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Real estate record and builders' guide: v. 80, no. 2068: November 2, 1907

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Novémber 2, Ĩ907 RECORD AND GUÎDE 695 DeV&TEÛ JÔ Í^LESTATE.BlJlLOIĩfc AFÎirfrĩĩeTUI^E.ĩ^dUSEIÍOlDDEGQtĩATlOlf. Bl/snfe38 AffoTHEHES (^'GeĩÍER^L ÍffttRfSl., PRICE PER YEAR IN ADVANCE EIGHT DOLLARS Communications sĩiould lie addressed to C. W. SWEET Tublished Etíery Saturday By THE RECORD AND GUIDE CO. Presldent, CLINTON W. SWBBT Treasurer, F. W. DODGE Vice-Pres. & Genl. Mgr., H, W. DBSMOND Secretary. F, T. MILLBR Tíos. 11 to IS East 24tĩi Street, New Tork Cĩty (TelepLoue, Madison Square, 4J.?0 to 4433,) "Enlered oí the Fosl Office at Ncio York, N. Y., ns sccontĩ-class matlfr/' Copyrighted, 1Ũ07, hy The Record & Guide Co. Voĩ. LXXX. NOVEMBER 2, 1907. No, 2068. INDEX TO DEPARTMENTS. Advertisiũg Section. Page. Page. Ceraent ........................xv Lumlier .....................xvii Clay Products ................xiv Machinery ...................xv Consulting Engineers ........xvi Metal Work .................xĩii Contraetors and Builders ___iv Quick Job Directory ........xviĩi Electrical Interests .........vii Real Estate ..................ix Fireprooflng ...................ii Roofers & Roofing Materials. .vii Granite ......................xix Stone .......................xvii Iron and Steel ...............viii Wood Products ..............xvii THE FINANCIAL PANIC, írora -which the country is par- tially recovering, may prove to be an awful blessing, . provîded it results in sonie practicabĩe and aûequate scheme of currency reform. It is ridiculous that a business com- munĩty should have itself exposed to panics of tbis kind, when their acuteness could be very much mitigated by the adoption of a sound and elastic currency system. The dis- couragîng aspect of the situatĩon is, however, that the meas- ures of reform proposed by the bankers themselves are by no means either as elastic or as sound as they should be. The plan for a so-called asset currency, which could be issued when money was in demand and automatically retired when it was not in deiuand, is not in accordance with sound banking prînciples, because it provides for an increase of promises to pay while at tbe same time doing nothing to increase the reserve of ĩawful money. It is rarely brought out in the current discussions of this prob- lem that the fundamental difficulty consists in the char- aeter of the currency issued by the national banks. The national bank notes are issued irrespective of the actuaĩ demand by the buainess world for currency. Their amount is not dlminisbed in times of easy money, and now when there is a famine in the money market, the Comptroller has to beg the banks to issue as mueh currency as tbey are iegally entitled to issue. The conseiiuence is that in periods of inactive business, specuĩation is encouraged by an excess of currency, while in periods of stringency, liquidation ís necessitated by the absence of any automatic increase in the eirculating medium. It so happens, how- ever, that both the government and the national banks would be unfavorably affected hy any change in the method of issuing tbese notes. The government obtains much bet- ter prices for its bonds because of the demand on the part of the national banks, while the banks, which bave pur- chased bonds at high priees for currency purposes, stand to lose a good deal, as a result of a change in the curreney system. Tbe dĩíĩiculty will remaín as long as the present system endures, and public opiuíon should begin to under- stand that under these conditions important faankîng in- terests are engaged in the conservation of a system which is opposed to sound banking prineiples, and consequently to the pubiic interest. —----—•----------- ANOTHEE, RESULT of the flnancial crisís should be a different attĩtude on the part of depositors towards national banks as compared to trust eompanies for banking purposes. The trust companies bave been increasing enor- mously in popularity, because of the interest which they paid for accounts, but depositors must realiae that when they need their mouey most they may have to pay too dear for such interest. In all the trust companies which were, or were supposed to be, in difflcuîties, an ordinary depositor practicaĩly could not get his money, so that even if tbese companies did not nominally suspend, their condition was for bis purpose equivalent to a suspension. But a national bank, as a member oE the Clearing House Association, was obliged either to settle up or really to suspend; andifitwere soĩvent it found means to settĩe up. Its depositors could get tbeir money, in case they needed it, and the depoaifcors in tFust companies should be placed in a similar situation. Either the trust companies should be admitted to the Clear- ing House Assoeiation, or else depositors should transfer their accounts to banks that cannot be placed In the equivocal position of partially suspending payment. For- tunately it looks as if tbis seeond alternative wiU not be necessary. It is probable that the trust companies will anticjpate corrective legisĩation by Joining the Clearing House, and by conforming to every condition tbat is de- manded by such a change of policy. If this change is brought about it will enorraously strengthen the organi- zation of the banks in this city, and improve the city's stand- ing as the financîal eentre of tbe country. THE 'SALE of the Port Chester and the Westebester roads to tbe New York & New Haven has passed almost with- out notice during the excitemeut of the week, but it is none the less an event of prime importance, These roads were both planned for the particular purpose of competing with the New Haven, and obtained their franchises from the local authorities with that express purpose in view. Now that they have been absorfaed by the railroad corpora- tion with which they were supposed to compete, it looks very much as if the inhabitants of Westcbeater County and tbe Bronx, who had worked hard for the purpose of en- couraging the proposed competition, had been dished. Cer- tain it is that the New Haven company will under exîsting conditions enjoy a virtual monopoîy of the rapid transit privileges of ■ the eastern part of the Bronx and West- chester; but we doubt whether the interests of the resi- dents of that vicinity wiU suffer thereby, The Record aud Guide has never believed in the value of competítion in improving the transit service in and near a iarge city, Tbe New Haven eompany will be in a position to give the people who live along the line of the two roads a better servîce tban would an independent company. It may not be quite so eager to huild; faut when the tîme for building comes, it will control larger resources and can afford to ínaugurate a better service. In one respect particularly sbould it be able to supply its patrons with more adequate means of rapid "transit. The great defect of tbe plans, both of tbe Port Chester and Westchester companies, was tbat they failed to make any provision for the transportation of their passengers south ôf the Harlem. They terminated at the beginning of the Lenox Avenue Subway or a little further south, and theĩr passengers would have been obliged to transfer to the Subway or elevated road. Under these conditions their value to their patrons would have been very mucb diminĩshed, Such roads cannot give their pass- engers genuine rapid transit without a four-track line all the way to tbe City Hall. It is true that tbe New Haven Railroad is at the present time as incompetent in tbis re- spect as is either the Port Chester or Westchester com- pany, but it is inconceivable that it wiil remain so. Surely the purchase of these roads means that the New Haven company wiil become a bidder for a four-track Bast Side Subway. Sueb a Subway, or even two such Subways, are abso- lutely necessary for the development of ita system north of the Harlem River. It may be predicted with confldence tbat the New Haven company will within tbe next ten years build a Manhattan subway, and tbat ĩt wiĩl own an inde- pendent terminus in that borough, Tbe management of the road is too capable and too enterprising to overlook the neeessity for such a development. THE BFFECT of the flnancial crisis on tbe real estate market îs, of course, for tbe tirae beĩng, practically to prohibit business, But its ultiraate effect will probably be to hasten the day when real estate and building can resume tbeir normal activity, because its ultimate effect wiĩl be to acceierate the proeess of busĩness contraction. if no crisis bad occurred, tbe tide of general business would have receded very slowly; and it migbt bave heen a year or more before money would have beeome released ín suffi- cient quantity for real estate and building operations. Now, however, a sharp contraction is necesaarily taking place; and painful as the process is, it will at least bave tbe effect of relieving the strain on the money market very much sooner. Probably money will be extremely plentiful in a few montha, and wben ít becomes plentîful agaia, it is not