The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-19


WORK Of rsouldins has bssn uRdsrsahsn
On an Important scale. Ths amount %
capital invested In new buildings in
creassd with astonishing raptdity for some
years bQfor0 the panic. creating brisk
demand for q great VARSITY % materials
and AugmenainG the industrial an opposed
TO tho agricultural population
TIE RseSvery 90 Prsess since ths PNnse
A Study % the building industry and az
prices since 1907 will throw sons light on
theeconomic e6eoe % the change - hich has
taken place in the real estate market. Al
ne have eeen. the title companies did q
lively business in selling mortgages after
the panic and had consequently money 20
invest In new loans. By the summer of
1904 10 wAs bscominR difficult to place 5
PEP cent. loans on improved Manhattan
real estate. Meanwhile IL was necessary
for the title companies 20 obtain this rate
10 they we're to keep up . supply % guar
ante~d mortgnges for sale TO investors.
who in view of the prizes quoted for bonds
could not he expected to buy mortgages
yielding lsss than az per cent. net.
In order 90 place mortgages In any
~~r@~Ns~A@N~A
thu borrower the title companies were
Obliged 10 encourage building enterprises
by Offering 60 make building loans and
20 convert them into permanent 5 per
cent. loans On the compilation Of the new
constructions. The oHer to convert
building loans into permanent loans re-
moved the chief risk ther~tofore accepted
by builders In undertaking new constFuc-
IL -,
the financing Of building enterprises.
Under the circumstances Il stimulated
building. created market for unimproved
realty. and gave employment 20 labor.
BY tho beginning % last year the Man
haitian real estate market was restored "a
. normal condition Of productive ACTIVE
ity and rising values.
The experience Of the New York real
estate market vas paralleled more or les
closely in other urban centr~s. re-
sumption % building enterprises was OBJ
served throughout the country az the same
time ~ IL became apparent in New York
There are no statistics at hand complied
with q view 60 showing In what month the
revival occurred. but IL ie known that a
brisk building movement was under way
In the summer Of 1908. A precise meas
ure Of the building activity by half yearly
periods 10 furnished for siHty LAX identical
cities in Brodstreef's CJAnuAry rs. IsiO,.
According 20 the statistica there compiled
the capital invested in ne- buildings dur
ing the last siH months Of leOs not only ex-
ceeded that invested during the first siI
months Of the same year. but surpassed
the investments during the last six months
Of year like 1913
The notable building movement that
developed during the latter half of Isos
expanded into a genuine boom in Isoa.
The total expenditure for building in the
sixty-six cities in question in 1850 was
s72s.sss.72o. which marked q gain ~ 81
per cent. over Isos and of 10 per cent over
the earlier high record year Of Isos.
The prosperity Of the agricultural West
cannot be cited in explanation oG these
figures. which refer 90 cities without TO-
gard To geographical distribution. The
revival % the building industry reflected
IN the statistics here quoted was a city
movement, general in character and con-
fined TO no one section Of the country
The movement developed in advance -
the revival 81 manufacturing. and the
fundamental cause 81 the early revival ~
building was the presence Of a great fund
Of capital available for mortgage loans
What meanwhile was the cour.. 81
commodity pricess The ri-e ip whole
sale prices before the panic eliminated
in October. 1917. There was a decline
from then on until August I9os Not
until Decsms,er did the monthly index
number % all commodities rise above the
average for the year In other words,
the index number for the last zIx months
II leOS was below that of the ir-t six
months. IL - evident then that the
upward turn in prices was preceded nv
the revival Of activity in the building
industry.
Prices advanced with startling rapidity
during 1879. and in January, 1910. reached
higher level than that recorded Just he
fore the panic. An advance such as this
II incomprehen-ible except on the ground
that IL vas preceded by a substantial re-
cuperation in the purchasing power 81 the
working classes. IL - safe 10 say that.
exclusive % the cost % sites ~ SIo .OO .OsO
was invested in the erection - new
buildings in the United States IN 1919
The building boom stimulated industry IN
every direction, including railway con-
strlction, and the demand for labor
brought about a renewal Of immigration
Indeed. the number 81 alien arrivals re-
ported for the latter half Of last wear has
seldom been equalled IN any preceding SIX
months. MICHAEL A. MTKkEISEN