Evening journal., 1919-07-05
General SfabiIizafion i'm
Building Field Fast Approaching

The pronounced activity IN all sffili-
sted lines is steadily bringing abont a
more normal resumption OF business in
the construction ileld all over the coun-
try, says the American Architects
weekly review OF the building situa-
tion.
II has been the general belief that
the high level Of prices reached during
the war was caused merely by the ex-
traordinary demand for commodities
which exceeded the supply with the
war demand a thing OF the past there
was naturally expected a sharp drop in
prices and a price level early approXi-
mating that Of pre-war times.
10 was also commonly believed that
the industrial capacity OF the world had
been greatly expanded under the stlmu-
latlon OF war orders, and that this ex-
pansion would bring sharp competition
between rival concerns in time Of
peace Furthermore, II was thought
that there would be great armies OF un-
employed wOrkmen, the result OF de-
mobilization, who would be compel-
ed OF necessity 10 accept work at low
wages and that there would be sharp
competition among the leading nations
in international trade: and that buyers
generally. looking forward toward an
era. OF lower prices, would postpone
buying In the light Of these consider
ations Il was but natural for people TO
expect a great fall in prices, and even
TO fear an industrial panic.
on fact. certain college professors Of
economics had seriously predicted such
a condition.
The expected fall in prices has not
occurred. nor is 10 likely soon 10 occur
The rise In prices during the war
was not merely the result Of a great
demand for goods and OF a scarcity Of
certain goods. 70 was largely brought
about by means OF imitation Of the cur
rency by the governments at war and
by the neutrals. either by the direct
issue OF paper money or by the issue
Of bonds Although war orders are
now largely a thing Of the past. the
extension Of credits still exists as a
continuing cause OF high prices. There
Is little 10 indicate an early contraction
OF credits.
World production in general during
thsw contrary 20 a widely held view
was not abnormally large. This Is
shown by statistics OF world produc-
tion Of leading basic materials Of in
dustry, such as coal. petroleum, iron
ore and OF cotton. sugar, wheat, wool
and other agricultural products Con-
sequently 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
prospect. Wages are not likely 10 be
lowered.
Buyers since the armistics. although
showing a desire 10 wait for lower
prices. have been compelled TO buy TO
meet their daily needs. During the
war. because Of scarcity OF cOmmod-
tiles and high prices or because Of pa
trlotic self-denial. they did not buy in
advance OF need. as is customary in an
era OF rising prices. Consumers goods
are IN great demand and retail trade Is
now moving in great volume.
II the production capacity OF industry
should be greatly increased. lower
prices would not necessarily follow. II
there is a strong enough demand for
commodities, prices need not fall. no
matter I'm how large volume c0mmodi-
ties are produced. There Is every rea-
son for expecting such a strong de-
mand. The world Is now suffering
from great shortage Of durable goods
building, transportation facilities and
industrial equipment. Furthermore
people. both in the United states and
Europe. have a stronger desire for con-
sumers' 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 expert
ences through which tens OF millions
have passed, which have awakened IN
them desires for goods and services
they never enjoyed before. Along with
greater production OF goods there is
likely TO go further extensions OF cred
its rather than contraction. Neither
the credit system OF the United states
nor that Of the world has reached the
limits Of its power Of expansion.
The present conditions in the build
ing field. the Division OF Public Works
and Construction Developmet Of the De-
partment OF Labor. counsels the busi-
ness men OF the United states TO pro