The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-06
FINANCIAL And COMMERCIAL.
The Future OF Gold and Government Bends
and Their Connection with Real Estate.
CAN WE RESUME IN 1879?
WALL STREET,

MONDAY, July o. 1874
One OF the peculiar conditions OF the market
caused by the panic or 1873 s the great difference
In the price OF real estate and government bonds.
Prior to our late civil war real estate was con-
ndently held, and high prices were predicted on
account OF the rapid growth OF our population and
the multiplication OF our Industries ana wealth.
But when the nrst shot at Sumter aroused the ma
ton TO the impending cor Met ana fortunes were
swept away, and want OF confidence generally
prevailed, real estate declined rapidly in value,
while gold advanced in premium. The continued
issue OF greenbacks, however. soon changed
the situation. With an advancing gold premium
capitalists, anxious for safe investment, bought
largely OF real estate. The architectural changes
In this city were only part OF the situation. A
similar condition Of Affairs existed throughout the
whole country. Yet how different are the AFFAIRS OF
today over thirteen years have elapsed since
THE FIRST SHOT ON SUMTER;
our population, both by natural growth and i'm.
migration, has largely increased. bus capital is
timd and real estate regarded as an unsafe in
ves.ment. The quest Is pertinent, Why should
a government bond bearing per cent interest
sell at 1225s paying, therefore, as an investment
but little over per cenp, when 1t Is only really O
mortgage on our real estate, II real estate itself Is
TO continue shrinking in value After the pas
sage Of the "Husted bill" and the prediction !nat
Lnc fleVaJeu RAILWAY Will suOIlly run LTAlnS IrOm
Bowling Green to Kingsbrldge in thirty
minutes, it Is dinncult 20 understand the
apathy or the timidity that has seized the public
mind. In the language OF Patrick Henry, ''There
Is no WAY OF Judging Of the future but by the
past" Judging by that past, and looking at the
large list OF our wealthy citizens, We SEQ mat the
great majority have made their fortunes by pru-
dent investments IN real estate. Yet 1t now
appears as II the many hsd adopted the precept
OF Jay Cooke, that "A national debt In q
national blessing" and are simply contented to
hold government bonds, without regard 10 the
interest on the investment or the safety OF their
ultimate payment Fortunately there 10 a consid-
cradle class who are not inbued with Mr.. Cookies
ideas, and stl believe that real estate or bricks
and mortar are better than bonds, and that
GOLD is BETTER THAN eKEENBAcKA
Tney argue, and not without reason, that II the
Ohio election this fall should be carried ON the
soft money" platform the West and the South
viii wheel into line on the same platform and
bondholders be eventually forced to take green
backs for their government securities. and that
meanwhile, owing to the continued export OF
gold In excess OF its production, the premium on
the same will advance to the high figures which it
STAINED before it was forced down by the per-
sstent sales OF the Treasury Department.. 1. Il
estimated that the stock OF gold on hand is over
force OF this depletion Is fully understood and the
people OF the country realize that the day may
come when we snail have but little OF the precious
metal to deliver in payment OF our debts impor-
tant changes may be looked for, not least among
which will be the attitude OF our capitalists and
bondholders. who will discover their mistake IN
not pinning faith the future OF real estate
and being content with "the bird In hand, instead
OF looking for two in the BUSH" With regard TO
THE AMOUNT OF GOLD
now In the Treasury contemporary says:-
"As the Treasury stands pledged to
the payment OF Its obligations in gold
three and a half years hence, the questior--how
much gold have we with which TO face the opera
yioni liz felt TO become one OF urgent importance
and nothing can DO more demoralizing than to
know that such statements as are given contain
an unknown and unascertains able element OF ex-
aggeration. We seriously question whether the
Treasury owns S37 ,5oo, geo OF gold coin and bull
lion. and yet from the debt statement OF the lst
inst the public would conclude that iS owned
$751; 600 900 and held $50 O0o, 900. This virtual de-
ception should not be continued, and, II for no
other reason, because we cannot afford 20 have
an alarming surprise sprung upon the people as
period nearer to resumption. The Treasury
should isolate from its reports OF coin balance
everything that is not either coin or bullion and
1t should periodically inform the public what pro.
portion consists OF gold and what OF silver. A
Secretary Of the Treasury cannot AFFORD to feel in
different apouI this matter, anc we rely upon the
good Judgment OF Mr.. Bristow for its receiving
proper attenti on."