The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-28
REAL ESTATE.
The Effect of the s40O,OOO,000
Bill in This Market.
Curious Confusion Re-
speeding Values.
Danger Of European Discrimination Against
American Investments.
ANALYSIS OF THE sITUATIOT.

me possolity Of neao issue or inconrerttole
paper regard ,otth Gnsazenaert and anxiety, and,
IN nay judgment, such issue toOuJd De detri.
7ae1st and u Sh1lnle.-CHARLEs SUMNER.
The action OF the Senate on the s4OO 900 legal
tender bill on Thursday produced its full share
OF excitement In the real estate market, as In the
other departments OF business activity. Among
many the feeling was one OF jubllation, the dawn
ing OF "a new era OF prosperity" after the manner
OF the gushing enthusiasm OF Western eloquence,
but the more thoughtful regarded 1t with grave
anxiety and realized that it but precpitated upon
US crisis In respect to real estate values that has
been long impending AS in the stock market,
there were those who prepared themselves for the
eXhlbltion OF sudden sti1ening Of values,
Win perhaps sharp advance, and that
much desired bull market for which they
nave been waiting so long, But the more
cautious saw beyond that the danger OF even q
more serious reaction than any yet encountered,
In realizing how hollow must be the activity or in
creased valuation which rests upon national dis.
honor, and how dangerous the imitation that is
built upon reputation These additional paper
promises to pay-which, uttered in violation OF the
national conscience, in defiance of the national
pledge given more than once to It's creditors at
home and abrOad-carry with them
NO ELEMENT OF VALUE
whatever. ana while because in the multiplication
OF the token OF exchange IL takes more OF them to
purchase anything, from a pound OF butter to a
corner lot IL Is not because the pound Of butter
the corner lot is worth any more, but because the
token itself Is worth so much less. And as men
who have fixed incomes suffer loss in this
connection and it is largely from this class that
rentals are paid, real estate Is apt to suffer more
quickly than other species of property the disas-
trous consequences likely to flow from this evil
legislation. Besides, there is much foreign capital
invested and seeking investment IN New York real
estate. This capital will only be frightened away
by the Introduction into real estate transactions of
new source OF danger in the uncertain conse-
quences that may now from
THE GUSHING SYMPATHIES OF AMERICAN CONGRESS-
MEN WITH COUNTRY sTOREKEEpERs.
The Senate even refused to commit itself-after
liking che limit OF the legal tender circulation at
$500 oO,O00-to declaration that this should be
the ultimate point of legislation now and
for all future time, and there is no guarantee
that further limit OF $500 900 next year,
$6Oo,OOO,0Oo the year following and so on, al itnt-
tam, may not be issued Start ball rolling down
hill and there is no determining where it Will STOP
but 1t may safely be assumed that 1t will not stop
until it has reached the bottom. European CAPT.
|
outstanding that they failed to reach the inteli-
gence OF the average Congressman, and there Is
likely to be q reaction there against American Sc
curities OF any description, winch will seriously
real estate Is menaced with the serious danger OF
A WITHDRAWAL OF FOREIGN CAPITAL
upon to bear the anticipated Ills resulting
! from languid trade in other Depart
sue 10 be- exbea ali Other Of r 1ne Of amaq
can investment or speculation, because OF the
quaint possibilities OF our financial legislation.
Congress has broken faith with its own people;
what is to prevent It's breaking faith with the lor
eign bondholder2 And thus the shadow OF repu-
diation looms up in the lace OF the foreign inves
tor to deprive him OF all confidence in American
values. Real estate cannot escape its share OF de-
teroratiOn growing out OF this new state of things
A ticttious Exhibition of higher values NAV he the
first effect OF this reckless lnnation but 1t will be
PURELY FICTITIOUS,
bear this in mind lest they be carried away
beyond sound Judgment by the appearance
The whole nature of this bogus statesnanship
was shown III the course OF speculation on Wall
street antlcipatory OF that LEGISLATION. Pacific
Mail and Western Union, two stocks concerning
which the least is known or attainable to their
real value, were the features OF the list while in
the railway shares speculation ran mostly upon
stocks that have not recently paid dividends, or
only in scrip. Paper stimulating paper. An Ossa
greenbacks And TINS is the new era OF BROS s.
perity' promised. Real estate should not seek to
share in this delusive dream, else the awakening
VIII be OF the most serious consequences.
REAL ESTATE OWNERS HAVE LARGELY THEMSELVES
TO BLAME
1Or THIS disastrous situation. Tney failed to
else a great conservative interest in lashioning
the solution OF the financial problem and shaping
taught to believe. even by the eary plos"nne are
before the dawn oil the Christian dispensatiOn, that
no sin goes unpunished and this sin OF indifference
on the part OF the real estate interest has surely
met its complement OF revenge in the graver SIN
OF Congress that reduces the income OF every
worklngman in the country, as well as every
saaried clerk or professional gentleman, to the
advantage only of the mere SPECTATORS. AS was
said before,
NATIONAL CRIME
and real estate, with those other languid interests
penalty. The sentence uttered in the Garden
Eden Tor mans sin in eating Of the forbidden fruit
punishment, even unto the end Of time, Is not
more certain OF Its complete fuhlment than
that for the later sin OF rebellion against the very
nrst principles OF morality committed by the peo-
ple's representatlves-the whole nation and every
business interest in 1t must suffer until atonoment
be made. These words OF caution are uttered to
counterfeit the danger likely to develop itself in
the real estate as in other markets Of new specu-
lative period.
THE VALUE OF NEW YORK REAL ESTATE Is AKIN
TO THAT OF GOLD,
intrinsic, stables ano beyond That Of gold, of
tain ultimate appreciation. But like that OF gold
1t Is subject to the calculating results which grow
out OF an irredeemable paper currency, and is as
which surround IT, The admnIstrat ia' Of Mr.
Green as the chief fiscal officer OF this city
has resulted IN placing al undue burden upon
real estate here, which Is not lessened by this
imitation action Of Congress- but, the contrary,
increased. While there is no market Tor real es.
tate as Is the case now, these burdens press
heavily, and TINS recent legislation, while 1t may
promote activity because OF the apparent increase
oil value also operates to deer dealings by
frightening away real estate investors.
mus stands the real estate or the city to-day.
Firm anu Indifferent where there is no desire or
necessity to sell, but
UNEASY AND UNSETTLED WHERE A SALE Is SOUGHT
or REQUIRED; In other words, 1t Is the seller who
must make his market, not the buyer. The buyer
can AFFORD to wait, but the seller Is
pressed for funds. writer recently in
one OF the morning papers-the one, by the way,
which derives more profit from its real estate than
II does from Its advertising cOlumns-repeats at
some length the familiar arguments concerning