Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 27, no. 672: January 29, 1881

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Real Estate Record AND BUILDERS' GUIDE. Vol. XXVII. NEW TOEK, SATUEDAY, JANUARY 29, 1881. No. 672. Published Weekly by TERMS. ONE YEAR,, in advance___SIO.OU. Communications sbould be addressed to C. W. SIVEET, No. 137 BaoAnwAV DANGER AHEAD. There is a legend to the effect that a prophet, in days gone by, foresavs' that at a certain season a rain would fall which would have the effect of making all who were ex posed to its influence insane. The prophet warned the people, but his voice was un¬ heard. As the fatal day approached he re¬ tired to his cave, while the world outside paid no heed to the descending rain. As he had predicted every one became insane who was exposed to the shower. The wise prophet remained in his cell, knowing that the out- aide world was full of crazy people. At length his isolation became unendurable, and he said to himself, "Of what use is it to be sane in a world of mad men ? " So he plunged into the crowd and became happy by being as insane as the rest. Who can doubt but that the investing public at this moment are practically insane ? Look at the figures of stocks in Wall street and compare them with what they were but three years since. It is true there is reason for much higher prices for stocks. It is needless here to recapitulate them, but, of course, the most iiotent factor in the case is the great money inflation. Before 1879 we had, as an exclusive currency, some seven hundred million of paper money, counting greenbacks and national bank notes. In addition to the paper money then afloat, we have added some six hundred and twenty million dollars of gold and silver, which is either coinad or available for coinage. In other words,we have to-day from thirteen to fourteen hundred million of currency as against half that amount of paper money ouly two years since. At that time business was dull because people were apprehensive, aud such money as was used was carefully guarded. Now confidence has taken the place of distrust, and credit as well as money is used to the uttermost, and what do we see ? A huge stock speculation repeating the experiences of las!, year; a vast increase in the population of all the large cities; five thousand miles of new railways under way, and twenty-five thousand miles additional projected. We are rapidly putting all our spare cash into new enterprises, and con¬ verting our floating into fixed capital. Every new enterprise, no matter how risky, is no sooner on the market than the money pours in to fill up the subscription list. There is danger in all this. It is true that the hopeful, sanguine and adventurous are ?3iakiiig paoii^. Jn