December 8, 1887





The 'Record   and   Guide.





1611





10T9 39th street, near Sd avenue. Two five-story stores and tene¬
ments.   Mortgage $25,000,    Rent $4,000..................    84,000

2003 Brooklyn, N. Y.    Fine improved property, free and clear, to

exchange for New York business property................    85,000

2002 To exchange: $150,000 worth of free and clear lots for New
York improved property..................................

--------•--------

The Mayor has officially extended the time for completing the books,
raaps and indices for " recording and indexing conveyances and instru¬
ments relating to land in New York city, according to limited areas,"
till the 30th day of June, 1888.    The act relative to the matter is to go

into effect on that date.

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Principles for the Correct Valuation of. Real Estate.

Editor Record and Guide:

Tbe subject of proper valuations of realty in our cities, whether for pur¬
poses of taxation, appropriation under right of eminent domain, or simple
purchase and sale between ordinary buyers or sellers, is one of constantly
increasing importance. The various valuations put upon the several pieces
of property for the contemplated use of public markets in Newark illus¬
trates this. How differently are the several localities, in general, estimated;
for example, the location between Broad, Comraerce.^Mulberry and'Canal
streets; secondly, the location temporarily used In East Newark or Harri¬
son; thirdly, the old burying-eround; fourthly, the Orange street prop¬
erty, etc. But waiving for the present the most important factor—the
convenience of the people—what are the other tests of the money'values of
properties iu these several localities? Descending to individual pieces
located vpithin any one of these separate tracts, how varied are|tbe different
teets of value, and how great the discrepancy in the valuations themselves,
OS made by different parties. In some future letter you may .care to hear
of the astonishing disparity in the valuations, both of businesa property
and resident property, iu a dozen of our large cities, running all the way
from $6,000 to $500 a front foot for business property, and from $500 to
$50 for resident property. Many reported valuations of realty in the City
of Newark are made with a singular want of accuracy and sound prin¬
ciple. We have just heard of oue expert estimating a certain piece of prop¬
erty at $40,000, and another expert estimating tbe same as worth $18,000,
and that in the best street of this city.

In arriving at correct valuations in the cities of the United States, com¬
parisons with properties similarly situated in European cities should be
made with peculiar care. The tests of value iu Germany. In France, in
Russia, in Great Britain vary soraewhat; but as the United States of
America is growing faster than any other firstclass country, as more of
our large cities are growing quicker than those of any otber country, and as
the Metropolitan District of New York is, for the present century at least,
by far the most progressive in numbers, wealth and commercial import¬
ance, it is clear that the starting point for the correct estimate of real
estate here is different and quite independent of some considerations which
affect other regions.

Newark is a very close neighbor of New York. It is not, strictly. Its
suburb or under-city, because It is itself the metropolis of a different sov¬
ereign State. It is under a different constitution and different laws, has a
different civilization and policy, however largely tbey may be qualified by
proxiraity to its neighbor. At tbe same time this very proximity, and
indeed its owu location, are both important elements in shaping its char¬
acter. Its proximity affords its residents all the advantages of an actual,
vital connection with New York ; sharing the markets of the metropolis,
and aU the advantages of railroads, water-ways (natural and artificial),
telegraphs, etc., while its general location favors accessibility to coal mines.
Iron mines and rich agricultural districts. Thus many important factors
unite in determining the practical value of the real e.state within its Umits.
Therefore, it may well be asked, why does real estate in Newark command
such unreasonably low figures ? Tbat the valuations are low is apparent to
any one who has given the matter attention. Suffice it to say that none of
the reasons assigned for the under-valuations of property there are now
operative, or justified by facts. It is now au old story that tbe absorption
of large numbers of properties by corporations which had loaned money
and taken tbese properties under foreclosure, has placed many houses on
the market and thus depressed properties. The fact Is that almost all these
properties have already been picked up by keen investors. Had tbe prac¬
tice existed of publish'ng the quotations of the values of tbeir moneyed
corporations, and full reports of their investments also appeared ; had tbe
people been thoroughly informed of the different doings of its banks, insur¬
ance companies and other institutions, it never would have happened that
so many failures would have suddenly occurred, to the astonisbmont of the
public, and particularly of those interested; nor would so many corpora¬
tions have been unduly loaded up with bad loans and unproductive prop¬
erties.    But this, fortunately, is now a thing of the past,

Secondly. There is no doubt iu the minds of impartial observers that
the prevailing system of purchase and sale of properties through real estate
agents in Newark and vicinity is faulty. Were a piece of property placed
in the hands of oue agent exclusively that agent could maintain its proper
price. As it is, almost every real estate agent seems to feel at liberty to
list on bis books any piece of property of wbich he can, by any method,
obtain tbe description. There is no necessity of this hawking property
about; for if one agent had the exclusive handling of it, any other who has
actually contributed to its purchase or sale for him could, ordinarily, share
the former's commissions. But, so hungry are certain of tbese agents for
a transaction, that even when a piece of property is offered for sale by one
of their number, it becomes at the mercy of the whole profession, who
encourage the would-be purchaser to believe that, by crying down tbe
property, by postponing action, and by other questionable methods, the
property can be bought at a lower price. Thia practice haa tended not
only to depress valuations of tbe best property in Newark far below ita
legitimate worth, but it has encouraged a horde of cheap, irresponsible
operators in getting possession of vacant lots at little cost, then erecting
small, monotonous cabins, which they sell at an enormous profit. Such
policy is detrimental to the substantial growth of any respectable city.
Were a party to purchase first a lot at a fair price, then build his own
bouse, he would effect a great saving and own property. Tbe system of
building loau associations—aiding the individual iu becoming bis own
householder—is, however, something greatly to be encouraged.

Thirdly. A brief reierence to one other erroneous and unwarrantable
practice in estimating realty will suffice for this article. Many preju¬
diced and short-sighted persons are so infatuated with the "peculiar"
value of property witbin a stone^a throw of a certain locality—tbe cor¬
ner of Broad and Market streets, in Newark, for instance—as to think
tbat no other property in that great city of 1T0,000 inhabitants is at all
valuable for certain commercial or financial purposes ! How ridiculous
thia seems, when one reflects that both Centre street station, and the
station on tbe Newark and New York Railroad, near Fair street, are both
nearer WaU street, than is their much glorified corner of Broad and Mar¬
ket streets; that thousands of Newarkers transact their daUy business in





New York, and that many of their banks and other moneyed institutions
make their important exchanges and deposits in the latter city.

Only lately did we hear two of their old and substantial citizens expreaa
the persistent opinion t^tat any property north of Commerce street, or south
of Mechanic street, ou Broad, was unsuitable for financial business I
Probably the coucrete fact of the Prudential Insurance Company's build¬
ing, presently to be erected on the corner of Franklin and Broad streets,
will ''scatter into smithereens" all such nonsense. In tbe greatest cities,
London, New York, etc., in fact in all cities of upwards of 50,000 inhab-
itants, some of the leading moneyed institutions are located remotely from
the chief business centres. The stock of the Second National Bank,
located on the corner of 23d street and 5th avenue, New York, is
quoted at SOO. In New Haven, Hartford and elsewhere, the best banks
are scattered throughout different parts of these cities. Recently
we heard a party disparage the value of property situated lesa than two
blocks frora the corner of Broad and Market streeta aa worth only one-
thira of similar property somewhat nearer such comer, whereas the
former contained nearly three times as many square feet. We know that
it will be urged tbat the best test of the value of real property is, *' what
will it fetch In open market?" True; but, further, such price is largely
determined by what rental does tbe property bring or can fairly be made
to bring ? Wbat we contend for is, that in determining what use certain
property can be put to in order to be more productive and therefore more
valuable, purchasers should honestly consider the actual merits and
material facts; such as the size of the property, locality, its accessibility,
etc.; in a word, tbey should as far as possible intelUgently consider all the
possible aud prospective factors, according to those rules wbich are now,
and loug have been, generally applied, in estimating the value of property
in the most enlightened social and business centres of the world. It would
be well if all property-holders in Newark will evince their intelligence and
local pride by insisting on applying the same sound principles and uniform
tests of values which have not only long prevailed in old and large cities,
but which have been found indispensable to just dealingeven in om' smaUer,
but more progressive municipalities of the enterprising West.

Joseph C. Jackson,

80 Broadway, New York, November 22, 188T.





The World of Business.

The Circulation.

The annual reports of the Uuited States Treasurer and of the Director
of the Mint provide the data for a precise comparison of the currency in
circulation at different periods. It appears from the statement of the Mint
that the gold coin in circulation November 1st, 18S7, exceeded the amount
in the Treasury by $393,585,770. It is especially necessary in tbese com¬
parisons not to overlook the fact that bullion, whether imported or derived
from the mines, is not to be reckoned as currency until it has passed through
the Miut, and in consequence the large additions to the stock of gold in the
country, by foreign importations and otherwise during the past few
months, are as yet but partially represented in the actual circulation. Tbe
stock of silver dollars in circulation steadily increases, aud the demand for
small coins and notes is so great that the Treasury is able to find use for a
constantly increasing part of the unavailable subsidiary silver formerly
held. Bringing together data derived from the two reports we have the
following comparative statement of coin and paper in circulation at the
beginning of the month, at tbe beginniug of the fiscal year, and June
SOth, 1886:

June 30, 1886.          June 30, 1887.          Nov. 1, 1887.

Gold coin.....................      $35-<,790,428              $376,409,438           $393,585,770

Standard silver................         52,469,720                 55,456,147              62,540,625

Subsidiary................         46,156,256                 48,620,305              51,290,051

Totalcoin................     $457,4ltJ,4C4              $480,485,890           $506,416,446

Gold certificates..............       $76,044,375                $91,225,437             $99,684,773

Silver certificates..............         88.116,2;i5                142,118,017             160,713,957

Le^al tenders.................       304,85 i,238                317.105,008             324,204,949

Legal tender certificates .....         18,25^,000                   8,770.000                 7.315,000

Bank notes...................        304,463,138                276,548,183             268,643,294

Total paper................     $791,725,970              $835,767,245           $859,461,973

Total....................   $1,249,I42,.S80           $1,316,258,185         $1,365,878,419

It appears that the aggregate circulation outside the Treasury haa
increased about $116,7CO,00:) since July 1, 18»6, and about $48,600,000 since
July 1, 18S7. Part of this increase, but by no meana the whole, is due to
the importation of gold. It appears that less than $33,000,000 during tbe
sixteen months, aud less than $16,000,000 during the last four raonths, haa
been added to the circulation of gold coin, though tho amount of bullion
on hand has increased much more. Another item of large importance
concerns the denonjiuations of notes outstanding. The Treasurer's report
shows that of $1 and $2 legal tenders there were outstanding $35,808,292
July 1, 1886, and only $17,805,948 July 1, 18S7, and that the amount had
been further reduced to $15,414,694 October 1. It also appears tbat the
issue of small silver certificates of $1 and $2 each amounted to $22,-
885,492 July 1, but the amount since put iu circulation does not appear.
Considering tbat the silver coins and tbe one and two-dollar notes serve
substantially the same uses, it appears Ihat about $i9,000,000 bas been
added to tbis small circulation in place of tbe $18,000,000 ®f legal tenders
withdrawn. In addition the circulation of $5 legal tender notes bas
increased about $9,400,000, while $7,728,341 silver certificates of the same
denomination were put into circulation during the fiscal year. Notwith¬
standing this large addition to the supply of notes and coins of small
denominations, the Treasurer reports that tbe demand was by no means
satisfied, and that small gold coins in considerable amount had gone into
circulation during the yea.r.—Bulletin.

New Steam Line to the Argentine Republic.

The announcement that *he Argentine Republic has made arrange¬
ments for a bemi-montbly service of swift English steamships between its
ports and New York is a gratllying one in so far as it will furnish
regular and speedy means of communication with a country whose trade
with us is likely to increase. It would have been far better, however, if
the concession had been obtained by an American instead of a foreign
company, und that it waa not is directly due to those narrow-minded
Congressmen who will eagerly vote the public money to some obscure and
struggling railroad, but look on subsidies to steamssliip lines with horror.
For a decade the Argentine government has been ready to pay $100,0(X> a
year in bounties to any American cottipany which would establish such a
line of steamers, provided the United States would appropriate a similar
sum. But now the generous Argentine offer ia withdrawn, after long and
tedious waiting, and the opportunity is lout, for many years at least, of
putting American steamships on one of the most important commercial
routes to the Southern hemisphere. The advantage of having our own
commerce conducted by vessel flying our owu flag is especiaUy desir¬
able in the South American trade, where tbe ships of the United States
were once pre eminent. American steamers nowadays are almnst never
seen in tbe ports south of Rio Janeiro, and even the enormous exports of
luraber from Boaton and Portland, once monopolized by New England
sailing vessels, are now largely in British and Norwegian hands. The
gradual disappearance of the Stars and Stripes from South Araerican
ports in recent years,  caused  by tbe withdrawal of many of our vessels