Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 64, no. 1658: December 23, 1899

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December 23, 1899. RECORD AM) GUIDE. 965 ï DBfrtEDToRfV-EsTMT.BuiLoiflG AR.cKiTEeTui^'.Hai)sn(oiDDE(îa!;jn(»t PRICE PER YEAR IW ADVANCE SIX DOLLARS. PuAlishcd every Haiurday. TBLBPHON», COETLAHDT 1370. Gommuntcations ahould be addressed to C. W. SWEET, 14-16 Veaey Street. ■/. 7". LINDSEY, Business Manager. • Entered at the fost-Off^e ai New'XorK, N. £..aêseeowt^tats wtoMen." Vol. LXIV. DECEMBER 23, 1899. '—-INCE last -week a factor of tremendous influence on the Q flnancial and security martets has developed itself, namely the failure of the British authorities to appreciate and adeauately proTide for the military requirements in South Afriea. Much has heen made of the excellent conduct of the troops, but Per¬ sonal hravery will uot score against military science aud supe¬ rior weapons, especially when the men on one side are as brave as thoE« on the other. Consequently, while so. much praise is lavished on the rank and file, all that ean be claimed for the War Department and General Beiler is a succès de fiasco. With¬ out going as far as European critics have done, in taking this as évidence of the vital décadence of the nation, it shows an alarm- ing overeonfidence and a lack of science that leaves Great Britain under the necessity of provins her right to her pré¬ dominance in th-e world's ahairs. It may be that the British are now cnly opening their eampaign with the blundering that has generally characterized similar movements on their part, but in tue face of a foe developing unexpected military skill, aud armed with up-to-dale implements, this characteristic has been very costly ËO far, and suggests possibilities for the near future very uncomfortable to thinK of. But for the blunders in the conduct of this war the pinch in the money market would be over, and we cou.d have contemplated the opening of the new year with cheerfulnets. They have, however, destroyed confidence and awakened doubts that cannot fail to check enterprise until the lirst is restored by the removal cf the last. Untii such time as the situation clears—which may be to-morrow and may be much more distant—there will be a shrinkiug of capital into safe places, and a hard time for issues of a spéculative character. London's pecuniary requirements, now heavier than ever, will flnd relief through the return cf American stocks and bonds, and ln this way directiy affect quotations in our markets. Ex-Ccmp- troUer Eckels is quoted as dating the turn for the better from the first British victory in Soulh Afriea. He is probably right, but who knows when that will be? lÊ it is r.ong delayed we will, of course, in time cut ourselves free of this influence; meantime all that can be said funher is, tbat it is in such times as thèse the market cffers the best bargains, of induatrial needs, the money market will in all probability continue to expérience the extraordinary conditions that hav* prevailed for the past two years; and very liKeiy lhe pressure will become severer than ever, belore tne présent remaritabl* movement has run its course." In Austria lhe appiicaiion of th* Zones tariff on, the State raiiroads, introduced tour or nve year» ago, which makes short and very loug journeys exceedingly cheap, has been a great success through increased iravei In¬ duced by lower rates. It is now proposed to apply the samo principle to medium-length trips. The great banks are resoning 10 every artifice allowable to retain their supplies o£ gold, and now, with the advance made this week by tue Bank of ij'rance, the discounts at every money centre are at distress ratea. Weeks agO' we called attention to the iikelihood of gênerai stringency before the close of the year; now everyone is aware of the hard conditions of the markets. But for the circumstances alluded to in the previous paragraph the stringency wouid be over by now; but, these circumstances baving arisen, further liquidation seem* to be necessary before anything like ease can be attained ualesi the military situation in- South Afriea undergoes a speedy and great change. No. 1G5S — LONGSIDE of the most satisfactory returns of European ,^\ trade, bo'th officiai and private, may be found just as un- satistaetory reports oî an accompanying extension of spéculation that to a considei-able extent explains the présent distressing conditions in the mcney and security markets. For instance, the London "Economist" publishes a list of thlrty-three company issues based cn patents, all ofiered to the public in 1896 and representing about two and a half millions sterling. Of the whole Ust only three have now a quoted value; only one had received a dividend, that, the first and last, declared two years ago, and one, a tube company, had averted failure by entering a successful com¬ bination. The new Panama Company have made a report ln obédience to an article in their statutes, that when half the capital of €5,000,0110 francs had been expended prospects should be reported. To June 30, 1898, 28,537,298 francs were expended, and it was declared that construction with Iccks was practicable ln ten years at a cost of 512,000,000 francs. The following is given as the opinion of Reichsbank officiais cn the future of German trade: ■'That no considérable décline in the demands wbich trade and industry are making upon the German money market will be experienced for some time to come; on the con¬ trary, that the présent remarkable boom has not yet reached high-water mark. The great prosperity that has prevailed in all otber branches of manufactures has till quite recently not been experienced in the textile industries; but these industries now ■how that the boom has reached them also. Thus from the aide The Realty Market. CONDITION GOOD FOR A PANIC WEEK. -—.ROM présent appearances, the brokerage branch of the real X" estate mark«t would seem to have sustained little, if any, injury from the money panic in Wall street. The reports are above the average for the season in number, and contain some items of first rate importance. On the other hand, not aU, or even perhaps a majority, of the sales reported in the weeklf budget are ever consummated during the week, so that tli* budget is by no means an accurate reflex of current busincB». In view of the conditions which have recently obtained in real estate, however, it is probable that the Wall street incident ia more likely to curtail the house market than any other branch of the realty business. The shrinkage of value in crédit secu¬ rities has undoubtedly wiped out many prospective customers ïor private houses, and possibly may prevent for the présent some business concerns from making contemplated purehases for occu¬ pancy. Buying for investment, having for some time been at ebb tide, can hardly recède further. The capital employed by real estate operators, whieh is more or less in the nature of a spécial fund, is not likely to be withdrawn from its particular use bo long as the outlook in real estate remains fundamentally un¬ changed, and that outlook is determined by the gênerai indus¬ trial situation ratln r than by temporary conditions in the money market. This line of thought suggests the continuanee of spécu¬ lative activity, and a temporary failing off in the buying for occupancy which has come to be a feature of the brokerage re¬ ports. Meantime, there is nothing in the budget indicative o£ adverse results from the money panic, except, perhaps, as re¬ gards private houses, of which the sales are iess in number and importance than last week. On the contrary, transactions in mercantile property hold an uncommonly prominent place; be¬ sides, the items relating to medium-priced flats and tenements are numerous, both absolutely and relatively, a circumstance be- speaking an improved demand for small investments. Several of the transactions in mercantile property foreshadow building improvements for the use of the purchasers. The Im¬ porting dry goods commission house, F. Vietor & Achelis, will erect a 10-story building on the plot 61x100 at the southeast corner of Mercer and Spring streets, which they purchased from the Sternberger estate. This purchase, by so prominent a house, cannot fail to hasten the disintegration of the old centre for the dry goods commission business in and adjacent to Léonard and Worth streets. A plot of six lots in 33d street, east of 3d avenue, was bought by a publishing house, which will erect a 6-story building. The property comprising Ncs. 7 and 8 Chatham square was bought by Peter Herter for improvement wlth a G-story store and loft building, suitable in part for light manufac¬ turing. The new S-story flreproof store and loft buiiding No. 59 4th avenue was disposed of by the builders. Irons & Todd, and rumor was active with prominent parcels in the drygoods section of Broadway. Weil & Mayer denied the report tbat they have afBxed their signature to a contract to sell, for about $1,000,000, part of their holding between Prince and Houston streets, and that a représentative went this week to St. Louis to uecure the subscription of the buyer. This was but one cf several promising rumors investigated only to be contradicted by the owners of properties concerned. That the renting conditions in the section of Broadway devoted largeiy to light manufacturing are sush as to encourage negotiations for the sale of new spécu¬ lative buildings to investors is apparent even to him who runs as he reads the to-let signs, and explains the readiness of the real