New-York tribune., 1877-05-16

and the farming country suffered 10
corresponding change, for they were be-
voud tbe range of investors, and presented
no attractions to lending institutions Before
the war $4,000 was a large sum to pay iol
a homestead in the principal interior cities OF
Massachusetts, and this irrespective OF origi-
nal cost. the fact being that few men were
rich enough 10 put a larger sum into the price
OF a home. During the last five years ot IN
f1tiOn it was not uncommon III the same III
terror citics-grown. 1t is true, III wealth anu
populatiOn but by no means III Justlllabe
proportion-to pay from $4,000 to S5O,ooo
for the same luxury. large part of this IN
fation is now dissipated; though so long as
the valuation of property for taxation remains
80 much above its ante-war hgures' sellers
will not submit to old prices, and there Is con-
scaucnty a great deal of homestead property
for sale The first and heaviest sacrifices must
fall on this class of property, when comes
within the category of luXures, and 1t Will DE
the last TO feel the warm sunlight OF IA new
prosperity. =,
These facts are painfully familiar to most OF
our readers, and they are commonly attributed
90 thr general initiation which has affected All
property alike. But this is only half the truth.
great element of disturbance, which has
beer scarcely noticed, if noticed at all, is the
unnatural Growth of trust funds, aud the COM
prtjtion which has existed among lenders on
mortgage. Upward of a hundred millions OIL
money was added in ten years to that class OF
investment i'm Massachusetts alone, where inc
total valuation Of taxable property, real ana
ncrso1al, in 1860, was only $1,2O0OOo,ooo'
Be if remembered also that only city ana town
urauprfy mas been subjected to this po-
feut Influence. There is no limit to
thp auiount of money which may be
absorbed by mortgages provided tho Vaiua-
tiops rise fast enough, and every added
facility OF borrowing, of course, increases the
valuation. The price at which real property
will sell depends ALMOST wholly on the amount
which can DC borrowed on It, Inc rulhouS
increase of taxation in Massachusetts, Is due to
thp same causes. The assessors have always
been ready to keep pace with the valuations
established bv the savings banks. The records
or tr,nsfcr. have been watched, and every
new sale has established a new vauatlon' AS
fine aggregate OF taxable property increased, so
did every item of public expenditure, and val
uations were systematically advanced to hiae
the effects Of municipal extravaganza. mus
il has happened that Il greater ana greater
share of State and county taxes has been alb
sGrbed by the cities, the country towns escaping
in large measure these balciul Influences.
Though Massachusetts has furnished the
text for this discussion, the facts existing III
New-Yo9k, and especially in this city, are
nearly identical. 1t is true that the savings
hanks have not contributed so largely to the
{ NaNr y tgIfy!lf nd
since il appears that out OF Total assets OF
5:}j1 ,O0O,OH0 on the 1st OF January, 1870
only $40, 900, 600 or 80 per cent, was
loaned on bond and mortgage But III 1850
the whole assets Of savings banks in this state
were less than S120.O0U, 600. Although our
savings banks have thus pmoucd a more con-
scrvaGye course than those Ot New-En-
GLAND in respect to lending on mortgage,
the life insurance companies have more
than made up the difference. On the 1st of
January, 1876. thc life in>uiInce COM
paniesof the City of New-l ork hal upward of
5I22 900 eco lodHcd Oh bond and mortgage.
Nearly al OF this amount must he loaned IN
this city or It's near ncIghbOTh0Od, while 1t Is
probable that some of The outside companies,
largely those OF New-Jersey and Connecticut,
have added to the real estate loan fund ont
OF their great accumulation. Three city COM
ranies-thc Mutual, Equitable and New oIk-
have an aggregate of H95, ,000,0 900 80 invested.
What amount Of mortgage investments the
life insurance companies held in 1863 we
have not before us the means OF stating, but
the total assets of all companies Ill the
State in 1868 were only %31 100000, while
they are nUw $2030O0.0h0. If we assume
that half ihe assets of 1865, say Sl5,5Oo,OOO,
was invested on mortgage the experience OF
the Massachusetts, savings banks IL exactly re-
produced by our life companies. The increase
of real estate loans has doubtless been quite
rs rapid with them as with the savings banks
of w-EnglaDd. The united mortgage loans
of the savings banks and life insurance com
panics of Ncw-York are now therefore little
short Of $3.50 900, 900. These axe the formid-
able facts. What is the remedy5
TIE CUSTOMHOUSF.
We beg the Custom-houso authorities to