The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-01-31
SPIRIT OF THE PRESS.
Editorial Opinions Of tho Leading Journals
Upon Current Topiss-COmpiied Every
Day for the Evening Telegraph.
WHAT HAS BEEN MAY BE.

In 1884 the tax valuation of real estate in
the city of New York was 1928, 900, 600.
During that year great imitation of prices
was begun by the sudden addition of between
thirty and forty millions to the loanable funds
of the State banks, in the shape of Govern
ment deposits transferred to them from the
Bank of the United States. SO quickly did
che imitation act, that within two years the tax
valuation increased 90 per cent, and in 1886
stood at 1924, 100000 OF course, speculation
ran riot, and the winners in the game believed
IL would continue to eternity. But as it was
mot sustained by renewed emissions of paper
capital, nor backed by any legal-tender act,
such as have operated to prolong the present
imitation, that of 1886 could not last long.
Accordingly it came to an end early the next
year in q quick collapse and bankruptcy
almost general, followed by severe and pro-
tracted season of depression. The misery,
the horror Of 1887 is being oftener related
now by those who witnessed it than needed
by those who might profit by the warning of
the story. They need not be dwelt upon
here. But that story has a sequel, which
long series of years was needed to develop,
and which shows that the evil consequences
of sudden infations of the currency are by
no means limited to the bankruptcy and ruin
which Immediately attend on the explosions
in which such infations are apt to end.
Those consequences are found to be not
merely such as follow the wrecking of COM
mercial houses, but such as indicate an actual
hmpoverishment of the country, and prove that
limitations waste and destroy and result in real
poverty which years and years of quiet in
dustry and trade are needed to repair. How
many years were needed to repair the losses
of the short season of speculation which pre-
ceded 1887?
From 234 millions in 1886, the tax valua-
Eon fell to 1876 millions in 1887. This was,
however, only the beginning of a steady de-
cline which continued until 1S43, when the
amount was only 165 millions; and though
from that year there was gradual yearly
improvement, yet it was SO slow that not
until 1852, which was sixteen years after the
high estimates of 1886 were made, were those
estimates again reached. During those six
teen years population had very nearly doubled,
trade and industry had continued their efforts
TO accumulate wealth, and, in addition to the
area occupied by the city of 1886, another
area of equal extent had been covered with
new structures more valuable than the old
ones. So that to say the valuation of 1852
barely excelled that of 1886 is the same as
saying that at the end of sixteen years the
real property of the city had fallen to be
worth in the market only half as much, lot
for lot, building for building and person for
person, as it was worth at the beginning of
that period.
Or if it be thought unfair to compare with
the exceptional valuation established in times
like those of 1886, let us go back to the quiet
and moderate days of 1882, when the amount
was 10i millions, and com pare the proportion
which that would give to each inhabitant the
proportion of each iii 1850. Doing so, we
find that in the former, year that proportion
was 1928, and in the latter only $402; showing
a relative decline in eighteen years, as q re-
suit of the wasteful effects of the intermediate
season of initiation, equal to % per cent, in
stead of large relative increase such as there
would have been if nothing unusual had hap
pened to retard accumulation.
The tax valuations are not offered as proof
of actual market prices of property, but mere
ly as indicating variations in market prices;
for which purpose they are as trustworthy as
any proof to be had, if the period under OBJ
servation be long one, as in the present
case, although for a short period they would
not be worth much, owing to the slowness
with which they follow the rise and fall of
market prices. Probably in 1886 houses and
lots sold considerably higher, and in 1887 and
1883 much lower, than the tax records would
indicate. But inasmuch as real estate is liza
BILE to greater fluctuations in price than per-
sonal property, perhaps the movement of the
latter, as shown by the tax valuations of diff
ferent years, will give better idea of the
progress in wealth of commercial city.
Now, in 1884 the tax valuation of personal
property in New York was 1868, 600, 900. In
1886 it had increased to $76, 900, 900. In 1887
it fell to $67, ,000 900; and it continued to fall
with but slight interruption, until lS49, wher
1t was only sos, ,O00
To state the matter with relation to the
Increase of population, the proportion of per
sonal property to each inhabitant was, in
1886, $500, and in 1Si9 $12i showing
relative decrease of 50 per cent. in thirteen
years. Or, going back far enough to pas
over the period of initiation, we find that il
1882 the proportion TO each inhabitant wa
$192 comparing which with the proportion
in 1S49, which was $l2l, there is shown tt
have been decline in seventeen years of 81
per cent, instead of an increase, as ther
should have been.
Tell the well-to-do citizen of New Yor}
that causes are now working which will no
merely prevent any increase in the value o
his real or personal property during til
coming sixteen years hut will actually reduc
the gold value of both TO one-half what it i
at present. or tell him that at the end of tina
period the one will have lost one-fourt
and the other one-third of the value it ha
before the war, and he will be apt to laug
derisively. And yet the causes which worke
10 bring on the disastrous crash of 1887, an
the long stagnation and depression which fo
lowed, were only two; one of them fire
which destroyed eighteen millions of dollars
worth of buildings and goods; and the Other
and more efficient, the sudden expansion c
the currency by the transfer of thirty q
forty millions of bank deposits while wins
have we now? We have yet ~ meet what W
have not yet met but cannot escape frol
meeting and bearing as best we can, the cor