The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-13
vsney rom dun season and nmits the duration
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FASTENING THE REVIVAL
Real estate owners who are borne down now
with the weight OF property purchased IN the first
place AZ extravagaOt hrurcs. ana winch mas sihcc
been overwhelmed win taxes and assessments
Tor improvements yet incomplete, might learn M
struction from the wisdom Oh the snopkeeper.
Something must 0e Done 10 tempt capital back
into the market. The present condltion oi Things
cannot continue, aud It's inevitable tendency Is to-
ward crash. Imitation oil the currency may stave
TINS on for time by permitting property TO change
hands relieving those who are now overloaded
and bringing in new backs 90 bear the burden but
this relief Will, IN the very nature OF things, be only
temporary.
WHAT Is NEEDED Is REIMBURSEMENT OF VALUES.
The weak holders must be shaken out and q new
basis or concertipilty established Ii q man bought
piece OF properly for $4,000 couple OF years ago
and chooses 10 cal its worth 500 600 now, there Is
into the market 70 sell tnat properly ana can only
get DID, he certainly deceives himself f he
nurses that 100000 delnson any longer unless he
Is In position 10 hold 1t long enough until the
price comes back again to that figure, as IL Will
IN time. And this ID the only way In which real
estate here ever recedes IN price. Its regular
movement is one ofsteady appreciation. but some
times Ills appreciation becomes over discounted
wAen the market stands still until in time that dis
counted value Is reached, when 1t moves on again.
IL II In these pauses, as IL were, that we
lind the appearance OF recession, when lacking the
support OF an active nquiry-Jne element OF easy
convertibiity-sales can only be made at c0nces-
SONS which are regulated by the necessities oi the
seller rather than any thing else. Buyers, under
these circumstances, hold on, and the seller, II
obliged TO sell, has to do 20 at sacriflce IN
great city like New York, where much OF the
assessments accumulate so rapidly, there Is grave
danger Ia the persistent effort OF
WEAK HOLDERS
to carry loaus through these Intervals OF
depression. as, II they break down, they involve
perhaps widespread disaster. We had an instance
OF this weak spot in our panoply OF real estate
values that should teach us caution, IN the ANXIOUS
ieellng that grew OF the chicago IRE and the
desire to know how far the Insurance companies
oil this city affected thereby, SAID insurance
companies having the larger portion OF their
surplus invested In mortgages. Imitation comes
Just IN this critical period when there was q
gradual settling down TO specie OASIS, 10 dist urp
all conservative calculations, stimulate new
speculation ana bring ABOUT "a new era OF pros
periiy' to end in-wnat That
THIS SPECULATIVE SEASON WILL CONE WITH IN
FLATION
there can be no doubt; but Just as II comes, wine
IL may enable present overwhelmed holders 70
unload upon fresh shoulders, Just SO sure Will tne
reaction come for II will brighten foreign capltal
away and leave the market wholly TO nome
strength And Is that strength equal 10 Tue ue-
mand put upon IT Let US ask ourselves tiils
question candidy. Where Is the money 10 come
from, foreign capital beng smut out, 10 support
real estate values next yeas, aer the DupDe VI IN
flaton has burst Not certainly out oil tue prOHls
OF this years business, for are doing no bust
ness and have been dong none Tor months
past. Why, III rs q common remark tuaL BUSINESS
men are now living on their capital, not on .neis
earnings Whers, then, Is the money 10 come rom
to make fresh Investments IN real estate tnat
shall be sound and solid investments luis truly
is conuEdfum, and II any real estate owner OF
broker can answer 1t satisfactorily ne WILL CONFER
favor upon the public AT large. Let t be distinctly
remembered that the c0uatry Is none the richer
for this $780, 600 900 Imitation promised us nor oy
reason Oh the Increased line OF Dah cTeuts tnefepy
pc united 1T Is all credit rom the legai lcnues
to the bank loans and credit Is only eupnenistic
term Tor debt. IL is certainly new way 10 lHl-
prove the value OF real estate 10y loadlng " GOWN
with debt, as it IS a new argument that the Dest
WY to overcome an EVIL Is TO say nothing at all
ABOUT IL.