The morning call., 1893-01-01

WORK ana pray Tor the construction Vi tlle
Nicaragua canal Its construction Will
make an entirely new country of the whole
Pacific coast line named. the Length OF Whicn
is about $500 miles. That whole coast, but
much more especially the northern baH OIL
it, is absolutely laDgulShlDg for proper
waterway communication WIN the word
of the Atlantic States and Europe. No
country so much needs this canal as Call
fornia. Any piece of city or country real
estate here, worth say S5O0O would better
be worth $500 with tie canal than $1,000
withoutit.
Good real estate will bring fair prices. we
think, in 1898. Speculative property and all
property whose future is far ahead Will not
at best be likely to more than bold Its own.
Extensive railroad building and tie i'm
provement OF the river waterways of the
State are all needed. II a quarter of the
money now lying IN great oyersupply in
both commercial and savings banks, and the
capital willing to embark in new and
no lOnEer-needed street railroads both
here and at Oakland. were devoted
to these ends, then real estate
would no longer be dull or prices drOoping.
A well-wisher of this city might we'll pray
for much greater real estate and business
depression, that our people might be forced
into developing the State, and thereby earn
ing better times IN business and increase of
real estate prices. Something has, we are
glad to say, been done by establishing
charges; but more-very much more-re-
mains to be done before the city occupies
the position ii is calculated to fill as great
distributing and manufacturing center.
The Money Market for the Year.
The total number of city real estate mort
cages recorded in 1891 was 1907 of the total
value of S17 694, $40, aud 2745 releases of
mortgages OF the value of S10,971. S62 In
1892 there were less mortgages. the mort
cages reaching 1924 in number, and S1602S,-
763 in value, while the releases numbered
2666. of the value of $40, 900. 404. There was
Z special reduction in mortgages to private
individuals. The number of these in 1891
was 2lS0. of the value of S7.T7,7l6. Last
year they only numbered 1S43. of the value
OF 50, 34S. 33S These figures show that spec
nlatiVe buying, with small amounts paid
down, received decided check in 1892.
MONEY LOANED By THE BANKS.
The Hibernia Bank lent $3.50, $50 on city
property in 1891 and 4.3S3. 1l5 in 1892. The
German Bank lent on city property 50, 322.-
265 in 1891 and g.. 514.09l in 1892. The Saw
ings Union lent 81. 704, 7S7 in 1891 and S2,0S5,-
rs in the city in 1892. The Hum boldt Bank
lent 1914 800 on city real estate in 1891 and
s497,27O in 1892 the French Bank thus
lent S549. 500 in 1891 ana SAL 900 in 1892.
The Cley-street Bank lent S542,0 $50 in 1891
and 1891, 079 In 1892. The Security Bank
lent S253,700 On city real estate IN 1891 and
S36G, 975 in 1892. The most of the mOneEzsl
five of our savings banks is lent oct on We
terror lands, while two of them also lend in
Oregon aud Washington.
RATES OF INTEREST.
During the last four or five months of
1892, our city savings banks have had large
sums of surplus money Cd hand, and that is
their condition at present The rates
charged by them are still the old ones of
per cent on city and 8 per cent on country
loans Occasionally large and choice city
loan was granted at 61z p er cent. But only
a very few Of such loans were made. The
banks have been and are resisting reduc-
ton to per cent on city and 10 per cent
; on country loans. This reduction OF inter-
est would mean a reduction of the divi-
dend rate, and it is this latter re-
duetion which the banks do not
like to face; but in our opinion the
times and the facts call for bath these reduc-
tous. Times are dull in all kinds of bust
ness, and it will not be denied that in
new country. whose greatest need is de-
yelOpment of all kinds, cheap money is
vital necessity if that development Is to
make progress. But more important still
is the fact that those who are engaged In
that development should be sustained and
supported in il, and, being all borrowers.
they are not being supported il they can
not get cheap money. Now, we ask the
most talented fDancier IN the State, il be
thinks he could set out q vineyard or orchard,
SOW alfalfa and raise horses or cattle; buy
a large redwood or other timber tract,
| build a sawmill on IL, and go into the
business of cutting timber, pay fair wages.
and still afford to pay per cent gross, say
61z Ter cent per annum net, for money. Or,
If he were a city borrower, at Z per cent,
say 81. per cent net, what kind of real es-
tate here would he buy these dull times and
make a sure or ANYTHING like a sure profit If
Ha tx-ar aoxrfy1 hot nat fn in
dustrial and property interest has been
forced down to BEDROCK heIe. There are no
big profits in sight in any kind OF
! legitimate business, and we are clearly
| Of the opinion that banks now
! have as they never had before the question
before them: "How is it with our Gus
toners? Is 1t well with them in their ac-
counts, in borrowing from us?" The cid
idea was that il was none OF the lenders
concern how the borrower was doing. The
only question was, Is be paying up his III
terest? IL so, he is good and VlrtuOus
man; if not, he is failure, tending toward
rascaliiy, and should be summarily dealt
with. This, as we have said, was the cid
idea. Now, measured by the payment Of
interest last year. borrowers are keep
! ing up. at least. that end of their
| load. but whether they have made any
thing bay0nd that few ask and fewer care.
But here is fact to which we ask special
attention: The savings banks east of the
| Rocky Noun tains pay their depositors but
| 215 to 312 per cent net per aDnum, while cur
savings banks here pay 4 to lilo per cent.
! The East is comparatively fully developed,
| too, while here the great call Is for the
| opening up of new enterprises, the most OF
| the money requisite for which is always
borrowed money. The unreasonably large
| dividends paid here means that much Of a
| check to enterprise and development
and less work for mechanics and labor
ers. They, On their small savings,
get the increased dividend rates paid
here; but they suffer in greater scarcity of
work, which checked enterprise causes.
The great object of savings banks is so 10
lend that foreclosure sales will be resorted
to in the least possible number Of cases.
Cheap money is one of the most efficient
checks possible on foreclosure sales. A re-
duetion to 6 per cent on city and per cent
on country loans (the banks in each case
paying the mortgage taxi would now be
wise move, we think, on the part of our
savings banks, but if both reductions can
not be made we would advocate the redue-
ton on country loans first, as being much
the most wise and necessary of the two.
DEFYING PUBLIC OPINION.
To see Board Of Supervisors, supposedly
elected in the interest o. the city and iof
prOperty-OWners, deliberately pass street
extension schemes which all parties inter-
ested but the schemers who concoeted them
persiStently denounced, is the strongest
illustration we have had here of how Off
Gals tweak the noses of prOperty-owners,
without fear Of active retaiiations. Con-
tinuous and convincing facts and figures
were produced, showing that all of these
street extension schemes were at best jobs
of the very worst character. Not only was
this true originally, but they were so
handled. by incompetents and experts, so
mscalled. that in every detail they finally
developed the most exasperatfng features of