The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-21
REAL ESTATE.
Analysis of the Present Condis
ton of the Market, It's Pros
poets and Possibilities.


There Is community OF interest in ALI <hs
various departments OF Industrial or COMMERCIAL
activity, IN speculative enterprise as In the mora
solid business Oh investment, which renders them
all liable to be affected in greater or less decree
by the same influences. Real estate s not superior
to the conditions which affect all other species of
property and in respect to value receives tts
stimulus or its check IN due proportion under tho
operation OF recognized and well known laws
Thus while real estate maintained firm front
during the recent panic, and still maintains IL, be-
cause that was monetary panic in time Of pro-
ducrtve plenty-a thunder clap, as 1t were, N the
midst OF o clear sky-which, II 1t had been per-
mitted to pass away, would have left only clearer
atmosphere behind yet inasmuch as
THE LAUNDERING POLICY OF THE TREASURY DE-
PARTMENT
perpetuated its dangers real estate is beginning
now to wheel into line with the other interests
that suffered through this crisis. At present It IL
only stagnation; but what Is to come next3 1t 10
well, just at this stage. to pause and examine,
that the result, when it does come, may not be Q
surprise Everybody VINO watched closely the
origin and progress OF the recent panic was sur
prlsed a the wonderful recuperative energy which
the country exhibited alter the first shock was
over, when the banks throughout the country
followed the example OF the New York banks In
applying remedy LOT me existing great OWL OF
boarding, which made money scarce, the principle
OF Tree banking which authorizes the creation Of
currency in proportion to business needs. This
was precisely what
THE ISSUE OF THE BANK CERTIFICATES
meant. It was, perhaps, contrary to law as 1t in.
volved thu issue OF additional currency. That such
was its character Is abundantly proven by the fact
that even after the banks resumed the publication
OF their weekly statements these certificates large
amount Of which were then outstanding, never
appeared in such statements. They were not
loans, because they were not money, and they
were not included in the Item OF currency because
they were unauthorized by law. They were, how
ever, to all intents and purposes currency; and
supplying the place Of that which was locked up
by ignorant and frightened owners they carried
US through the panic in safety. When confidence
was restored and money began to come out agaln
from Its secret hiding places these certificates
were gradually Withdrawn and replaced with
regular currency-a most notable exhibition OF the
value OF free banking system. Real estate
through all this interval,
ALTHOUGH DULL, MAINTAINED ITS STRENGTH AND
FlRsNESS,
and as other values began slowly to recover rom
the shock they had received AMI business seemed
to be revvng, the stable character Of real estate
values, as c0ntfasted with others IL was thOughts
would provoke Il large investment demand In that
direction this spring, and an active market was
looked for to compensate for previous dulness and
hazard. There can be no dou t, either. that that
sagacity which led the Secretary OF the Treasury
to oppose the issue OF the $4,000 600 reserve at
the meeting held at the Filth Avenue Hotel, in thS
city, IN the early days OF the panic, had prevailed
with him 70 continue his opposition A special
ttorlZng new short loan to meet current ex-
penses OF the government, would have cost the
country less by millions than the penny wise and
EVEN ''0'lSh p0A'' Sn'n a''Sf"Af0 D's''l'''
A BOLD STEP,
such would have added the entire $4, 000 900 80
called reserve to the permanent circulation Of the
country, while it might have created more violent
extent tina, the vbratory policy pursued OF vary
ing the limit from day TO day has. The evil would
have been nteligently encountered; but the evil
is yet with u.s. and no man knows when it will end.
Thus trade OF every kind throughout the country
Is paralyZed and the year seems likely to 60
by without leaving any profits or Accommodations
in the hands OF business men. The danger
column to real estate owners, aud they were
warned to bring their influence 70 bear upon Con-
gress Tor a speedy solution or the financial prob
lem, else their interests would certainly suffer by
delay. And
THESE INTERESTS, IN COMMON WITH ALL OTHER M
TERESTS.
have suffered and are suffering BY this continued
delay, which, If persisted in, threatens serious
danger here, especially to high priced properly
within the old city limits Taxes and assessments
continue TO increase upon tais class OF property
even IN q sale, for there is no market; nor
can there be while there In no standard
of value govern transactions. In the new WHY an
nexed district the outlook is not so bad, as prop
erty there Is cheap In comparison to what IL will
be a lew years hence. and investors can afford to
take some chances IN respect to monetary develop
ments. But
THERE CAN BE No REAL ACTIVITY WHILE TIE STAND
ARD OF EXCHANGE Is VARIABLE
and uncertain. Sales are yet possible where
owners are ready to make liberal concessions, as
vest IN New York real estate, at anything below
current vaues-and In this case such concession
gressonal acton or lnaction; hut the market that
was hoped Tor earlier In ne spring Is fast receding
from expectation. Latest advices from Albany
state that the bill to repeal
THE TAX ON MORTGAGES
was reported adversely. This result was already
discounted. There Is no doubt 1t MI hit have been
reported favorabiy II the real estate owners OF
this city had made up pool" TO lobby 1t through,
but real estate is already too much oyerburdened
with increasing taxes and assessments VII hout cor
responding improvements TO assume greater bur-
den IN order to fee men to DO what IS SIMPLY an
called fears OF the country memoirs being all
moonshine or only 80 strike" AS the session ad-
vances
RAPID TRANSIT SEEMS 70 REcEDE
as au accomplished TACT rather than advance. A
town property owners below 155th street, the same
class who are most affected by the present dulness
growth OF the section Of the city north OF them II
rapid transit should bring the lower priced property
within easy distance OF New YORK. ms is really
shortsiehted on their part. as the growth OF New
York TO Its iarthest limit must enhance the value
OF the entire real estate OF the city population
q 100000 win give much greater stimulus
to metropolitan growth than a population
OF 1,ooo,e00 rue immediate present ia OF
great gravity In respect 10 this years real estate
market, but II Congress Will only hasten to apply
the much needed rellef in the shape OF prompt &C.
ton on the financial question, particularly In fx-
ing the limit OF the legal tender circulation, there
IL chance yet that the market may revive. In
this connection
THE REAL ESTATE INTEREST MIGHT SERVE ITSELF
by seeking large representation at the coming
mass meeting to De held shortly in TINS city TO de-
mand such prompt action. II they fail In TINS and
the continued triding Congress should precipitate
another panic upon the country they VIII be GER.
tain TO regret a lost opportunity: When the next
balance sheet Is made up tnrougnout me country,
on the 3lst OF next December. II there be no
profit shown to business men for the years
real estate will suner.
AFFORD to hold their property there Is no danger In
THIS temporary depression. The inevitable ten
deucy OF real estate values In New York city la up-
ward and 1t ID only when some great derange-
ment OF trade occurs such as now presses heavily
upon the entire business OF the country that these
values are oil impaired. The cause In the pres.
ent instance is clear and defined, and the remedy