The San Francisco call., 1909-10-23
FUTURE OF REALTY
MARKET PROMISING
Vast Work of Rehabilitation
Has Kept the Values
FIuctaating
By JOHN McGAw

The spectator OF local events mus
no difhculty in seeing that which un-
derlies the local real estate situation
Tie frst concern Of this city. for the
aast. three years has been TO restore the
streets and buildings and to provide il
SELF with all indispensable means for
ahe pursuit Of business. manufacturing
and commerce. Into this large w.rk
several factors have entered. The fist
was the providing of sufficient money
TO put up new structures and to re-
grade and pave the streets. rhe under
writers having provided many millions
in payment Of risks written in fire in
surance policies. there was large
amount Of money so readily available
that little delay was occasloned in
starting on the path toward rehabili-
ration.
NEXT NECESSARY STEP
Then it was necessary to provide for
the removal OF large business houses
iron, Temporary locations back to tho
old districts The premises having been
provided. for many Of them by land
lords who had and have abiding conn
dence in san Francisco as business
center. a large. movement down town
began Immediately upon the expiration
Of the leases for the temporary ac-
commodations Certain large business
houses leased land down town and
erected their own structures Others
took their old quarters, rebuilt as was
necessary and continued business sts
snruffled as If nothing had ever taken
place TO interrupt their procedure
When the insurance money had been
paid over in large part, local capital
lists. outside capitalists and local banks
rrovioed money that was needed to ex-
tend the building area. It is matter
of common knowledge that the banks,
on their own account, have been among
the leading builders
BANKS IN THE LEAD
The readiness OF the banks to in
vest their money in locations In Mar
ket street and elsewhere, and the plans
that have been made and are in eXecu-
ton for the reconstruction Of some
banks. together with the splendid struc-
tures that have been completed by the
banks. is one Of the strongest argu-
ments that can be made TO the outsider
TO induce loans on favorable terms.
Recently the lOaning situation has i'm
s,roved The rate of interest On mort
cages is not excessive. Some of the
largest corporations in the United
States are extensively represented IN
loan money that has been expended In
the erection Of some Of the more prom
inent new buildings
The general situation is so well un-
derstOod that perhaps there Is lot 1eed
for much comment in reference to II.
Building materials are lower than they
were and the cost of construction is
less in consequence
TASK Is ENORMOUS
To some ii may seem that there are
still many unoccupied lots in various
parts of the business section The task
Of rebuilding the city is so vast that
the only legitimate remark in that
connection is that At is wonderful that
there are so few of such lots 10 me
the mercantile community has mani
tested its confidence in the future as
strongly a 5 the banks have Long silne
leases have been taken at rentals -hat
in the aggregate represent very large
amount Of money. When bankers 81 I'D
business men alike show confidence IN
this way others may safely believe IN
our progress as a sure foundation.
No city that was SO thoroughly
destroyed. leaving out of consideration
the large part Of the residential area
thai escaped the flames, could escape
the conditions. entsiling temporary un-
certainty as to realty values. that befell
tive and never fixed. The largest and
best established cities in the world
have Il nations. dependent upon pre-
Mailing mercial conditions and other
circul .ees.
WILL BE HIGHER
ain satisfied that real values in
san Francisco, in the future. viii be
greater than ever before in the history
of The city. ] am evidently not alone
in that belief, which fact is made
clear by the much more expensive class
Of Improvements that have been
erected since the fire; similarly by the
willingness of foreign corporations to
.invest their money here in loans. to
the extent of millions Of dollars.
The present building operations and
present deals in the real estate market
may be considered in the light OF rea-
sonable expectation TO be eminently-
conservative. and not speculative. That
IS, they are on sound and sensible
basis The rule Of supply and demand
always obtains. The rate of construc-
tion viii probably keep pace with the
demand for more buildings and prob
ably viii not much exceed ii. Except
in the district far removed from the
centers Of business. we have not erected
an excessive number OF residences.
MANY HOTELS BUILT
~ nave HOWENGAs put up a
larger number of hotels than San Fran
cisco had before 1906 and the same is
true Of apartment houses. The owners
OF these structures may be added TO
the large array Of others who have be-
tokened their belief in the future OF
the city. On an occasion like the
Portola festival the hotels have been of
inestimable value to the city. And
they are always OF great value by pro-
viding for the accommodation of the
visitors whom We are interested in
attracting IN large numbers.
Whatever Interruptions may come
TO US. there is nothing that can per-
manently stay our advancement. The
figures showing our present state-our
bank clearings, our foreign and domes-
tic commerce. our bank resources and
bank deposits, the building permits and
building contracts entered into, and
the resources indicated by the annual
statistics concerning farms, mines and
fisheries, and all other sources of
wealth that dement's san Francisco
arc pleasing, Of course.
FUTURE Is BRIGHT
But the interior is filing up with
settlers: the production Of wealth In
the interior counties is continually aug
menting; the mining Industry expands