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Real estate record and builders' guide: v. 29, no. 727: February 18, 1882

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STATE Record AND BUILDERS' GUIDE. Vol. XXIX. NEW YORK, SATURDAY, FEBRUARY 18, 1882. ffo. 727 Published Weekly by The Real Estate Record Association TERMS: ONE YEAR, in advance.....$6.00 Communications should be addressed to C. W. SWEET, 137 Broadway J. T. LINDSEY'Business Manager. THE SITUATION. All the markets are blue. The prices of stocks are tumbling, there is a panic in the grain market, and cotton and provisions are off. The only investments whicii hold their own in the market are imijroved realty in the business part of this island. The down- rush in prices is universal and the number of lame ducks on all the exchanges has not been eo large since the resumption of specie payments. Last year about this time Jay Gould told E. 0. Stedman, the banker, that he thought the market dangei-ously high, and, for one, he believed in lower prices. And he reasoned quite correctly; but not only did the bull market continue, but he himself turned bull subsequently. The factor he overlooked was the surprising- demand for our securities in Europe, which sustained this market all of last spring. But the assassination of the President, the crop shortage, the railway war, the scramble for gold, and the panic on the Paris Bourse, have all conspired to take the underpinning out of all the properties on the different ex¬ changes. The shrinkage in values during the i^ast two weeks has been enormous and it must affect the consumptive demand of the country. People wili not purchase lib¬ erally when they are loosing money. The great bulk of operators in all markets are bulls, and every one interested in cotton, grain, provisions, mining shares, stocks or bonds, has seen his property become reduced in value, as it were, in a night. Nor is there any likelihood of any immediate change in the market, though there may be rallies. The recent losses will check business and trade will be dull and in all probability prices lower on account of the distrust which -has been created. Then our stocks are being returned in large amounts from Europe, and our imports will be largely augmented. Nor is there much hope until it will be known what is the promise of the crops, many of whicii are not yet planted. Should there be an abundent yield next summer and fall, the flush times will return and speculation again become rampant; for all the conditions exist for a splendid trade. But unfortu¬ nately crops are apt to be good or bad for several years in succession. The weather so far has been all right, but there is plenty of time for drought, excessive moisture and insects to do their evil work. Should the Monetary Conference which reassembles in Paris in April lay the basis for a bi-metallic union, the markets of the whole world would become buoyant at the prospect of silver being added to the metallic basis of money credits and bank issues. Apart from the crops this is the only general cause which will help our markets. It is true the railway war has been stopped, but then, navigation will soon be open and the higher rates imposed will restrict traf&c. BUSINESS AND RESIDENCE PROP¬ ERTY. When the elevated roads commenced run¬ ning, The Real Estate Record ventured to predict that their effect would be to add to the value of all business property, and to discourage speculation in unimproved lots. In other words, it seemed to us that the readiness with wliich people from a distance could visit the exchanges and offices down town would put an effectual stop to any dispersion of business towards the upper part of the city, while at the same time the larger area of land which would become available, would put an end to any monopoly in the way of locations. Before the elevated road era, the would-be owner of a house was forced to purchase property within a few miles of his business. He could not afford to live above the Central Park, and spend a couple of hours a day on the horse cars, going from or returning to his home. But the elevated roads have broken up this monopoly of choice locations, and now not only is all this island available for residence puri)oses,due to the elevated system, but it is, moreover, quite convenient to live in the annexed district, and still get to one's place of business below Chambers street within a reasonable time. These forecasts have been clearly justified by the record of prices during the last three years. There has been a steady advance in the value of business property, but except for a few feverish weeks in 1880, there has ])een no speculation in unimproved lots worthy the name. Every j)iece of business property offered on the Exchange com¬ mands eager bidders, while unimproved property, sold under the orders of a court, does not command a ready sale except it is in the line of immediate improvement. Another factor to account for the dullness of vacant property is the wonderful multi¬ plication of apartment houses. These are great economizers of space. One block of these great French flats will accommodate a population which in ordinary residences would require twenty times the same amount of ground. It follows that Avhile the number of inhabitants may verj greatly increase in New York, the amount of addi¬ tional ground required to accommodate them will not be in proportion, due to the new family hotels and great combined house¬ holds which have become so marked a fea¬ ture in metropolitan living. It does not follow, however, that unim¬ proved real estate on this island will not in time become very valuable. Warehouses and great business estabhsh ments are con¬ stantly gaining upon the residence part of the city. The commerce of New York grows steadily and every year street after k street is encroached upon by stores and offices which in time past were occupied entirely by dwellings. Every new improve¬ ment, such as the Brooklyn Bridge and the Hudson River tunnel, takes away available ground for residences. The tunnel especi¬ ally, when completed, will transfer so much business from the Jersey shore that a great deal of ground will be demanded for depots, warehouses and all manner of trading estab¬ lishments. The rapid multiplication of houses east and north of the Central Park shows there is a legitimate demand for unimproved lots, whicii steadily increases as new comers pour in upon us. The close of the century will see nearly all this island covered with houses, and the new ones to be erected between now and then will be larger and will cost more than those constructed within the past thirty years. We see noth¬ ing to discourage the holding of unimproved property or the purchase of it. The very fact that the market is just now exception¬ ally dull for this kind of realty, is an addi¬ tional reason why people who look to the future for their profits should purchase at present prices. .-------^------- WHAT NEW YORK NEEDS. As the Legislature has now substantially organized, it is to be hoped some effort will be made to give New York a better working charter. What we need is responsible gov¬ ernment, such as the people of Brooklyn have secured. The Mayor should have the power of appointing all heads of departments and rem ovi r. g them at wiU. Boards an d com¬ missions should be replaced by single heads responsible to the Mayor, and these heads of departments should report their doings weekly or oftener, so that public opinion could be brought to bear on all the workings of our municipal system. Then all miior appointments should be made under civil service rules, and should be for life or good behavior. As|experience has demonstrated the fact that the Aldermen always coerce the Mayor into making bad appointments, they should not be allowed to have anything to say about them, nor should they be per¬ mitted to interfere in the executive depart¬ ments of the city government. It is rare that we have a bad Mayor, they generally are men of ability and character; but an honest Board of Aldermen has scarcely been known for forty years. Not that all the Aldermen are dishonest, indeed in every board there have been men who wished to do Veil by the city ; but the majority have generally been subject to questionable influences. It would be too much, perhaps, to expect all these reforms in one session of the Legis¬ lature, and probably even our citizens may think it well to make haste slowly. The experiment of lodging power in. the Mayor is under trial, in the city of Brooklyn, and if by next fall the new government of our sister city proves to be honest and econom¬ ical, then the demand will become general for a similar local organization in the me¬ tropolis. The Brooklyn system may be