New-York tribune., 1922-12-03
COrraled Wealth
Now Seems Looking
For Employment
Wabbly Investments and
Foreign Issues Losing
Support; Investors Are
Turning to Mortgages.
By Harold W. Watson
OF Dnross ConlpdnH

We are all familiar with the ez-
preston property poor" as applied
10 persons overburdened with realty
Of unbalanced or doubtful value, and
when you pause 70 consider the fact
thatthese United States have corraled
The greater part Of the worlds working
capital, In hard cash, during the past
ten years, you may even wonder that
We are not money poor II that be
possible.
n Ia now a matter Of history how
Ienino and Trotsky, filed to the brim
vith underdone philosophy, sailed
forth a few years ago with the avowed
intention Of making capital worthless
by destroying It's earning and purehas-
lne power. They seem 70 have sue
eeeded to q marRed degree In 80 far as
their own country Is concerned, there
fore IL is fair 10 assume that an over
amount Of wealth might have similar
eject. In that II would 60 begging tor
Investment. But we are we'll aware
that the last wey years Of financial
activity utterly disproyes the iatter
theory, maintaining, as we nave, tne
highest rates Of interest on invest
mcnt8 IN our hlstolg'
Rates Are Moving Down
Conservative first mortgage loans on
improved real estate have inyariaoiy y
proyed tho most satisfactory fern Oh
Investment, and during the reeonstrue-
ION period Of the last four or nNe
years we know that money has been
4 demand AZ rates varying from SIX
per cent, and more, per annum, WniIs
IN some Of our States an per cent
rate Is considered reasonable. -
There is every indication tnat tue
interest rate Of per cent wnieh nes
held strong for several years IN greats,tt
New York has settled down 70 o51
basis In Manhattan, while some gooo
,ized loans OF conservative nature
have also been placed on bronx prop
critics AZ that rate. While there wSs
: recent furry Of per cent money foI
Manhattan mortgages, II cannot pe
tsken aa an indication OF cneaPei
~onev Available In quantity at thi.
tJne a. the few loans made were based
On a low percentage Of the property
values.
Outsiders Help Situation Here
7, Il difssult 70 reconcile the mort
oaoe loan market OF to-day win ths
bnsiness Of fifteen, or even ten years
&C. a. narrow ideas under the guise
N conservation, have been dissipateo
hv The Inaux Of competitive investor,
won, other states, who have loaned
vasl spms Of money on a Liberal pasls
rhs.e mortgages against which Dond'
vvere issued bearing attractive rste,
~ interest were sold 10 investors hefe
and In various parts OF the eoup'iS :"
large or small amounts.
A few years ago a mortgage loan ~
s6oo 600 covering one piece OF proper,
80 much talked about TRANSACTION
h.,, to-dav We find many Of these fnsn
siro companies making ndiNioue
sane. n several millions Of dollars. II
-. ,rstanee the lenders made me-
orest ~ ~ over 81 100000 in selling ~
srtire bond issue covering one pAfee
re.l estase, and this inside 80
weeks. Existing conditions ,etss =
show that ~o are conducting Dusinss'
an a much larger and more hDei"
~c.Io than In pre-war days n
Returning 20 the housing siteallon
-. note that, while there mas peeh
great shortage in space, this alone y
- responsible for the continued oe
a,5 for new building, Tor u mus
.isa he remembered that with Dettefe.e
s-s,eiaI conditions hosts OF peopi'
l'ns . te,.stine the old style Of Twins
"a are demanding more habi.aole ane ,;
g,-,o date surroundings Thien u wa