The sun., 1907-11-24
THE REAL ESTATE MARKET
lEORTGAGE LOAN SITUATION RS
EASING UP.

lW7 500 600 was Loaned ON Manhattan
Realty Last Week. as Against 81. .eOO.-
OOO On the Week After the Panic
Y Big sale OR Guaranteed MORTGAGES.
y In one important quarter the real estate
market last week reflected a notable inn
provement. The mortgage lean branch
Furnished what appears to be good evidence
}oR having worked itself out OF its state oS
acute striDgency. The amount Of money
loaned by banks. trust companies and
insurance companies on Manhattan realty
was not only far larger than 10 has been
In any other week since the Panic. but
was nearly once again as large as it was
n year ago during the same period.
In the week following the pFnic the
loans recorded by moneyed institutions
aggregated only SS7o.5CO. The weekly
total rose gradually until it reached 81
o6O. 900 q week ago. During the week
just closed. however. il jumped to $685.
900. This sum, which would be a high
average in normal times compares favor
ably with the $3.50 eco loaned in the cor
responding week of 1863. IL has been
! reached by a process OF expansion in
mortgage investments that seems to be
well understood II can hardly be regarded
as an isolated occurrence and must un-
doubtedly be interpreted 10 mean a de-
cided and progressive easing UP Of the
mortgage loan situation.
The rise in the volume Of capital loaned
on Manhattan real estate by moneyed in
stitutions has been accompanied by a con-
siderable expansion Of mortgage invest
ments by private lenders. including trustees
and executors Of estates. The loans attribu-
table to this source increased from 81 .0sl 900
in the week after the panic to q, 776 900 last
week.
Combining the loans recorded by insti-
buttons and by private investors, the weekly
sum total has advanced from about 81 ,s8O,-
900 to about 81, 700 900. IL is evident that a
weekly influx Of capital in such volume as
this would relieve the market for real prop
.ertv Of financial tension in a comparatively
"A - time.
new demand for mortgage invest
meats made itself felt Immediately after
the suspension Of the KniCkerbOClSer Trust
Company. Many depositors who closed
their bank accounts during the panic at
once invested their money wholly or in
part in guaranteed mortgages.
The title companies were stocked up with
such securities for which there had pre-.
viously been only a limited sale. Owing
20 the high interest rates that had prevailed
for more than a year the title companies
were able to- Offer mortgages for sale on
terms that will net the buyer from ~ per
cent. to So per cent. a year. As the pay
nent of both the principal and interest
In guaranteed by the companies the mort
cages are finding purchasers not only here
but abroad Consequently for several
weeks past the title companies have been
receiving orders for mortgages from all
over the United States as well as from other
countries and have been putting the pro-
oeeds Of the sales into new loans.
Meanwhile the safety OF conservative
loans on New York real estate is so well
recognized that investors who possess the
required knowledge of values do not hesi-
tate to make loans directly. securing for
themselves the commission of one-half
OF per cent. charged for guaranteed mort
cages. The result Is that. as the records
show. savings banks and trust companies
helped to swell last weeks loans. evidently
seeing no danger OF any further raids on
their cash by frightened depositors.
In the light OF Developments in the mort
gage loan market there appears TO be good
reason to believe that liquidation in real
,Nstate will be on a comparatively light
pale, It Is at any rate significant that
tnly thirty foreclosure suits we're begun
last week, as against thirty-two in the
preceding week OF course the decrease
in number is small enough, but the mere
fact OF any decrease at all was altogether
Oneypected,