96 Frank S. Philbrick 



age of liabilities in 1893, and the number of failures caused 

 by it, though high, has risen since then. The bad showings 

 of "inexperience'' also were hardly borne out, for the num- 

 ber continued to fall and the liabilities were unusually 

 low. Of course, failures "due to others" rose, and also 

 those due to "disaster." 



On the whole, the country showed that unwise credits 

 had been restricted ; that those trying to do a business too 

 broad for their capital had narrowed their dealings; that 

 the factors of extravagance and neglect of business were 

 loAver ; that crisis conditions had throttled speculation and 

 competition, and, of course, had increased failure due to 

 otlier failures. In short, the facts exhibit a perfect realiza- 

 tion of theory. Crisis and the effects of crisis follow the 

 lines tliat the common sense of pure theory lays down, and 

 men act under the strain in a way that would justify and 

 delight the most extreme determinist. 



Summing up total liabilities and assets for all causes we 

 obtain some interesting totals.^ Since 1881 the heaviest 

 year in assets had been 1884, with 134.6 millions of dol- 

 lars; as second, 1891, with 102.8 millions; but in 1893 and 

 in 1896 assets were 262,4 and 148.2 millions respectively. 

 So also as regards liabilities, 248.7 in 1884 and 193.1 in 

 1891 stand against 402.4 in 1893 and 247.0 in 1896. On 

 adding the liabilities of the years 1883-86 and 1893-96 we 

 have 657.3 as compared with 957.7 million dollars. ^ Such 

 figures convey more plainly than any words the tremen- 

 dous meaning of the crisis. 



I have already pointed out the peculiarly high credit 

 ratings of failed institutions during the crisis. This can 

 be given a more tangible and valuable form by taking the 

 ratio of total assets to total liabilities of all failures in 



'See Appendices V and VI. 

 'Appendix IV. 



302 



