New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-07-31
CASH BECOMING TIMID.
HOW THE PRESENT SHOUT FOR SILVER
AFFECTS REALTY
DIFFICULTY IN OBTAINING ADVANCES ON REAL
EsTATE-AN EXPLANATION BY A TRUST

EsTATE-AN EXPLANATION BY TRUST
COMPANY OFFICIAL
The predictions Of the sound-money men at
St. Louis and Chicago are being realized sooner
than they expected. The rcare. as the sllverltes
are pleased to term It. has developed In BROOK
lyn In q way to teach the advocates OF nat
money u lesson that will not soon be forgotten,
q lesson that will bear fruit In the present cam
paign Disastrous AZ are the forced deprecia-
lions In the price Of commodities or stocks or any
kind they are absolutely insignificant compared
with any great slump m the prices OF real
estate. The tangible wealth. Of country Is us
realty, and when men grasp at that ana ma
nothing the situation Is something more IMAM
alarming. Yesterday It was openly talked III
real estate Offices that the Title Guarantee ana
Trust Company had practically refused 10 make
any more loans either Brooklyn or New
York realty. That meant simply that they were
not loaning money on what has always peeh
believed to be the safest kind Of security. The
frat of these rumors came from a real estate
broker who said that loan Of $500 on a 1000
house had 1ust been refused. The usual rate
OF loan he said, was from 90 to 10 per cent, out
the company would not lend him more tnah
81. 800 on this house, and did not care TO 90
even that.
At another office broker said: wen. ooh
know whether they refusing everybody or
not. but day before yesterday asked thenn lor d
10 per cent loan on one OF the most oesirapie
dwellings In Brooklyn. and 1t was refused III
asmuch as do most Of my business WIN 'heii,
and had never met a refusal pelore' resaiucu
their position as entirely due to th'eauture pros
meet. and not at all due to any personal CONSIDER
alton"
oh
In order to thoroughly satisfy namsei aoou'
the matter an inquirer went TO the OFFICES vi TIC
company at No. 20 Court-st.. and asked Tor the
nroner person to see to negotiate loan on
Brooklyn dwelling
"Wen am the man." said the person ad-
dressed How much of a loan 90 you "ah'' anu
on what kind of property!
IT want a loan of $4,000 on mouse III Tic
Park Slope" was the answer
What is it's value?" he asked.
"It was assessed last year at $15.5Op. replied
the inquirer, but dom Kno" WHAT 'ne "''S'
~ am afraid" said the man .. bonds and mort
cages. that we cannot accommodate nm you, =, ~
rule Is not to loan to exceed 6O per cent OF the
value CT property in ordinary times, out now, "a
view of the uncertainty Of our monetary stahu-
ard we do not care TO exceed ~ Per o1' We ara
actual value and to be frank with YOU we ai
doing as little business as possible we 40 nu'
feel quite safe in lending money now without III
sorting gold clause In the noho anu as rsfsr
gard that as unjust to Brooklyn realty we pie.er
not TO make loans for the present we never
had more money to loan than now, pu'' line
Douglass Jerrod we lack the commence
But" said the inquirer, you nay put the
gold clause In my bond: don't object to It,
I'VE don't to do it,. was the reply. we
have so far drawn no such bonds. and prefer
not to do so at present. How soon do you want
the money!" 90 49,. ~
ANY time before September l." was the an
swer. >,,
Well" said the official bring IN your appii-
cation in the morning. and I will present II 10
the Board of Directors. The prospect may not
be 30 dark thirty days from now, ana the loan
may be made ,,
This feeling Of insecurity has reached nearly
all the financial institutions in the city as was
apparent on Tuesday, when the city offered GER
tain bonds for sale. In speaking or this fallure;
the president Of one Of these institutions saio
Yesterday: II regard these per cent bonds as
a splendid investment, and. as matter or lact,
7 purchased several thousands or tnefn at pal
and q half for q friend Of mine Just at PRES
ent banks and trust companies are cohtrac.lls
their business and preparing for anything that
NAV come do not care to speak on the mat,
fer further than to say hope the trouple VII
mass over and that there Will be enough sehsioie
mon in the country to vote down inns snNei
craze I happen to know that even Democrdlic
workinemen are becoming aroused TO the danger
80 the situation Many men believed that they
were going to get SIG for 81 put ,hey $500. ai
ally beginning to understand the sltuatoi.
''These city bonds could have peen oouent a.
mar and no one wants better investment man
thew are under ordinary circumstances 'ns
faiure 70 sell them Is only another instance ol
The inyariable attitude Of capital when there IS
even a remote probability that the present s'ahu-
ard of exchange may be lowered