Year: 1871

NuuTcH uiu VI VIC Worlu Is gwen 10 the Oe6t
work In which mankind can engage, We shall
feel that we have been amply repaid for all
that we have done to bring it to pass


Tho Outlook in Real Estate in New York.


This is . matter that has engaged the
attention Of mems minds during the last
two years with much OF speculative anxiety,
during which time they have canvasssd,
accepted and dismissed various theories
Viewed from an intelligent standpoint,
with the light which clear understand
ing Of the circumstances and conditions
operating upon the present character Of
values gives, the problem is not one Of difficult
solution. Mathematically considered, II b
quite as capable of demonstration az any In
Euclid. In the flrst place we may state there
can be no better permanent invcstment-that
is what we regard rs permanent Investment
New York island, no matter where it is situ-
ated. The natural and determined growth of
the city, its increase in wealth, population and
commerce, will give sach additional value b
every acre environed thereby as to insure ten
years hence almost incalculable profits to the
have taken in our current history Of the move
ments in the real estate market. This
is the position we hold, and con-
fdently, without fear of contradiction.
Passing from the remote, however, aud ooul-
ing back to the immediats or near future, ws
do not end in the outlook the Same ground for
confidence. 1t is well known fact that
almost the entire Of Manhattan Island ID under
mortgage This arises from the circumstance
that, notwithstanding the enormous amount Of
our currency, it is difficult at times to obtain
sufficient Of the circulating mediums except a.
extravagant rates for the uses Of trade. Hencs
business men who buy store or house, rather
than sink their entire surplus capital In suoh
an investment, prefer to borrow money upon
the security of such store Or house, so that
they can keep their bank account open for
sudden emergencies. This is one great draw
back to real estate speculation in New York.


Coming to second branch Of our subject
we find the evil Of this mortgage system. II
works probably very well for capitalists. who,
although they may sacrifice t.e credit Of an
unencumbered fee in order to keep good
balance at their bankers, are always able to
avoid foreclosure; but in the case Of the
necessisous mortgager there is different
story.


Real estate was one of the last of all
values to feel the effect Of the war excitement
which sent all ther values ''kitiRg." During
the war real estate was dull and, avoiding tho
suggestiyeness of ALTERATION, we may say
very dull. When peace was concluded, or
accepted, or recognizcd-it is difficult, under
the circumstances, to find an exact term which
will express how peace was brought about
Shoddy came North; so did the fortunate
spectators In cotton. Some of the latter had
cotton In charge to European ports, bus
stopped S,a trds,sitW-much to their advantage.
These people looked around for q means Of
employing their surplus gains. The average
shoddy millionaire, or short biscuit capitalist
or cotton speculator, had not Intelligence
enough to so on the Stock Exchange and en-
ploy his funds there. A few did and got
''cleaned out" to use the vernacular of the
street. Mostly they went into real estate
bought largely, bought ignorantly, bought
Unfortunately, bought heavily. Real
estate during the war had been dulk
heavy, and, in fact, neglected The pre-
sence of this new element in the market gave
1t an impetus, and the great crowd Of specu-
lators on the Stock Exchange-gamblers pAr
Sc, who turn stock or q contract on real
estate in the same spirit as they watch card
In the hands Of a faro dealer or trust their for
tunes upon the eventualities Of the green
cloth-rushed in, with view of raking. In
their share of the profits.


In the present condition Of things it ID
impossible to tell who suffered. Prices wera
forced up to an abnormal degree Tha out
side public was ''roped in" and bought llber-
ally, and now we are reaping the consa-
quences,


This is the point Of the real estats
market of the period. During that excite
ment great many small capitalists bought
property on speculation, expecting to realize.
shortly at largo advance. Quickly rcaotion.
came and they were left with this property on.
their hands. The only relief was mortgage.
which they sought and obtained. Others