Evening journal., 1907-03-16
WILL
MAKE ADVANCE
Increase Of at Least SO Per
Cent. Predicted This
Year
WISDOM OF INVESTING NOW

1t IS generally known that the first
Jonn Jacob Astor never sold "a piece
OF real estate. the maxim, which prov
cd a talisman that brought him great
wealth, was Buy when other people
want to sell; hold what you buy says
an exchange
In those days the real estate busi-
ness had not assumed its present mam-
moth proportions and Mr.. Astor in
ferred that when one wanted to sell
real estate it must be because the
owner was in urgent need Of money and
would consequently sacrifice such
property, If the occasion required it
This is probably why nc established
the maxim above quoted. If such were
construed into modern business par
lance it would simply mean that real
estate is always a desirable invest-
ment il it can he had cheap enough
and the situation is such as TO pro-
mise a constant and permanent in
crease in value. OF course IN our pres
ent real estate market people generally
! buy because others want TO sell so
badly that they succeed in impresslng
their desire upon the pseudo purchaser
ia such a way as to induce him to
buy although he may not really mean
to do so.
When business Is what people call
dun. or on strictly a normal basis the
volume is hardly one-haf as large as
IL becomes when the public mind is
! worked up TO the pitch whore It be-
llieves that in the immediate future
big advances are to be made in the
price of real estate and that by pur-
laI
profits can be made. This IS a spec
ulative spirit as distinct from am in
vestment spirit, which always govern
ed Mr.. Astor and his followers who
have grown rich through buying de-
sirable real estate.
The investment spirit, while not so
rampant or general as the speculative
spirit Is ever present and abiMLg and
is the hope of the real estate business
and the firm rock upon which 1t ever
rests.
All agents prefer to encourage the
speculative spirit, and in so doing they
are the instruments Of making large
sums of money for their clients IN
many cases, but there is always an
end to this method of becoming sud-
denly rich. Values when pressed be-
yond reasonable limits win begin to
shrink. Obligations placed on inflated
property will go by default. Public
confidence becomes shaken and a busi-
ness panic or shrinkage is the result.
Those who have been led too far be-
yond the line Of the legitimate win
suffer in consequence. They win find
that it will not pay them to send good
money after bad I'm attempting 10
make a second and third payment on
property purchased for FAR more than
iactual value. and they viii decide 10
lose what they have invested rather
! than further rob themselves OF what
they possess.
In the meantime, while the specu-
llative fever runs rampant, and the erst-
while conservative agents do violence
to their better judgment in recommend
ing an outlay Of money TO their clients
beyond the scope justified by facts and
! actual values. a city has received the
reputation of being on a boom, and
outside investors flock to the scene 10
Invest. not wisely, but too much, Of
their and other peoples money. The
, result OF such proceedings is always
: the same. II Injuries such city in the
! long run. and should be discouraged by
all who have the permanent welfare
OF a city at heart
This city has never really been fool
ish enough to launch out on the sea OF
speculation in the matter Of real esta.f
so far as 70 result in any permanent
Injury. She came nearer doing this