The record-union., 1892-05-06
FINANCE AND REAL ESTATE.

SAN FRANCISCO, May 5. 1892.
The money market is easy and in ample
supply with commercial banks for all legiti.
mate purposes. The general trade of the city,
as well as the coast, has been comparatively
dull for some months past, until merchants
have begun to get uneasy, probably unneces.
sarlly so, and have placed so much stress on
the matter that they begin to talk of "dry rot, .
utter proStation," etc, all of which talk
uoh'I oehent the situation nor fairly represent
lhe case. They cast about for good cause for
the dullness, and finally attribute il to the
southern Pacific Company and their "grasp-
ing nature" and their system of .'holding the
state In their tolls like a giant octopus
Many OF the press help the cry along and
hardIy any of them make any effort TO take a
"luer or broader view of matters An in
curry into the condition of commercial mat
lers IN other parts of this country win show
quite dullness existing everywhere. Some
OF the grain-growing sections have been
favored the past year, and those hav-
ing good crops have got returns
that enabled the farmers, who for years have
hardly made living, to pay off overdue in
terest, and in many cases cancel their mort
cages. This has particularly been the case in
Kansas, Nebraska,s Dakota and Minnesota,
but at present they are awaiting the outcome OF
the new crop, and business is extremely quiet
in those States. In the Southern States an
excessive production of Cotton has resulted in
very low prices, and business is very dull.
Merchants have always regarded as an "ot
year" those of Presidential nominati&ls and
elections. We have had no failures in our
city, except among spectators on Freights.
Careful inquiry at the principal commercial
banks show that they regard their customers
in healthy and solvent condition. There
have been much more profitable years, but ii
is not claimed that the past year has been in
any way disastrous one. Our cereals have
brought fairly remunerative prices. Wheat
would have brought exceptionally high prices
but Tor the high rates of freight TO Europe,
which ruled from the beginning ofharvest and
during the early months of Wheat shipments.
The only noticeable failure in commercial
circles have been among spectators who were
ready to charter ships freely because it took
no capital to make forward engagements, but
when the loading time came they hadnoWheat
secured TO load them with, and the Freight
market having declined los. to 2Os. per ION
Ia loss Of $4,000 to 81 900 on each ship for
freight alone) the chaTterers were forced TO ac-
knowledge their failure, and these losses fell
principally on foreign and Eastern shipown-
eTs, so that these several failures had little or
no effect here. Otherwise there have been no
failures of consequence. Upon inquiry as to
collections from the interior there is the usual
diversified opinion; there are always country
firms that lean heavily on the city merchant,
and the latter groans and talks about it, but
still rather enjoys a big interest account if he
feels that his customer is sound at the core.
Eastern drummers often speak of the indulg-
ence of san Francisco merchants. and seek
only indie pendent and prompt paying buyers.
Viewing the situation as whole our city and
State are in as sound a condition as ever, and
though business will naturally continue
dull till our crops are better assured and fu-
ture prices more definitely ascertained there
is no doubt that with low freights, fair aver
age grain crops, partial failure of fruits East
and fair supply in our State, we have every
reason TO look forward to good business from
July on.
Savings banks have money to loan and are
ready for any desirable business, and inquiry
among those having the largest interior loans
shows a most satisfactory state of affairs,
hardly any foreclosures and generally a
prompt payment of interest as due, and while
there is an ample supply of funds, any reason
able accommodation can be secured.
REAL ESTATE-Participate in the general
dullness, but so far as city property is con-
cerned all desirable property is firmly held
and there is very fair inquiry for income
producing property and with very limited of
ferings, Our people would not be happy if
not interested in speculation, and spectators
always want "quiek turns and good profits,
Real estate. unlike stocks and grain,
can't be sold short 1t would hardly
be safe for ''bear OPERATOR to agree
to sell a specific piece of property for forward
delivery at less than the current rate of the
iou of oil
spectators to make money, and they are un-
happy at any standstill or lull in prices.
Blooms" are dull, and all the efforts of real
estate brokers TO push speculation in outside
property is uphill work. For several years
past there has been sale for outside proper
ties at advancing prices, encouraged by the
extremely liberal and growing facilities for
rapid transit in all directions The demand
was not entirely legitimate. The growth of the
city did not require the actual occupancy of
so much land. No wonder then that there is
some reaction the moment that sellers exceed
in number the buyers. To a certain extent
such is the case at present, but holders are
firm and abide their time-to any intelligent
mind temporary dulIness and inactivity
need not be especially depressing Several
real estate brokers report they have
customers ready TO avail of any
moderate reduction to buy. Some are deeply
interested in watching good property around
Los Angeles, where prices seem to have
touched bottom. Several excellent sales on
English account have been made in Northern
California among the fruit lands near Ander-
son. More could be advantageously placed if
holders would modify their views. II Cali
tornia would prosper on her own resources let
large land-holders realize that their views of
value are entirely too high to enable good
settlers 20 get a living and pay for their lands.
Land is worth exactly what good Labor and
judicious cultivation will make it produce to
the owner an economical living and moderate
interest on his money. In too many instances
the most judicial and economical husband
man could not pay interest on the purchase
price with any product he could raise, to say
nothing of getting moderate living. This is
one of the greatest drawbacks to the more
rapid settling up of many of the most desira-
bic sections Of our State.