The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-01
NEW ORLEANS BULLETIN
NEW ORLEANS, APRIL |, 1879
sERINKAGE.

SERlNKAEh.
Wha, will restore real estate in New Orleans
10 normal prices? Values have decilned sihce
the opening Of market in September, lo'S
steadily, because holders were not Wiling 70
Weld to the pressure of facts and because
they were controlled by previous current
rates and previous rents received Du' inc
decline has been constant until shrlnkage OF
thirty, forty or fifty per cent has been felt IN
all manner OF immovable property. Fifty Iots
improved and unimproved, taken at random
10 all portions of the city, and representing
as near as possible a fair sample OF tho whole'
after being advertised faithfully tor ninety
DAYS, and offered on very favorable terms Of
credit, would not bring at auction one-haii
The amount for which they are asst ssed oy tne
city or by tbs State. This is the convictioh
.f dealers in real estate who may DO SAID TO
know the history Of most Of grounds III the
city.
WHY do no. capitalists take advantage OF
these low rates and possess themselves OF the
choice stores and dwellings a. half their cost
The reason is that the mind OF the average
capitalist looks instinctiyely at results, con-
tingencies and possibilities. and calculates
the net productive power OF any properly
offered for sale. Having, perhaps, surplus
hundred thousand dollars in bank, ne KNOWS
that he can put it in American and foreign
Government. bonds and secure from three 10
seven thousand dollars income, with the PRIV
!eoe to use his bonds as collateral security
for any loan he may wish to contract 20 inc
the amount Of half or more OF his invest
znent. But if lie puts his money into
New Orleans lots and houses, even at the
low rates now current he will. IN the
first place, be obliged to pay double (cl'y
and State tax on an assessment ABOUT
twice as grea. as what he bought it for. HIS
500, 600 worth of properties he finds taxed
for $500, 900, two and half per cent ny the
city (under State compulsory and at least
two per cent by the State, or four and a hai'
Der cent by both, or what is equivalent 70
nine per cent on his actual investment.
Having boldly paid his $4,000 Of taxes. Ct
AAA'>'S
>rancements for ali needed repairs and en-
ployed aud paid an agent to rent bis properly
and collect his revenues, he will IND hlmseii
on, of pocket 70 the extent OF about twelve
or fifteen thousand dollars in addition TO his
original investment. What report will ne get
from his agent at the end OF the first veal? ?
II fifteen thousand dollars in rents are collect
cd and put IL bank he will only lose his
time and the interest on his capital. But the
AGENTS collections will be likely to fall far
short Of that amount.
Some Of his tenants will not be able to
meet their rent. Want Of business keeps
many heads of families from earning enough
to paw household expenses. Some OF his
dwellings Will remain vacant unless offered at
extremely low rates. Merchants who occupy
his stores will complain of dull business and
of the double license (city an STATED which
they are obliged TO pay, and will insist upon
a reduetion Of rent. Ii prospects and actual
business are no better than for tho past SIX
wears, the agent would not have at the close
of the year enough rents collected to meet
ihe taxes OF next year, and our capitalist
would repent his investment and gladly sell
his properties at a loss Oh the purchase price.
To restore real property to something IKE
its old values, i! must be relieved OF some OF
its enormous load OF taxation-not for one
year only, hui tor all coming time IN
way subject to partisan caprice and the wh'ms
OF legislative uuacks, but in such way as TO
rive renewed confidence III stable revenue
system. Owners must be relieved and re-as-
snred. Extravagant expenditures must not
only cease, but be effectually prohibited and
dcbarred. Political charlatans must be
thwarted in their schemes of plumber. En-
prizes and sciolists in public economy must
give place to practical men Of business. Legis-
laton and the execution Of the laws must be
put into trustworthy hands and honest men
be put on guard Downtrodden Confidence
must be raised from the miro and again en-
throned in the hearts Of the people.
Misrule and political villainy have cost this
State more than hundred millions Of dollars
in expenses and damages when misrule and
y.llainy shall no longer plague and paralyze
our people wholesome reaction will begin. So
long rs laws are here made by enemies and
Aliens for their own benefit 80 long AS our
property is taxed to swell the stores OF I'D
yenturers and strangers, so long ~ the gloomy
clouds of doubt and dread hang over us, SC
long as the good, the experienced, the learned
and the capable among our citizens are ex
cluded from seats of justice and the counsel'
of the State, Just SO long will capital sbun in
yes.ment in our real estate and men OF bust
ness seek other fields Of enterprise.
The return Of good government will give q
powerful and healthy impulse to trade. Rail
roads. long projected, will be built Texas
will empty her wealth into our commercial
emporium. Steamship lines will be inausu
rated with Mexico and South America, ah(
New Orleans once again become the empire