The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-08

denotes to one side or other OF the
town. Of these spectators have always
availed themselves, fancying that with the
help of capital and energy, they could divert
the business of the city N one or another
direction. In such an effort the Grand Opera
House was one of the means used. IL was
believed by Mr.. Pike, who built it, and by
Fisk, who bought it, that it would be possible
to draw the city over to that side Results
have shown however, that neither business
nor pleasure can be permanently diverted
from the centres they have chosen.
OF these centres it may now be said, with
certainty, that they are fixed. One of them
is marked by the New Post Office building,
which will draw around it more and more a
large variety Of business; for the CEN
tring in one spot of the Post Office and the
United States and principal city co~rts with
other city offices, marks this as the conspcu-
Gus business centre of New York. Another
such centre is Union square, about which the
dry goods trade, so many years on the wing
now more and more gathers with all the
trades which usually follow it. Rapid transit,
if we ever get it. while it will develop the
upper part of the island and change its face
and its values, will not interfere with these
two marked spots on the map of the city.
Now the real estate placed near these estab-
lished centres can never suffer notable huctu-
atoms in value. II will steadily increase In
importance and price; but no crisis or financial
revulsion can affect it, because, whatever
happens, the main business of New York Will
always 60 on and increase in magnitude, and
those solid houses which control and make
that business are not permanently or gravely
affected by the fluctuations of trade.
Speculative real estate, however, stands
in different category. 1t necessarily rises
and falls not only with the fluctuations of
the day, but also according as spectators
more or less energetically and shrewdly
scheme to draw population or business in this
or that direction. Accordingly we see prices
rise and fall, in irregular waves, in different
localities, within or without the city. The
, tide of population and investment seems
to surge now in one and again in
another direction; watchful spectators eagerly
follow it, and the receding wave leaves
them oftenest high and dry, with their narrow
margins eaten up and their mortgaged lots the
prey of the Sheriff. Shrewd investors, mean
time, study the real laws which move and
guide an increasing population, which are,
after ALL natural laws and holding not on
margins but by actual purchase, such men
have learned, by an experience of half CEN
fury, that there is no such safe and profitable
investment in this country as carefully
selected real estate in and near New York
To them the hard times mean only delay in
realizing profits, which, nevertheless, they
have learned to regard as absolutely certain
in the end.
1t is we'll known that real estate
is the last commodity to feel the
speculative tendency upward. All our
periods of depression and succeeding pros
perity or initiation have shown this. After
1887, 1857 and 1861 the revival of business
did not, for some time, apparently revive the
real estate market. This MEANS however,
that speculation exhausted itself in other COM
modities which could be more quickly turned
before it took hold of land and houses In
the meantime the revival of legitimate bust
ness very quickly made itself felt in mod
crate advance of rents and prices of
the really valuable property of this
kind. This must be the course also as
business revives from the depression
under which it has lam since 1873. The
process of wedding out merely speculative
ventures is constantly going on; and, as
result, rents and prices in those parts of the
town where values are not real, but have been
exaggerated, have steadily fallen. This is
good result. 1t brings the market down to q
solid basis, and prepares the way for real
and lasting Improvement Meantime it be-
gins to be remarked that property which has
an intrinsic value by reason of its situation
holds its own very well, and it is such prop
erty as this which will first feel the move
ment given by renewed activity in trade and
consequent prosperity.