The San Francisco call., 1895-07-15
Opinions Regarding a High
Tax Rate for City I'M
provementS.
THE RECORD OF THE WEEK.
Condition Of the Realty Money Mar
ket, Including Country
Loans.

during the last half of 1895 of equal if not
greater profits.
The realty market as represented by dol
lars and cents shows marked improve
ment during the past six months, and, so
far as the physical signs of growth and
prosperity are concerned, the City has
several large business buildings and hun
dreds of handsome dwellings to point out,
even if sewers and pavements do fall be-
hind those of other modern cities.
Our manufactures have been added to,
the number of hands employed has been
increased as we'll as their wages, and the
total value of the products shows gain
for this season.
The resources of the banks have been in
creased considerably, according to the
semi-annual statements just now being
published, and the sums due depositors in
the care of savings and loan societies are
much greater. While the savings banks
have had far more money on hand than
they could lend on City real estate, they
made very few loans on country property.
Such banks as loan on country realty are
willing to continue making those loans in
the proportion to which the country is en-
titled. AS the welfare of the City depends
upon the prosperity of the country it
banks whose operations have heretofore
been confined to the City to loan some of
the large surplus which has been con-
stantly increasing in their vaults on coun-
trv real estate.
A considerable percentage of the assets
of bank must be in convertibles of various
kinds, such as Government and other first
class bonds that can be kept in New York,
which can be turned into cash on short
nntiPo Loans ha naHa fn
sible parties who can provide for them.
OF cash and conyertibles a bank should
have at least 20 per cent of its deposits.
City loans in San Francisco and Oakland,
while not really convertihes, will quickly
command cash, hence bank here must
have those, as being next to convertibles.
This leaves certain percentage of money
which any bank may loan on country
property, but some withhold even that
proportion of their assets for no other rea-
son, it is said, than an established policy
of doing business in the City.
The most important event of the real es-
tate money market during the past six
months was the reduction by the Hibernia
Savings and Loan Society of the rate of
interest to 614 per cent, to which other
banks were compelled to accede in case of
desirable loans. In discussing this matter
ex-Mayor Ellert, manager of the California
Title Insurance and Trust Company, said:
"If system of public improvement could
be inaugurated which would increase the
earning capacity of realty this company
could reduce the rate of interest to 6 per
cent and keep it at that figure. At the
present earning capacity of real estate we
might make loans at 6 per cent if the tax
rate were less than 81 on the $100. Those
who look at a slight increase in the tax
rate from the standpoint of the rate of saw
ings bank interest take very narrow view
of it. A man who improves his property
and adds thereby to its capacity to earn
money is accounted a sensible man.
'Why should not the City be accounted
sensible when it iudiciously expends
money to improve its streets, sewers and
parks? Of course people who live in their
own houses are not affected so directly by
this argument as those who buy property
for income purposes But every citizen
must feel some pride in good streets and
sewers and beautiful public parks. Think
the tax rate could profitably be increased
for the purpose of making some judiclous
and well considered public Improvements.
AS a taxpayer | am willing to stand any
share of the additional tax levy"
Thomas Magee in his Real Estate Cir
cular few days ago observed:
when we hear of some things that hap
pen in countries that are king-ridden we
have a thrill of horror and pity more or
less strong, but there is such a thing as
country or city being tax-ridden. Ask a
property-owner who made his investments
here four years ago, which is worst? His
gross return will probably not exceed per
cent, and now City government, ap-
pointed by propertyless voters, take away
about half of this return by tax of % per
cent on the assessed value, which ap-
proaches always nearer to the real value.
Let us not Judge property-Owner harshly
if he is just now unable to discern clearly
the beauty of what he calls the despotism
of universal suffrage, as exhibited in City
government here"
Other real estate dealers interviewed dur
ing the week are of the opinion that the
deficiencies of the past and present year,
representing in part the unpaid bills due
merchants and manufacturers, as well as
the actual running expenses of the CITY
Government, should be met by an in
creased tax rate, but that permanent i'm
provements should be provided for by
creating a bonded Indebtedness on the
forty-year plan. Such a proposition, it is
believed, would relieve property-owner of
the inopportune burden of per cent tax
rate and oblige the property of
quarter of century hence to pay some
proportion of the cost of permanent public
improvements which he would enjoy and
from which he would reap an advantage.
bUSlNESo Ot IHE WEEh.
The only noteworthy transfer of the rec
ords of last week is one from Frank Shay,
G. W. Skidmore and James G. Mcguire
commissioners of the estate of Martin
Kelly, to James Shae, trustee of Katharine
Farrell, of the property S7:6x84 at the
southwest corner of Larkin street and
Golden Gate avenue. for $50,400.
The most important loan was by the
Hibernia Savings and Loan Society of
$4,000 for one year at 6H per cent on the
following property: 50x137:6 on the north
line of Geary street. 87:6 east of Larkin;
120x109:9 at the northwest corner
of Ellis and Van Ness avenue; 1877 IS
x120 at the southeast corner of Ellis
and Laguna streets; 20x60 on the east line
of Belden street, 77:6 south of Pine;
26:3x137:6 on the north line of Post street,
24S % west of Jones; 25x137:6 on the north
line of Eddy street, 1926 east of Hyde,
and an irregular lot on the northeast
line of Third street, % southeast
of Folsom. Other loans were: BY
Edward Mclaughlin, $4,000 for three
years at per cent on the property 29:10X
X70 on the east line of Battery street,
29:101l south of Commercial street; by the
German Savings and Loan Society, 5000
for one year at per cent on 20x55 on the
northeast line of Second street, 110 north
west Of Folsom and 125x1l4 at the north
east corner of Twenty. fifth and Vicksburg
streets; by the Hibernia Savings and Loan
SOclety $1,000 for one vpar at az nar cent