National Republican. (Washington City (D.C.)) 1872-1888, 1879-10-30
THE TURN or THE TIDE.

panied by a slight advance in the view so
holders, is one of the first effects of the re-
sumption of coin payments-or rather of
the redemption of greenbacks in coin. This
fact is n sure demonstration of returning
confidence. Improved realty is the safest
investment for savings known TO the COM
mercial world. Government securities can
not be considered more safe, but have been
preferred latterly ON account of their greater
readiness of conversion into cash But Gov
ernment bonds at four per cent. will stand
but slight chance against real estate that
is certain to earn twice that amount net
when confidence is fully restored. For illus
tration, let us mention an instance that re-
Gently came to our knowledge. A widow
lady having money to invest, which it was
desirable should earn more than four per
cent, purchased n new six-room brick house
Of modern design aud finish, located in the
northwestern section, and occupied by n
permanent tenant at $25 per month. She
paid for it &, 500 cash. She receives $500
gross rents, and, after paying taxes and re-
pairs to the amount of $50 per an
mum, which may be taken us a liberal
allowance on u new house on which the
tax is only $50, she will have left ten per
cent net e1rnings upon her investment OF
s., 500 This is entirely Independent of the
natural rise in the value Of the property,
which may now be expected with the same
certainty as the food follows the ebb tide.
In Government securities this Investment
| would have earned ouly 500 per annum.
Now is the time to acquire homes in this
District at low prices and on reasonable
terms. All Government employees and
| others who have regular work should strive
to place their savings in The shape OF realty
In four to eight years the rents which they
pay would purchase them home, and they
could live in it at the same time There II
no other incentive to economy so power
full in its effect upon each and every mem
Der of a family as the idea that every pecu'
mary sacrifice made by them goes toward
the payment of "home," which will soor
become rent free, and that in the meanwhile
every improvement made and every orna-
ment affixed to the property is for the com
mon benefit. A few dollars ecOnomized
annually by each member of family vii
soon make up the sum necessary for th'
cash payment; and after that what is nov
paid for rent will meet the deferred pay
ments and the same economy continued
will satisfy the annual taxes, interest, re
pairs and improvements. Each succeeding
month lessons the amount Of interest anc
increases the family capital.
Ifproperty has shrunk one-third during tn
last three years, it is not unreasonable to sup
pose that it will regain in the coming thre
years what it has thus lost. If so, hous
purchased now at $4,000 will three year
hence be worth $4,000, making thirty-thre
and one-third per cent. profit upon the in
vestment in addition to the net rent earn
ings during the same period, which, us illus
trated above, would be ten per cent. pc
annum. During the same period, invest
ments in Government bonds would be carr
ing ouly four per cent. per annum, or
gross earning of twelve per cent. agains
i the sixty-thrce and one. third per cent. earne
by the investment in real estate. Here
l. over fifty per cent in favor Of real estate i
three years, or 900 more in favor of rel
estate than Government bonds in thG
length of time on an investment of 5000
with the additional consideration in fave
of real estate that the Government require
. cash down for its bonds, while the real e
, tate investment is paid by installmeut
| Noyv Ia tha time IN reflect on these cOnsi(
o erations and act accordingly.