Evening journal., 1890-08-30
BUILDING DEPRESSION
Money is Tight-Houses are PIenty-Th
Result of Speculation.

I
Result of Speculation.
Building operations are few and con-
tractors are idle. This depression is an
inevitable result of the specializing
methods of those builders. who have
more energy than cash Some of them
have many houses awaiting sale, but
no buyers and they need money.
One rumor gave the impression that
builders could not get money for their
| operations, but this is only half true.
Responsible men can get all the money
they want.
A prominent banker said this morning
concerning the trouble between the
| builders and the banks The trouble
has been caused by the co operative plan
of building ouses. Very few mechanics
have them built, for they have not the
money. The carpenter. plumber, plasterer
and roofer combine and build row OF
houses. Then each takes a house for
part payment. Many of such builders
In borrowing money give a mortgage.
on which they rate the ground at $50 a
foot. when it costs $40. Therefore. men
will not lend the money.
''They find that it does not pay. When
they go for their interest the builder
says: Well have not the money !
can't pay until get it > The lender insists
that the money is overdue and should
be paid. Then the other says: w ell,
go ahead and get it. You've got
to get judgment, and IL is not liable Ia
come up inside Of a year The lender
soon tires Of such business and stops
loaning- his money When he does get
| judgment and the case Is decided in
his favor he finds that the
property will not sell for the mortgage
he holds on it. / understand that the
Wilmington Savings Fund Society has
been lending money pretty close. and
now has more houses on its hands than
any one else in the state.
A well-known contractor and builder
has the following to say on the subject
of depression in building circles
"The bulk Of the BUILDING
in this city is done by people who have
very little capital. They build on specu
lation and borrow the balance of money
they need Money is very tight and
they cannot borrow more than half.
THE depression just now is a good
thing because the houses are not all full
and no more are needed There is No
sale for houses, therefore it is no use e
: DNl1N luelu. EtftFhi DuilQSfH nave
failed because Of carrying heavy loads in
houses, and it is almost Impossible
for them to get money. For three years
before this year have been able to Dor.
row all the money needed at per cent.
This year have had to pay 6 per cent
and found it hard TO get at that.
1.-THE indications are that as no houses
are being built now, their will be a de
mand this winter and builders will easily
dispose of their houses. Then next veal
will be busy season"
President William NJ Candy of the
Wilmington Saving Fund Society said
Responsible people have no trouble K
| get money. When a bank think that
builders ere going too far Il
is apt to become conservative
and refuse to loan. Money is a little
tight but Wilmington is prosperous
| More deposits and more Withdrawals are
being made than usual. The deposits,
however, are greater proportionateiy thar
the Withdrawals. The principal reason
that no building is being done is that
none is necessary"