The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-15
BUILDING SITUATION
IMPROVES RAPIDLY
Many Plans Put Into Execu-
ton to Make Money More
Easily Available for Loans.

NE high cost Of money and labor and
not the high cost Of materials that has
been responsible for increased construc-
ton COSTS efforts that are being made
IA various municipalities to put plans
into execution whereby money may be-
come moro available for mortgage loans
are meeting with real success" accord
ing TO tho Americas Archsteot's weekly
review. Most practical OF the IDEAS
q far advanced to make loan money
more LIQUID are those which would ex-
empt from income tan mortgage invest
ments up TO $4,000 or $4,000. the
FEDERAL Loan Bank plan. and diversion
of mortgage institution money from
Wall Street investment back to building
loans.
"In the present situation, when 80
much depends upon speed in getting as
many homes built by autumn as possible
60 aid In the solution Of the housing
problem, the exemption from income
tax plan seems to DO the most practical
OF those advanced. II would take con-
siderable time for the Loan Bank plan
to be put in operation and consequently
II could not aid much in the present
emergency. Exemptions from State In
come tax can be made quickly, and
then the Federal authorities can be
asked to give some exemptions In favor
Of mortgage holdings UP to q reason
able amount.
at Is unfair for the Government to
put farm loan bonds at per cent to
the investor and exempt them from all
taxation. That n favoring one class
against the rest Of the people. The time
should soon come when mortgage loans
for building can be had on the same
terms as farm loans.
Opponents OF these two plans, which
have been strongly advocated by the
New York State Reconstruction Commits
zion, claim that in the case OF the Fed
eral Loan Home Bank there would be
difficulty in selling the bonds at this time,
and that the exemption Of mortgage
loans from the income tax IL poor prin-
ciple, especially since United States Gov
eminent bonds are still subject to tax.
They charge bad methods, but is II
not the best thing to be done under pres
ent conditions? II surely makes for the
iiquidity Of loans. and that IL what
counts above all else in the present stu
alton,
I'm attempting to solve New York
city's problem. which may be truly said
10 be barometrio of conditions elsewhere
in the country. suggestions made by
Samuel Untermyer. widely known law
yer. include Immediate disposal by m
surance companies OF tho bank and other
stocks which they were required by Law
to dispose of eight years ago the COM
pulsory investment In mortgages and
bonds in unencumbered real property of
one-half Of the assets Of life. FIRE, health
and casualty companies and the savings
banks of the State, and Investigation by
the Federal Trade Commission to break
ny unlawful combinations that now exist
IN the building trades
The statement Of Mr.. Untermyer that
insurance companies are putting obsta-
Giles in the way Of improving housing
conditions by withdrawing from their
former policy of lending on bonds and
mortgages and investing their money in
Wall Street securities brought answers
from officials Of various insurance COM
panies. The loanins corporations brought
out the fact that when the Government
put the check on building during the war
IL was natural for them to seek invest
ments in other nelds Since 1917 there
has also been extensive subscriptions to
Government loans and United States
Treasury certificates Of indebtedness. 1t
was argued that II It is true that the
practice of loaning on real estate was
discontinued II was done for the PURPOSE
OF responding to q greater necessity MI
Untermyer declared that II twelve insur-
ance companies would unload their rail-
road and Industrial stocks sum Of
$l00,o00,000 could be raised to aid in
solving the problem Of financing new
construction
TT would appear from these repre-
sensations that what has been called the
high cost of money Is. in New York at
least. due to impfoper diversion of funds
into channels that are more lucrative to
the ioaning companies and to discrim-
ination that adversely affects the amount
that would otherwise be available for
mortgage loans.
ut becomes each day moro clearly
apparent that the claims loudly set
forth that Il II the high cost of ma
tsrials that 10 preventing the normal
resumption Of building Is in a great
measure propaganda to disguise the real
cause. The actual retardant in this
immediate locality at least. is logically
demonstrated to be the non-liquidity of
mortgage loans"
In the meantime, however. architects
All over the country are very busy
There Is q scarcity OF craftsmen and
those available are asking greatly in
creased remuneration. According to the
same publication building is going
ahead briskly in all sections. There Is
not only large amount Of planning
FOR lon cost houses, but actual work
has started on many factories, stores
anc other types of commercial construc-
ton. All this activity Is reflected In a
greater demand for building material.
Lumber 10 moving from the yards 70
regular trade channels In exceptionally
heavy volume. and with an acute scarcity
or stocks manufacturers and dealers
are experiencing difficulty in replenish-
ing supplies to meet the demand. All
lumber is holding firm In price. with
advances during the week in the whola-
sale values OF yellow pine, hemlock
mr.. cypress and some OF the hardwoods
Brick ana all clay products are in
good demand. The same is true of the
metal building material items. especially
radiation. Ofiicials OF leading radiator
company report marked improvement
IN business. They say that in conse-
quence OF bigger building projects there
Is substantial gain in the demand for
boilers, radiators and all heating eouip-
snent. Prices OF radiation are unchanged
TN practically all lines of business
the former policy of waiting for lower
prices has changed to one Of buying at
present quotations. and there are few
VINO now cling to the belief that recon
struction will go ahead on a lower price
basis. Financiers and the heads Of big
corporations now see nothing but actiy-
tty ahead, with a building movement
likely TO develop into a boom following
the signing OF tho peace treaty"
BUYS SITE FOR SILK MILL.
One of the biggest transfers of unim-
proved land In the mill district ~