The New York herald., 1871-10-30
Review Of the Condition Of and Feeling
In the Real Estate Market.
Effect Of the Chicago Fire and the Ring
Disclosures Upen Values Present
and Prospective
MORE BUYERS WANTED
Movements in Uptown Prcperty-What Has
Been Done by the Park Commissioner
Value Of the Corporation Real Estate
What the Parks are Worth
Long Island Movements.

Among the problems presented for solution in con
1ccton with the recent chicago fire 1t is often asked
what Is likely to be the effect or this disaster, ant
the financial disturbance resulting therelrom, upon
New York real estate That some great effect should
follow cause suggestive OF startling results is
with many q foregone conclusion; while there are
Others who as confidently poon-pooh such an idea.
AS In most cases OF similar opposite conclusions
the real facts OF the situation present and pros
pective, would seem to lie between the extreme
views New York real estate is likely to be innu.
enced to some extent by necessary financial dis.
surbances growing out OF the nre; but this innu-
ence does not seem likely to be very general, or
10 far as IL may be depressing, permanent Those
who hold the nrst proposition referred 10 base
sheir assumption, which looks to o great decline
IN real estate here, upon the enormous destruction
OF property Dy the Chicago fire, which they hold
must be replaced by us as part losers
But when we come 10 analyze the property de-
stroyed, set down In round numbers at $3.50. 900,
e00 we ma 1t dificult to discover where such
value has been taken from the aggregate wealth OF
the country. The individual owners OF the build
angs destroyed In Chicago are, OF course,
great losers, and the insurance companies having
risks on such buildings are also LOSERS But taking
the whole country, 1t is but q redistribution OF
capital. ana where there is no direct connection
with the fire, producing special consequences,
should not involve any depreciation OF values.
There s perhaps, nothing intangible as this same
subject OF value. Referred TO Its original essence
labor appears as the only real basis Tor determining
It's intrinsic character all else is speculative or the
result Of exceptional relations of supply and de-.
mand. Thus the city OF Chicago in its grandeur
ana magniHcence, represented SO many millions OF
CAPITALIZED LABOR
70 which was superadded the extraneous value i'm
tod IN IN Inv tha into nF ito tpho uN,o
$780, 900 winch is said to have been the value of
the portion destroyed simply represented Its con-
verlioie quality. 1t was labor that brought the
rude stone, natures gift from the quarry bed,
fashioned for use, and placed 1t tier tier until
the stately structure claimed q place in the worlds
possessions as OF 80 much value. The building
is now destroyed and the stone dust, but the labor
remains ready to replace IN equal greater gran.
deur all Its proportions. But 1t Is replied, that labor
must be paid for, and here is OF least real loss.
Exactly; and In just 80 much as the labor expended
upon the city OF Chicago ana Its adornmenis. and
All the luxures OF civinzation 1t contained, has been
rendered abortlve, by Just SO much is the world the
poorer for TINS fire. But for there is this law OF
compensation: As the increased demand for labor
must enhance ts price, so must the price OF all other
commodities the product OF labor be enhanced; and
As this general advance in prices reducing the pur-
chasing power OF the dollar operates as a contrac-
ton OF the currency, SO must there be general en-
hancement Of all values throu2 2hout country re-
latively to such currency.
This for the general result OF the Chicago Ore.
Men. however, do not usually take such an extended
view Of calamity Of this kind or are too much
affected by its
IMMEDIATE CONSEQUENCES,
which usually those OF distress and embarrass-
ment, to take heed OF It's more remote influence.
Hence the great excitement which prevailed on the
Btock Exchange more than any other place sensi.
tive the feelings OF the hour when the first INTEL
Mgence OF the fire was received ana subsequently,
wbile efforts were being made to ascertain the
puted lose. This was further assisted, however, by
the sudden call upon the banks to relieve the dis
tressed people OF the burnt city, where business
wholly suspended and aggravated by an artificial
movement TO maze money tight for stockJobbing
purposes With o relaxation In the rates for
money and the sober second thought born OF renec-
ton The Stock Exchange has since recovered its
tone, and with a feeling OF restored confidence
prices are generally improved
In the real estate market there have been as yet
no signs Of any undue disturbance OF values There
is great talk all sides, such has been going on
for the last two years, OF IAN impending crsis' aud
general break In the market. 1t Is also contended
that in the past two years there has been actual
decline OF twenty-five per cent In city property.
This doubtless true OF most nign.priced improved
property, but 1t is equally certain that in that
period property uptown In Fifth avenue, In the
ne9hborhood OF the Park aud the Boulevard, has
advanced in price ana was never more active than
during last spring and summer. All OF this pro-.
perry is held firmly at the present ume
One OF the looked to TO produce decline in
real estate values here resulting from the Chicago
fire Is the expected calling In Of
THE MoRTGAGEs HELD BY THE INSURANCE CON
PANIEs
here involved In losses by the IRE. That this has
been greatly exaggerated the following figures will
show:-Ihe gross assets OF the insurance companies
OF this city amount to $54, s4o. or this
amount only sl4,762,2 is secured on
bond and mortgage OF real estate, the bal
ance being represented by governments and
other securities allowed by law. We learn on
Inquiry that 10 meet their liabilities created by the
destruction at Chicago tue New YORK companies
Will not be Obliged 70 realize from their mortgages
greater sum than twenty to twenty i've per cent
OF the whole amount. Taking the largest per-
centaRe. twenty ive per cent have So 600 5ee as
the amount 10 be Withdrawn IRON loans on real
estate TO meet the present exigency. TINS, we need
not say, IL "A mere bagaicle as compared with the
valuation oi the eure real estate OF the clty-over
one thousand millions. lt VIII appear strange TO
many who recolecL the great Ore IN this city 1887
and the subsequent panic produced IN real estate,
nat the Chicago IRE should be SO little likely 10
create disturbance but 1t must be borne in mind
mat at that iime us37 the assets OF
hre Insurance companies we're mostly mortgages
on city property. since then, however. the
two per cent tax on MORTGAGES was
imposed the lie Insurance companies being
Alone exempt from It's operation and The 1re under
writer's accordingly changed the character OF
theH assets IRON time 70 time, leaving
only the amount above mentioned on real estate.
There can be no doubt that the whole OF this amount
II II were necessary 10 call IL IN, would be readily
absorbed by the life insurance companies
IRON t0s II would Oe seen that. 50 far rs the Cn-
caso hre, Considered alone Is concerned, its innu-
ence upon real estate values here viii be scarcely
fet. Taken, however, In connection with other In
nuences operating upon mems minds, II is not alto
gether without It's enecs Prominent among these
THE FIXED oPTNI0S
felt on all sides, aud winch has prevailed for the
past Two years, mat real estate Is held TOO high and
must suDeT decline. This, IN general terms, ap-
piies 10 The whole city, exceptional Instances or
acuvity and appreciation being quoted as serving
only 10 prove The rule. Thus last summer, while
ali other property was Jun and stagnant the few
sales occurring being forced and showing weak
market Filh avenue property suddenly wakened
1nto q sharp active movement, which, directed by
ChaIllA L. Cornlsh anI GriLlfn EnMe aay.nced