The New York herald., 1873-10-10

It has been said before now that In respect to
financial values real estate Is the first to feel the
eject OF an impending crash, and the last to re-
cover from 1t. The almost complete separation OF
real estate from the latest Wall street revulsi0n
contradicts this. month ago the HERALD, feeling
the pulse OF the market at that time, which was
rather unsettled and unsteady, gave Its diagnosis
OF the exact condition OF the patient then under
treatment. 1t pointed out the uneasy, fretiully
disturbed senstiveness noticeable in some parts
OF the bocy, with the generally healthy working OF
the vital organs. that must eventually reconstruct
the morbid excitation prevailing elsewhere. It
encouraged the hope of an early recovery from the
distressing symptoms then the occasion of much
alarm. At about the same time, In another part
of the paper, the coming event on the Stock Ex-
change was forecasted with "reminiscences OF 1887
and 1857 as parallel periods. But these. however,
proved but analogous events, and those only In y
slight degree. Noiceaby, real estate, usually the
first to suffer In such crisis, as has been said,
passed unscathed by the contagion OF distrust
thus suddenly awakened, and after short interval
OF comparative dulness, as much due to the dis
traction occasoned by the excitement in Wall
instead OF the last to resume its old buoyancy.
There is
A LOCAL DISTINCTION,
however in the character OF the TWO marketS-vtZ.,
the real estate market and the stock market. In
trolls speculative operations; IN the latter specula-
tion too often regulates investment. There is that
explains @ these antithetical conditions. s' Not
wthstanding the marked improvements In
the monetary situation, Nv WHICH nc lro brought the
Stock Exchange yesterday down to seven per cent,
we sttll hear OF continued mistrust In respect to
stock values, and mutterings are free that we have
not touched bottom yet. This is unusual after
panic, the rebound from which is generally quick
and lively and while It may be true IL IN respect TO
mometrical relation, 1t would seem to indicate the
operation Of causes not wholly natural. What such
ha 10 rnInV l,lA
A VERY SIMPLE HYPOTHESIS
VIZ, that the bears who brought about the recent
crash, deprived alike by the suddenness OF the fall
in values ana the many suspensions this occa-
sloned as well as by the acJion OF the Stock Ex-
change in virtually compelling private settlements,
OF the pront they expected, are preparing now
Tor change OF front, and, before turning bulls,
are seeking to lay In good supply OF low.priced
the money market with spasms OF recurring ac-
tivity, with the view OF frightening on outsiders,
in' to their own hands such amount OF stocks as
they deem sufficient for their purpose, sudden
return to circulation OF the currency now locked
up by them will soon start a bull market, at the
top Of which they will unload to those enthusiasts
they now seek to hold in check. The interest
which the real estate market has In this relation is
that confidence now so fully restored to the market
may not pc checked by these mere Stock Exchange
troubles and struggles but. In the full assurances %
bear lruit in renewed activity. 1t is not
AMONG THE LEAST OF THE LESSONS
we have learned from this recent monetary disturb
that real estate values especially here in the
city and neighberho0d, rest upon q substantial
basis OF intelligent appreciation that no slight
financial storm, even when ir initiates the and
fury OF hurricane. can suffice to stir them from
tner ,h;. OF the great ana increasing ing
entrepot of two continents. whittier Europe sends
us not only her products OF all sorts OF mechanical
turn grain to feed and cotton to cothe those that
remain. These two points are dwelt upon thus
strongly here because they constitute the basis Of
our present real estate values.
CHANGES IN OUR MONETARY SYSTEM
may AFFECT Ct them the Temporarily as they were slightly
these can only be temporary in their restrictive
influences. II would be wei however in view Of
possible, 1t may be said probable. legislation at the
next session Of Congress upon the question OF cur.
rency, with the opposing theories OF bulionists and
anti-bullionsts to threaten fresh disturbances II
real estate should begin to think OF protect
ing their interests by advocating such modification
Of existing currency laws or snch new legislation
that without loss OF security Will give currency
an elastic quality, whereby 1t can be made respOn-
sve to the requirements OF trade capable of alter.
for It's use or ceased to call for its employment Gold
would still be the standard of excnangeatle value
with sufficient guarantee behind it for its redemp-
tlon, paper money, relieved OF the prejudices
against It, which belong largely now to its non.
elastic quality, would soon appreciate to par IN its
relation 70 the gold standard Thus can we reach
RESUMPTION WITHOUT DANGER
especially TO such large interest OF permanent
investment as real estate. In other words, what
is wanted is not to arbitrarily leglslate existing
currency values down to gold basis, but rather,
Other o reeyaf xea saa ro
undue expansion or contraction above or
below trade requirements, bring about through
the ordinary friction OF our domestic exchanges
an agreement between the two. When tins snail
be reached resumption VIII not he needed. Real
estate owners have larger and wider interest in
tnls matter than the owners OF almost any other
class OF property, sudden and violent effort at
resumption would be not only exceedingly hurtlui,
but would IN their case partake somewhat of the
nature OF national breach of faith. II the pres
ent party in power deserve any credit for their
frequent and noisy declarations that the honor OF
the nation is pledged TO the payment or the inter-
est on the public DEBT in coin, equally Is 1t pledged
to those VINO have so long used and traded In its
other lawful money that In it's endeavor to bring
about resumption a full regard shall be had for
THE CEAIMs OF PRESENT INVESTORS
and nothing done calculated to cause a revulsiou.
Tne legal tender found Its value in the cheerful
acqulescence OF the people, to accept 1t in that
character, when the government was in need Of
gold, owing to the strain put upon IL in supreme
moment. The people now deserve that their In
dustres may be permitted to thrive unrestrctedly,
and grow until the two forms OF lawful money are
Interchangeable at par, when such change becomes
q matter OF indifference. To secure this end.
owners OF real estate are equally opposed in their
interest to any sudden increase OF the volume Of
legal tenders to be fixed by law. measure OF this
Kind would be exceedingly dangerous just now, as
firm through period OF excessive monetary
stringency, thus showing that with healthy CIR
preserved s tE o M O currency
These views, be It said, however, gathered from
various sources, and thus presented TO the special
consideration OF those interested IN real estate
given here without dogmatic assumption. There
is no infallibility In finance gold being only
an accepted standard. Hence, while neither the
bulionst nor the ant-bullionst opinions In regard
TO the present situation Of affairs In the real estate
market, monetary and otherwise, are without re-
cogniton here, the grounds gone over peint to q
possible basis OF compromise for these extreme
opinions. 1t is q matter, however, which Is deserv-
ing the attention OF real estate owners and is
brought to their attention at this time In advance
OF any propositions submitted TO Congress in the
way OF monetary reform. that the real estate In
terest may have full understanding in such efforts
at reform and find a fair representation In their
discussion
THE PRESENT DEALINGS
In the market continue light, but the result OF
Wednesdays sale OF Filth avenue property shows
full appreciation where first class property pre-
sented. 0f the sales OF out OF town property t is