The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-02-15
General Survey of
Business Conditions

This country is confronted with a
peculiar condition. There is no line
of occupation which is so fundamen-
tai as building, or which affects so
directly 50 large a portion of the
wage-earners in every scale of life
but for four years there has been
almost no building, so that we are
now way behind in our work We all
feel the necessity for building and
building now, but there is curious
reluctance to get started, though up
on analysis it is easily shown that
there is every reason for building at
once and building largely, and there
is no reason why this very vital indus
try should languish for a moment.
The present indecision to build on
the part of property owners arises
from misconception of some of the
facts. The price of building is not in
any sense prohibitive if we consider
structures running from $4,000 up,
and they constitute always the bulk
of the work which gives employment.
A careful survey of prices during the
past 80 years, including three periods
of financial stress and economic diff
culties, shows that the cost of fairly
good-siZed buildings varies but slight
ly from year to year, generally less
than ten per cent. The writer has
had this fact verified within month.
A large group Of commercial build
ings was under contract in June, 1917,
but was given up on account of diff
Guilty in raising a mortgage. Today
the bids thus far received for that
same work without any change what
ever show that the total advance in
prices will be less than ten per cent
and in view of the fact that rents
have advanced far more than the cost
of construction the ground of build
ings referred to is today better
investment for the owner than it
would have been in 1917, notwith-
standing the slight advance.
Nearly all materials have dropped
somewhat in the last six weeks. Steel
can be had at prices lower than OBJ
tanned in 1898, for instance, though
not as low as it could be had in 1915,
which was the lowest price steel had
reached for many years, but the price
OF steel IS m no sense prohibitive at
present. The same is true to a GER
tain extent of cement, and a most
powerful factor in keeping down the
cost is the constant discovery of new
methods which enable us to get the
same results with less expenditure.
Reinforced concrete for instance, can
be built today as cheap as it was
built before the war and far cheaper
than it was built in 1890.
AS to labor, there is a great deal
of uncertainty because no one can
foretell what the attitude of the
mechanic will be, but even with the
present wages, it has been shown re-
peatedly that the actual cost permits
of as good if not better investment
values than would have been possible
before the war. There is plenty of
labor and there will be more. The
supply already far exceeds the de-
mand and it is not conceivable that
we shall have any serious trouble in
getting all the labor we need and
with conditions which will justify
such labor being paid a fair living
wage. What is troubling many who
are considering building seems to be
a lack of definite quotations, but if
we wish to establish prices, the
quickest way is not to hold back,
but to get right into the market for
bonafde bids and everything seems
to show that the pessimists who fear
it is impossible to build at present
prices will have an agreeable sur
prise.
February, March and April are
the months in which the lowest bids
are generally received for building
operations. The contracting firms are
always anxious to place their orders
for the year, labor is less apt to com
plicate the matter and the supply OF
materials generally is such that price:
are at low level. Furthermore, il
building initiative is postponed be
yond these three months we would
then be in the midst of the building
boom which is sure to come before
very long, when prices may advanc,
and it may be more difficult to enlis
either capital or labor.
There is another very imperativ,
necessity for building now. We hav
a surplus of labor on our hand
growing larger every day. We simpl
must take care of that labor and il
no other way can labor be so widel,
and proftably employed as in build
ing operations. So that as matte
of patriotic selfshness, so to speak
as we'll as of individual profit, there j
every reason for building and no goo
: reason for ACKNOWLEDGEMENTS z
4 Blackwell, in the Banker and Trades
l man.