The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-26

banks, also open 10 New York borrowers,
held s17, 1863. 100, making n total of t82,947,-
Os6. We have yet to learn that any OF
these institutions have reduced the rate Of
interest one jot or little, though money
oan be had on call in Wall street ut aud
~ per cent. on Government bonds, and all
indications point to II long period of ease in
the money market. The same may be said Of
the lie insurance companies. We know OF
none OF these banks or companies from
which money can now be had for less than
seven per cent. Moreover, the borrower, rs
general thing, finds himself considerably
out of pocket, over and above tho legal
rate of interest, by reason of commissions,
or forced life assurances, which must be
paid or effected to secure the loan. From
large estates and retired capitalists money
can be had on mortgage at seven per cent.
and lawyers fees, which, OF course, are al
ways paid by the borrower. But New
York capitalists are, rs q general rule, in
disposed to put money out on mortgage in
this city, where they are liable to per-
sonal tax of three per cent. lit was e.. 81 in
1S75) which reduces their rate OF interest
TO four per cent.
We are told that the European money
markets are extremely easy. They appear
TO be as abundautly supplied with floating
capital seeking temporary Investment rs
ours are. The directors Of the Bank Of
Berlin have reduced the ratio Of discount
to three per cent. The Bank of England
rate is still two per cent, but in the open
market ut London three months accep-
tances are taken ut ~ and IL per cent.
While n very low rate OF interest for
money on call or short time prevails Mt all
the great financial centres OF the world,
the New York builder, manufacturer, or
merchant wishing to raise money on mort
gage for the purpose of embarking in new
enterprises, enlarging his works and mills,
or increasing his capital, finds himself
obliged to pay at the rate OF seven per cent.
per annum. Aud yet with land, building
materials, aud labor at present prices,
every inducement is offered to the pru-
dent builder for the erection of medium
priced dwelling houses, apartment houses,
French flats, and tenements, in the region
between Sixtieth and Eighty-sixth streets.
and Madison and Third avenues.
III money could be had on mortgage at
say six per cent. per annum, without
shaves and bonuses and without exacting
an extra price for lots In consideration of
making n builders loan, we confidently
believe that building operations would be
Immediately commenced by scores of men
with moderate means now standing idle
with their hands in their pockets, ready
q IL. a
they could only make satisfactory ar
rangements for what money they require
beyond the sum they have on hand. They
wish to buy land at the lowest cash prices /;
they ask no builders loan from the owner
Of the lots, and have sufficient money TO
pay him a small amount down, say twenty
per cent, and enclose their buildings be-
fore they come into the market for loan !;
but they wish to know what rate Of inter-
est will be exacted from them by the
lender before embarking in the enterprise
Let our savings banks and life insurance
companies ask themselves II, under exist
ing circumstances, six per cent. is not a
sufficiently high rate OF interest to exact
from mortgagors. Let them ask themselves
il it would not be both graceful and poll
tic to reduce the rate voluntarily. Were 1t
not for the personal tax OH mortgages, our
capitalists would certainly dud greater
profit in permanent mortgage loans draw
ing six per cent. interest, than in temporary
street loans TO Wall street brokers at three,
four, five, or even six per cent. This matter
OF the price OF money on mortgage in this
market deserves the serious attention alike
OF capitalists and borrowers