The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-08-21

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deem it the strict duty of every Southern
editor to advise his readers of the hollowness
and rottenness of all the financial and com
merclal institutions of the North; that they
may not be led to embark any of the effects
they have saved from the rapine Of carpet
baggery or any of the profits that may accrue
from their lately liberated industries, in tho
sinking fortunes of the North; which inflated
| itself to bursting in the madness of exultine
conquest whereof they were the victims.
can go tomorrow and buy the first mort
gage bonds of railroad, which is the short
est line from New York city to the great
lakes, for thirty-five cents on the dollar!
Within two weeks | have seen
IMPROVED REAL ESTATE
which four years ago cost 100000, sold for
S12, ,500-and when say 'teost S600Oo' mean
that that was the price of the bricks and
mortar and the labor that joined them in an
edifice; leave the ground and it's real or
supposed value out of the question utterly
l could fill this page Of the DEMOCRAT with
an abstract of mortgages which could not be
realized upon to-day for sixty per cent OF
their face, and which were taken within the
ratable value of the property, without going
off Broadway in this city; and you know that
real estate fluctuates less upon Broadway
than on any other thoroughfare in the United
States
Within two weeks / have seen first mort
gage Of $4,000 on Dearborn street property
in Chicago, refused as collateral security for
a loan OF $4,000 and subsequently, sold for
$4,000 cash!
Something like five years ago a friend of
mine invested $4,000 in an elegant residence
In one OF the interior towns of this State. He
laid out $25,000 in embellishing it and improv-
ing his grounds. Two years ago he mort
gagged it for SIS, 900 to tide over rough deal
In his business. Last year he put second
mortgage for $4,000 on it, to "tide'' little
further. And week before last the sheriff
finished up the ''tiding'' process by knocking
the property down to the holder of the first
mortgage for it's face. asked the holder of
the second mortgage why he did not bid it in
and save his $4,000. His reply was to the
point: I'D rather lose $4,000 than $1O,0O0!' he
said. To get the property he would have had
to pay the face OF the first mortgage in cash,
which would have made the property cost him
S21, 900. But he assured me that it was not
actually worth, at ruling prices, above $4,000
or S11 900, because it belonged to
GLASS OF PROPERTY ALREADY TOO PLENTY
FOR THE GOOD OF THE COUNTRY
That is to say, elegant residences which no
one is able to buy, and which cannot be rent
ed at suitable rates to proper persons. 1
might add that my friends bankruptcy was
superinduced by over confidence in his fellow
men, and hastened by the refusal of his
family, or, rather, the young lady, portion
thereof, to make their style of living conform
to their rapidly declining fortunes after the
panic of '73. saw one of the girls the day
OF the sale. She was chiefly grieved because
she had been suddenly called home from New
port, where she ''was just having the most
splendid time Of the seasonp'
Crusty old bachelors like myself, or NV
valued friend the head of the proprietorship
of the DEMOCRAT might observe that COM
munity which breeds race of women where
of the s'above girl' is fair sample, does not
deserve any better luck
1t is not pleasant to write these things. but
they are solemn facts. and think the readers
OF the DEMOCRAT are entitled to full knowl-
edge of them. l shall be satisfied, and rest
in the serene consciousness of duty performed,
ii what have written shall be the means of
causing one Southern man to halt and desist
from any contemplated involvement of him
self and his possessions in any hollow insti-
tuition Of Northern trade or finance
l notice that the Northern newspapers,
on the situation, lay stress ON
THE STIFFNESS OF GOVERNMENT BONDS,
even at the low rates of interest current in
the new series; instancing that fact as an in
dication that the times are not so bad as they
seem to be! Great God! is such talk the glib
bering Of idiots, or is it the device of knaves
to conceal facts and delude the public? sus-
pect 1t is the latter; for surely no such idiot
could be at the head Of newspaper as man
unable to comprehend that the inquiry for
government bonds at four per cent is due to
the fact that there is
NO OTHER SECURITY REALLY SAFE TO TOUCH
1t any price or any rate of interest. Let us
ook at the facts: The Treasury officials re-
port demand for these bonds in small uuan. |
titles vastly beyond their widest expecta-
5atlons. Well, upon examination I find that |
;he bulk Of this demand is by executors, trus-
'ees Of funds, guardians, etc., ETC., who are
lnder bonds for the proper management of |
express trusts If anything on the face of
he earth is "a security" strictly speaking,
t is United States bond; SO that the unex-
IMPLIED call for them at any rate of interest.
10 far from being an indication that the times
ire not as bad as they seem, is most appall-
ng symptom Of times that are harder than
he superficial observer can comprehend.
I have particular object in view in i'm
'ressing these facts upon the Southern mind.
have observed that, despite the ravages of
he war and the subsequent depredations of
he carpet-bag and niger regime, now hap
lily extinct, root and branch there is yet
GOOD DEAL OF WEALTH IN THE SOUTH
is not piled I'D in heaps as at tho North |