Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1919-06-12

present. 1t is distinctly encouraging
to the construction industry to note
tina optimism-reasoned optimism-is
most emphatic in the literature pub
lished by the leading banks of ma
tional reputation, complied for them
by trained investigators.
Evidence of helpful attitude on
the part of banks toward real estate
is not wanting. In the great borough
of Manhattan, in New York City,
mortgages aggregating $8,500,00 in
value were extended (renewed) in
January of last year That is to say,
the banks and insurance companies
are not now, as they were year ago,
calling upon real estate borrowers to
pay off loans in whole or in part.
Furthermore, 1880 building per-
mits were issued in 152 cities this
January as against $500 permits
year ago. The average value of the
January permits this year was ST.
700, compared with $1,000 in jan
uary, 1918. A year ago, it will be
remembered, the Government was
building extensively and, besides,
many factories were being erected for
war production. Fifty-four per cent
of the cities showed gains in build
ing this January over the preceding
January. 1t is to be noted also that
January, 1919, gained over Deem
Der, 1918, although building permits
are normally fewer in January than
in December. The significance of
these building figures is that there
is tendency to build extensions, to
make structural repairs, and to erect
inexpensive buildings, including par
ticularly housing. The figures bear
the characteristics one looks for at
the beginning of revival of the
building industry.
1t takes time for private building
to get under way, and still longer
for public works to get started in
volume. However, the reports re-
ceived from State, county, and mu-
nicipal officials justify the belief that
an exceptional amount of public con-
struction will be undertaken this year.
The turning of the tide in con-
struction industry that we have all
been looking for since the armistice
has unquestionably come. However,
there are still obstacles in the way of
it's rise to normal The most impor-
tant of these is the high cost of con-
struction as compared with the pre-
war period. 1t is estimated that the
cost of construction of a typical steel
frame office building is nearly so per
cent higher to day than it was in 49,
13,w lille that of typical brick
or frame dwelling is about so per
higher. The difference in the per-
centage is due to the large proper
ton of metal products
steel, elevators, ornamental iron
work, and heating, .ventilating, and
plumbing supplies-used in the for
mer type of building.
Not a few bankers and investors
decline to consider a building project
to day merely because of the high
cost of construction. Those who take
this attitude do not generally stop to
analyze the high cost of construc-
ton which alarms them so.
Although construction costs are
higher now than in 1918, the union
wage scales the building industry
have not advanced as rapidly as the
cost of living, while building ma
terial prices are not as high as are
commodity prices. Wages and prices
in the construction industry, speak
ing generally, Jagged behind because
that industry was utilized to only a
small degree in war production. The
level at which the cost of construc-
ton stands today has been pushed
up only slightly by temporary war
conditions 1t has been fixed main
ly by conditions that can not be ma
terlally changed for years to COME
by the tremendous expansion Of mon
ey and credit.
During the war the volume of mon
ey and credit increased far more rap
idly than the volume of industry and
commerce; hence prices rose. But
expansion of credit through govern
ment loans is worldwide condition
which must hold up prices every
where until the government debts
are largely funded or discharged.
The fact is that the cost of con-
struction is not high today. 1t is
low compared with food, clothing, and
commodities in general; for example,
in January of hits year given guam
tity of farm products would exchange
for 81 per cent more of common
building materials than the same