The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-02-03

First Mortgage Bonds on
Washington Property Prove
Popular Investment
BY RICHARD HATTON.

While the increasing prosperity of
the country is having its effect upon
the general bond market with indica-
tons that the lower grade, non
speculative bonds ranging from 5%
per cent upward will continue to
be considered good investments, it
is especially worthy Of note that the
local bond market is continuing ac-
tive with the opening Of the second
month of the year. First mortgage
notes in the District Of Columbia
are predominant factors in local ia
vestment circles. Extended building
operations in the National Capital
with an advancing demand for this
class OF securities are causes under
lying the present stability of the
local bond market.
Values Increased.
The popularity of local mortgage
bonds Is not surprising when 1t is
realized that for more than half q
century real estate values in Wash
ington have increased during every
two-year period. This evidence of
stability and progress is one Of the
contributing causes to the present
strength of local first mortgage In
vesting. Another contributing in-
fluence to the popularity Of first
mortgage upon property in the Dis
trict of Columbia IL the fact that
there are thousands of Government
employees in washington whose posi-
tons and salaries are petmAnelit and
who are protected by Civil Service.
It is estimated that the salaries OF
these permanent citizens aggregate
over 1920, 900, 900 per annum. This
In itself is a great stabilizing infu-
ence In all local investments, re-
ducing the speculative factor to q
minimum. Moreover, washington
Is practically assured of freedom
from periodical Industrial depression
such as has occurred In the past In
communities dependent upon great
manufacturing pay rolls. Indus
trial upheavals and depreasi0ns have
had their defnoraliEine effect upon
investments in the large steel cen-
tiers. the textile territory and other
great industrial sections. Crop fail
1res, adverse marketing conditions
and legislation have hit values in
vast agricultural regions at times.
Nevertheless, were the entire agri.
cultural area OF the country, the
steel plants, the automobile ana tife
industries or the textile mills OF New
England to shut down or suffer a
Y,e,.ind of severe depression, the
United States Government and its
army of employees in Washington
would continue to function and tho
Governments expenditures in sal
aries. alone, here would continue 70
reach a tremendous sum.
No Depression.
If for no other reason than be.
cause of this stimulation through the
continuation Of government expendi.
lures, reaching well over 100000, 900
a year, real estate values in Wash
ington cannot suffer any severe re-
action and bonds and first mort
cages secured by local real estate
should continue to be safe invest
rnents. There is no period or depres.
sion in the government Iactorles'
there are no strikes among govern
ment employees, there are no lock-
outs and no wage cuts.
The value of local bonds and first
mortgages as conservative invest
ments is recognized outside Of Wash
inRton and there is a steady demand
for these securities on the part OF
those who are coming to RECOGNIZES
the growing importance of the ma
tiofi's chief governmental center ana
the tremendous future development
which must, necessarily, take place
in and about this city, the seat OF
the greatest of all national indus
tries, government.
Many conservative investors who
have accumulated their capltai
Through enterprises carried on in
other sections of the country arc
now turning to Washington seeking
permanent investments because they
realize the security of property
values here and the stability OF local
conditions. The security which sur
rounds the National Government
casts it's projections over the local
financial and bond market ana
throws a protecting insurance over
ali legitimate investment enterprises.
Good Investment.
While no field of investment in the
country has shown greater growth
during the past few years than mas
that covering local real estate first
mortgage bonds it is notable that
this increase has been especially
substantial in Washington ana the
general reaction from a survey OF
the local bond and mortgage market,
from the standpoint of its invest.
ment possibilities, during the present
wear, and for many years to come,
leads to the conclusion, conculred
in by bankers, brokers and real es'
tate men, generally, in the Dlstrlct
of Columbia, that investments in
first mortgage notes and properly
secured local bonds are good. Ger
tainly the present activity OF the
fnhfNQfaa thar the
Investing public is IN agreement with
ALo.~- -,,1oo hapdIa fhia class OF sc.