The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-27
REAL ESTATE.
Eject In This Market Of the Presi-
dents Recent Veto.
The End Of the Depression
Reached.
NEW MOVEMENT IMMINENT.

Initial Sale Of the Dawning Sea-
son Of Fresh Activity.
In no department OF business activity has the
recent veto Of President Grant had greater signin-
and interest than in the real estate market.
since its publication on Wednesday afternoon last
1t has been the subject OF discussion. exciting ar
first much opposition from inconsiderate observers
or the real condition or the ket, who failed to
appreciate its full Importance or comprehend its
inferentiai resuita, gradually gathering higher
recognition as the argument deepened. IN II now
there are few who fail to give the President credit
for an act becoming the broadcast craftsmanship.
TO these few within the MARKET and TO Others out
side OF 1t, the measure OF whose understanding Is
the same, II 10 worth while to examine into the
condition OF the market at the present time with
reference to the causes which produced that con-
dition, ana point out
THE INFLUENCES RESULTANT FROM THIS VETO
which are certain to operate in the future to pro-
duce change. The money writer Of the London
times, In recent article, most mistakenly made
the basis Of an alarming despatch over here, drew
attention 70 the TACT that financial panica, which
we're at one time decadal epochs, had most GER
tainly lost that periodical character and that the
clearing out process or recurring settlements,
which was before ten years apart. was now re.
peated more frequently. losing with this repe-
tition much OF the disastrous consequences that
formerly attended them. The writer then pro-
ceeded to illustrate his argument by the assump-
ton that the London stock market had recently
gone through period o, panic without knowledge
OF that fact, and was really on the road to .
healthy recovery serenely unconscious OF the dan
ger 1t had passed. There IL great similarity
between the condition OF things there represented
and our home real estate market. With the Presi-
dents veto all danger Of greater trouble is
averted, hence we may look calmly at the situa-
ton, knowing
WE HAVE PASSED THE CRISIS,
and learn instruction from surrounding Incidents
Thus standing once more on firm ground, resting
upon the solid foundation OF national faith nation
al honor and national credit indicated, and look
ing back over the path we have traversed during
the past two years, we may say that real estate
has indeed passed through panic scarcely know
ing 1t, q period OF weakness and depression that
more than anything else has given proof of its In
herent strength when exposed only to normal
conditions, with only such incidental indications as
must inevitably result IN all departments Of invest
ment, that offer 1t the same time Inducements to
speculative activity, which thereby brings In q
class, large or small, according to circumstances
who, disc0unting probabilities, must ever come to
grief when these probabilities are either over
discounted or prove lllusory. Former panics
In real estate are valuable teachers Of
how much we have gained in substan-
tial values since then. They, too, were
decadal epochs. and 1927, 'S7, ~ and Isl, are
memorable years In the stories they tell OF bank
ruptcy and ruin. The year 1867 should have
marked the recurrence Of the ten years readjust-
ment OF values, but IT that time oil values noated
buoyantly II insecurity, upon anl dsH.
AN OCEAN OF IRREDEEMABLE PAPER MONEY.
The close OF the war had brought about .
fresh investment demand, the fortunes that
war had created seeking here security
from q dreaded evaporation that should be
as rapid as was their accumulation. Hence
the swelling tide OF real estate values swept
onward with increasing force. sppreciating every
foot Of soil on this island to extent that sur
prised some Of even the boldest operators, and
bringing an increased valuation to all the sur
rounding farms Of New Jersey, Westminster county
and Long Island Then came pause A point
had been reached beyond which 1t was not safe to
advance. In the examination which fol-
lowed 1t was found that such property
had passed into the hands Of weak holders, who
carried away by the competition which prevailed
to get hold OF choice lots, had assumed obligations
in advance OF their ability to sustain them. To
push the market up further with this weak spot
behind would be dangerous and there was nothing
to do but to wait patiently the certain closing out
OF these inconsderate contracts, and the passage
into other and stronger hands, able to bear its
burdens OF taxes and assessments, OF the realty
that had thus become source of uneastness In
the weak hands which then held it. Hence the
long interval Of comparative quiet now 1t may be
assumed, so near an end. Hence the numerous
foreclosures Of the last year, and the recent IN
uispositicn OF capital TO make new investments
be accepted by those compelled to sell, but which.
while there was expectation that there were
many OF such classs would not pc exceeded II ls
not necessary here to recapitulate the causes
which led to the late panic In general business or
the consequences 1t entailed, nor to
THE GROWING EVIL EFFECTS OF AN IRREDEEMABLE
CURRENCY,
not only without prospect OF redemption, but
with the danger OF reputation as the end. These
influences are too fresh TO mems observation, and
tile effect upon values OF too recent demonstration
to require more than mere reference here now
that the Presidents veto has nterposed to remove
Them but they are necessary to be borne in mind
relief which that act OF the President brings to
this market 1t is an end to an uncertainty. II
enables men to say what they could not say before
come to say 1t, that the parkee has ::odched
e Sss 1so re 70 Ss !. s1p ss,ss
business season such ~ prevailed four or ave
years ago. nor that we shall have no more fore
Closure sales 1t will take time to accomplish all
this, but capital, which has been awaiting events
here as elsewhere before seeking permanent In
vestment, Is now released from expectation and
viii gradually seek familiar channels. We may
have more foreclosures and probably will, ana
many weak holders may ind that this relief comes
too late 10 save them; that they cannot walt to
Iecl It's effects. But the foreclosures will not as
heretofore OF late require the mortgage to be-
come the purchaser Ii he would save his interest,
and the weak holders may be certain OF better
prices next lan than they could have expected this
spring.
Again there Is q great deal OF
FOREIGN CAPITAL INVESTED IN NEW YORK REAL
ESTATE,
largely by way OF mortgage Many OF these mort
cages are SAID to be placed on Wall. Broad and
New streets, while property up town has greatly
benefited In past years by the stimulus II OBJ
tanned under the INQUIRY oil foreign investors. The