The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-09
rHE CONSTRUCTION oUTLooK.

With normal construction totaling
nearly a billion and three-quarters
dollars held up by the war. and with
a. steady increase meanwhile in popu-
lation. the United States is more than
a year behind in its building require
ments in respect to residences. public
works and railroads. says the National
Bank of Commerce in New York in
reviewing the building and construc-
ton outlook in the magazine, Com
merce Monthly, for July. THE situs-
ton is described by the bank as a
complication brought about by an un-
precedented shortage of houses, high
building costs and the diversion of
capital from residential building pur-
poses. The bank says:
With regard to residential construc-
ton a difficult financial situation ex-
lists as a. result of high costs of the
materials and labor, coupled with the
diversion into other channels of CAPT
tai which would ordinarily go into
this class of building operations.
There is little prospect of a decline of
building costs but the building short
age must be met. Altho expansion is
in evidence, the full solution seems to
selves carry a larger share of the
building costs than has been custom
airy in the past.
During the greater part of the pc
Rod OF our participation in the war
definite restrictions limited building
and construction for ordinary pur-
poses. Issues of securities for road
building. development and irrigation
projects, were given favorable consid-
Grafton only If of military importance.
The dominant factor in relation to
building shortage. Commerce Monthly
says. is the growth in population
which, altho checked in this country
by the falling off of immigration, war
losses and influenza. nevertheless
probably increased from 100000 to
100000 during 1918. We now are
in need of sufficient buildings, the
bank says. to take care of that por-
ton OF the population increase of 1917
not provided for in the building pro-
gram OF 1918, and. in addition, we
must take care of the increase in 1918.
The war, it says. as a stimulus to in
dustrial construction, produced over
building in some directions, but this
excess, now that the need for it is
passed. cannot in all cases be adanted
to ordinary requirements.
Optimistic conclusions. however. as
to the building outlook for the pres
ent year seem justified, the bank de-
clares, adding:
The figures for contracts awarded
for the first five months of this year.
together with building permits for
May. indicate that a genuine building
expansion has arrived. The future of
the building program for this year
rests ultimately with the question of
building costs, as the possibility of
financing projects is determined by
cost. The wholesale prices of lumber,
structural steel and other building ma
terials are now between 60 and 10 per
cent higher than the average for the
year 1913. Wages in the building
trades are high, but there is no reason
to anticipate a reduction as long as the
present cost of living prevails. The
prices of building materials did not
advance so fast during the war as
most other commodity groups. The
reason for this relatively slow increase
is obvious, namely, the sharp curtail-
ment of building for ordinary pur-
poses.