The Washington herald., 1922-05-06
BUSINESS FAILURES
DENOTE IRREGULAR
REDUCTION In 1922
April's 2,167 Commercial
Defaults 20% Below
January Total.

of failures has marked the COM
mercial mortality statistics thus far
this year, and the 2.1s7 defaults re-
ported to r. @. Dun & Co. during
April are fully 20 per cent below
the January total. which was the
largest since the beginning of 1915.
with an unusual number of insol-
vencies of exceptional size. how
ever. the liabilities continue ex-
tremely heavy. aggregating a little
more than s73,000.000 in April.
While this amount was exceeded In
January of this year and in Decem-
Der of last year. 1t Is in excess OF
all other monthly records Com
parison with the returns of March
of the current year discloses an in
crease of about s1.500.000 in the
April Indebtedness, despite a de-
crease of 296 in number of failures,
and last months liabilities are s34,-
100000 above those of April. 1877,
when there were 1.4S7 defaults in
the United States. Examination of
the statistics for recent months. on
the other hand. shows that April's
insolvencies are fewer in number
than those OF any month since last
. November. and IL is conceivable
that the improvement in general
business that is now In progress
may before long be reflected more
clearly In the failure exhibits. OF
the 2,1s7 commercial defaults last
f, month. II. or 3.6 per cent. of the
total number had an Indebtedness
OF 100000 or more in each instance.
involving about s42.OOO.OO0 alto
gether. The latter amount repre-
sents more than 81 per cent Of the
aggregate liabilities for the month,
and these large insolvencies COM
pare with 64 similar reverses in
April. last year. totaling some s2l,
100000. In no previous April Of
which there Is record have there
been so many large failures as was
the case last month. and the indebt-
edress of the failures of unusual
size is also unprecedented.
Further analysis of the April re-
turns reveals 4SS defaults fot SEQ
014,7s6 in manufacturing lines. 1.512
In the trading class for s25.927.sOs.
and 1O7. with an Indebtedness of
-s27.11s.s35. among agents, brokers.
and other concerns which cannot
be properly included in either the
manufacturing or trading divisions.
Numerically the three separate
classes all show more or less. re-
duction from the March totals. rel
stively the best exhibit in this re-
spect being made by agents. brok-
ers. etc, with a decrease of about
% per cent. The manufacturing
insolvencies disclose a decline of
about Is per cent in number. while
the trading failures are practically
IL per cent below those Of March
. of this year. Both the manufac-
turing and trading classes. more
In sharp contrast the Indebtedness
for April. the manufacturing liabil-
titles being less by s3.5O0.0OO and
those among traders showing n con-
traction Of approximately $4,000. 900.
In sharp contrast thei Indebtedness
of the class including agents. brok-
ers. etc, rose early S7.OOO.OOO in
April. although one default of ex-
ceptional size accounted for more
than so per GENT of the aggregate
amount involved by these "other
oommercial insolvencies. In point
Of number the April manufacturing
failures represent 22.5 per cent of
the total for the month. the trad
ing defaults I2-5 per cent, and those
among agents. brokers, etc. about
per cent Comparisons for March
Shc" ---S per cent lot the manu-
featuring class. It's per cent for
the trading division, and a little
more than SIS per cent for the in
solvencies among agents. brokers
and similar concerns.
Local Securities.
Capital Traction stock was in
good demand on the Washington
Stock Exchange yesterday. a total
of lO3 shares changing hands at
9s. Ten shares of Railway pre-
ferred changed hands al 6Ss,. with
i share of common at 80. Ten
shares of LanstOn were disposed of
at -. following the recently pub
lfshed favorable report. CONNER
cial National Bank broke into the
sales column after a period Of in
activity, l share selling at I3S.
American Security and Trust Com
pany stock changed hands to the
extent of IL shares at 233.
In the bond list $4,000 Wash
inGton Gas IS sold at 94L. with
the 7i7s selling at los. Potomac
Electric consOl. IS had sales aggre-
eating $4,000 at ISL.
Federal Reserve Ratio.
- ANSS VI A-p per cent IN lhe re-
serve ratio of the combined Federal
Reserve system puts its figure back
to I6.I per cent. This is. however.
slightly more than l per cent above
the lower figure. Occasioned bv the
heavy financial demands centering
around March Is. The present re-
cession in ratio corresponds to a
decrease in reserves and an increase
in the two liabilities-note circula-
tion and deposits. 1t may be Doubt
ed whether the weeks change car
ries any broad general significance.
Transactions on May 1 were un-
usual. and number of the recent
new issues have been coming due
for payment. Such a situation nat
urally results in considerable shift
ing around of balances.
The easing in call money and act
ceptance rates indicates that the
situation is returning to normal
Thirty-eight Take Exams.
Thirty-eight members of the adj
vanced class. American Institute of
Ranking. took the final examination
for the current year on Thursday
night. On the topic of Negotiable