Year: 1870

Prospects for the spring-City


and Suburban Property.


the pending legislation In Congress upon the
financial situation has thus far WORKED injurousy to
the real estate interests. Usually the market showed
incpient activity In December, beginning then with
city property, and with an interval OF duness about
sue period OF the holidays Dlossomed into quite an
animated condition during the months OF January
ana February and reached perfect frution about
April or May. Following these traditions last year
In ty opening stages Of development IL suffered
severe blight In March, the result OF too much fore
ing. and since them with exceptions In certain
directions or to carry out the figure. exceptional
species, has been In lsngud and rather unproduc-
tive condition. The particular reasons which
brought about the collapse Of last spring are per-
haps too well known to need repetition, but as they
have certain reference to the present condition Of
the msrxet some


RECAPITULATION


OF them at this time may not be entirely NAL
dpropos from The commencement OF the
movement IN real estate in December, 18os
there entered into the market large
speculative interest," and the season advanced this
increased until 1t assumed the proportions Of the
widest excitement on the Stock Exchange There
can DO doubt thas it stimulated to great ex-
tent BY the fact that the leading journals OF the city
which had for some time given but Indifferent and
casual reports Of real estate dealings following In
the wake OF the HERALD, which finding this interest
growing again into prominence, revived its former
elaborate reports Of transactions by the full tran
script they gave from day to day Of ssles attracted
public attention to the market, and brought IN an
army OF purchasers who otherwise might have re-
mained unconscious Of the opportunities for pronta
bic investment which real estate this island and
In it, vicinity afforded. There Is no good, however,
without its alloy, and the active inquiry which was
thus brought out, proved an opportunity for


THOUSANDS OF spECULAToRs


on smah capital, some of them without any, to
make money by purchasing desirable lots and hold
ing them over for future SALE This gave rise to the
contract system, which was nothing more than a
bold speculative risk assumed by certain operators
who bought lots at auction and by paying the auc
tioneers fees, and the requisite deposit, obtained
control Of many desirable lots in the expectation
that between the time of their purchase and the
time when tney would be called on to receive the
deed they would be able to sell again fair pront.
This proved In the prevailing excitement, in very
many causes, most successful speculative ventures,
and as this success OF some ended In increasing the
number OF such SPECTATORS, and in keeping alive
the excitement, 1t proved very remuneratve for
some months When it had culminareo, however
and from the number thus engaged In bulling the
market, bona, tide purchasers had become alarmed
and were holding aloof, holders Of real estate not
apprecating the real temper OF the market and be.
Neving the falling or In the inquiry was without
cause sought to galvanze the growing dormant
feeling Of the market int renewed excitement by


BOGUS SALES,


property not always the most desirable being
offered In large invoices. and almost unblusningly
bid up In the interest Of the owners and bought in
with view to create fictitious valuation which in
many cases It did not deserve. This did not last
long; and about March came perfect suspension Of
dealings the real purchasers Withdrawing In dis
gust at the Peter Funk manner In which auction
dealings were being conducted. Since then tbs
market, except for certain kinds of suburban pro-
perty, has been heavy and dull, and during last
mer and fall, and almost up TO this period Of the
current winter transactions with these ptions
have been almost exceptional and ct auction mainly
confined to court sales 1t IL noticeable however
that during this time the market has preserved It's
nrmness, and but few concessions have been made
BY holders In dlsposing Of good located city pro-
perty.


The decline in gold following


THE SEPTEMBER PANIC


was one strong influence In maintaining the stagna-
sion in the real estate market which followed the
elimination OF the spring excitement during the
early winter months. In the first place the appre-
citation OF greenbacks incident the rapid and very
considerable falling on in the gold premium was
thought to furnish principal condition. from which
decline In real estate would follow as necessary
c0rr0llary. The fear likewise created by this unex.
pected turn in gold values, OF rapid 70 specie
payments aided to repress transactions, which was
still further helped even after such consummation
was proven unlikely by


PENDING FINANCIAL LEGISLATION


In Congress. The various propositions made to
fund the national debt at lower rate OF interest
unsettled real estate values by the prospect Afforded
OF transfer OF much capital from governmen
which would thus become less profitable as invest
ments especially to American holders, the decrease
In the interest at present paid owing to the decline
IN gold already secured being likewise operative
the same sense. The confict between the innation-
lists ana contractionlsts in Congress, and the un-
certainty felt as to their relative strength like
wise introduced another element OF disturbance
In the real estate market, as pending the settlement
OF question calculated to exercise so important
influence upon all current values capitalists be.
came conservative In regard to investments and In
disposed to enter into engagements the precise
monetary price Of which IL was diicult to deter
mine The decision OF the Supreme Court upon
the


VALIDITY OF THE LEGAL TENDER ACT
was thought to introduce new element Of depress
ing influence into real estate In IT. effect upon old
mortgages, but careful inquiry among real estate
men shows that there are but few OF these ante.
dated to 1862 outstanding while it mas generally
been accepted that renewals since then will be re-
garded as legal tender contracts.


THE PRESENT CONDITION OF THE MARKET,
Notwithstanding these adverse influences to
activity, offers, however every encouragement for
an animated and buoyant season. Conversing with
parties who, from their position In the very OF
the trade and who can be safely considered without