The times., 1899-07-14
BUILDING OPERATIONS.
Cheap Money and Dear Securities
Certain to Help Real Estate.

The total OF building operations in the
District during the month OF June vas
ss40,9s5. The total OF the same month
in 1898 was s599,455. SO that the increase
was more than one third. The total Of
building operations during the nrst six
months of the year was $500, 1853 1t is
most encouraging fact that the District
stands only fifth on the list OF cities in
the amount of building for June. New
York. Brooklyn. Chicago, and Philadel-
phia were the only cities that exceeded 1t,
New York with sl1. .00o, 900. and the others
with about $4,000. 900 each. During the
first six months OF the year there were
five cities whose aggregate of building
operations exceeded those OF the District,
St Louis being added to the above list in
this case.
One Of the most conservative real es-
tate brokers in the city. who has watched
the development OF realty here during the
past fifteen years and is thoroughly IA
miliar with values on business property,
city residences. and suburban real estate
said yesterday. In discussing the business
situation in the District: The course OF
the present business revival has followed
closely that Of the boom OF dozen years
ago. Ii is nothing new to say that Wash
ington is always among the last Of the
large cities to feel the effects of a change
in the business conditions of the country,
and that real estate is the last class of
property TO show new conditions in Wash
ington. so that local real estate may be
said to end the procession. both in re-
vivals and depressions. But the thing is
true. even IL il Is a 'well-known fact
Just as in 1898. when the remainder OF
the country had begun to go down hill
financially Washington real property was
stiIl selling at high prices. and new
Washington suburbs were booming
In great numbers, so now, while
the cities In the North and West. and even
in many sections OF the South, are on the
top wave of prosperity, and while local
securities of every kind, except real es-
tate, are selling at the highest prices since
1898, and some of them higher than ever
before, the real estate movement here is
only beginning
But the very fact that there is no ex-
ception to the rule this year is one Of tho
best evidences thatsa real and substantial
betterment In realty values is coming. The
philosophy of this slowness Of real estate
to respond to financial conditions is not
in the least abstruse. Buying house re-
quires more time and thought. and is ac-
companied by much more detail than buy
ing railway stocks and bonds A very
large part of the average home-buyers pay
for their property en- Inc installment plan.
assuming trusts OF greater or less amount,
and this fact also tends TO restrict trans
fers. 1t is not so easy to find an imme-
diate market at legitimate price for real
property as it is TO have broker sell rail
way shares in five minutes at the price
ruling for the day. All Of these matters,
OF course, make for the stability of real
estate values and are the safeguard tina.
gives it its unique place as property, tat
at the same time they are also The rca-
sons why, after the realty market has been
Inactive for several years, 1t does not re-
vive quickly
Local securities are selling at from
80 to 90 per cent above the prices OF last
July. Metropolitan Bank stock sold year
ago at 800 and iS6 Is now bid for 1t. Bank
OF Washington has advanced from 2s5 10
35O Farmers and Mechanics has ad-
vanced from $50 TO 206. West End has
gone up from SO TO 122 and better. The
same ratio of improvement has been shown
in nearly all the bank stocks. The street
railway stocks have doomed in the same
way Capital Traction was selling around
70 a year ago and now is within four or
FIVE points of par. Metropolitan Railway
sold year ago for 121, and recently the
entire capitalization was sold for $50. CO.
lumbia Railway advanced from rs 10 151-
advance in price as do also the insurance
stocks. including the real estate insur-
ance securities. This great boom in stock
values is due directly to increasing busi-
and il is certain that real estate will eN-
ness and the general revival OF activity
perience the same course OF advancing
next A large proportion of local stocks
are now selling at prices where they net
the investor only per cent, and the profit
from general business seeking investment
will turn next to real estate, il for no other
reason because there is no other profitable
field offering the same advantages
THE beginning of the better condition
OF things is already noticeable. The prices
that have been paid recently for business
property in the heart of the city are IN
every case well advanced over those at
which sales of the same property were
last made. Business property naturally
experiences the effects OF returning active
business. because profits OF business are
first of all invested in business-ln Old or
new ventures The number OF sales OF
this class OF property is also on the in
crease as the records show conclusively.
Residence property will come next. AS
an investment it will become attractive
on account OF cheap money and dear
stocks and bonds. And prosperity will
slowly increase the number OF people who
will desire homes of their own.
1T is one of the chief features OF the
residence property problem that owners
who desire TO sell are competing keenly,
with nandsomer houses. more convenient,
and on easier terms than were ever Of
fered before The dull times OF the past
six wears have done much for the man
who now wishes to purchase home He
can have conveniences and luxuries and
beauties that were hardly dreamed Of
decade ago. He can have more health and
more art and more comfort in $1,000
house now than went with $4,000 resi-
derce built in the eighties And II he
wishes he can pay for his house in the
suburbs at little more than he has been
paying in rent"