements in this section as
TO amount OF liabilities were made by
Delaware. Virginia. West Virginia. Ala
bama, and Tennessee. but there were
noteworthy increases IN North Carolina
Georgia. Louisiana. and the District OF
! Columbia. This section made a par