The San Francisco call., 1896-02-08
Banks and Private Capitalists
Fear the Security of
Chinatown.
THE DECAY IN THAT QUARTER.
Property There Not Considered a De-
sirable Risk for Mortgages by
Money-Lenders.


cisco has contracted and that its popula.
tion has diminished remarkably within
the past few years is borne out by the
evidences of Chinatown's decay in the
estimation of banks and money lenders.
The CALL has already chronicled the
decline OF Chinatown, based upon statis-
tics from various reliable sources, coupled
with the evidences of failure and weakness
to be observed in the streets of that portion
of the City.
Now IL comes to light that bankers no
longer wish to invest money in property
lying within the boundaries of Chinatown,
and that private spectators are every day
refusing to accept mortgages either from
Chlnese property-owners or other land
lords whose real estate is in that district.
In their commercial relations the Chinese
are well known to be exact, punctual in
meeting their obligations and lmbued
with Characteristic solicitude of their
credit 1t is not distrust, therefore,
that has affected the almost unani-
nous decision of money-lenders. Those
Keen and far-seeing men have been close
students of changes in the condition of the
Chinese and Chinese quarter in San Fran
cisco and have come to the conclusion that
securities in that district are no longer
desirable.
The savings banks have all but discon-
tlnued loaning on mortgages in Chinatown.
From the presidents of most of the institu-
tions it was learned yesterday that loans
have been seldom If ever made on property
there for some time past. The reason, il
was stated in every instance, was that rents
have deprecated to an extraordinary de-
gree inside the limits of the Chinese quar-
ter, and property values have fallen away
In corresponding ratio. There were num-
bers OF stores to rent, many lodging houses
vacant, or nearly so, and wherever the
Chinese vacated a house completely there
was no white tenant to rent the premises.
Although the number of Chinese had de-
creased greatly, the area of Chinatown re-
manned practically the same as in the days
OF Mongonan ascendency in San Francisco.
Mongols withdrew from building on the
outskirts OF Chinatown, but no other peo-
pie would move into it. So. in many cases,
landlords offered their buildings at almost
any rental 10 Chinese rather than have
those premises lie hopelessly idle upon their
hands.
Private money brokers told similar
story, but went even deeper. They stated
that Chinese manufacturing of cigars,
shoes, etc., had ali but died out completely,
the commercial prosperity of Chinatown
had waned, and all this combined with the
desertion of numerous buildings in that
quarter had made the business of loaning
AAOHcy W SulilcSS Y ute uIQeSlraDle.
The German Savings Bank, with its GUS
tomary conservative view of financial
matters, has almost entirely discontinued
loanIng money on mortgages in China
town for the reason that the population
there has dwindled away and buildings
once vacated by Chinese are no longer
possessed OF any definite value, since they
will not be taken by white people.
The president of another savings bank
said that it was difficult TO estimate prop
erty values in the Chinese quarter for the
reason previously stated.
I'm loaning money on mortgages in
Chinatown" he said, sit has been the
custom for banks to fix an arbitrary value
and loan accordingly. 1t was scarcely
possible to place certain fixed value on
the property, for once the Chinese would
leave it would not be rented by whites;
and what good was it then? Now the
Chinese are leaving every other week and
the vacant houses are simply left vacant
Even the banks cannot fix an arbitrary
value under such circumstances.
judah Boas was one of the heaviest lend
ers of money to the Chinese, with whom
he was very popular for many years. Now,
however, his financial relations with the
| Celestials is merely trife in comparison
to what it used to be.
"Time was said Mr.. Boas, 'swhen /
had over 100000 loaned out on mortgage
or notes in Chinatown, and then i in.
yarlably found the Chinese prompt and
good clients.
II suppose there were dozen Chinese
in my office to-day looking for money, but
| mad to refuse them all. Why? Because
| can get better security and better use for
my money elsewhere. have not over
$4,000 loaned in Chinatown at present.
The banks never did do much business
with the Chinese, but nowadays they are
doing practically nothing.
the Chinese are going home, the old
ones dying out; Chinatown is growing
smaller, and l believe thatin ten or twenty
years there won't be a handful of Chinese
in San Francisco. Their quarter will then
be thing of the past