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STATE Record
AND BUILDERS' GUIDE.
Vol. XXIX.
NEW YORK, SATURDAY, FEBRUARY 18, 1882.
ffo. 727
Published Weekly by The
Real Estate Record Association
TERMS:
ONE YEAR, in advance.....$6.00
Communications should be addressed to
C. W. SWEET, 137 Broadway
J. T. LINDSEY'Business Manager.
THE SITUATION.
All the markets are blue. The prices of
stocks are tumbling, there is a panic in the
grain market, and cotton and provisions are
off. The only investments whicii hold their
own in the market are imijroved realty in
the business part of this island. The down-
rush in prices is universal and the number
of lame ducks on all the exchanges has not
been eo large since the resumption of specie
payments. Last year about this time Jay
Gould told E. 0. Stedman, the banker, that
he thought the market dangei-ously high,
and, for one, he believed in lower prices.
And he reasoned quite correctly; but not
only did the bull market continue, but he
himself turned bull subsequently. The
factor he overlooked was the surprising-
demand for our securities in Europe, which
sustained this market all of last spring. But
the assassination of the President, the crop
shortage, the railway war, the scramble for
gold, and the panic on the Paris Bourse,
have all conspired to take the underpinning
out of all the properties on the different ex¬
changes. The shrinkage in values during
the i^ast two weeks has been enormous and
it must affect the consumptive demand of
the country. People wili not purchase lib¬
erally when they are loosing money. The
great bulk of operators in all markets are
bulls, and every one interested in cotton,
grain, provisions, mining shares, stocks or
bonds, has seen his property become reduced
in value, as it were, in a night. Nor is there
any likelihood of any immediate change in
the market, though there may be rallies.
The recent losses will check business and
trade will be dull and in all probability prices
lower on account of the distrust which -has
been created. Then our stocks are being
returned in large amounts from Europe, and
our imports will be largely augmented. Nor
is there much hope until it will be known
what is the promise of the crops, many of
whicii are not yet planted. Should there be
an abundent yield next summer and fall,
the flush times will return and speculation
again become rampant; for all the conditions
exist for a splendid trade. But unfortu¬
nately crops are apt to be good or bad for
several years in succession. The weather so
far has been all right, but there is plenty of
time for drought, excessive moisture and
insects to do their evil work.
Should the Monetary Conference which
reassembles in Paris in April lay the basis
for a bi-metallic union, the markets of the
whole world would become buoyant at the
prospect of silver being added to the metallic
basis of money credits and bank issues.
Apart from the crops this is the only general
cause which will help our markets. It is
true the railway war has been stopped, but
then, navigation will soon be open and the
higher rates imposed will restrict traf&c.
BUSINESS AND RESIDENCE PROP¬
ERTY.
When the elevated roads commenced run¬
ning, The Real Estate Record ventured to
predict that their effect would be to add to
the value of all business property, and to
discourage speculation in unimproved lots.
In other words, it seemed to us that the
readiness with wliich people from a distance
could visit the exchanges and offices down
town would put an effectual stop to any
dispersion of business towards the upper
part of the city, while at the same time the
larger area of land which would become
available, would put an end to any monopoly
in the way of locations. Before the elevated
road era, the would-be owner of a house was
forced to purchase property within a few
miles of his business. He could not
afford to live above the Central Park, and
spend a couple of hours a day on the horse
cars, going from or returning to his home.
But the elevated roads have broken up this
monopoly of choice locations, and now not
only is all this island available for residence
puri)oses,due to the elevated system, but it
is, moreover, quite convenient to live in the
annexed district, and still get to one's place
of business below Chambers street within a
reasonable time.
These forecasts have been clearly justified
by the record of prices during the last three
years. There has been a steady advance in
the value of business property, but except
for a few feverish weeks in 1880, there has
])een no speculation in unimproved lots
worthy the name. Every j)iece of business
property offered on the Exchange com¬
mands eager bidders, while unimproved
property, sold under the orders of a court,
does not command a ready sale except it is
in the line of immediate improvement.
Another factor to account for the dullness
of vacant property is the wonderful multi¬
plication of apartment houses. These are
great economizers of space. One block of
these great French flats will accommodate a
population which in ordinary residences
would require twenty times the same
amount of ground. It follows that Avhile
the number of inhabitants may verj greatly
increase in New York, the amount of addi¬
tional ground required to accommodate them
will not be in proportion, due to the new
family hotels and great combined house¬
holds which have become so marked a fea¬
ture in metropolitan living.
It does not follow, however, that unim¬
proved real estate on this island will not in
time become very valuable. Warehouses
and great business estabhsh ments are con¬
stantly gaining upon the residence part
of the city. The commerce of New York
grows steadily and every year street after
k street is encroached upon by stores and
offices which in time past were occupied
entirely by dwellings. Every new improve¬
ment, such as the Brooklyn Bridge and the
Hudson River tunnel, takes away available
ground for residences. The tunnel especi¬
ally, when completed, will transfer so much
business from the Jersey shore that a great
deal of ground will be demanded for depots,
warehouses and all manner of trading estab¬
lishments. The rapid multiplication of
houses east and north of the Central Park
shows there is a legitimate demand for
unimproved lots, whicii steadily increases as
new comers pour in upon us. The close of
the century will see nearly all this island
covered with houses, and the new ones to be
erected between now and then will be larger
and will cost more than those constructed
within the past thirty years. We see noth¬
ing to discourage the holding of unimproved
property or the purchase of it. The very
fact that the market is just now exception¬
ally dull for this kind of realty, is an addi¬
tional reason why people who look to the
future for their profits should purchase at
present prices.
.-------^-------
WHAT NEW YORK NEEDS.
As the Legislature has now substantially
organized, it is to be hoped some effort will
be made to give New York a better working
charter. What we need is responsible gov¬
ernment, such as the people of Brooklyn
have secured. The Mayor should have the
power of appointing all heads of departments
and rem ovi r. g them at wiU. Boards an d com¬
missions should be replaced by single heads
responsible to the Mayor, and these heads
of departments should report their doings
weekly or oftener, so that public opinion
could be brought to bear on all the workings
of our municipal system. Then all miior
appointments should be made under civil
service rules, and should be for life or good
behavior. As|experience has demonstrated
the fact that the Aldermen always coerce
the Mayor into making bad appointments,
they should not be allowed to have anything
to say about them, nor should they be per¬
mitted to interfere in the executive depart¬
ments of the city government. It is rare
that we have a bad Mayor, they generally
are men of ability and character; but an
honest Board of Aldermen has scarcely been
known for forty years. Not that all the
Aldermen are dishonest, indeed in every
board there have been men who wished
to do Veil by the city ; but the majority
have generally been subject to questionable
influences.
It would be too much, perhaps, to expect all
these reforms in one session of the Legis¬
lature, and probably even our citizens may
think it well to make haste slowly. The
experiment of lodging power in. the Mayor
is under trial, in the city of Brooklyn, and
if by next fall the new government of our
sister city proves to be honest and econom¬
ical, then the demand will become general
for a similar local organization in the me¬
tropolis. The Brooklyn system may be