The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-16
REAL ESTATE.
"A Photographic Reflection OF
the Market.
is There To Be a Break
or Concession =
PID TR "A n - II .
The Thought of Pine Street on
the Subject.

We have reached crisis in the real estate mar
ket. The policy of Mr. Secretary Richardson in
disturbing the unit OF the legal tender circulation,
producing variable quantity which mas resulted
IN stagnarion all over the country, in every de-
partment OF Industrial or speculative enterprise,
operates here as WELL Thus we have reached the
middle OF March without having market when
the ordinary season begins in February, and II no
untoward circumstance had occurred TO Interrupt
activity we should now be in the midst OF busy
movement. But that which the panic JAILED 10 90
Mr.. Richardson by his tinkering with the legal
tender circulation has succeeded IN doing. ~ is
SIMPLE PROPOSITION, AND EASILY DEMONSTRATED.
Investment in real estate grows, as we nave
before shown, out OF the profits OF other business
the surplus Accommodations, or in other words, the
savings of the people. The panic first suspended
these Accommodations and Mr.. Richardson SUISSE
quently. by his foolish tamperng with me clrcuia-
ton checked the recovery. mus we are CON-
PEELED to acknowledge, speaking squarely, and
without any euphemlstc disguise, this is year OF
reaction. Attempt to get round 10 as we may, the
fact is nevertheless apparent, rom what
ever originating, there Is no mar
ket for real estate at present prices.
The investment demand waits upon the solu-
ton of the financial problem In Congress, and
the speculative movement is checked by the un-
certain impulses which direct the legal tender Cir
culation and so disturb the standard OF value. A
sale cannot be effected now at last years prices
nor those of the year before net that the property
has deprecated in value, but that the monetary
conditions affecting it are changed. New York
real estate let 1t be borne in mind does not de-
preciate, but
THE CONVERTIBLE VALUE
of that real estate into current tokens is erected
hat oCa
token is variable and uncertain; hence real estate
values are depressed. TO produce an active
market now would require concession of
at least twenty per cent from the prices
OF this time last year, not for any deterioration
which the property has suffered, but wholly as
consequence OF the confused, unstable monetary
situation. Yet lhere is another element provok-
ing decline. The present economic management
OF the city finances has succeeded in stopping I'M
provements just where they are most needed, and
where property is assessed upon a basis antlci-
pated as a result OF these improvements. Thus,
while the interruption OF these works destroys
market for this property the taxes and assess
ments increase in undue proportion to the benefit,
Another result OF this Is That many men owning
large blocks OF property so Affected while anxious
TO SELL are afraid 10 address the present market
for lear OF producing panic. Now, panic is
always possible. 1t is seemingly
ONE OF THOSE INSTRUCTIVE RESULTS OF MANS AMI
NAL NATURE
akin to that OF self-preservaton, which reason is
pOwerless alike to direct or control But the cir
cumstances are not yet so grave as TO justify such
and an interruption OF the work Of uptown I'M
prOvement has permitted an excessive burden to
grow upon unlmprOyed property which many
holders are willing to tighten by relieving them
selves OF portion OF their property II they only
break IN The market. which. while, as we have
said before, Is real danger is also, we think, ex-
aggerated break now would be less dangerous
than break later, II the influences now operating
20 create that danger continue to exist. The mar
Ret now could suffer and support slight reac-
ton postpone 1t too long, and II might give way
hOpelessiy. OF course, these observations have
only the interest of curiosity to those who are
able to hold their property over
THESE TIDAL INTERVALS OF DEPRESSION,
but they come home directly to the understanding
OF those who ind themselves to-day wealthy and
embarrassed. 1t Is to be regretted that such
condition OF things exists, but We did not create
1t, and 1t would be worse than Jolly to Try and dis
guse It. Our eminent Secretary OF the Treasury
Is largely responsible Tor this condition OF things
He is very worthy man, extremely worthy, and
his obituary would no doubt be read with great
interest throughout the country with undsguised
admiration OF his many virtues
The week Just closed furnished an item OF inter.
est IN the sale on Thursday by Muller Co., a
port OF which appeared in the HERALD OF Friday.
We wish to observe here, par pdTe'lt.ese, that,
that report was special, and was not furnished by
the gentleman who has the regular direction OF
this department. In regard 70 the sale itself 1t
appears so far as any thing can be relied upon out
side Of legal proof to have been bona Hde. 1t was
an executors sale and, therefore carried with IT
LARGE ELEMENT OF CONFIDENCE,
which induced active, reliable bidding. 1t IS not
DO, however always with these legal sales Prop
erty sold In partition, under order OF foreclosure,
TO be served or preserved Is usually taken care OF
by the parties interested, and in many cases while
price is made no sale Is Effected. 1t is III the ma
ture OF what is known on the Stock Exchange as
"Wash"-where an effort Is simply made to cre-
ate market value without any change OF owner
ship. OF that nature. too, are many OF the an
nouncements which appear rom time 10 time IN
PRINT OF private transactions IN real estate IL IS
very easy in this way to make price and Is the
cheapest kind OF advertising THAT can be DONE
when 1t succeeds.
The writer has made further inquiry Of late
Into
THE CONDITION OF BROOKLYN PROPERTY,
and finds it Incomparaby worse than New York.
While on this side real estate Is suffering
from the mere retroactive influence OF monetary
Disturbance in Brooklyn there are inherent evlls
which affect values there, and always Will affect
them under the present system OF municipal man.
agement 1t builds miles OF streets to be assessed
upon mere sporadic Indications OF improvements
along these miles. Besides, real estate has to bear
nearly the entire burden OF taxation IN Brooklyn,
owing to the TACT that 1t is virtually merely ward
OF New York and the great business enterprises,
the taxation from which might go to relieve the
real estate burden. belong 10 New York. Thus the
personal tax in Brooklyn Is very limited in proper
ton to the real estate tax. Tue only remedy, OF
course, is annexation, which WIN come with the
New York does not need Brooklyn, but Brooklyn
needs New York.
BROOKLYN NEEDS NEW YORK
to enable 1t to get rid OF the horde OF small beer pol
Lticians who constantly dwarf It's eDdeavors. New
YORK may not give it more honest administra-
tion-that is vet to be determined out it will give
q larger comprehension o. the wants ana needs Of
that now overburdened municipality. IL may in
one sense only substitute men who drink VINE for
men who drink lager but even here is difference
which Is Just precisely the turning point in the mis-
tory OF Brooklyn. She needs that vinOus exhlara-
ton to supplant the lethargic influence superin-
duced by beer Annexation can only guarantee
this. and annexation enters thus as quantity into
AL future consideration OF real estate values
around this metropolitan centre.
RAPID TRANSIT
still continues to agtate all circles; but rapid
transit mas become sort OF dissOlylng view 10
metropolitan observers. It Is already being dis
counted that this Legislature Will adjourn without
man made the best suggestion, and II he were
only properly supported he might carry through
MS Dill But with all our real estate and taxpay-
eTs ASSOCIATIONS we have no harmony. The west
eide where the most money and influence is, is
afraid the east side Will get rapid transit first,
and so carry population beyond the Harlem river,
while the east side does not wish TO- bear the
burden OF taxation Tor rapid transit that will
give the west slde the same facilities that IL enjoys