Los Angeles herald., 1907-09-22
SAFETY is
THE SLOGAN
FEvERIsH SPECULATION HAS
DISAPPEARED
LEGITIMATE BUSINESS NOW THE
ORDER
BY Their Conservatism Banks Have
Done an Immense Service to Los
Angeles Real Estate
Operators

Mayor Harper's satire on the recent
frigidity of the banks, which he deliv-
cred at the new mining exchange ban
quiet Tuesday night, has been looked
upon as containing much food for
thought, humorously seasoned. His
honor pictured gathering of members
of the clearing house at which an owl
like appearance obtruded itself. One
member remarked that he had been
approached that morning by a gentle
man who desired to secure an advance
on a shipment of goods which were
soon to arrive, but he had felt himself
inclined to refuse. Conditions were a
little unsatisfactory at present. An
other member had been compelled to
deny the application of friend in the
San Gabriel valley for a short loan.
Things seemed to be slightly uncertain.
Still another reported chilliness creep
through his system when he had been
approached few minutes earlier in the
morning by a customer who needed a
small amount of ready cash. But he
too had premonitions of a tinge of
frost in business conditions.
The result of the Informal pre-
session conference was spell of real
cold weather in the money world, now
happily exhibiting some signs of relief.
Banks Conservative
Whether the banks have been justi-
fed in their attitude or not may be
left for discussion in other quarters.
= &c to tba+
the men who manage them are conser-
vative men in charge of a trust and
that this trust must be protected at
all hazards, even at the cost of some
criticism. For instance it has been
suggested that the banks have been
standing in their own light during the
recent weeks A few days ago prom
inent real estate man met at lunch
y friend who Is employed in one of the
local financial institutions, ana during
the conversation gave expression to the
above observation. The banker replied
that he was possessed of the same
opinion and said just that morning a
sum including five figures, naming the
exact amount. had been withdrawn
from the bank he represents for loan
to a corporation which he understood
could have been made by the bank
YES" said the real estate man, ''and
we got the money We offered your.
bank the opportunity but was turned
down"
But, as a partial answer, it should
not be forgotten that, though the
banker in this case may have thought
the security good, yet for him to
deviate from a determined cours
which present conditions seem to de-
mand in unqualified terms, might place
him in a very unenviable light among
other customers.
1t must be admitted even by the
severest critics that this drawing in of
the reins has not been without a salu-
tary effect upon real estate operations
in Los Angeles.
It has not deprived the people of
work nor of sufficient money to meet
outstanding obligations. Those who
have had to sacrifice their property ARE
Just as few and far apart as they were
in the recent days when property was
turning so fast and there seemed to be |
no limit to the money market. One
building firm in the city reports that |
their collections during the past three |
months have been as good as they have
ever been in the history of their opera |
tions, and that they are so confident of
the immediate future that extensive |
plans are now being made for further |
Investment in a large number of new
homes.
Speculation Gone
But feverish speculation has been
stopped A person can't buy a vacant
space of ground in any old place and |
turn it the next day for profit of sew
eral hundred dollars as he could have
done some time ago. Such operation is
on par with a wild gamble in stock
speculation. 1t isn't good sense. The
one who indulges in it banks on the
other fellows being more excited and
a bigger fool than he is.
Today you have to show the other
fellow. You must proceed on the as
sumption that he has been endowed
with as good sense as you. A closer
approximation to an equilibrium has
been established. Individuals are not
depositing money on property now as it
is laid on the colored spots of a wheel
of fortune, trusting that the needle of
chance will favor them. They are
buying for investment because they be-
Iieve the future will bring them an in
crement worth while. They have con-
fdence not only in the ultimate destiny
of Los Angeles and it's tributaries but
that the immediate future is encourag-
ing to men of keen business judgment
"Get-rich- quick" schemes are not
tempting to the man whose success has {
been built on legitimate methods. He I
knows that the unnatural excitement
that they create leads the great mass
of peopue to tread on dangerous
eronnd and that when the day of reck-
ontng comes, as come it always does, ]
many will find themselves occupying !
pinched quarters, financially speaking. !
1t is just the absence OF this un-
healthy state of affairs which Los An
geles offers to the men or large
means who are now placing their
money in her high class property
f@%%-----
40 AAINEJEc NECIHNER