Arizona republican., 1917-10-28
Money for Building

Capital is, of course, required to building a residence the manufac- tIrer building 8 new plant and the merchant building a new store; but when we speak of capital in connee tion with the building industry. ref erence is supposed to be made to moneys used ill large investment op- erations or loaned to speculative builders. the latter operating largely with borrowed money, says the American. Contractor. War condi- tions affect both classes.
 Just now investment funds are to d considerable extent diverted to gov ernment loans: also investors see op- portunties that seem to promise large returns within short period, leav- ing the money then free for build ing, by which time lower prices and wages are counted upon.
 Speculative builders rely upon the banks and insurance companies; these feeling the strain of the government uond issues, are disposed to ilmt their loans. Moreover, in some sec tions lenders do not regard with taVof loans upon factory buildings or even
  is their view that, on peace basis, the country is overbuilt as regards factories and is likely to become still more so Such a condition, if realized. would mean an impaired value of factory buildings as security ana quite probable disturbance of the paving power of the borrowers. They are therefore scrutinizing such ap- plications quite carefully and passing only those that are distinctly gilt edged. This frame of mind is not universal and may be expected to disappear as the situation clears. The growth of American industry is an irresistible force.
 Some builders with available cap- l ital hesitate to employ it in building on account of prevailing costs. This shows questionable judgment. With 1 steel and coal prices both stabilized l favorable opportunity should be presented. The existent demand is i sn imperative and the promised re turns so large that any softening of l the materials market is likely to let l loose such a flood of deferred hrsi- ness as will interpose q check and prevent the decline before 1t prog resses far. To wait for the Dig de cline is likely to mean letting the opportunity pass.
 This important feature is always l largely controlled by local conditions; at the present time this seems to be more than commonly true. There Is actually an extraordinary volume O. l money in the country and in some sections it IS readily available for any legitimate business requirement. III other localities capitalists hold alool from building enterprises, particularly the building of factories, but thS millions invested in this branch ol ' construction by the government more than compenSates
 The prospective builder who +
 watching for 8 clearing Of the financ-
 ial situation and the consequent cas-
 ing of interest charges may oe en- | couraged to look for it in the neal
 future if the existing depression il
 Wall street continues. 1t has beer
 observed in the past that such 3e'
 pressed conditions in the stock marke
 tend to release money for realty in
 vestment. Other things being equal money will seek the safest invest ment
 Do not wait till tomorrow-phon that WANT AID. to The Republican
 office now. and get your wish fulfilled