Los Angeles daily herald., 1889-05-30
THE SITUATION.
A Banker Thinks the OutlO0l
Bright Enough

near him in this respect. 1t is Hon. f.
F. Spence, ex-Msyor of the city, and
President of the First National Bank.
Mr.. Spence said, substantially, this:
You wish to interview me on the pres
ent condition Of affairs here. think il.
is a very hopeful one. This section
has passed through eevere trial
Senator Allison was quite right when he
said no other community in the Union
could have passed through such an or
deal and not come out bankrupt. Re-
member, there was not a bank in the
country anywhere that was touched even
by the crisis. That is a remarkable
thing. But more than this; there was
not a large operator forced to the wall.
Well. yes. There was Webster. of Pas
adena but, while Mr.. Webster was, in
MANY respects, a man far beyond the
average, he was not one OF much ex'
perience in the role he was play.
ing. It is too bad he had to go under,
but he did not really lose anything. He
is as we'll off as when he came here. He
might have been rich by the boom if he
had only been little conservative.
At this time there is plenty of money
here seeking investment. Money is
quite easy to get, if you have fair secur-
| ity to offer. Rates OF interest are easy.
The deposits are daily increasing, by new
arrivals who bring cash to invest here.
! There is very fair amount of business
doing in most lines, and it is improving
Land deals havesbeen in the main ad
iusted. This has been accomplished in
all sorts of ways. When the buyer had
made only small payment and did not
see his way to fulfill his contract he cam
celled it, and the land has reverted to
the original owner. This is nothing
against the country, and no reflection on
It's resources. 1t merely shows that
there we're foolish people who undertook
to do more than they were able. The
land thus let go is in many cases worth
all they promised to pay for it. They
expected to sell it at an advance, but
there being few sales making, they are
disappointed, and they have no resources
to fall back on. They, therefore, let
go and the land goes back into the hands
of the original owner. There are other
cases where men have bought three oi
four, or i've or more lots. They have
paid two or three, or four installm ents on
these, and are unSble to meet the
back payments. In such cases the sellers
have pursued course at once
lenient to the buyers and sensible so fal
as their own interests are involved
They have given deeds for so many OF
the lots as the money paid would clear
and taken the others back. Thus the
venturesome buyer gets one or more
good city lots, or one or more tracts o1
five or more acres and quits. A good
many settlements have been made il
that way. Still another method of ad
justing matters has been like this: A
has agreed to pay B let US say $2, SOC
country. He paid $3.50 down, and $500
year ago. Now, his next payment has
become over due, and he cannot meet it
Let us suppofe he made mistake, ant
bought at an extravagant valuation. The
property to-day could not be sold fol
what he had paid on it. He knows this
( and so does B. A goes to the latter anc
tells him how he is situated, and wha
he thinks about the trade. B say
well what do you propose. A answer
that he will give him $3.50 and take
J deed for the lot. In many cases tn,
buyer has done this, and called the dea
complete. If he demure, then the buye
says, we'll, give me $3.50 Of my none.
back keep the other $1,000 and viii
give you back your land. That is Otter
! done.
Yes, think, nearly all these adjust
ments have been made, and tina
nearly all the people are nov
square. Where people had goot
property judiciously bought, and partly
paid for, they have been able to borrow
money on long time and low rates of in
terest; so they are all right for severa
years to come.
: l do really think that things hav
, touched bedrock. Of course, wher,
, people have been pressed to realize
values have greatly shrunk. 1t coult
not be otherwise. There are no poten
) reasons yet at work to force prices lower
They are now below the intrinsic
J value of property in many cases. From
this on there will be less pressure to sell
Big bargains will not be so easily found
and after while values will go back tc
the normal lire; mean to the intrinsic
worth of the property.
Oh yes, in due time another period o.
excitement will be developed and people
will rush in to buy property
at prices above its actual value
1t will not be SO mad
rush as we had two years ago-not a
least for a very long time; but in little
while those who buy now will be able t,
sell out at a solid advance over wha
they buy for.
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