New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-03
ACTION TAKEN IN
HELP BORROWERS
Course Directed by Al
visory Council to Keen
Interest Rates Down.
PROGRAMME ADOpTfn
IN GLOOMlEST PERIOn
Marked Improvement 81 zee Th,,
in the Local Money
Channels.

A most significant position has s.,,
taken by the Advisory Council Of Rs
Estate Interests with references 70 /,
terest rates upon mortgages Owius.
depressed business conditions ~
orally, as we'll az TO the reaction resi-.
ing from the destruction Of eeoaor,
forces in the European war, the ssr.
cial stringency in the city has BE-,
marked. As a consequences, inerese
rates of interest for loans have and a.
being asked BY financial i1sti.sao,,
and individuals in commercial and il.
dustrial activities. Il was appreherSsi
that this tendency 20 advance rata, =
interest would be reflected in the "a
estate market. The advisory eog.,
has realized since last summer that Z
this tendency 20 demand higher in.s,.
est rates were 70 become general amos,
lenders upon real estate Throughout Z,
city, many real estate owners and brs,
ers would be confronted by grave a.
ficulty in financing their real sslaa
operations.
Il has been the aim of the adviser
council 20 advocate, advise and sugc,r
to all financial institutions and I'D.
vidual lenders Of the city that ia r
opinion it would not pe eXpedient
inaugurate any policy az the prsssr
time which would require higher int.
est rates. Not only did the member
of the council recommend such actici
70 others, but they have endeayorei 5
adopt such a course themselves Ia a
transactions relating 20 renewals q
mortgages and interest on loans.
This attitude on the part o. as
council upon an exceedingly delicaa
fiscal question constitutes a strk.rg
contrast with the action Of lenders :
other fields Of business. Moreover, lie
action of the advisory counci. il e..
deayoring 70 prevent an increase OF H..
terest rates on mortgages indicate, 4
generous spirit Of cooperation an!
mutual interest in the real estate sit-.
alton in the city by its members. L Is
sincerely hoped that the position o. tie
council in this respect will have a.
ameliatory effect, particularly in ca.
tioning every one against taking unfair
advantage of stringent conditics
which is, however, daily becoming less
alarming. Recognizing the fact ikai
the financial condition in real estate Is
not as rigid nor as rigorous as i va
a few months ago, the council has
deemed il wise TO publish the following
resolution adopted some time ago:
Resolved. That in view Of the prese,,
,,n-o.kroI 81. r-fa1 cnwHfsfnr ga ~
the opinion that, in relation % hu.
mortgages on real estate in this city
il is q good business policy 20 Tefrs'r
from demanding an unreasonable raj,
of interest as a condition for exiea'
sion of payment.
We have learned with satisfacto'
that holders of mortgages, both COZ
porate and Individual have. in many "a
stances. met the situation on the abov
lines and have been willing 70 give BOZ
rowers time 20 make partial paymei
on account of principal, witnhoidia
the institution Of foreclosure proceed
ings when interest and taxes have bee
fully paid.
The council is Of the opinion tia
the policy OF requiring a small anpri
payment in reduction Of the prineip'
Of mortgages would be OF great adyat
tage both 20 the owner and the NOR
gage, and that such annual payment
would tend 10 discourage unwise spe;
ulation in real estate and be likely 2
add to its desirability as a permans1
investment, and at the same time I
would maintain the security Of nor
cages thereon. -,
William J. Amend. Adolph Bloch, Ia
ward c. Blum, Clarence II. KELSEY
Willard V. King, G.. Rowland Leayii
Laurence VI. D. Mcclure, Alfred :
Marling, Albert G. Milbank, Cyrus T.
Miller, Thomas VI. Mulry, Charles :
Peabody, Frederick b. Pratt an
William s. Van Clief.