94 Frank 8. Philhrich 



4.92 per cent for the years 1883-86. 1896 was almost as 

 bad as 1893. ^ 



So much for the number; let us now analyze the char- 

 acter of the failures. There will be found in the appendix 

 a table showing the ratings of failed firms from 1887-97 

 according to credits, capital, and liabilities.- The total 

 number of failures in the six years preceding 1893 aver- 

 aged 12,533, but leaped in the crisis year to 17,286; fell in 

 the two following years to between 14,000 and 15,000, and 

 rose again in 1896 to 17,298. Taking six years before the 

 crisis the average percentage of more than 75,000 failed 

 firms that fell in the three credit ratings of 'very moderate 

 or none,' 'good,' and 'very good' or higher stood 91.8, 6.7, 

 and 1.5, respectively; but in 1893 the same ratings stood 

 69.7, 27.1, 3.2 — thus showing a tremendous loss of busi- 

 nesses whose ratings in the business world were good or 

 even of the highest character. These same conditions con- 

 tinued practically the same through 1897, showing the 

 continuance of an immense drain and abnormal condi- 

 tions. As it would be tedious to give the corresponding 

 figures for capital and liability ratings, suflftce it to say 

 that there is in general the same testimony of the going 

 under of large business interests — the years 1893 and 1896 

 being especially marked. 



The next thing is to classify the crisis failures by causes. 

 Looking at the classifications^ we see that the hopeful 

 symptoms of "unwise credit" in 1892 were not belied; 

 the liabilities in failures due to this cause fell in 1893 and 

 were below the normal long-time level, and the number of 

 failures was not above the normal per cent. The same is 

 true of the symptoms or tendencies of "lack of capital" 



'Appendix I. 

 ^See Appendix III. 



'Bradstreet's .January 23, 1892; January 25, 1896; January 23, 1897; 

 January 22, 1898. Also Appendices V and VI. 



300 



