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Real estate record and builders' guide: v. 22, no. 548: September 14, 1878

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Real Estate Record AND BUILDERS' GUIDE. YoL. xxn. NEW YOKK, 8ATÜIIDAY, SEPTEMBEK U, 1878. No. 548. Published Weekly by Cbc %ml (Ssktc .Ilecarir ^ssodattan. TERMS. ONE YEAK. in advance.. ..SlO.OO. Coinniiinications should be addressed to C. W. SWEET, Nos. 31.5 AND .MT Broarway EFFECTS OF BUILDING- LO.-VNS. Ihiilding loau transactions, as commonly prac¬ ticed in this city, are Justly censurable because extremely vicious in their eH'ects. We have heretofore ruug the changes ou the abuses of these transactions, and, as we have rea.son to be¬ lieve, with perceptible re.sults. We intend to con¬ tinue our exposition of abnse.s, whether lueu will hear or forbear—in tiie exi>ectatiou, which wo are certJiiii will not bedi.sjippointing—that the public sensa of justice aud fair dealing, when (iroporly instructed und arou.sed, w-ill so severely rebiike and coudemu these Operations as to render their prosecution dillicult if not impoiwible, and ul- limatelytocompel theirtotal abandonment. The l'uilding loan, legitiniately conceived, has a true and benclicent olUce, which we intend at a con¬ venient season to deline. At present we iiropose to set forth what appear to be tho most obvious elfects of illegitimate, unsound and fraudulent building loans. 1. The iiumedinte and most noticeable effect is an artilicinl iullation of laiui prices. In almost any speeulation the mau wholuis little or nothing to lose is indifferent as to the price he may be called upou to pay for' the commodity in which he s^ieculates, provided he can obtain it ou ea-sy urms. In the class of building schemes which we are now couteinplating, solvent and responsi¬ ble builders are rarely willing to engage, and the excuse and pretext for framing them is that the builder, who proposes to embark in them, is desti- tute of ready money, and therefore requires to be assisted in the transaction by the loan of capi¬ tal. It is an old saying that nothing helps a luaivs credit more than to candidly admit a their tln^il di^-