The New York herald., 1875-09-12

New York fire and
insurance companies. 0,95o,9l
Now York life insurance
-,---- $195, $50, 129
Brooklyn savings banks .. SIG, ,047
Brooklyn fire insurance
companies. ............. l,41e,937
Brooklyn life insurance
- 1905, as4
Grand total invested by banks and in
surance companies (New York and
The total valuation of real estate in this city upon
which the OF taxation is based is $500 900 000
which is the basis OF sixty per cent Of the real
value. 1t will he seen that within fraction OF one
fourth Of this amount is under mortgage or
INTOXICATED WITH THESE CORPORATIONS
who have the bonds locked up in their vaults drawing
nny per cent of the value of tho property
on bond and mortgage and the insurance
companies two-thirds, or sixty-six and two-thirds
per cent. Investigations show that they make very
low valuation Of property offered security for loans
and the general practice of the banks is to loan
improved real estate but thirty per cent, and on inn
proved parcels only about third of its assessed value
thirty three and one-third per cent While the law
permits them to take mortgages on property within
that all the companies limit their loans to
this city and Brooklyn. The effect of the
aw TO the taxation OF bonds and mortgages and per
sona property being in favor Of the banks and the life
insurance companies the private capitalist debarred
OF purchases and the fire insurance companies cannot
with difference Of four per cent against them, compete
with them in
THE BOND AND MORTGAGE MARKET.
Yet Il is estimated that fully 1856 900 900 of private
capital is invested in this kind of property II this is
have solution of the numerous foreclosure
sales of this summer and fall large volume of cap
tai that for want Of something more remuncrave, has
been put INTO bonds and mortgages in expectation OF
rise in real estate IN the tall, as was usually
the in previous years, is being withdrawn
for the purpose Of more profitable investment Many
have invested only temporarily, TO husband the
principal and interest expectation of greater buoy
ancy being given the real estate market after the fall
business sets in. This is, doubt of the reasons
for the increase in the sales by foreclosure whilo
another is doubtless as we explained last week, the
utter inability of weak holders who have carried large
parcels in anticipation of the market touching higher
point, TO
REALIZE THEIR GOLDEN
The latter class spectators, who having
little or nothing originally fear not to venture They
not satisfied to grow gradually to wealth. They
would bound TO fortune Butler IL is who says
In all the world there is vice
Less prone to excess than avarice.
They are avarcious mon, adventurers, who,
having heavy interest in the way of capital to icop
ardze hope to profit by chance. Gamblers they might
be called who profit by the necessities of the hour
Having discovered that the fancy lines OF property they
have attempted to carry not likely to realize as they
expected they
to the original owner at little moro than the price Of
the mortgage.
But the questions here present themselves "why
does not capital take advantage of these foreclosure
salesY parcels go under the hammer at fifty sixty
per cent less than their actual value why do not heavy
capitalists compete with the holders of these mortgages
1t is assigned in explanation of this holding
back of capital that the Exchange foreclosure sales
largely attended by irresponsible bidders who
are in the interest OF the mortgage holder
TO bid it in and that knows what he is buying
diagrams or details of the property are gwen
beyond a mere description 1t is, therefore, asserted
that purchaser these sales, unless he be in the
hdence OF the parties Offering the property, goes it
blind and loses in the end
PANIC OF 1861
The stirring incidents connected with the monetary
and real estate panic Of 1896 are still fresh
1884 spectators began to bull the market, and
organized real estate rings and pools to
run up property. Men rushed madly into the
market and staked everything upon the chances of a
rise. Prices forced up far above their nominal
values in 1884 and 1885 And the great fire of the
latter year sent real estate to still higher figure,
until the total valuation in the city over
1928 900 900 in 1896 Property sold after the fire for a
the buildings included The Post estate IN Beaver and
Pearl streets was case in point Before
the hn,,, fire stood :soo do in the Market ,Sa with
had been swept away the land sold for 5000 900 cash.
Rents naturally went up with the increase OF real estate
and speculation wild there were few only who
saw the threatening clouds gathering
INTENT UPON GETTING RICH
and cared not for the future prosperity Of the business
of that year To such point had fancy prices reached
that in the early part OF 1887 the rcvuson began 10 be
felt Food rents fuel and all the of life ad-
vanco1 with the fictitious prices of real estate. The
HERALD of February of that year. foresaw the break
ers ahead and declared
There be general combination OF all the specula
tors capitalists and land against the poor and the
poraon aids them by the opening Of streets Tenants
driven and many private families. owing to the high
rnts are bresSpg housekeeping and going to boarding
hold at the old rate or slight advance There danger
ahead
During the early part of February the excitement
the city was intense on the 18th great public meet
ing Of the held in City Hall Park in which
over 900 protested against high and high prices
OF food Through the pusanimty OF tho authorities
q bread and rent riot precpitatcd, and mob OF
several thousand hungry people sacked the large
provision house of Eli Hart & Co. in Washington
ocifn fhugd dos ilpd in
OF February 9, one week before the riot:--
we'll known that the great fire of New York in 1898
Sd r9p naw %pfI npo 20 at e Il Hc SS
pathy ofmanknd The destruction OF nearly whole ward
terrible cxacons for that known in tho his
sequent upon money began 10
beyond ,hc I,Ea E da, rates , 4, t. hrs one per
ing until the world astonshed at the fact that thirty and
sT ~ wa Gep sreet during . Of "yr W months TSe
land spectators and the money spccuators shoulder TO
practices until at moment the state Of things has
alarming as to create dread Of revolution general
emigration from the city.
Immediately after the bread and rent the specu.
laors and landlords began TO ease up their grasp upon
the market the monetary panic came failures occurred
not only in tho city, but all over the country anf the
fancy prices that had been maintained long dropped
away with rush, taking down with them the bulls
who had rioted SO long IN the market In the HERALD
OF March 25, 1887 illustration OF tho
propensity. 10 gamble in real estate Is
parcel OF land in one of thc outlying
at 500 per acre. divided into lots at $50 500
and $3.50 took mortgages upon them at ten times their
value, exchanged the mortgages for city property and
cleared by the transaction. few months, S2SO0OO
Tho HERALD Of March ~ 1887, in IT'S money article.
refers TO the speculation IN money Stocks ana
real estate in 1884 1885 and 1896, and admits that
"at last the crisis has come Land worth only
Sl0O per has been divided into lots and labelled
$1,000 and 81 900, and sometimes $4,000 The Hood
of failures now coming upon Is blessing rom
Heaven Nothing is lUst-no property IS destroyed
This crisis does not, like hrc consume property; II
simply restores the harmonious and steady action Of
tho great machine We have yet to see the worst Let
us prepare let us prepare.