The Washington herald., 1920-04-04
BUSINESS Failures Smallest
Since l880-Liabilities
Lowest in Two Decades
COSTS A BIG FACTOR
Textile Manufacturers Not
Pleased With Continued
:" Rise In Materials

Seasonal characteristics appear in
retail distribution. which develops
Increased animation as spring ad-
vances, and reports of the Easter
turnover. Notwithstanding the pro-
onged era of extreme prices, are
klmost uniformly favorable. After
eyeraI years of rising prices, en-
bracing practically every commodity
The, continued large movement OF
Foods into consumption is especial
" noteworthy, and demonstrates
hat the enhanced purchasing power
bccruing from the higher wages
md the unusually prof table returns
from business and agriculture is
still present in many channels.
Measured by the first quarters in
Bolvency statement, which discloses
fewer failures than in any similar
period in four decades, trade and
Industry maintain a position OF
strength and stability. and the re-
kcent turn for the better in foreign
Exchange has rendered financial
hspects more reassuring, and has
been helpful to general sentiment.
Yet the economic and political un-
certainties of the future now find
sharper reflection in the spread of
Conservatism and caution, with
Tendency to discourage speculative
commitments. and the disposition 20
limit engagements as closely as
possible to actual needs. rather than
to operate ahead in anticipation of
FORWARD requirements, is extending
to about all sections of the coun-
TRY. Such a policy indicates wider
Recognition of the fact that prices
are on an unnatural basis and that
readjustment must ultimately fol-
low, and some cancellations and re-
visions of orders result either from
Expectations of early market reac-
tion, or from the growing resistance
to prevailing prices and the prac-
tice of greater discrimination in
buying. While the main price trend
is again upward. following some
yielding. yet il is significant that
scarcity of supplies is less frequent
Iiy complained of. with transpOrta-
tion difficulties abating and domes-
tie outputs enlarging. and the freer
inflow of merchandise from abroad
IS calculated to fupther relieve the
shortage in some products. With
the prospect that goods will later
be. more readily obtainable.- and
|
| a now developing in some direc-
tions where demands had been con-
sbicuousIy active. although business
Continues large in the aggregate.
and bank clearings maintain siZa BILE
Increases ocr those of earlier years
Favorable Quarterly Failure State
ment.
: Not only does the Country's inso!-
vency statement for the first quar-
| ter of 1920. with only 1927 COM
nercial reverSes. make the best nu-
1erical exhibit for the period since
$50, but the liabilities. totaIing
so, ,702.499. are the smallest in two
decades. Favorable as was last
mars report of 1904 failures for
$B5,S21.o52 during the correspond
ing quarter. the present returns
show defaults TO have been 14.5 per
Gfnt fewer in number and Ill per
cent less in amount of indebtedness,
and reductions of 5O.7 and 4O.3 per
cent respectively. are disclosed in
Comparison with the $500 insoIven-
aies for S49.7S0.3OO of the opening
quarter of 1918. Carrying the
analysis back to 1915. when the dis
dfganizinG effects of the World War
appeared in maximum business
Mortality for the first quarter. de-
clincs of 10 per cent in number of
failures and 7l.9 per cent in liabili-
ties are revealed. Only on three
other occasions in the last forty
fTe years. IL faCt-in 1919. 1881 and
$3.50 have commercial reVerscs
bfen under the 2.O00-mark i'm num-
her in the first quarter. and the $50
defaults Of March. this year, al
dough not duplicating the mini
mum figures Of last summer and
autumn. fall below those of any