The daily gazette., 1878-08-12
Depreciation of Property.

Depreciation of Property.
From the Baltimore Bulletin.
The "undertow" after every wave of
imitation in currency is what is most de-
structive of all sorts of values and all |
sorts of prosperity. Men who have mon
ey are afraid TO convert it into things, to |
lend or invest it, because values have |
been unsettled and remain uncertain, and |
consequently all business is reduced to a
cash, hand-to-mouth basis. In such a con- |
dition of affairs, real estate probably suf- |
fers most. We know the case of sale
made the other day to a gentleman of
Baltimore of one of the most splendid
estates in Virginia. There has been
spent upon this property, in actual cash,
for substantial and intelligent improve
ments, the sum OF $2S5, 900. The proper
ty sold for $4,000.
The New York creditors of Governor
Bishop, of Ohio, who failed the other day
had meeting on Monday, which was at
tended by his son and his son-in-law, Mr..
Dickinson. As an illustration of the de-
probation of real estate in Cincinnati,
Mr.. Dickinson said that the store of
Bishop u Co., cost $25O,OOO, and was
now valued at 100000; X. M. Bishop
was offered few years ago for his resi-
dence $4,000, and now places it in his
schedule at $4,000. The corner store
of the company's building formerly lent
ed at Sis, 900, and now rents at $4,000.
We heard last week OF factory pro-
perty in New England, sold TO settle an
| estate, which fetched only $65,OOO, al
though il was one of the best equipped
concerns in the country, and in prop, r
GUS times had paid good dividends OH a
valuation OF $4,O0G,OO0
The country has never witnessed an
| equal collapse in values, although there
| was very general ruin in 1887, and In
1919 the distress was thought To be un-
precedented. In the latter year there was
a larger proportion of persons thrown
out OF employment in the large cities,
probably, than is the case at present, but
real estate was not so completely overs
thrown. In Plttsburg, Philadelphia, and
| Baltimore, less than one-third OF the
working people had work. The values
of land, however, fell from 1915, the
period of imitation, to 1919, the period of
| depression, in the ratio OF 1910 30. The
House of Representatives committee,
which was then appoin ed to Investigate
the causes of dis ress, speak of palable
"change of the moral character OF many
of our citizens by the presence, OF dis
tress." The newspapers were filled on
ore page with advertisements OF Sherlff's
sales, on the other "with accounts OF
riot, incendiary fires, frauds, and rob-
beries." People who had money would
not invest. Rents fell off to one. bird
of their normal figure. Flour declined
from $40 to $3.50, and beef from 25 cents
to cents a pound Niles Register
tells II, that '.the population of Baltimore
decreased 10000 between 1915 and 1920.
Rents on Market slieet were $25O,O0O
less in 1920 than in 1915. Wages were
low on half time" /,
There were, however, no organized
parties to pull down the social fabric.
People put the blame where it belonged;
war debt, inflated currency, wild specula-
ton, all followed by panic and collapse
They set to work, paid their debts,
watched the process of liquidation and
waited for the return of confidence. by
1926 prosperity had been completely re'
stored.
; Nowadays, however, the demagogues
and politicians are trying to induce us tc
try other methods, and it is to be feared
r that they will seriously complicate mat
, ters unless the people take a sobar Sc
. cond thought We have gone through
the worst Of the struggle. The imitation
: of the currency has ceased. The process,
7 of liquidation is nearly completed. Al
! that is needed to set the wheels of indus
$ try in motion once more is the restora
: ton of confidence. Capital is timid ant
: will not embark in enterprise. 1t mde
e and declines the temptation OF prom
t through the dread of loss. Does 1t no
Il look like suicidal conduct on the part
the agitators to Increase this trepldatiol
!, of capital? If we can only succeed II
giving assurance to the people who haV
/ money that it will be safe for then to US
/ it. we may trust to the law of self-inter
). est to effect the rest. Capital now is to
q tally unproductive. 1t will not come In
(. to use, because the dread is general les
5 an attempt to earn interest on it Will I'm
IS peril the principal. Remove that dread
d remove the causes of that dread, and tn
g. instructive impulse of capital to make II
II 81 II productive, 20 earn enterest, to max
9. up sor its losses, will bring 1t at once ou
D, Of its vaults and hiding places, and y
e spiIe it with an energy and vitallt
IS which will send million new enterprise
W thrilling with excitement, and find II
y slant work and wages for million idl