The sun., 1919-06-01

bring the possessors Of such bonds into
more intimate touch with New York city
property.
THE bonds are sold to the public at
ssh, at which price they yield frac-
tion more than 5h per cent. Mortgage
Investors will readily recognize this Is a
better yield than heretofore available
from this source of investment, and there
Is every prospect that the securities will
not be allowed to collect dust by remain
ing on the counters OF the owners. Now
tnat Wall Street has accepted these. and
doubtless will take other bonds of like
value and security. realty will have bet
ter opportunity to compete with liquid
securities. This feature alone IL valu-
able to the real property market, for 1t
banished the past weakness of Its
liquidity."
seldom has a transaction attracted
more interest in financial and realty
circles than the present one, and II Is
the consensus of opinion that the action
of the National City Company 10 one Of
the best things for the realty market
that has taken place in years c. u
Mitchell. president OF the National City
Company. In discussing the transaction
said:
First mortgages on large units OF
improved real estate in centres OF fixed
values In New York city. where the
margins between such mortgages and
the assessed and appraised values of
The property have been equal to or In
excess Of the requirements prescribed
in laws for saving bar,S investment,
and where established earning power
has clearly shown margins Of safety
| over and above interest and reasonable
| depreciation, have presented degree
| 10 ,rfN NhaA No. a1x otN
| the most execting of investment money
This degree OF safety and security
has been such, however, that tho large
| insurance companies have been willing
to take such first mortgages consider
| ably below the. rates prevailing IN tht
security investment market. As re-
| suit, the smaller investor and bond buyer
has had scent opportunity to take ad
vantage Of this character of first mort
| cages; and where he has availed him
self of smaller mortgages he has lacked
marketab!lity for his loans that has de
tracted from this character Of invest
ment.
War Brought About Change.
'"The war has brought a change. 1,p
probation Of patriotic duty in purchas'
Of Liberty bonds has drained tho In
surance companies of their surplus fund
for customary investment. and the losse
paye.e by life insurance companies in
cident to casualties during the war an,
the gyeat toll taken through the in
fiuenza epidemics have affected treas
| uries to the point where the insurance
companies cannot freely, for the Tint
| being at least, carry the burden o
the large mortgages as they have dom
in past years and at the same tim
meet the calls for mortgage money TO
new building construction that arc nov
most pressing.
"The absence of this character o
mortgage money has to no inconsider
able degree been responsible for lac'
Of building construction in New Yor
city in recent months. resulting in phe
nomenal rent increases both in Office
and apartment buildings increases wf1ic
have meant actual suffering to thou
sands of people and have forced upe
business men the necessity for adde
margins Of profit in their business an
, added wages to those who have bee
forced to pay the higher rent-in sue
a way as to materially increase tn
| general imitation already existent.
|, Under the circumstances, insuranc
, companies have naturally looked for r,
lief through possible payment Of matul