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MOVEMENTS AND SPECULATIONS IN REAL ESTATE IN THE CITY OF NEW YORK. [From the New York Herald.]

The transaction* in real estate in the city of New York, hate btsn on a large scale within the past year or two, and have exhibited ia many localities a great advance in value. We have taken some pains to ascertain the quantity of retH estate sold by all the auctioneers in this city, for the year beginning the Ist of July, 1851, and ended the Ist of July, 1852, snd we find the aggregate to reach in found numbers about 10,000,000 dollars,* bich exceeds the sales of tny former year, if we except those of 1836. Of the sales nsde, about an average of 70 per cent, remained on bond and mortgage for a period of years. Ou this basis within the perr tod stated, about 3,000,006 dollars in cash were paid -down, and about 7,000,000 dollars remained on bond and mortgage, and mostly at 0 per cent, per annum. Tne intereston this amount would be about 120,000 dollars per annum. We have no means of ascertaining the amount of property sold at private bargain, but suppose it to have been equal to about 5,000,000 dollars within the year referred to, giving total sales for that period of about 15,000,000 dollars. "Nearly all considerable bodies of unimproved real estate tire sold by suetiori, and generally on the usnal tetms as to payments. Improved and productive real estate is most commonly disposed of at private sale, and generally with larger cash payments. It sometimes happens that portions of property offered at auction are only nominally sold. That Is, thdy are limited and bought in by their owners or friends. These we have allowed for, as our statements are based upon bom fide sale returns made to the Comptroller. The greatest inflation in the prices of real estates ever reached in New York, occurred in 1836 — when, owing to an immense expansion of the piper currency, together with the wide spread spirit of speculation, caused a great advance not only on real estate, bat also in the prices of almost everything else. In that year, flour sold at 10 "dollars to 11 dollars per barrel ; wheit at 2 dollars 2 cents per bushel; beef at 13 to 15 dollars ; and pork at 23 to 24 dollars per barrel. The soil tit the country, under neglected culture, failed to yield an adequate supply, and large parcels of wheat were imported from abroad. The importations of foreign goods were also enormous, and reached 189,980,000 with a population of onlj about 15,000,000. The exports tor the same year only reached 128,663,000 dollars. The transactions in real estates were on an enormous scale. Not only were immense parcels of vacafli property sold in New York and the surrounding country, and adjacent towns, but entire new town: situated at vauoua points, from the borders of tbt northern lakes to the shores of the Gulf of Mexico, including a vast proportion of water lets, some of which were aaid to produce " twentj bushels of frogs to toe acre, and alligators eneugli to fence them, were brought under' the hammer, and rapidly 'sold at " satisfactory prices." Among other notable cities founded oh paper about thai time., was Jacksop City, situated on the flats neat Washington ; the foundation stone of which Ge« neral Jackson, then President of the United States, was induced to lay, amidst fU dae pom} and ceremony. The receipts for the sale oS public lands were also enormous. Everything sold by the auctioneer, in the shape of real estate, was sure to find ready and eager bidders, whose competition produced prices above even the expectation of sellers. In that year, however, <A great expansion, a crisis was reached. The inflated paper currency, which had carried every* thing to such a crazy height, exploded, and a powerful and disastrous reaction in real estati ensued, as well as in everything else. City property, however, did not tumble to its lowest point at once. As sales became forced, tc secure payments, they were less repaid, and the fall, although immense, was gradual. There wai a panic among dealers; some were ruined out and out, while others were discouraged and anxious to get out of it as soon as possible ; till finally few were fouttd to gather at real estate Sales, or ' to be tempted to purchase scarcely at any price, until 1843— the lowest round of the ladder seemed (o have beet) reached. From that time forward, or from 1843 to 1845-6, a favourable and healthy reaction began to be manifested, which, however, wat subsequently checked to some extent by the Mexican war. At the conclusion of the war, and under the influence of a more liberal commercial policy on the part of the Government in reducing the high tariff of 1842, New York revived, and entered on a fresh and brilliant career. The famine years of 1847-48 greatly added to her commercial prosperity. The discovery of gold in California, and Lain la Australia, united with another great expansion of paper money, Used, m most cases, if L upon pledges of "wild cat skin./' upon State stocks of uncertain specie value. The effect of these causes has been to produce a state of inflation unequalled by any previous rise except that in 1836. Up to the present «etf, however, as far as the city is concerned, with some few locations in different wards, it would appear that die present great advance in real estate has been as a general thing, on a more gradual and conservative scsle. We do not attribute the great advance in real estate, as well as in nearly everything else, to the, influx of gold, so much as to the spread of the free banking system and the multiplication of free

banks, giving rise to another great paper inflation, leading, probably, in the end to similar results ■> those witnessed in 1836. And as the increased expansion' add indebtedness malt, wilder the excitement tf 4he tiwes, exceed that of 1836, \n proportion to the Increase tf population and rtsourcts, it is likely, when a crisis does occur, it will also greatly exceed that of 1836, and its consequences be store widely »na* severity felt. The average advance In real testate from the period of the greatest depression In 1843, t» July 1, 18,52— nine years, has been, in most wards, equal to about three to one. That m, supposing a piece of property in 184?, sold for 1,600 dollars, it ii now worth 3,000 dollars. The grealkav advance in real estate bas been in the Third ward down town, and in the Eighteenth ward up town. In certain localities in the Eighteenth ward; between two and three and a half ttttee north fromtbe City (l all, the advance ha* been enormous, chiefly, however, Comprised withio a district having Union-square on tbe «outb, Murray hijl onthe north, the Third avenue on the east, and* the Seventh and Eighth avenues on ihe welt, fhe highest being on the Fifth avenue, antt irJHfcediately fronting on Madison tqdare. WecowW mention certain portions of vacant property within* tbe general limits alluded to, as proofs of our statement. In one case tfaere was a parcel 6f about nine vacant lots sold together ia 1843 for tbe sum of 4.700 dollars, which it* 1852, bad been again sold for 37,500 dollars. The rise in many portions of the Twentiethward, three and a half to four miles north fromthe City Hall, has also been very great. In one case, a whole square of lota, purchased in 1843for about 10,000 dollars, including taxes, assessments, and interest, up to 1852, can now ba sold readily for about 64,000 dollars. These, however, are extreme cues. Tbe advance in the Third ward has in some cases reached end even exceeded by 25 per cent, those of 1836. We allude to transactions in Wall-street, and the lower part of Broadway. Aa a general thing, however, the present value of real estate is below tbe prices of 1836. The rise on Cortlaudt, Dey, and other cross streets, on the North River side of Broadway, have in' some cases reached from 25 to 100 per cent. ; while in Pearl, Hanover, and adjacent streets, on the east side of the city, property has materially risen both in value and rents. Following Pearl-street to Franklinsquare, and diverging from that point north and east, except immediately on the East river, property has for years remained nearly stationary. With the exception of Occasional localities, the populous districts north of Grand-street, until you strike the base of tbe avenues, sad east of tbe Bowery, and west of the East river margin, have experienced but Jittle change. The samt may be remarked with regard to the populous district north of Canal-street to near Washing-ton-square, and ,west of Mercer or Greene* streets, to near the North riven- The greatest present advance in value of real estate, and in population appears to be central and upward on tbe island, from Union-square towards Harlem. Tbe true policy of the city corporation would have been to have increased the value of their real estate, and, at the same time, to have greatly added to the population, by opening at once all the leading avenues to Harlem river, and to hava sold out privileges for transporting passengers over them on horse»car railroads, at low rates of fare. The cheap and easy transportation of passengers is a great public benefit, and should be' managed on the aartie plan as tbe public ferries. The extension of city railroads iue toad a marked influence 1 over real estate*'. Tbe' great impetus given to real estate in the Eighteenth Ward has been imparted to it by tbe Harlem Railroad. Since the laying down of rails in tha Sixth and Eighth avennes, property along tbem, ia many places, baa improved. This, improvement will follow them to the Harlem river. The location of the contemplated J World's Fair, at 'Reservoir-square, has also exercised considerable influence eg tbe value of property immediately around it. A gentleman who owns a number of vacant lots in that vicinity has leased them out for a few years for as much as they cost' Kim in fee simple. While the great increase in the commerce 'of the city, with the great extension [of internal improvements connecting the city with so many distant and important points in the interior, wjll prevent the depression of property to the point t>f 1843, yet it i» feared (hat prices cannot, iv ntost localities, be made to reach or to exceed those of 1836, and be permanently maintained. After all, the true test of the value of real estate is the income to be derived from it; and by this standard it will sooner or later be regulated. In other words, what it will rent for to a good tenant, when improved, considered in reference to its locality, and the facility of getting to and from it. The ordinary receipt* of a safe and imlottrioos business population can only reach a certain point; and whenever rents exceed the ability of die great mass of tbe people to meet it, the value of real estate cannot be maintained at a rate above a corresponding limit. In other words, when a value is fixed upon real estate so high that the legal or fair interest oa the same exceeds the ability tif the people to pay a sufficient rent to meet it, the result is that real estate must fall, or the people be driven ont, or become bankrupt. The combination of capitalists or speculators, propped by money-lenders, or an expanded', paper currency, may tbus succeed in keeping up the value of real estate beyond its intriosic worth for a considerable time, owing to the fact that the same causes advance wages and swell tbe increase of money from business pursuits, extending extravagance and luxury among all classes, and Who; in case of revulsion, experience a common fate. The want of facilities for Teachiog the upper end of the island, with the Constant disposttiob of capitaliats and speculators to crowd op property (lower down) to a rental point beyond the business income of the people to meet it, bus built up large towns on Long Island and in New Jersey, and is still sending large numbers to rural villages in West Chester and other places. While this policy 'is pursued, though the value of property may not (war and pestilence aside) recede to what it was eight or nine years ago, still, as a general thing, it may not in most localities, reach the value fixed upon it in 1386, and in few, if any, exceed it for many years to come.

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https://paperspast.natlib.govt.nz/newspapers/NZSCSG18530427.2.9

Bibliographic details
Ngā taipitopito pukapuka

New Zealand Spectator and Cook's Strait Guardian, Volume IX, Issue 807, 27 April 1853, Page 4

Word count
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2,129

MOVEMENTS AND SPECULATIONS IN REAL ESTATE IN THE CITY OF NEW YORK. [From the New York Herald.] New Zealand Spectator and Cook's Strait Guardian, Volume IX, Issue 807, 27 April 1853, Page 4

MOVEMENTS AND SPECULATIONS IN REAL ESTATE IN THE CITY OF NEW YORK. [From the New York Herald.] New Zealand Spectator and Cook's Strait Guardian, Volume IX, Issue 807, 27 April 1853, Page 4

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