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Re.<\l Estate
ECORD
AND BUILDERS' GUIDE.
Vol. XXIX.
NEW TOEK, SATURDAY, FEBRUAET 25, 1882.
No. 728
Published Weekly by The
Real EstateRecord Association
TERMS:
OSE YEAR, in advance - ... - $6.00
Communications should be addressed to
C. W. SWEET, 137 Broadway
J. T. LINDSEY'Business Manager.
Everything is gloomy in the stock, grain,
cotton, provisions and other markets. Real
estate alone holds its own. There are rumors
of heavy disasters yet to come and the bears
in stocks, cotton and grain are having things
all their own way. The liquidation is going
on and there does not seem to be any im¬
mediate stop to it; yet the country is ex¬
ceptionally prosperous, immigration is large,
manufacturing active, and real estate not
only holds its own but is advancing in price.
There is no danger of any panic or hard
times such as we had after 1873; a good crop
next summer, such as blessed the nation in
1879, 1880 and 1881 would not only set us
right again, but would renew speculation in
all the exchanges of the country. The bears
may make money now and for a short time
to come, but in the long run it is the bulls
who wUl pocket the greatest profits,
It is of course desirable that the elevated
railway system should be extended from
Second avenue to Spuyten Duyvil; but,
surely, it is not necessary to destroy the
Boulevard ] by running an elevated track
over its centre. The opposition of Broad¬
way property owners to underground or
elevated roads always seemed to us unwise;
for a business thoroughfare of necessity
requires that travel should be concentrated
and brought to its very doors. When the
elevated road is driven away to a side street,
it only helps to build up its business at the
expense of Broadway. But the same rea¬
soning does not apply to residence property.
An elevated road on Fifth avenue would
clearly reduce the value of the dwellings one
half, and one built over the' Grand Boule¬
vard would ruin that noble avenue for resi¬
dence purposes. There ought to be an
elevated road from One Hundred and Tenth
street to the highest point on the island,
somewhere between the Eighth avenue and
the Hudson River, but it ought not to be
located upon the Boulevard.
---------------«-•->'—---------—
The attacks of the World and other city
papers upon Mr. O. B. Potter have been car¬
ried too far. The old World building pro¬
perty was not in any worse condition than
thousands of other structures erected before
our present building laws were in force.
The people who erected the Times building
showed their wisdom in making it fire-proof;
but there is neither reason nor justice in
hounding Mr. Potter because he was the
chance owner of a property so easily de¬
stroyed. It is criminal to feed the popular
prejudice against landlords because they are
such, and the press could be better employed
than in adding to the distress of a man who
has already suffered from grievous pecuniary
losses and much anguish of mind.
It is now proposed to build a Government
structure^^on the site of the old Post Of&ce,
for the accommodation of the navy office,
pension office, army depot and other Gov¬
ernment offices for which now some $50,000
is annually paid in rent. This is a good idea,
but perhaps it would be better still to sell
the site at public auction and, with the large
amount of money it would bring, erect a
fine building facing the Battery or fronting
on some square, that would be convenient of
access. The Government business outside of
the treasury and customs department need
not be in the business quarter of the city.
The building should be a fine one, whenever
constructed.
LOW PRICES AND BUSINESS.
A correspondent calls attention to the fol¬
lowing paragraph in The Real Estate
Record of last week. It occurred in the
leading article, discussing the general situa¬
tion. We quote : " The shrinkage in values
during the past two weeks has been enor¬
mous and it must affect the consumptive de¬
mand of the country. People will not pur¬
chase liberally when they are losing money."
Our correspondent thinks that this is a mis¬
take ; that low prices increase business, and
that the temporary embarrassment of the
rich who are dealing in stocks, cotton, grain
and other products will not check the con¬
sumptive demands of the laboring class,
now fully employed at good wages.
There is some justice in this criticism. It
is true that the wealthy classes are a very
small percentage of our whole population ;
that when the people who consume food,
wear clothing, and occupy houses are fuUy
employed fit good'wages, they will consume
more when prices are low than when they
are high. But low prices alone do not create
an active trade. During the hard times of
'73 to '78, real estate commanded a very low
figure on this island, and every one knew
that it was a purchase, but it could not be
sold. It is notorious that stocks command a
more ready sale when high-priced than when
offered at a sacrifice ; but still the fact re¬
mains that in articles like food and clothing
the consumptive demand increasea^svith the
lowering of prices, provided the wages or
income of the consumers is not reduced at
the same time.
We have entered upon a period of con¬
traction. There will be no more g»ld im¬
portations, and we may at any time export
gold. The banks, whicii increased their cir¬
culation over $40,000,000 during the years of
speculation, have begun to withdraw their
currency. Over $1,000,000 worth have been
retired since the Ist of January, and every
week the withdrawals increase in amount.
There has been a check in prices in conse¬
quence, and everything bought with money
will feel the effect of the shrinkage in due
time. The rich, the owners of stocks, of
J grain and cotton, are the first to be affected.
They will stop consuming the costly articles
which have had such' ready sale during the
past three years; but as the capitalists and the
employing class become pinched, the wages
class below soon begins to feel that its in¬
come is not so sure as it was. The manu¬
facturers have had a very active year ; they
had more orders than they could fill, but,
unless we have very good crops this coming
summer, by fall we will find that there is an
overproduction, and goods of all kinds will
b@ in excess of the demand. We should not
only have lower prices, but much of the
labor now employed will be idle and wages
will be smaller.
But how, it may be asked, will this affect
real estate ? Time alone can tell. It is ar¬
gued that when capital becomes timid about
stock and other investments, it will seek
realty as being the most permanent and cer¬
tain of a rise in time. The business of the
city and its population is steadily increasing,
and as yet no one dreams that there wiU be
any reduction in rents. On the contrary,
everything goes to show that rents will ad¬
vance this spring. Still it can not be ex¬
pected that there can be any real speculation
in real estate, when all the other markets
are drooping. There can be no marked ad¬
vance in prices unless a buoyant feeling
obtains in the community. Everything
depends upon the next crop. Should we
have a repetition of 1879 and 1880, next fall
will see the most prosperous season the
country has ever witnessed, for all the con¬
ditions exist for transacting an immense
business. If there should be disappoint¬
ment in the yield of the crops, and there be
a shortage or a failure, then we may look
out for a dull business year, and a postpone¬
ment of speculative activity in realty as well
as every other description of property.
—.-------------<-♦>----------------
AMERICAN vs. FRENCH LANDLORDS.
A daily paper expresses great delight over
a heavy jury verdict against a property
owner, whose area being open, caused seri¬
ous damage to a careless passer-by. This is
one of the perils of householding which
jiroperty owners in this countiy must face,
and which tends to keep up rents. A care¬
less servant fails to properly cover the coal
hole, and the man or woman who is injured
thereby gets heavy damages from the in¬
nocent owner of the house. Juries in
America look upon railroad companies and
landlords as enemies of the human race, and
always punish them severely when they get
a chance, for owning houses and accommo¬
dating the public on transportation lines.
People here, who rent furnished houses,
must charge a high rent, for there is no
recompense for furniture ill-used or de¬
stroyed. The petty courts afford no protec¬
tion to the property of the owners of the
apartments or the furniture. In regard to
such matters as these Paris is very different
from New York. The traveler finds, to his
astonishment, that in France the law favors
the owner of property. They are not liable
for damages when an accident occurs to a