The morning call., 1893-08-24
CAPITAL FOR INVESTMENT.
Money Withdrawn From Bank
Seeking Service.
PERIOD OF TIMIDITy PASSED.
Views of a Firm of Financial Agents
on the Present and Future
of the City.

"The financial outlook of San Francisco
Is most fiattering," said LEROY 6. Harvey
yesterday in answer to CALL reporter S
question concerning the present condition
and future prospects of the local money
market. Mr.. Harvey issparticularly well
qualified to Judge the situation. being at
the head Of Leroy G. Harvey & Co., fnan-
clal agents and brokers. on Montgomery
street
I'VE notice a substantial improvement
within the past week." continued Mr.
Harvey, land it is of nature that insures
continuance and means prosperity to this
section. The era of timdity among
moueyed people seems TO have practically
subsided. and within the past four or FIVE
days We have had an unusual number Of
inquiries in our line. When the run on
the banks occurred few weeks ago many
people withdrew their deposits and placed
them in secure vaults. Being literally
tied up the money produced nothing and
the owners had chance to think over the
situation.
They have carefully examined every
factor that contributes 10 San Francisco's s
material welfare, and they have become
firmly convinced that the aggregate pre-
sents front that cannot be shaken. Be
ing thus assured they are now loOkn 2
about for channels of investment. know
ing that California is certain TO emerge in
safety from the financial storms that
gather IN the East and occasionally darken
the commercial horizon of the Pacific
Coast
with this belief the holders of large
sums Of ready money are willing now to
withdraw them from their strong boxes
and place them in the line of increase. In
conversation with many persons who have
large sums in the safe deposit boxes, we
learn that they are perfectly willing to
purchase improved or unimproyed real
estate or make low rate loans upon good
property. In neither instance is there a
quibbling over figures; they do not pro-
pose to pay fancy prices for lots, nor do
they exact unreasonable rates of interest
for the use of their money.
"One of our customers in particular had
$60,000 in three of the local banks when
the furry came on. We advised him TO
permit it to remain, but be was alarmed,
and would not heed our advice. Having
drawn ont his money and placed it in a
vault, he took long. steady look at the
city, the county, the State and the world,
and after a lew weeks he decided that he
had made most serious mistake Bot he
will not put that sum in the banks again.
1t Is 20 be used in purchasing property,
ana he is willing to buy anything in the
shape Of income property.
''Hls experience is on n par with that of
hundreds of other persons, and the major
ity of them have reached a similar cnnclu-
sion- Outside property and fancy prices
are not in favor, but the residence and
business portions of the city are positively
certain to oe benefited by the combined
sum that was Withdrawn from the banks.
Just think of it: In California there is
about $3.50, 100000 unemployed capital.
It should be put to work, and there are a
thousand ways in which its influence
would benefit ALL
"City rents must come down. They are
beyond reasonable rate, and / think that
many houses now empty would be occu-
pied il the owners would trim the annual
tariff to q figure in accord with reason
able rate of interest on the investment.
The mechanics. clerks, artisans, profes-
sional men and others of moderate income
are paying rents out of all proportion to
their salaries, and the residence district
of the city is bound to be built up by the
wage-earners. In so doing they will need
the temporary assistance of capitalists,
and the ultimate result will be profit to all
concerned.
I'm this fruitful State, and in this great
city of manufactures and supplies, | see
DO reason why capital should be backward
in assaying any consistent undertaking.
Our experience of years and the happen
ings of the past few days convince us that
San Francisco is entering upon period
of solid prosperity. 1t Is beginning now,
and 1t is certain to grow with the fall and
winter months, and next spring the city
will see such healthy market as she has
never before experienced. The normal
condition OF the real estate and financial
market is such that it requires long and
constant knowledge of its intricacies in
order to speak of it in a qualified way, and
the inquiries which 1 have just mentioned
to you are among the most nom entous
signs of good times"