The New York herald., 1873-11-03
REAL ESTATE AND THE FINANCIAL CRISIS.
Further Lessons Of the Late Panic as
They Apply to This Market
WHERE VALUES REST.
Reduction Of Wages in the Building
Trades a Stimulus TO More
Rapid Improvement.

~
Is result wholly of monetary Distress and is not
the consequence OF loss, disaster, greater competi
ton or any considerable revolution In the law OF
supply and demand, it is to be found In the quiet
confident tone OF the real estate market.
THE LAW OF SUPPLY AND DEMAND
has been Jraversed in many departments belong
ing to its practicen some cases purposely, for GER
tain effects; in most ignorantly, through misap-
prehenson OF its inevitable results. The demurrer,
the plea In abatement, the motion TO show cause.
the application for postponement, have all taken
one shape In this case and the boarding OF cur
rency has almost dried the founts OF justice In re
spect to the law here quoted. But it win not
be so always, and already there is en-
cOuragement in the resumption OF the banks,
in the reports OF the express companies
respecting the movement, in bulk, this way OF our
paper representatives OF value and in the current
rate Of money on "the street.n With this revival
OF free circulation will come Its coroIlary, conf
dence; and, with these two elements restored TO
their normal influence. VIII come renewed activity
in real estate The general situation pointed
more strongly to
THE APPRECIATION OF REAL ESTATE VALUES
than at the present time With the gravest dis
trust in other forms OF convertible values, the
who owns the house that shelters him and the lot
upon which IL stands leels that here at least, il
without his volitIon, substantially that
cannot wholly perish, even in q Wall street
nightmare. Hence, while there have been
furry and haste dismay, anxiety, weak
ness, in respect to other values, real estate
has been confident, reliant, even assertive, is
shown in the frequent Withdrawals from the mar
ket at this time, because OF unsatisfactory BID
ding, as was the practice throughout the whole
crisis. Thus far its steady appreciation has been
uninterrupted, and, with the hoped-for recurrence
at an early day OF monetary ease, an active mar
ket may yet be looked for ere spring, Az further
Illustration OF the fact that the present Interrupt
ton in business movements Is wholly abnormal
traceable to no sufficient material influence, it
may be added, in connection with the steady feel
ing in real estate, that at time during the late
excitement was money unprocurable upon govern
ments as collaterals The difficulty was to get the
governments. Those who had them did not wish
to part with them, and generally did not need TO
pledge them. Upon these
TWO FOUNDATION STONES
first, the ownership OF the land, and, second the
belief in our certain intelligent use OF 1t, typi6ed
in our respect for government credit, rests
tire financial structure.
The present tendency OF real estate speculation
is north-into Wesrchester county and up the
river. This s natural in the present tone OF the
market. New Jersey and Long Island offer fine in
ducements in prosperous times, when money is
plenty and the industrial hum OF the metropolis is
heard on all sides; but the growth OF New York,
the steady advance OF it's metropolitan develop
ment that which goes east and west OF 1t Is
simply its redundant overfow) is upward, on
ward, as Is the motto OF the state in the direction
IL was planted and pointed in It's early history.
Thus In
THIS TIME
and the search for sound investments Is TO be found
lesson for those who, examining the map OF real
estate operations around this centre during the
last ten years, still inquire Where Is the real sub
stantial value that shall grow as steadily in the
future as Ii has the past And late experience,
born OF dstrust OF doubt, OF uncertainty, OF NOR
bid anxiousness answers, ''It is here as II was in
the days OF our fathers, so is it still with usn
Recent sales in Westchester county demonstrate
this, current transactions at private sale approve
II and the future offerings already announced
show its understanding There Is one element want
ing now in the market, 1t is true-viz., enthusiasm
the feeling that comes OF long, undisturbed con-
feeling OF endurance, not the combative sense
OF cumulative progress. Hence values rest, in
sense not tnat tne appreciation % does nos 20 a.
silently, increasingly as the city grows, despite
private purpose private endeavor or private wish;
but this appreciation does not find the ready,
frequent EXPRESSION that IL would LII period OF
greater activity IN business. Our tests OF the con-
diton OF the market at the present time are few.
but more valuable In that respect. One or these
rare opportunities Of gauglng Its strength or
weakness just at this time,
NOT NECESSARILY REFLECTING ON THE FAST NOR
FoREcssTING THE FUTURE,
was expected In the offer OF the "Barney Bowers
tractr last week. Fairly presented on its merits,
duly and not unduy advertised, IL was thought
certain to command the attention OF the
their operations upon substantial, not
merely supposltiti0uS adJuncts as eventualities
fold interest In showing alike the disposition as.
well the ability or the market at this time
That II resulted IN disappointment 60 those inter-
ested In its lessons Is but the consequence of the
mai dpT0pos quarrel between the owners, although
something OF tns may be referrible TO the existing
boarding otcurrency. 1t may yet prove and at no
late day, the Mecca OF many old purposes ana
newly formed resolutions to provide a certainty OF
accumulation against the chances OF an hour.
A REFORMATION IN RESPECT TO CAPITAL AND.
LABOR
going on Just now that Is at once instructive ana
Interesting, a. It has a most direct bearing here
For years the labor unions. noticeably among the
building trades, have checked the bullt-up growth
Of this city, and, by their combined efforts
AZ advancing wages, made improvement
90 costly that none but high priced
prcataOIe return upon the double investment in
land and labor This brought about to . large ex
tent the emigration to New Jersey. and Long
Island. and consequent appreciation OF real estate
In these localities, and, by the inevitable law or
compensa.lon reaction a.; here, upon those d Wno,
the miseries OF tenement house life. IL is said,
with how much truth has yet to be discovered,
tories throughout the country is not wholly con-
nected with tho present monetary strngency, but
l
part OF the manuIscturers, BY concerted move
fnept TO check
rms TnrYRrALIsN or LABOR AGITATION.
such IA not an unlikely circumstances. Most OF
the factories announced as closing report full stocks
on hand waiting = market. Advantage has been
before BY the combined operatives to dictate
terms 70 their employers, not undue perhaps in
respect 90 the labor performed, but out OF proper
flon 10 the current law OF trade, barter and ex-
change. THIS was bound TO work It's corrective,
as hie principle had been violated and had to be
re-establlshed. u Is working It's correction now.
"A IN AZ IN
tnis redistribution OF existing values while frac-
uOnaliy lt may suffer With the release OF capital
obtained through the late settlements OF comphca-
tons IN Wall street. that rested as enormous ncubi
upon the active monetary movement so necessary
10 locai A. well A. national prosperity cloggng IL
a. though with the pressure OF brake viii come
restored confidence. There s
~ fkEsxNr CONDITION THAT THREATENS REAI
ESTATE INTERESTS