524 The Architectural Review and American Builders' Journal. [Feb., problem : How to provide bouses for the million. Now — supposing the operation successfully carried through : the houses are all finished ; and ready to occupy : tbe partnership commences to dissolve of its own accord. All the accounts are adjusted : the title is made to each of the partners, for whatever houses he has agreed to receive ; and all the various parties concerned sign their releases, one of and for the other. If, when the last is done, it is found that the builder owes any unpaid balances, they are charged against the houses remaining in his bands, which are those he has left to show, for the amount of capital and time he has invested in the operation, and embody his profit. These balances are divided equally upon such remaining bouses, which are liened, as security ; and, as they are sold, these debts are finally liquidated. Now the concern is wound up : the houses are in the market, to rent or for sale : many are occupied by the first owners : the rest are sold upon such easy terms, that, in Philadelphia, it is the simplest thing in the world for an eco- nomical family to own their house. The first mortgages, before mentioned, given for the land ~and advance mone} 7 , are made for a term of years; and are gen- erally sold by the capitalist to savings and insurance companies, to realize money to turn another operation. The builder sells any particular house, sub- ject to its respective mortgage ; and takes one-half the balance in cash, and one-half in a mortgage payable in in- stalments, making it a very easy matter for the purchaser ; and providing him- self assets, with which he can liquidate his liabilities. All of these " second mortgages " can be used and sold ; for, after all, the experience of our best busi- ness men has taught them, that real estate, ground-rent, or mortgage secu- rity, is the best and safest to hold. A steady interest of six per cent. — the principal being fairly secured and sub- ject to no probable fluctuations sufficient to impair its value — is what man can sleep soundly upon. It is the firm basis of a fortune, with no uncertain tenure, as is the case in the rise and fall of stocks. No broker, or speculator, can get up a corner, or create a panic, in mortgages and ground-rents, as long as our government guarantees security to person and property. Now this is the system of managing most modern house-building — a sjstem under which some of the finest houses in this city are built. Many people have an idea, that the houses, built in this way, are not as good as if built by con- tract. A man may, perhaps, finish one house better, than he can a hundred, because he can pay more attention to minor details, but, in the main, he can build it no better. The best and most responsible mechanics are employed ; and the work, although pushed rapidly, is well done. The same character of work is done, by the same men, in con- tract houses ; and you can see no differ- ence in any two houses of the same price, the one built by this system, and the other by contract, except this : that the contract house has cost twenty-five per cent, more ; and is not built or fin- ished any better. There is no city in the world, perhaps, that understands and practices this sys- tem of building, as Philadelphia ; and all mechanics and dealers in materials accept it, as the most legitimate busi- ness, when operated by good and relia- ble men. H. M. B.
