Evening star., 1929-12-14
REALTY EXCHANGE
TO THAW CREDITS
New Market in Gotham Ex-
peCted to Meet Modern
Needs.
BY LEMUEL F. PARTON.

Special Dispatch to The Star.
NEW YORK, December 14.-Mon-
days opening of the New York Real
Estate Securities Exchange will be the
first large-scale effort to thaw QUO
frozen real estate holdings and pour
them into the swiftly running stream
of national wealth.
Among the $50 members. each of
whom paid $4,000 initiation fee. there
are many operators in large cities. With
Endorsements from all parts of the
country, the enterprise assumes a ma
tional character, and to many observers
bulk large as major development Ill
business economics.
The exchange was projected at the
height of the bull market, but begins
operations at time when the Lorlet OF
speculation beckons less alluringly To
the average investor. This, however,
does not dismay the founders, and
they are going ahead with an almost
evangelical enthusiasm. Land, as the
basis of all wealth, is the bedrock OF
their securities. as contrasted to the
more transient values of goods and
commodities, and in their public an
nouncements their emphasis is on the
safe and conservative investment which
real estate offers.
Objects of Exchange.
Operators heralding the exchange
have dWelt on the diversion of money
from real estate by the stock market,
and have predicted that liquid values
in real estate would make money avail
able at the going rate" rather than
the higher rate of real estate in the
past
With the exchange operating exactly
as the New York Stock Exchange, IL is
expected to do two things: Constantly
to disclose actual and Immediately re-
alizable values and to stimulate mar
ket which has been bit sluggish With
good real estate bonds offered at less
than par. In handling real estate
stocks, as we'll as bonds. it will enable
investors to realize quickly on appreci-
alton in value, instead OF waiting for
the maturity of bond and risking
later recession.
In the groundwork studies which
have been made it appears that city
and suburban developments have been
stressed rather than transactions in
small town or rural holdings. James
Park, New York operator, returning
from a study of investment methods
abroad, particularly emphasizes this
view.
This parallels economic trends in
large cities, as great shifts of popula-
ton, such as New York City has wit
messed in the last few years, new traf-
fic and transportation developments,
sudden concentration of business in
certain localities and other such urban
developments indicate the need for
more plastic securities. 1t is also hoped
by the founders that the exchange will
remove from the business the fringe of
dubious operators and under the strict
supervision of the board of governors
provide rigid guaranty of value as es-
tablished by the ineXorable records Of
supply and demand.
New Buildings.
It is estimated that about $10000,-
100000 is spent on new buildings in the
United States every year, with ground
values totaling about $4,000 900 900. OF
this annual total of $12,500, ,000, 900
only 500,000,000 is supplied by indi-
vidual owners and operators. The re-
naming $4,000, 100000 represents the
real estate securities for which the ex-
change now seeks more fluid form.