Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-02
THE FAILURES OF 1907
sEPTEMBER MADE WORST SHOW
ING SINCE DEPRESSION OF 1908.

NEW YORK. October 2.-Notwithstand-
ing the almost universal opinion among the
bankers Of the country and those who are
most closely in touch with the condition Of
commerce and industry that the tide of
prosperity has not yet begun to ebb alarm
insiy. the record Of commercial failures for
the nine months since January II the
worst statement for any Ike period in the
last ten years. a decade which includes the
financial depression Of 1908 and 1904.
The record OF business disaster as COM
piled by the leading commercial agencies
from the reports Of their correspondents is
regarded by the financial world as one OF
the best indices OF the trend Of the times
and the figures for the first nine months OF
the year collected for publication in Dun
Review were the subject of wide comment
in the Wall street district yesterday.
The commercial failures as compiled by
Dun's show a total of 5000 in number and
116.O36. 34S in amount of liabilities. In the
corresponding months last year there were
1912 bankruptcies. involving a defaulted
indebtedness Of SS4. $50 2S7. The great in
crease in financial disasters over 1905 has
occurred. according to this authority. large
ly in manufacturing enterprises, and the
large losses were confined almost entirely
to the east. facts which go a long way to
account for the reiterated statements from
bankers, railroad men and authorities in
the west and south that business in those
sections never was better.
September's Bad Showing.
The month Of September. Dun's Review
says. has brought about larger commercial
failures In point Of liabilities than any
month since December. 1903. which was in
the midst Of the hard times Of that
period. Dun's Review Is inclined to dis
count the significance Of the figures 1t has
compiled on the ground that the failures
making up the alarming total have been
brought about largely by tight money. q
ton will remedy.
The statistics cause no ALARM" says
Dun's. The recent increase In liabilities
Is not due to any great disaster, to any
falling on In the general business Of the
country. or to anxiety regarding the future
1t has been distinctly a monetary disturb
ance. due to the great volume Of business
throughout the world. which made the de-
mand for money much greater than the
supply. Many large manufacturing plants
were unable to obtain extensions upon
which they might reasonably have counted
In times of normal financial conditions. A
dozen or 30 of these very large manu- fac
turing failures supply practically all the
increases in liabilities for the past nine
months. while the actual number Of failures
Is not as large as in nine Of the preceding
twelve years. The present situation Is
much improved, because most merchants
and manufacturers have adopted more
conservative course pending the return OF
the time when commercial paper can be
readily sold at reasonable rates. The situa-
ton has also improved in respect to mer-
camille collections.
Some Favorable Comparisons.
Out Of the total the failures among
manufacturing concerns were LISA. amount
ing to $62. 7S3957. comparing with 1901
failures last year, when the amount In
volved was only $50. 4O9.978. The slight In
crease that occurred in trading disasters
was not significant, 5,s7S suspensions for
S3e. sos. 82T. but slightly exceeding the b,S4S
failures last year, when the amount In
voIved was $35.015. s7a This small adverse
comparison in the trading class was more
than offset by the favorable statement in
the third division, which embraces real es-
tate. insurance, brokerage and similar con-
Germs not properly included with the two
principal divisions. Here there were 25S
failures for 1855. 464. against 283 last
1884, 3S3. decidedly favorable comparison
was also made by the banking and other
financial suspensions, only twenty-nine such
concerns closing their doors with debts of
$12.945. $3.50. whereas there occurred forty
five similar bankruptcies last year. involv-
ing $13,sS7 100
1.-The Empire state alone supplied 900 fall
ures in the first nine months of 1907
against 779 last year, while liabilities were
$47, $50, 1928. against $13,511,611. Here is
found more than the entire increase for the
country. showing that outside of New York
there was Improvement, both in number