The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-06-14
S. v. STRAUS SEES
BUILDING ACTIVITY

S. W. Straus, OF S. W. Straus & Co.,
one of the countrys most prominent
bankers, is enthusiastically interest
ed in the early resumption of build
ing and construction work. The firm
of which Mr.. Straus is president has
already loaned many millions of dol
lars to builders for this work since
the armistice.
Speaking Of the situation last week,
Mr.. Strauss said:
Indications are that by midsum-
mer we shall witness the actual be-
ginning of a long and active period
Of construction work in all parts of
the country.
mot only have building operations
greatly increased in the last thirty
days, but there has been noted a pro-
nounced increase among inquirers for
capital to be used in construction
lines OF all kinds and for industrial
expansion. These inquiries are Of
such nature and represent so many
varied interests as to indicate a
strong undertone, OF national opti-
mism with regard to immediate BUSH
ness prospects and rapid approach
toward general sterilization.
Extensive buAlulnRs
Reports from the principal BUSH
ness centers Of the country show
that the resumption of building
operations on an extensive scale has
begun. and there is reason to believe
that the present month may be the
best June in the history of the coun-
try in point of building contracts let,
unless labor disturbances or some
other unfavorable circumstance pre-
vents.
1.-THE improved conditions In the
building industry are based quite
largely on the realization by all in
terests that construction prices, in
stead of receding, will go higher. 1t
has become generally recognized that
labor costs in this country are more
likely to advance than to be modi-
fled, and this, in the final analysis, is
the deciding factor for the reason
that about 40 per cent OF the cost OF
a building is for labor employed in
erection work and IS per cent is for
labor in the manufacture of mater
ials. Labor employed in construction
work advanced 2Sh per cent during
the period Of 1914-)191S. while the
cost OF living went up IS per cent,
and in New York IL advanced IS per
cent. 1t may be assumed, therefore,
that construction costs will go high
er than present levels with the added
pressure of ensuing abnormal de-
mands.
Comparatively Low Cost.
at must be remembered that the
cost OF commodities entering into
building construction are low at the
present time compared with the cost
OF all other commodities. and. with
general prices continually working
toward higher levels, it is futile for
any building interests to expect more
favorable terms at a later date.
while construction activities are
gaining Roadway rapidly with every
indication of reaching unprecedented
as the summer advances,
there is no likelihood that anything
normal housing condi-
tons will be attained. The situation
has been growing steadily worse for
two years. There is a building de-
felt amounting to more than $1,000
Doc, 900, which includes a million
homes. Neither the physical equip
ment OF builders nor the supply of
unskilled labor is sufficient to make
it possible to reach a condition OF
normality before the expiration OF
number of years. However, present
activities will tend to stabilize gen
eral conditions and prevent much suf-
fering in the large cities during the
coming winter"
Save nrstI spend nfterward-Buy
w. 8. 8.