Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1893-06-17
CHICAGO REAL ESTATE.
Building Operation PrOspsots-iHsc: OF
tie Recent Financial Furry
on Transfers.

Shrewd investors and conservative
real estate men expect benehclal
rather than retarding influence from
recent disturbances in financial circles;
Z. s. Dreyer. ex-President OF the Real
Estate Board. said:
"Of course the immediate effect OF
the unexplainable rush of thousands OF
small depositors to withdraw their
holdings from circulation is detrimen-
tai to real estate interests, "a well as TO
all other lines of business. but when
the heat of the moment has given place
to cool consideration real estate Will De
the first line of investment TO be bene-
fitted. There is some talk that small IN
vestOrs will take to local securities at the
present ridiculously low rates. but l
think that this will be the exception
rather than the rule. The numerous
and. in the aggregate, most lnnuentlal
class known as small investors does not
take kindly to securities unless they
are government or municipal bonds OF
unquestioned character. which is only
another form of savings deposits. They
prefer lots and real estate improve
ments if they can be had at an income
roducing-rate. or if they are morally
certain to rise in value. AT present
very little can be had of this class OF
investments, because holders OF real
estate will not accept any panic prices,
or anything below market value. ms
value. | still maintain-and ! am borne
out by the daily sales-has shown no
depression whatever from the rates
prevailing three years ago. On the
contrary, in many localities there Is
decided tendency to a rise.
E. A. Cummings. head of one of the
largest and most active firms Of real
estate men, said in regard to the in
huence of monetary troubles upon real
estate:
"The effect of the plenteOus with
drawal of savings from the banks so la
has beento stimulate the payment OF
Indebtedness on real estate. In hun
dreds of cases installments have beer
anticipated and there has also been
remarkable increase in the number o
sales of small lots. as well as small anc
medium-sized Investment property
There is. no doubt, a much stronge
and better feeling in real estate ant
real estate values than there has BEEF
for a wear or more. a feeling OF securlt.
that augurs well for the immediate fu
ture. 1t is natural that thos
who have money not required TO
immediate use should seek rea
estate investments, both in purchase
and mortgages. On the other hand
many people will be tempted by tn
prevailing low prices of local stocks t
make investments promising quick re
turns. At the same time, | belleV
that this falling off in values OF loca
stocks will be taken advantage OF onl
TO be changed to real estate tran5aC
tions as soon as stocks rise.
Real estate values have not bee
affected in any way by the recent finar
cial disturbances. Going back to tn
crisis of '73 and the furry of 81 tn
same experience was had. Alter IN
crisis in '73 and during the first half c
IA tho real estate market was very ac'
i've and a great many sales were made
The first setback was occasioned whe
the insurance companies withdrew fror
Chicago risks. There was quite tim
when ne insurance could be obtalne
at all. This stopped building operS
tions and caused the calling in of res
estate loans so that it was impossibl
to negotiate new mortgages. and man
holdings were thrown upon the marke
at forced sales. In those days trus
deeds could be realized on by advel
tisement in from ten to thirty day
This naturally caused real estate t
take down grade, from which 1t di
not recover until 1890 Real estate
Chicago. from 1875 to 1880, was niue
lower. comparatively speaking, than
was in surrounding cities. which di
fered only from the financial stril
gency and did not suffer from the az
ditional sources of the impossiblity
place loans and the withdrawal OF II
surance rates. These latter condition
being absent at present, | do not b.
lieve that the recent feeling will hay
any detrimental effect on the real e
tate market.