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April 14, igo6
RECORD AND GUTOE
66s
ESTABUSHED W W.fiR,CHgl'4^ 1868.
Dd^TED P ReA,L EsTAJI .BU]LDI^fc ^RCKlTECTJI^E .HollSElJOlD DEQORfTlOlJ.
BlIsIt^EssA^toTnE:^.â– .zsc^GEfJEn^l Iriicr^Esi.
PRICE PER YEAR IN ADVANCE EIGHT DOLLARS
Pabllshed eVery Saturday
Communlcatlona should bo addressed to
C. W. SWEET. 14-16 Vesey Street, New York
I Tolepliono, Cortkvjdt 3157
"Entered al the Post O.ffice al j\>w! York. IT. T., as second-class mailer."
Vol. LXXVII.
APRIL 14, 1906.
No. 1987
INDEX TO DEPARTMENTS.
Adyertlslng Section.
Page. Pag«.
Cement ....................xxv Law..........................xl
Consulting Engineers ........xvii Lumher .................ixTlli
Clay Products ...............xxiv Machinery ...................It
Contractors and Builders ......v Metal Work..................si
Electrical Interest ..........vlil Quick Joh Directory........xxill
FireprooSng ..................Ill Real Estate.................xxHl
Granite ....................xxvl Roofers & Rooflng Materials.. .x
Heating ...................xxi Stone .....................xsvl
Iron and Steel..............xviii Wood Products ............xxix
THE rate for money, or rather money, has heen king this
week in Wall Street, and the unnatural autocratic power
it has exercised is agaiust all reason. The Honorahle Leslie M.
Shaw, of Iowa, is Secretary of the "greatest country in the
world." As such, he sits in the President's cabinet as the repre¬
sentative of matters financial in the United states. Fancy a
gentleman in his position repeatedly stating during last No-
vemher and December, when a money stringency without par¬
allel had everything throttled in this, the financial center of
the country, that "the legitimate business interests were not
suffering so far as he could observe." We call attention to it
now because he is credited with like utterances this week,
showing he has learned nothing, and is still an undesirable if
not a dangerous man to be financial adviser to the President
and the lawyers who for the most part make up his cabinet.
Shades of Daniel Manning and Hugh McCulloch, what do ye
think of it? Had we had a Shaw instead of these two great
financiers at the crises in this country which they rode through
successfully, what would have become of us? A weaker Presi¬
dent than Cleveland, with a Secretary of the Treasury like Shaw,
and this government would have failed to redeem in gold
in 1893, and the country would have been overwhelmed in finan¬
cial disaster.
DURING November and December, 1905, the banks of this,
the reserve city of the country, were daily losing money
to the Treasury, thus depletins their reserves. These sums in
tne aggregate reached an amount of nearly sixty millions of
dollars, which couid have heen turned back into the banks and
restored to circulation had Mr. Shaw seen fit, and the implica¬
tion in the interviews with him was that he would restore the
amount to circulation when he saw fit. If money rates of
flfty to one hundred per cent, per day did not indicate the
need and were not signs of distress, it would be interesting to
know what rate would have rung the bell in the bull's-eye of
his mind. If these rates carried no meaning to him, by their
daily "damnable iteration," was there no one to tell Mr. Shaw
that such stringency was unparalleled, and therefore must he
unusual and consequently noticeable? Did he not know that
the rate of interest for money is the charge made for its use,
and that merchandise is moved and trade done by the use of
money, and when such charge becomes excessive and pro¬
hibitive, that business must suffer, halt entirely, or be done at
a loss? It will be years before the country recovers from the
effect of last November and December conditions. Borrowers
have lost courage—an invaluable asset—and the country has
lost prestige.
EVERY man who had a mortgage maturing at the end of
last year knows whether he suffered in his effort at re¬
newal during the stringency. No financial speculation, he it
never so unimportant, but had to suffer, and yet all could have
been prevented by a brave Secretary of the Treasury, Mr. Shaw
regards himself as Presidential timber, and the fear that what
he might do for the country could be twisted into helping
"Wall Street" was evidently potent enough with him to prevent
him from doing anything. He did not heed the cries of distress,
for fear he might suffer personal injury ,to his reputation In
extending the necessary aid. What an efficient flre department
there would be if composed of men like Mr. Shaw! David R.
Francis, former Governor of Missouri, and Secretary of the In¬
terior under President Cleveland, in an Interview at St. Louis
this week says of the New York money stringency: "If these
conditions continue, they wil! permeate other sections, and
the result will be general uneasiness, unsettling of values, stop¬
page of new enterprises, and an end to prosperity throughout
the country." Surely this gentleman at the head of a banking
house in St. Louis is far enough from Wall Street to judge the
situation fairly, even were there any doubt in anybody's mind
that it is as he describes it. The sale of commercial paper has
stopped. The City of New York was compelled last week to
borrow $5,000,000 to pay maturing obligations because it was
unable to sel! revenue bonds even on a basis as high as 4^^ per
cent, interest. What must smaller communities throughout this
great country be suffering with respect to obligations maturing
in the past six monthsr
UNDOUBTEDLY much may he said on both sides in regard
to the wisdom of licensing architects. The proposition
has been debated and thrashed out many times in the past.
It is perhaps fair to say that hitherto the sentiment of the pro¬
fession itself has been opposed to state regulation, or possibly
it would be better to state the situation in this wise; Profes¬
sional opinion in favor of the licensing of architects has been
too unsettled, contradictory, and indifferent to be effective.
Whenever the matter has been brought before the New York
Chapter of the American Institute of Architects, the Chapter
has decided that it is better for the profession to stand on its
own feet, and not seek from the hands of the legislature a re¬
strictive dignity already accorded to plumbers and steam engi¬
neers, as well as doctors. Last Wednesday, however, the New
York Chapter reversed itself, and appointed a committee, consist¬
ing of Messrs. Yost, Parrish, aud Waid, to appear in Albany on
the 18th inst. to approve "in principle" the Wells bill. This
action is undoubtedly representative, for certainly the feeling
in the profession in favor of the principle of regulation has been
steadily gaining of recent years, and needs now only that it
should become concentrated and definite in order to produce
legislative results.
THE triumphant passage of the mortgage recording tax bill
through the Legislature is much the best piece of real
estate news of the week. The majority in its favor in both the
Senate and the Assembly was larger than expected, and was
composed both of Republicans and Democrats. In view of the
disposition of the Legislature at its last session, this result could
not have been accomplished without the exercise of a very
powerful pressure by public opinion all over the state; and it is
to be hoped that the Governor also will yield to the effects of
this pressure. Tlie mortgage tax law is one of the most un¬
popular statutes ever enacted by the New York Legislature,
and there is reason to believe that the Governor can be con¬
vinced both that public opinion is opposed to it and that it is
proving to be a burden upon the users of real estate all over the
state. The possible substitution of a recording tax on mort¬
gages for the present annual tax is, of course, having a decided
effect upon the real estate market just now. Permanent loans
cannot be very well negotiated as long as the repeal of the
annual tax continues to be a possible thing, and because of this
aud other reasons many builders are getting along with tem¬
porary loans at present, and are hoping to place permanent
mortgages on their property on better terms at a later date.
Should they fail to do this, as may very well prove to be the
case, in the event of the failure of mortgage-tax repeal, a cer¬
tain amount of liquidation will surely take place. On the other
hand, should the repeal take place, it is probable that the
builders will pull through the current season without being
severely hurt. But liquidation will certainly follow at a later
date, unless tenement houses are built at a more moderate rate
fcr the rest of the current year, and during the whole season
of 1907. It is the number of new and not very well rented or
mortgaged tenements on the market which constitutes the
danger of the situation, and in no other respect is the stability
of current values and conditions threatened. The liveliest de¬
mand just at present is concentrated upon private residences,
both expensive and inexpensive, and there are the best of
reasons why such should be the case. The supply of private
residences in Manhattan is diminishing at the present time,
and has been doing so for about ten years. Consequently, when
a period of good times accelerates the demand for this more
expensive class of living accommodation, a rise in prices is in¬
evitable. Such a rise will continue until the occupation of a
private residence in Manhattan will be the stamp of opulence.