Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-09
CAN WE RESUME IN 1879?
The Future Of Gold and Government
Bonds and Their Connection with
Real Estate-A Bird I'm the Hand, etc.

The Future Of Gold and Government
Bonds and Their Connection with
Real Estate-A Bird I'm the Hand, etc
New York Herald, July c.
One Of the peculiar conditions Of the
market, caused by the panic of 1873 is
the great difference in the price of real
estate and government bonds. Prior
to our late civil war real estate was
confidently held, and high prices were
predicted on account Of the rapid
growth Of our population and the multi
plcation of our industries and wealth.
But when the first shot at Sumter
aroused the nation to the impending
conflict and fortunes were swept away,
and a want of confidence generally pre-
vailed, real estate declined rapidly in
value, while gold advanced IN premium.
The continued issue Of greenbacks.
however, soon changed the situa-
ton. Witha advancing gold premium
capitalists, anxious for a safe invest
ment, bought largely on 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 to-day
Over thirteen years have elapsed since
the first shot on Sumter; our pOpula-
ton, both by natural growth and i'm
migration, has largely increased, but
capital is timid and real estate re-
garded as an unsafe investment The
question Is pertinent, Why should a
Government bond bearing six per cent
interest sell at I'D! paying, therefore,
as an investment but little over four
per cent, when it is only really mort
gage on our real estate, if real estate
itself is to continue shrinking in value?
After the passage Of the Hustled bill''
and the prediction that the Elevated
Railway will shortly run trains from
Bowling Green to Kingsbridge in
thirty minutes, it is difficult
to 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 see that
the great majority have made their
fortunes by prudent investments in
real estate. Yet It now appears as If /
the many had adopted the prec. pt Of |
Jay Cooke, that "A national debt is a
a national blessing" and are simply |
cOntented to hold government bonds, |
without regard to the int. est on the
or the safety Of their ulti- |
mate payment. Fortunately there Is a |
class who are not imbued |
with Mr.. Cookies ideas, and still be. |
lieve that real estate or bricks and |
are better than bonds, and that !
gold is better than gTeenbacks. They |
argue, and not without reason, that If |
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 |
OOndholders be eventually forced to |
take greenbacks for their government
securities, and that meanwhile, owing |
10 the continued export Of gold in ex-
cess of its production, the premium on
he same will advance to the high |
figures which 1t attained before 1t was
forced down by the persistent sales of
he Treasury Department. It is esti-
mated that the stock Of gold on hand
s over 500, O0D, 900 less than it was in
1861. When the force Of this depla-
ion is fully understood aud the people
If the country realize that the day may
,Ome when we shall have but little Of
he precious metal to deliver in pay
nent of our debts, important changes
nay be looked for, not least among
which will be the attitude Of our capt.
alists and bOndholders, who will dis
over their mistake in not pinning
more faith to the future Of real estate
md being content with "the bird IN
land, instead Of looking for two in the
,usb "