Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-18
BY I. A. FLEMING.

Eastern real estate brokers' anu
dealers and people with property to
sell have been aided by the world war
to an enormous extent. Before the
war they were in the valley of de-
spair. almost literally speaking. and
probably as much so in Washington
as any other place in the United
States.
There was opportunity occasionally
to make trades, two houses for one
or unmproved property for improved
with a little cash thrown in. but LOT
actual outright sales they were rev
and far between
Moreover. there were some high
grade apartment houses in the choic-
est section of this city standing
nearly vacant, with financial stress
staring the owners thereof directly
and forcibly.
The war changed this. The apart
meuts were taken overnight some
times. high rents were charged. peo-
pie who had been unable to rid them.
selves of property heavily mortaged
were able to cash quickly. and thou
sands of real estate sales were
recorded.
The crying need for apartments is
a matter of today despite the return
TO their homes of many war workers:
the upward swing Of rents has been
general where advances could ne
made effective. largely through the
Willingness of tenants to meet mod
est advance for assurance of lease
and = home. Fancy prices were paid
ev subtenants.
Bankers before the war Just had
to carry the loans: they could not
realize. save now and then under
forced sale.
Rents are today high enough to in
sure good return on investments.
Money Is Not Lacking.
1t is not Iack of money that is hold
ing back building and increasing I'M
employment.
1t is the fear that wartime re-
turns will not continue available and
that therefore the increased cost
prices Of construction cannot be met
with assurance of safety to the
Money is in large supply. The spec-
uiation in Wall street has resulted
in the using of nearly billion dol
lars by traders to carry their stocks.
it is the idle money Of all cities that
seeks employment in the call market
of New York. Still there is an ample
supply for commercial needs.
ting of 1000 bricks will cost $3.50
TO s35 today as against $3.50 in pre-
war periods; that structural steel
costs $40 ton today. as compared
with s45 to s55 a ton then: lumber
has advanced 100 per cent plumbing,
steamftting. carpentering and fix
lures are nearly as much higher than
before the war.
The high cost of living continues to
soar. rather than reach for lower lev
g Ia ftNy e..
so long will wages and construct on
costs keep on the same general level
Cheaper Money Hardly Probable.
Much cheaper money is scarcely pos
sible in the near future. The very
best security for the commercial
bank is commercial paper. for on that
they are able to borrow from the
federal reserve system on the low
est available rediscount rates.
Borrowers have been holding aloof,
hoping that the banks would loosen
up now that the victory liberty loan
is practically out of the way but the
banks are holding rates steady.
The federal government has practi-
carly pegged the lowest rate for the
nest security at per cent through
the continued issuance of Treasury
countable at low rate. bearing ~. per
cent interest. tax free. which practi-
cally means ) per cent
sThe last bond or note issue has been
noated. but it will be but a few
weeks before the Treasury certifi-
Gates will be coming out periodically
IN anticipation of income tax pay
ments.
Assurance of the continuation of the
advanced scale of rents for any length
Oh Time would stimulate building.
Twenty Years of High Silver.
Senator Pittman. author of the law
unoer which s3O0.oO0.000 in silver dol
iars were melted down and sold to
india: has gone on record as beliey
ing that we will have twenty years
OF high-priced silver.