And so if you have noticed the records of mortgages during the six or eight months that might be called the panic months, they were smaller than for years, and at higher rates of interest. As the panic passed away, money became more plentiful; then the thing happened that always does happen after a panic - money became a drug in the market, and that is the situation to-day (February, 1909). Rates are lower now than they have been for eight or ten years. That condition, I think, is likely to last until business development of all kinds takes place, and improvements by the large corporations and the railroads have been undertaken again, so that there is need to borrow money.

The recording tax law has undoubtedly brought into the market a great deal of money that was never there before, because estates can lend money at 4 1/2% net. Instead of being liable to taxation at local rates, they are free from tax, and that will encourage the investment of money in mortgages.