Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-03-12
But while the rates of interest are high

But WMi0 the r6teS .Of interest are nlgn,
there is comparatively little danger of real es-
tate becoming inordinately raised above its
true value, unless capitalists, (who as class
are remarkable for caution) can see good
grounds for the value which is placed upon
piece of property, they will not purchase, but
will be satisfied to loan their money at fifteen
or twenty per cent per annum, upon security
Of an unquestionable character. They have
the choice between buying or leaning, and
they will naturally do that which they deem
most profitable, consistent with safety. If
real estate is too high in reality, every one
who has money, will prefer to loan it Real
estate will then soon fall to it's just level. If
it goes below it. capitalists will loan less and
buy more, until the equilibrium is restored.
Thus property cannot for any length of time
be maintained at an inflated value. Like wa
ter, it must inevitably find at last its real ma
tural level. Wild speculation may temporary
ly raise prices above this level. ..s
Then comes reaction and panic and prices
descend as much below the right line, as they
had been before unnaturally above it. Every
thing in the financial and commercial, as in
the natural world, tends to equilibrium and
equality: Nature is exceedingly just; prop
/ erty in st. Paul has solid, substantial, and
|
it would have burst long since. tits the COM
mercial heart of an immense and highly fer
tile region.
The necessities of the surrounding country
have called it into being and given it fixed
and permanent position in the geography of
America. The trade of the vast territory be-
yond it, cannot in any possible way be divert
ed from this point No one then, at all &C
quainted with the extent and capacity of this
tributary empire, can entertain a doubt in re-
gard to the future greatness Of st. Paul. -
1t must be clear, therefore, that with such
certain prospect before it, that real estate in
st. Paul must continue to advance for years,
with rapidity hitherto unsurpassed. There
has been speculation here it is true, as there
must always be, where real wealth is increas-
ing fast 1t is an incident and index of extra
ordinary development. 1t is, however, a dis
ease that cures ITSELF Where the land is all
monopolized by spectators, they may buy
and sell among themselves, and thus maintain
extravagant prices for time. but competition
in the end is sure to reduce prices to the legit-
innate standards. Speculation strangles i'm
provement, which alone gives value to prop
erty, and in doing SO, strangles and destroys
ITSELF
I refer to speculation of the selfish, grasp
+ ing, and miser clutching order, which contrib
utes nothing and would realize everything
such spirit as this is curse to new coun-
try. But liberal, judicious speculation, which
not only looks sagaciously into the future, but
is willing to lend helping hand towards the
attainment of its bright realizations, is an en-
tirely different matter. Such speculation it
is our duty and interest to encourage Spec
ulation of this high-minded order has accom-
plshed miracles in the West: 1t has trans
formed the wilderness into busy States-it
has opened up the avenues of commerce; it
has covered the Western world with net
work of 'front.' has built numberless cities
and towns for the convenience of the husband
man-ithas constructed thousand highways
and built innumerable bridges-it has stimu-
lated and fastened, to an incalculable extent,
the increase and development of natural re-
sources. Such speculation we would well
come. We regard every man of capital who
comes with right views, to invest his means
among us, a friend and benefactor of the w est.
We have no fear or envy of such man, but
on the contrary, rejoice in that prosperity
which is sure to dawn upon him, as the re-
ward of an enlightened confidence and sound
judgment. Yours as ever,
JEW.