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Subject Area: Political Theory
Topic: The American Revolution and Constitution

PETER A. JAY TO JAY. - John Jay, The Correspondence and Public Papers of John Jay, vol. 4 (1794-1826) [1893]

Edition used:

The Correspondence and Public Papers of John Jay, ed. Henry P. Johnston, A.M. (New York: G.P. Putnam’s Sons, 1890-93). Vol. 4 (1794-1826).

Part of: The Correspondence and Public Papers of John Jay, 4 vols.

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PETER A. JAY TO JAY.

New York, 5 July, 1821.

My dear Father,

I received your letter of the 25th ult. too late to answer it by last week’s mail, and I have this morning received that of the 3d inst.

I have directed an estimate to be made of the expence of building two houses on Walker Street. There are several reasons both for and against that Measure. I doubt whether such houses as would be most profitable in that situation can be built and completely finished for less than $5000 each, and the rent at present would not exceed $400, so that reckoning a lot at only $1800 the rent would be less than 6 per Cent. on the capital, and that too without considering repairs, which never fail to amount to something every year. On the other hand the value of the adjoining land would certainly be increased and it is not improbable that rents will rise. There is now so much idle capital in the City that upon pledges of stock money can be borrowed at 5 pr. Ct. Stock of all kinds is enormously high; even 5 pr. Ct. Stock sells at 7 pr. Ct. above par, yielding about 4½ pr. Ct. interest. There is generally a fashion in the money market as elsewhere. Some years ago it was the fashion to employ capital in Manufactures; nobody does so now. At present there is a rage for stock, but this I think cannot last long, and I should think it probable that capitalists will begin by and by to purchase land. If this should be the case, then building at present will be advantageous. But unless land or rents or both should rise, it will not be profitable.

We are all well. Our love to Nancy, William, and Augustus. I am, my dear father,

Your very affectionate Son,

Peter Augustus Jay.