The sun., 1919-07-06
CONSTRUCTION Is
NEARER NORMAL
Market Activity in Affiliated
Lines Is Bringing Better
Building Conditions. .'

INC prOnOunCeO ACTIVITY III HI AtIA-
lated lines liz steadily bringing about .
more normal resumption OF business IN
the construction field all over the coun-
try says the American Architects wesley
review Of the building situation.
1T has been the general belief thss
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 sharp drop IN
prices and a price level early approxi-
mating that Of pre-war times
ut was also commonly. believed that !
the Industrial capacity OF the world had
been greatly expanded under the stimu-
lation OF war orders and that this cxpan-
sion would bring sharp competition be-
tween rival concerns In time OF peace.
Furthermore Il was thought that there
would be great armies of unemployed
workmen, the result Of rehabilitation.
who would be compelled by 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 for
ward toward an ora Of lower prices.
would postpone buying In the light OF
these considerations II was but natural
for people to expect a great fall In prices
and even 10 fear an Industrial panic.
I'm fact, certain college professors OF
economics had seriously predicted such
condition. The expected fall in prices
has not occurred nor Is II likely soon
to occur. The rice in prices during the
war was not merely the result OF great
demand for goods and OF a scarcity of
certain goods It was largely brought
about by means OF imitation OF the cur
rency by the Governments at war and
by the neutrals by the direct issue OF
paper money or by the Issue of bonds.
Although war orders are largely a thing
OF the past, the extension of credits still
exist as continuing cause OF high
prices. There Is little to indicate an
carly contraction OF credits.
War Depleted World stocks.
World production in general during
tho war, contrary to a widely held view,
was not abnormally large. This is shown
by statistics OF worl3 production of
leading bas!c materials OF industry such
as coal, petroleum. iron ore. cotton.
sugar, wool, wheat and other agricul-
tural products. Consequently the alb
normal consumption of goods for war
purposes has depleted the stocks Of
commodities OF the world
"ArTnies Of unemployed. In the United
states at least have not materialized
and an actual labor shortage is in pros-
pect Wages are not likely TO be low
cred.
Buyers since the armistice, although
showing desire to wait for lower prices,
have been compelled to buy to meet their
daily needs. During the war, because
of scarcity of commodities and hish
nr hnN 81 t.lA
NAL, 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
III the production capacity OF indus
try should be greatly increased lower
prices would not necessarily follow, II
there is strong enough demand for
commodities prices need not fall, no
matter In how large volume commodities
are produced. There Is every reason for
expecting such n strong demand. The
world Is now suffering from great
shortage of durable goods buildings,
transportation facilities and Industrial
equipment. People in the United States
and Europe have a stronger desire for
consumers goods than ever before. This
is true partly because of the scarcity OF
certain goods during the war and PARTLY
SVN''"So VI new experiences through
which tens of millions have passed,
which have awakened in them desires
for goods and services they never en-
Joyed Before. Along with greater pro-
duction OF goods there IL likely TO go
further extensions Of credits rather than
contraction. Neither tho credit system
of the United States nor that ofs the
world has reached the limits Of its
power of expansion
Summing up the present conditions IN
tho building field. the division OF public
works and construction development OF
, the Department OF Labor counsels tho
business men OF the United States to
proceed at once on n policy based on an
| immediate period of business prosperity.
1t further states that no period OF de-
precision and no collapse OF values need
be feared
The man who goes full speed ahead
Will score an advantage over his pro-
crastinlting competitor which will far
outweigh any POSSIBLE slight decline on
cost of production.