It should be admitted, therefore, that participating mortgages are a benefit and perfectly proper, and that the objection to them lies in the present method of handling them, and not in the participation itself. A number of institutions have refused to participate, but if it could be shown to them that the participation agreement was of record and there could be no moral reason, as there surely is no legal one, why they could not loan on a first mortgage as collateral provided they hold an absolute assignment of the mortgage, and physical possession of the papers, including bond and mortgage, title policy, fire insurance, etc., their objection to this form of mortgage lending might well be removed.

When borrowers, lenders, and real estate investors are thoroughly acquainted with this new phase of the mortgage business, participating mortgages will become more popular if the methods of handling them are amended. The mortgage business in New York has assumed such vast proportions that the means of obtaining loans, and particularly of financing of the enormous building operations started in New York, must be improved, and the participating mortgage is a progression.

It is to be hoped that the investing public in general will, in the near future, be educated to participating in mortgages themselves, so that instead of having only a first and secondary participation, we may be able to have a hundred participations of $1,000 each in every $100,000 mortgage.

In Paris, mortgage bonds or participating bonds are as salable as our railroad bonds are here. The obtaining of large amounts on mortgages on New York real estate will be less troublesome only when the French methods of mortgage investments are adopted in this city.