The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-02
We Must Take in SniI.

Leaving out the estates of men like AS
TOR, STEWART, GOBLET, and few others,
u IL safe to say that nine-tenths of the real
estate OF New York is mortgaged up to at
least one-half of its assessed valuation as
that was fixed three years ago. These
mortgages are largely held by savings
banks and insurance companies and in
their totally they reach an enormous
ngurc.
During the war and Immediately after,
when the unhealthy speculative spasm was
at its height, the number of costly build
ings erected was very great. Broadway
was made "A new street in n few years, and
the fashionable avenues were rapidly ad-
vanced toward the Harlem river and lined
with expensive dwellings. IL Is pretty
safe 10 say that. unless built by the great
property owners we have named, all these
structures were heavily mortgaged. We
now see that building went on at that
time too rapidly and at too costly rate.
When Mr.. SEWARD, coming here from
Europe in the language of AUGUSTUS, said
that he left New York brick aud found it
marble, no meant to fiatter us; but perhaps
we should have been wiser il we had re-
manned contented with brick until we ao-
tually had the money to pay for the
marble. During period of ten years and
more we were extravagant in the charac-
Ger of our buildings extravagant in most
eases without producing beauty or secur-
ing fitness. warehouse need not be
0recian temple or Renaissance palace
II 1t Is strong, capacious, suited to its pur-
pose, that's enough. The simpler Its archi-
lecture the better. But we put up snowy
buildings for business. and in order to do
n the builders had to borrow, for filagree
merely, great sums of money, the interest
on which now disturbs their happiness.
In dwelling houses the same extravaganza
has prevailed. Ii Is not too much to say
that I'VE thousand families Ia New York
are to-day living in houses which repre-
sent "a rent of over three thousand dollars
year, and of the Ave thousand at least
enc thousand in houses whose rental value
n between FIVE and ten thousand dollars n
year. This IN cans that so large a number OF
people are under yearly expense for
living of from fifteen or twenty TO fifty
thousand dollars. This is q degree of ex-
travagance that no European city of the
relative size and wealth of New York
Vckils 10 equal.
1t Is not surprising, under such a state OF
Affairs that there Is business distress, and
that people find their expenses burden
some Nor IL 1t remarkable that mort
mayors are Keeling under the weight OF
the interest on the money they have Dor.
rowed on their real property. 1t is well
known that the savings banks and insur.
snoe companies are daily met by the per-
picking problem what to do because of tn,
frequent default in liqudatIng mortgages
end paying interest on them which they
are now experiencing. They are obliged
20 be lenient with the debtors. They dare
not foreclose, because If they did a rea
estate panic would result. If all the MOI T.
cages to-day in default were roreclosed by
these institutions, the papers would be full
Of the advertisements legally necessary ii
such cases. and the auctioneer's hammer
would everywhere be heard.
II is plain that we must revise oul
methods of living and doing business Il
meet the present condition of thins''