The labor world. [volume] (Duluth, Minn.) 1896-current, 1908-02-08
INDUiSTR|AL' WORLD :. :. !.
BUSINESS AFFAIRS
Feeling of Returning Confidence
Manifest in All Lines of
Endeavor. j.

Commercial failures in the United
States during the month of November,
according to statistics compiled by r..
G. Dun & Co., were 1,180 in number
and ST., 637 oil in amount of defaulted
Indebtedness. This is very large in
crease as compared with the 1856 fail
ures for $11,980,7S2 in the correspond
ing month last year, but a decrease
as compared with the 1,139 failures for
$27, 414,990 in. liabilities in the month
of October, 1907. Manufacturing in.
solvencies numbered 305, with liabil- /
tiles of, $10,927,598, against PIP in
1906, when the amount was 1921, 1872.
Trading failures numbered $40 against
647 last year, with liabilities of $780,
065, compared with $3.50, Ais in No.
vember, 1906. 49,.
Although the October failure state
ment was more unsatisfactory than
any monthly record for over II years,
there is favorable element in the un-
usual conditions that brought about
many of the insOlvencies, and the re-
port does not necessarily give warning
of long period of commercial disas-
tiers such as occurred in the previous
decade. The suspensions reported
were not due to stagnation of bust
ness, but, pm the contrary, many of
the largest Natures were of concerns
overcrowded, with work and SO over
extended as;to financial capacity that
it was impossible to survive season
of severe stringency in the money
market. This IS. notably the case in
occupationst largely speculative, par
ov,11y nc,fo fo nd h,1i11 IN
fations that were being conducted al
most wholly, with borrowed money.
While the STRESS; wasiisevere through
out the entire month, 1T would have
been possible for many concerns to
continue but for the heavy withdraw
ais of deposits from the banks that
eliminated in the disturbance OF 'Octo-
Der %. This movement was not
started by any general lack of conf
;dence, buthup specific reports con
corning a single company. With the
money of the country more fully occu-
pied than ever before, and similar
scarcity of currency throughout the
world, it, was obvious that the with
drawal and boarding of many MILLIONS
could not fail to make the stress I'M
bearable to many firms. For time it
was practically impossible to nego-
tiate loans on any terms, the banks
being compelled to reduce commit
ments in self defense, The situation
was handled with great skill by the
/ leading financiers, and the OUTLOOK
kas made brighter by the large
amount of gold engaged abroad, so
that it was possible within fortnight
Gil RI ri hn w
feelings of hope.
+ However, since the close of Novem-
Der a. feeling: of returning confidence
has been noted, although a :conserva'
tive tone. in manufacturing circles IT.
still prevalent Mills and factories are
| not accommodating stocks, only operat-
| ing to fill orders. Some idle plants
have already resumed and some has-
started up again on full time; while
| nearly all expect to have their machin-
cry in full operation when the money
market becomes normal, condition
which is expected about the first of
! January In many cases there are
ample contracts on hand, but work
has been curtailed because customers
have requested delay in deliveries, as
funds are not readily available for
quick settlement. Mills by curtailing
production and regulating possible
cancellation of orders are getting into
good shape and saving the market
! Cotton and wooden mills are operating
as little machinery as possible, though
there is no general shutdown, the
method adopted being for partla1 stop
page Shoe factories are curtailing
! operations as orders are overtaken
but the length of the shutdown will
evidently be of more or less duration
on account of the fact that dealers
have been limiting purchases to cur
rent needs, and stock must require re-
plenishing when consumers resume
normal purchases.