The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1919-04-01
Is THE COST OF CONSTRUCTION HIGH?

During the about onetrd Of the country industrial
pacty including power diverted production To
bring about this great diversion of industry
ployed stimulation and cuament Smupation pracced
throughout the and affected the prices of materials and the
prices OF materials and the Of labor because con-
tracts awarded basis permitted compete
cessfuy with manufacturers for materials and labor
Curament important until early in 1918 except for the
orders of the fuel administration and the railroad administration for
the purpose conserving fuel and transportation prior
ity orders
But in statement of February 1915 Secretary McAdoo
quesed that homes should be built except urgent
cess The statement contained by implication the premises
which the radical curamnt of the building industry later
red out O thath conservation Of materials labor and credit
necessary in order to win the and ~ that the conservation
must take place those industries that not essential only
part essential the winning the Some time after the
publication of Secretary McAdoo statement the policy Of seriously
curtailng production put into effect Eventually the
production sixteen building materials down 25 per
cent Nonwar construction was greatly restricted until al
completely stopped from September g. 1918 until the armstcc
signed 1t estimated by the chief of the building
as section of the War Industries board that the
ton in 1919 would be not than 10 per cent of normal This
estimate indicates how great the diversion labor and capital
the construction industry had BEEN
Fortunately the return of peace did not the complete
abrupt end of the production yet it threatened serious
employment during the period economic eadusmen the
eminent promptly removed the restrictions which had imposed
upon the construction industry There indirect restriction
which could that
moral obligation of the financial community credit
until the Victory loan oated Each bank trust company
company estimate how large part prospective
allotment of the Victory bonds sell promptly and
quenty how much of its funds afford aside for
estate loans other purposes The proportion set aside fir real
estate loans will depend largely the element of pomsm which
enters into every judgment concerning the future.
There probably time whn broadly speaking, Opt
mm regards industry better justified the
country than present is distinctly encouraging to the
ton industry that optimism opimism-s
emphatic the literature published by the leading banks of national
reputation compiled for them by trained Investigators
During the the volume of money and credit increased far
rapidly than the volume of industry and hence
prices But expansion of credit through loans
worldwide condition which must hold prices everywhere until
the government debts are largely discharged
The fact that the cost Of construction is not hgf today 1t
low compared with foodf clothing and mmdfes general
1t high My in comparison with its prewar level Commodity
prices will undoubtedly reede because food and clothing and many
other things affected by special conditions for example
scarcity of transportation which prevented shipment from distant
tat countries to the Allies But they fall to the pewar
level