The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-10

NOT one dollar for new construction
until this war Ia won." was the answer
given by the president Of one Of the title
companies to all applications for loans
Tor building purposes, and that was the
spirit OF the att ude Of all the rest.
But now the war Is won and there
VIII begin at once an urgent effort TO
get back to normal conditions OF busi-
ness-of buying and selling of proper
ties and OF Improvement and reimprove-
ment OF them. The opportunist will see
no obstacles TO the Immediate resump-
tion of normal conditions. His needs are
urgent and he will brook no restraint,
But every step toward the restoration
OF normal conditions will take time,
Will inevitably take time, and Mr.. OPP
portunist will have to wait.
Readlustments are going to be neces-
sary in the costs OF materials and labor.
as well as In the supply Of financial ac-
commodations. The latter will not be
needed until the former have been
achieved. 1t is safe to say that hnan-
tial accommodation will be supplied to
every dernonstrably safe and commend
able operation when and as needed.
1t Is more than likely that the earlier
forms of financial operations In real
property will reveal some changes and
innovations In method. Large sums will
only be obtainabie probably through
some system of underwriting by which
the loan will be issued to and absorbed
by the public in the shape Of guaran-
teed bonds or participation certificates.
The enactment OF the Gilchrist bill at
the last session OF the Legislature was
designed to facilitate this form of trans
action, and the course of the market
since July l shows that there has been
continuous growth OF business along
that line. The titls companies have sold
more certificates of participation In
mortgages in the interval, than they
have Of small mortgages.
Making these guaranteed certificates
lawful form of investment for trust es-
tates has served to supply the needs OF
the market to a limited extent, but their
best effect has been to demonstrate to
, all investors the absolute SAFETY and
probability Of this form of Investments
That there is money enough in the
country to meet all tho demands OF the
expected Industrial revival Is not Ques-
toned by anybody. The war has not
only diverted the flow OF currency from
its usual currents. but It has operated
to greatly augment the supply. In the
readjustments that are corning the fiov
of this currency viii inevitably be turned
back into normal channels and SO bt
made available for normal uses.
The savings banks, probably. will b.
the first to feel the effect of this restora.
ton Of the currents OF finance to theii
normal channels, and they may thus b.
the first of the institutions ready t
meet the coming demand for funds fol
real property Improvement But 1t will
not be long before individuals, insuranc,
companies. mortgage and title companies
will all be ready TO respond to the de
mand for all legitimate requirements.
There is a spirit of conservatism II
control OF all financial institutions. how
ever, and there will undoubtedly be en-
countered with all Of them q denan
for a larger margin Of investment b!
the borrower In any new operations I,
be financed for long time to com
than has hitherto been the practice.
Fundamentally the market Is II
stronger condition than before for
generation. The demand for rentabl
space Is in general larger than the sup
ply and In persistent. Consequent,
rehts are rising and investment prop
critics are paying better than ever
Lenders are glad TO note that condition
it helped them materially in tiding tn
market over the most trying, crittca
period II has ever known; and II a
know themselves and they think the
do. they do not mean to do anythin
that will ever hereafter threaten tn
stability of that market Wherefore
conservatism Is the order of the da
and there will be no danger for a con
siderable period of any borrowing out
or overprtduction OF buildings.