Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-08-17
FOREIGN CAPITAL.
Why 1t Seeks Washington for Large
Invest ents.

Why 1t Seeks Washington for Large
Investments.
There is much more foreign capital In
vested yearly in Washington than most
people have any idea off, said a real estate
agent to a Star man this morning. land by
foreign capital 1 mean trust, saving funds
and private means sent here from other
cities. especially Philadelphia, New York
and Boston.
II should say that a conservative esti-
mate would place these investments from
outside residents during the past year at
81, 800. 900, and the total is increasing rather
than diminishing. For instance, large loans
amounting in the aggregate to 100000 have
been placed in this city within the past
month. / have forwarded applications for
loans amounting to over $4,000 to Phila-
delphia this week, upon which 1 expect
favorable action.
These loans are made at and Az per
cent. l know of one large sum which was
placed in this city on glt-edge real estate
at 3 IS per cent. This is probably as low
as has ever been quoted in Washington
for real estate loans, but 1t Is authentic.
The interest is about that paid on govern
ment bonds. and the inference necessarily
Is that the investors considered choice,
well-paying property here as good an in
Vestment as the bonds
There are many reasons why outside
capitalists are willing to place their money
in Washington at SO low rate 4 per
cent, ana tney all REBOUND TO the credit OF
the capital as place of permanent invest
ment. In the first place, the tax rate is
half and in some instances. less than half
that of the larger cities, where money in
bulk naturally flows. The municipal gov
eminent of Washington is clean. There
are no rings, no aldermanic boards to Jug
gle with the finances, no clques to contend
with nor deals to be gotten through before
pubic improvements are possible. The ma
tons law makers make the laws for
the District, and investors have a cor
responding sense of security. This point Is
accumulated by the fact that investors In
Philadelphia recently looked askance at a
large municipal loan which the city au-
thorities attempted to float, while out In
Chicago the credit of the city Is remark
able for not existing at all.
The result is that outside trust and
other moneyed corporations accept loans
at low rate of interest on Washington
real estate because they are considered Sc
cure. and are taken up in preference TO
those in their own cities at and @ per
cent. This is a highly satisfactory condi-
ton to all concerned
ITO show the healthy tone of the real
estate and the loan markets here 1 am re-
Lincoln square. on East Capitol street,
where plot of land changed hands to be
used for the erection of an apartment
house at 81 foot. the highest price ever
paid Tor property in that vicinity. This
also proves that the firm tone of the mar
ket Is not confined to the northwest ex-
clusiVely. An outside moneyed corpora-
ton. for example. would be glad to loan
as much as might be desired upon this
plot at per cent.
The president of a Philadelphia CORPORA
ton which has large sums loaned ont In
this city was here few days ago. i took
him all over the city in an automnbiIe
pointing out It's recent improvements and
the pieces OF property upon which the
money or his company was secured IL
Will prove of local interest to know that
he, an old and experienced financier. told
me that upon his return he intended to
make arrangements to provide for heavy
increase in the sum which the COMPANY
had allotted TO Washington for loans. He
commented especially upon the splendid
street railway system here, saving that
for transportation placed a positive
and determinable increase on the gem
eral value of real estate, and conse-
quent security for loans thereon, yet this
| Is but one of the many reasons he adj
| vanced for sending his money down here.
investors will not loan money upon
| home property. let alone outside property,
unless they are assured that values are
| firm and fixed. This is another reason
why foreign capital is attracted to u.s.
The real estate market of Washington has
| held its tone better, all in ALL than in most
cities, and IL is this summer firm and
| the fall. and there Is no question that so
| far as building is concerned it is most sat
| isfactory and will shortly be even more So
All of this affects the loan market for
with plenty of money at low rates of In
| terest improvements and buildings come as
| consequence. with attending material
| advancement and profit"