The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-30

me poSStOttty or ne1 issue or tncOnperttote
paper regard NTH amazensent ana anxiety. and,
in my Jatd0nent such an issue ,cosltd be det,7
nsent and a shame.-CHARLEs SUMNER.
The real estate market, except In respect to
agitation, has thus lar failed to respond to the
imitation measures OF Congress in any increased
strength. This Is healthy sign, as evidencing
q larger intelligence in the average real estate
owner or purchaser than one would be at
first sight disposed to give him credit for.
For be 1t observed. without any dlsrespect
to the landed proprietor, the owner OF the
SOIL there is large class who own real
estate in this city who acquired such ownership
not because they thought real estate the most
profitable investment they could make, but because
not having the understanding to Judge OF other in
vestments they put their money into real estate
from au instinct and conviction that there, at
least, there was something tangible They felt
satisfied that
REAL ESTATE COULD NOT RUN AWAY.
But what Is the appreciabe difference between
dumping cargo Of carts and iaborers upon q
mans vacant lot and carrying away his soil until
you have reached the centre of the earth and
Congress attempting to open upon the country
flood of trredeemable paper money, until no one
knows what he is worth, and land cannot be sold
because there is no measure OF value. II the
pivotal point Of determinate value be fixed at
$4O0, 900 this year, 1t may be placed at
5O0,00O0O0 next year, and $780, 0OO, 900 the year
following, Business cannot be safely transacted
in the face Of such uncertainty. We had limit OF
$356,000,0O0 OF legal tenders, upon which the
several values throughout the country rested and
largely do so rest to-day Why displace it ? 1t
means chaos, because the confidence which rested
upon that burden OF $356,O000 900 irredeemabe
paper money was based on the assumption that
that limit could never be exceeded. The barrier has
been broken down and now there is no limit.
Can real estate hope to escape the consequences of
such an act ? Impossible. BY its nertness it per-
mitted 1t to be accomplished Now it must share
in the responsibility. We have exhibited to the
world our inability to meet our national obliga
tons in good faith, or, falling In that stand the
consequences Can we hope to command respect
after this.s Certainly not. Better, far
BETTER BE BANKRUPT IN CREDIT THAN BANKRUPT
IN HONOR.
These are unpalatabe renections they are worse,
they are calling to the individual Amerlcan's
sense OF principle; but facts acts and IN this
nineteenth century we have learned not to shut
our eyes to them, however distasteu
they may be, and we may as well
just here commence to recognize q few
Of them, as the sooner we reach an understand
ing OF them the better. II President Grant does
not lnterpose his veto between US and this pro-
posed deluge OF imitation it is as well to be pre-
pared for the worst The supporters OF the infla-
ton scheme say Grant will not dare to veto it, but
they underrate Grant who doubt that he has the
capacity for heroic action let the consequences be
what they may. The man who was forced to re-
sign from the army as lieutenant III the story
told In that connection be true because hts coD.-
rades questioned his moral force OF character to
overcome ephemeral lndiScretiOns, and subSe-
quently retrieved himself by attaining the position
OF 'head of the army" is not the man to truckle to
a mere mob clamor or degrade the Presidential
office to the Endorsement OF scheme that is
VIOLATION OF THE NATIONAL HONOR,
to policy that involves IN 1t the surrender OF the
in the moral conviction OF free people that had
iuly realized after years OF strife and controversy,
'tnat all men are created equal and endowed by
their Creator with certain tnalienable rights,
among which are lie, liberty and the pursuit OF
The question thus rests with the President, and
upon his decision WILL values In this market as In
otner markets: depend: At present it is worth
no market. Property may be worth what it was
two years ago-lt is certain to be worth more II
any one holds 1t over this season OF distrust and
depressiOn-but 1t Is not worth that much now, tn
asmuch as 1t will not bring that amount The pres
t Of a Y wt q M Se assae Or
time. Its convertible quantity az cash. 1t is not
proposed here to speak OF possible values or pros
pecuve values. Tue future Of New York real estate
Is assured, but just at this time real estate Will
not command the prices that 1t could two years
every real estate 6roSer and the sooner It is &C.
ceped in the dealings the quicker will real estate
revive.
THE WEAK HOLDERS WILL HAVE TO BE ELIMINATED
FROM THE MARKET
before fresh capital will come in to support it,
Whether shey accept decline now OF wait for a
over a period OF necessary reaction 10 order
to-. get fresh starting point, they must
values, and real estate is at the present
lime on the crest Of receding wave. The return
but the recession must occur arst And sho sooner
this is acknowledged the less the danger. II must
be borne in mind that New YORK real estate is
seventy-nve per cent OF the realty Of the city is
thus encountered. Foreigners hold large pro-
portion of these mortgages, the rest are held
mostly by the insurance companies ana savings
banks. The recent action OF Congress will brighten
the foreign mortgages. If they press for con-
version 1t will largely AFFECT values and 80 bring
the home mortgages into the market and recover
their loans, and thus bring about condition OF
things In the real estate market that 1t Is absO-
luteiy startling to contemplate yet which 1t Is well
TO bear in mind as
GRAVE POSSIBILITY.
We have had pantcs in real estate before that
showed some remarkable features. The next
panic will perhaps break our insurance companies
and savings banks and, II 1t thus results, damage
clearly estimated. This Is one OF the results which
are likely to flow from present Congressional legs-
latl0n. II the President will only calmly review
the situation and examine for himself It's pending
dangers he Will quickly learn its serious danger.
Teal estate owners, however, cannon Dlame the
President should he fail to understand the great
ness OF the CRISIS. They never uttered the first
protest against imitation and are to-day
largely, secretly rejoicing over the success
of a policy which they think will give
them an opportunity to unload. This IS a stupid
error. The same intelligence which enabled a man
to make money will serve him in the investment
Oft, and be Will not 90 1t blind. Thus we find In
settles down to o basis OF legitimate value 40
cording to existing conditions, quite independent
OF its past or prospective value capital which Is
support IL, bat II the present condition be much
longer maintained there is danger OF break that
Will lose sight OF all values and ,precpitate con-
dltion Of things that every intelligent real estate
owner forsees az possible ending, II intelligent
councils be not regarded, Of the present anomalous
position Of real estate.
1T rs NO UsR IN SHUTTING ONES EyRs TO FACTS,
and trying to make believe" that certain I'M
pleasant consequences have not been reached. We
are not nation OF children and do not 'play at