The Detroit times., 1915-01-09
1915 TO BRING
PROSPERITY TO
u. S. BUSINESS
-BRADsTREETs.
Disastrous Events of Year Just
Closed Not Unmixed Evil,
Says Report
NUMBER OF FAILURES
LARGEST IN HISTORY
Work of Replacing Wars Waste
Cannot Help But Benefit
Americans, However

Although the short crops OF 1913,
unfarovable business legislation, and
finally, the European war combined to
bring about a general business depres-
sion and an unprecedented number OF
failures during 1914 the events OF the
last few weeks OF the year just closed
augur revival OF national prosperity
during 1915, according TO Bradstreet's IS
review and forecast, made public to-
day.
Even the unusual number of failures
l-7.5 per cent more than in 1898, here
tofore the record year for business
disasters-were not an unmixed evil.
according TO the report which, in this
connection, says: "On the surface OF
things II might be said that We have
completed. in the form OF bankrupt
cies. vast amount OF liquidation that.
hurtful as il has been. will not need
TO be done over again.
The war, paralyzing as II did for a
time the financial fabric OF the coun-
try, also brought lessons which may
prove profitable in 1915, continues the
report. because 1t pointed out many
heretofore unknown weaknesses In
the American financial system.
The task of replacing the waste
caused by war undoubtedly will prove
beneficial to American industries, In
asmuch as European firms will be In
no condition 20 provide for the wei
fare of their devastated nations. This
is no unimportant item, according to
the report, which says: THE financial
IN 20 Lob nil ha -
IfoUght-over regions. the industries de-
stroyed, the lives lost, the trade for
merly possessed gone beyond recall
must be left TO the future 10 record
but II must be remembered that the
world as whole inevitably pays the
bill as surely as the business com.
munity pays the loss from failure or
from fire. The lot OF the neutral In
this war Is not an altogether pleasant
one-we In this country have felt this
already-but as the leading neutral
country, a position which 10 rs to be
hoped we will retain. we seem destin'
ed TO fall heir TO much of Europe's
lost trade. Our conduct as nation
has made, not lost, us friends among
the belligerents, and some OF the
events OF the year have taught out
manufactuIe ers and statesmen the val
ue, indeed the necessity, OF strengthen
ing cur industrial resources where the
war has demonstrated that weakness
! es exist"
Despite the fact that, lurlng 1914
"ths word moratorium ceased TO be a
mere dictionary term and became q
living actuality TO the world" Detroit
and many Michigan cities Jared far
better than their neighbors OF the cen
trail west, according to a report OF
the value OF the manufactured prod
ucts of the various cities. The value
of Detroits manufactured products
during 1914 vas $1,349, ,546,302 an IN
crease OF 1913 per cent over 1913 and
of 1876 per cent over 1912. Grand
Rapids showed a decrease OF 15 pei
cent over 1919 while Kalamazoo, which
has never enurely recovered from the
effects of recent disastrous failures
showed a loss of 20.9 per cent. Jack
son. Lansing and Ann Arbor showed
gains OF 0.S, g., and 9.S per cent re
spectively. That Ann Arbor in par
ticular has travelled far in the last
two years. even in spite OF general
business depression. is shown by q
gain this year Of 20.2 per cent over
the figures for 1912.
The report, which is neither tainted
with pessimism or. colored with op
timism, goes deep into the causes un
derlying the disasters OF 1914 and. al
the same time, gives concrete idea
OF the extent TO which the business
fabric of the nation was wrecked.
After enumerating the causes o.
general business depression such al
| the tariff, the income tax, the cur
rency system, the federal trade boarc
act the danger OF war with Mexico
the outbreak OF hostilities in Europ,
and the prohibition Of interlockinl
directorates, all "of uncertain force
and meaning" the report relates the
actual effect OF such uncertainty upon
| the country at large.
The banks" says the report, "fac
| ing the going into effect of the new
reserve system, kept their assets
liquid, credits were closely scanned
and enterprises were. as rule, dis
couraged."
! Excellent crop promise, apparent In
mid year, was Offset by difficulties ol
( transportation lines and "the war
! which caused dislocation OF all com
mercial and financial relations, made
necessary a recasting of the world'i
systems.
1T was tribute alike to the wei
! iiauidated condition of securities anC
other markets and TO the essentia
strength OF the basic conditions ot
| American business life that the anti
panic measures taken by American
bankers and public officials proved SC
generally successful" says the re
port
The extent 70 which business was
paralyZed during the year Just closed
/ is indicated in the following portions
OF the report:
! Securities markets were. with fltfu
exceptions, under pressure In the frs
seven. and closed throughout most oi
the last Ave months Dealings, heay
ily reduced as they were, hardly made
flair comparison with normal years
therefore. Stock sales fell 42 per cent
and bond transactions AZ per cent
from the much reduced totals OF 1919
Foreign liquidation OF our securities
was reflected In the largest golt
exports ever produced. Issues o
new capital in 1914 were I3.s
per cent below 1913 and 80 pei
cent below 1912. municipal bono
issues fell % and "a per cent
behind and interpretations fell or q,
and 81 per cent from 1919 and 1912
respectively. Foreign trade was irreg
ular Exports fell heavily, 1916 PEI
cent from 1913, because OF legsenec
buying OF our manufacturers early
4 "a. -.