The New York herald., 1875-09-12
THE MORAL OF FORECLOSURES.
Nearly One-Quarter Of the Total Real Estate Of
the City HypOthecated.
The Banks and Insurance Compa-
MES the Holders.
What the Herald Said Of Real Es-
tate and Money in 1887.

report since our revew Of IL published in last Sundays
HERALD. 1t then shown that the general shrink
age since 1S7273 has been fully one third general
parcels while some speciaes, that in expectation OF
q greater rise had been up to fictitious and unnat
ural prices had settled away ty per cent This view OF
the market is fully confirmed by subsequent inquiries
among the savings banks and the life insurance COM
panies where heavy volumes OF bonds and mortgages
are held It is generally conceded by officials of these
institutions that all property except such as is In the
hands OF
THE WEALTHY AND uNExBARRAssED OWNERS
the shrinkage is from thirty to thirty three and
third per tho ruling prices of 1873 Already
many OF these institutions have had resurveys made Of
The property upon which they have made advances and
c calling sufficient amount to cover the shrinkagc.
The president Of savings bank that holds ovcr
900 OF bonds and mortgages reports that hc has
taken this precaution fearing that in some descriptions
pf property there will be still greater dropping
away OF prices, and that other banks and
somo life insurance companies have to some
,xtcnt done likewise The wisdom OF this
course is in some quarters criticised and the life
insurance officials arc divided its advisabiity.
Some who have been questioned by the writer state
that the only safe way to guard against possible
loss while others claim that much margin is
allowed by the companies between the valuations and
the loans mako such caution unnecessary. Among
these officer of the Mutual Life Association Of New
York. which has SIC, oO0 900 in bonds and mortgages
who prophesies that If this policy be pursued to any
great extent
WILL PRBC1PIrArE PANIC
In the money and real estate market Brokers and
heavy real estate report that the prospects for
briskcr fall business grow brighter daily that the
port of the Commissioners OF Rapid Transit has in
duccd inquiries from capitalists for uptown property,
nd at the of he haS had
feet as we'll in stimulating offers for property in that
section OF the city, which, it is believed will advance
beyond any point reached in recent years. They base
this opinion upon the fact that many lessees OF down.
property whose leases expire in May next al
ready seeking OF property further up in the streets
adjacent to the federal buildings and hence, as the
demand for stores and Offices increases, the value Of
the property will up in full sympathy with rents.
or the correctness OF this thero be doubt
So long as the Post ONCE nearly half mile below
Its present SITE banking houses, lawyers Offices brok-
ers Offices real estate dealers and railway and mining
companies centred there. They naturally gravitated
about it, Now that the Post ONCE has up to dis
pute with the Court House tho right to recognition
as beautiful structure and the Western Union Teie
paph Company is doing likewise; now that the Rapid
Transit Commission has located the
GRAND CENTRE ELEVATED ROADS
nt Park row. and now that the work of the Brooklyn
Bridge is progressing rapidly and with prospect OF
early completion the Post ofcc the City Hall and all
that territory from Wall to Canal street and from river
10 river must matter Of course, maintain steady
hold upon the market Tho market may not mme
diately experience marked change but when the
Brooklyn Bridge lands its passengers opposite the City
Hall and two or three lines of elevated railways drop
their human freight within 200 yards Of that point,
property and rents must become fixed at figure that
will
RESIST ALL ATTEMPTS TO EITHER "BuLL" OR ''BEAR"
IT, and for the next decade remain stationary point
with the advantages this territory offers
for business.
1t does not require a very wide stretch OF magina
lion to see the old second and third rate buildings
The side of Park and Centre street. from Ann
street to Readc or Leonard, crumble into dust and
upon their sites costly brick, iron and marble struc
lures arise supply the demands OF trade and COM
mcrce. Indeed, there is reason to doubt that the
'buIls" and bears OF Wall street may not follow the
general desire TO get up town and 1.-THE
Swamp" OF to-day may be the 'wal street"
of the metropolis ten fifteen years hence. North
ward the magnetic needle of business points the way
md there can be little doubt that shrcwd capitalists
who are already surveying the field in this locality cal
ruate with good degree OF certainty the realization
Of their conclusions We will miss, IL Is true, the
savory population of
DIRTY CHILDREN AND sI-ArTERSLr WOMEN
who gathered in the dcnsey populated tcnemcnts
Of the Fourth and Sixth wards but rapid transit it is
10 be hoped will have enabled them to occupy better
quarters away out in the suburbs beyond the Harlem
River, and they will be the gamers we'll as We who
may remain occupants Of the locality.
There are has already been said, agencies at work
that may the present prices be maintained In
certain quarters but everything points to settling
ment OF
SURPLUS CAPITAL SEEKING PROFITABLE PLACEMENT
The completion of the work at He'll Gate next year
the year after will possibly increase the value Of prop
ery in tho upper OF the city, the building rapid
transit roads, now projected may up values in the
suburbs OF the city. II tho proposed bridge between
Astoria and New York, across Blackwcps Island, be
built property on Long Island In that region may ad
vance little Then, II the establishment OF ihc great
ubbators in the upper end OF the city results in abolish
ing the at-boimg and slaushtering nusanccs on tho
North and East rivers valuable property that now is
held very low will advance somewhat
This view OF the future is generally held upon the
street, as was demonstrated in last Sundays HERALD.
1--WE find" said Mcssrs. Icspinassc Friedman, real
estate brokers OF Pine street, "that the
REroRr OF THE RAPID TRANSIT COMMISSION
has prompted a demand for uptown property. Two
property in expectation OF rapid transit proving
success, and owing TO the recent Teduc-
ton OF values there is a better disposition
the part OF foreigners TO invest than ever before
They cannot nnd paying bonds and mortgages in which
place their capital and the property disposed or
n the salesroom Is chiefly foreclosures they afraid
10 invest there Then they must encounter bogus
bidders at times, and hence they took their chances in
the general market case in point is the property
corner OF Fify.eghth street and Broadway known
IS the voorhs parcel 1t put up two
Or three times and Knocked down finally
At lower figure than it went of at on the lrst lore
closure sales You cannot get anybody to buy these
Gales when they merely read on description without
a diagram and full details.
BUYERS MUST GO IT BLIND,
hence capitalists hesitate about buying under fore.
closure There is better feeling in the market sincc