The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-07-08
STABILIzINC IN
BUILDING IS
COMING FAST
LABOR AND COMMODITY PRICES
WILL STAY HIGH AND THE Gov
EMINENT WILL AID WITH LOAN
SYSTEM.

The pronounced activity in all affiliated
lines is steadily bringing about more
normal resumption of business In the
says the American Architects weekly re-
view of the building situation
II has been the general belief that the
high level of prices reached during the
war was caused merely by the extraordI-
nary demand for commodities which eX-
ceeded the supply. With the war demand
a thing of the past. there was naturally
expected a sharp drop IN prices and
price-level early approXimating that OF
pre-war times.
1t was also commonly believed that the
Industrial capacity of the world had been
greatly expanded under the stimulation
Eof war orders, and that this expansion
would bring sharp competition between
rival concerns in time of peace. Further
more, it was thought that there would be
great armies of unemployed workmen,
the result of rehabilitation. who would
be compelled by necessity to accept Work
at low wages and that there would be
sharp competition among the leading ma
tons in international trade; and that
buyers generally looking forward to-
ward era of lower prices, would post
pone buying In the light of these con-
siderations it was but natural for people
t. expect a great fall in prices, and even
TO fear an industrial panic.
In fact certain college professors OF
economics had seriously predicted such
a condition.
The expected fall In prices has not oc-
CURED, nor is it likely soon to occur.
The rise in prices during the war was
not merely the result of a great demand
for goods and a scarcity of certain goods.
1t was largely brought about by means
Of initiation of the currency by the gov
eminent at war and by the neutrals.
- or
By the issue of bonds. Although war or
ders are now largely thing OF the past,
the extension of credits still exists as
continuing cause of high prices. There
ia little to indicate an early contraction
of credits.
World production In general during the
war, contrary to widely held view, was
not abnormally large This is shown by
statistics of world production of leading
basic materials of industry sucn as coal,
petroleum, iron ore, and of cotton, Su-
gar. wool, wheat, and other agricultural
products. Consequently the abnormal
consumption of goods for war purposes
has depleted the stocks of commodities
of the world.
Armies of unemployed, in the United
States at least, have not materialized,
and an actual labor shortage is in pros
pect. Wages are not likely to be lowered.
Buyers since the armist1ce. although
showing a desire to wait for lower prices,
have been compelled to buy to meet their
daily needs. During the war, because of
scarcity of commodities and high prices
or because of patriotic self-denial. they
did not buy in advance of need, is GUS
tomary in an of rising prices. Con-
sumers' goods are in great demand and
retail trade is now moving in great vol
ume.
If the production capacity of industry
should be greatly increased, lower prices
e
a strong enough demand for commodities
prices need not fall, no matter in how
lager volume commodities are produced
There is every reason for expecting such
a strong demand. The world is now suf-
fering from a great shortage of durable
goods-buildings, transportation facilities,
and industrial equipment. Furthermore
people. both in the United States and
Europe. have a. stronger desire for con-
sumer's goods than ever before. This is
true partly because of the scarcity of
certain goods during the war period, and
partly because of the new experiences
passed. which have awakened in them de-
sires for goods and service they never
enjoyed before. Along with greater pro-
duction of goods there is likely to go
further extensions of credits rather han
Neither the credit system OF
the United States nor that of the world
has reached the limits of its power of
expansion.
In view of the present conditions in
the building field the Division of Public
Works and Construction Development of
the Department of Labor, counsels the
business men of the United States to pro-
coed at once a policy based on an
period of business prosperity.
1t further states that no period of de-
preston and no collapse of values need be
feared.
The man who goes full speed ahead will
score an advantage over his procraSti-
mating competitor which will far outweigh
any possible slight decline on cost CT
revised bill. providing for national
building loan system which would divide
the country into eleven districts in each
Of which a federal building loan bank
may be operated has been introduced in
congress This bin has been redrafted
and amended by n Subcommittee of the
United States League of Building and
Esoan associations. With the early pass
age by congress OF the measure there
y Guild cease the deficiency in funds avail |
able for building loans that now exists.
The impression exists in some minds