The number of business concerns which become insolvent each year averages a little below 1 % of the total number. Following is the record for the last ten years.

No. of Failures

No. of Business Concerns

Percentage of Failures

1905

11,520

1,357,455

.85%

1906

10,682

1,392,949

.77%

1907

11,725

1,418,075

.82%

1908

15,000

1,447,554

1.08%

1909

12,924

1,486,389

.80%

1910

12,652

1,515,143

.80%

1911

I3,441

1,525,024

.81%

1912

15,452

1,564,279

.98%

1913

16,037

1,616,517

.99%

1914

18,280

1,655,496

1.10%

However, this record does not present a complete picture for it does not include numberless instances of financial embarrassment which are settled out of court. Nor does it include the still larger number of cases where a business concern gradually sinks its capital until finally the enterprise is sold or is transferred on some contractual arrangement, thus bringing the enterprise into the hands of new men who supply fresh capital which is either sunk or makes the business a success. Sometimes the process of passing a business concern from hand to hand, each new owner losing money until he reaches the point where he is glad to hand it over to some one else, is carried on over a remarkably long period.