Perth Amboy evening news., 1919-06-18
GOVERNMENT EXPERTS SUM- UP
CONSTRUCTONNDUSTRYN
MOVE To- ENCOURAGE BUILDING
Summary Is Made of Forthcoming Report---Pupose to Slim
ulate Interest In Public and Private Construction Work
In All Parts of the Country.

monetary experience. Nc great outflow
OF gold is to be expected through in
ternational trade. since our exports are
hkeiy TO exceed our imports in the re-
construction period, and we no longer
Will have large interests and freight
payments to make to Europe. Prices
are higher in Europe than in the
united States, and hence no influx of
cheap goods is to be expected.
Cost and Supply of Building Materials
IA. Government restrictions and de-
creased demand reduced the produce
ton of most building materials in 1918.
This reduction necessitated the opera
ton of plants below their normal
capacity and increased the proportion
that fixed charges bear to total costs.
Is. Curtailed production during the
war resulted ri low stocks of many
building materials at the signing of
the armistice.
16. AS a result of the increase in the
cost of living and of competition with
essential war industries for labor, the
wages of workmen In the building ma
terials industries were raised. In
some instances largely because of alb
normal labor turnover, the efficiency
of Dor was reduced and labor costs
mounted out of proportion TO other
costs.
IT. Costs of raw materials, trans
p%ortation. fuel. taxes. sales and other
items that make up total costs have
all increased.
IS. The increased cost of building
materials as a whole must generally be
considered In the light of c~urtailed
production. low stocks, Increased costs
of labor. transportation, fuel and plant
maintenance.
10. Past experience has shown that
prices of building materials huctuate
less rapidly than the prices of raw
materials used in manufacturing in
dustries, such as metal ores, hides. ETC.,
and than the prices of commodities
that are consumed from day to daY,
such as food and textiles. Building
materials are not likely to respond
rapidly to n but a marked reduction
in the general price level.
20. A marked reduction in the price
of building materials is dependent
upon the reduction of the items mem
toned under IS. 1t is not to be OK
pected that wages. the largest single
item in costs, will be reduced in adj
n of a reduction of the o $ of
living. In view of n mounting op-
Grating expenses of the railrods 1t is
not likely that transportation charges,
a very large element In the. cost of
Duliulub nIdltiiilSt Will Dt iOWCECos
With the maintenance OF the general
price level the price of building ma
terials as a whole can not we'll fall.
ri. The index number for lumber
and building materials (not including
metal products) was in April, 1919,
1874; for building materials, including
iron and steel production. 1879: for
commodities other thai building ma
terials, 211; for all commodities, 203;
for farm products. 22s (100-July 1,
1913-June 80, 1910.
%. Building materils are relatively
low in price.
The Wage Rate Of Building Trades
men and the Cost of Living.
%. The union wage rate of building
tradesmen in Al large cities in the
United States increased 28.5 from 1914
to 1918. Unskilled BODYBUILDING lab
orers, hod carriers, and helpers en-
joyed, as a rule, far greater increases
skilled labor.
"a. Union wages rates are minimum
wage rates. In 1918, as a result of a
general shortage of labor, many build
ing tradesmen were paid hourly wages
in excess Of the union wage rates
Overtime and bonuses further incrcas-
ed their earnings.
rs. The cost of living for workers in
the shipbuilding districts rose $3.50
per cent. from December, 1914 to De-
cember, 1913, according to reports of
the Bureau of Labor Statistics. The
cost of living for the whole country in
creased 65-70 per cent. from July,
1914, to November, 1918, according 10
estimates by the National Industrial
Board.
In March, 1918, the National Indus
trial Conference Board published fig
,,raa q hAuutny a SLIGHT raAttrtfnn IN fha
cost of living-an increase of GOES
per cent. for March, 1919. over. July.
1914. However, since March. the cost
OF food and shelter, the two largest
items in the cost of living budget, has
advanced. with the result that the cost
of living for June, 1919, is little, II any,
lower than 1t was in November and
December, 1918.
26. Because of the decreased pur-
chasing power of the union wage rate
of 1918, many building tradesmen
have asked and obtained a new scale
for 1919 that better adjusts their earn
ings to meet he increase in the cost
of living. In advance of a noticeable
decline in the cost of living the union
wage rate of building tradesmen can
not we'll fall.
Efficiency OF Building Tradesmen
81. In 1918 the efficiency of the
building trades in many communities
was lowered by large labor
particularly by the diverting of
skilled labor into other fields and III
replacement by less efficient labor),
by overtime and abnormal conditions
of employment.
20. In 1919 the efficiency of labor In
the building trades may be expected
to be that of its prewar years.
Sources and SuppiyAof Capital for
Construction Industry.
20. The main sources Of real estate
loans are savings banks, title guaran-
tee and trust companies. insurance
companies. building and loan ~associa-
tons, and individual lenders.
80. Real estate loans by lending In
stitutions did not increase in propor-
tion to h growth of the country from
1913 to 1918.
81. Real estate loans of banks did
not grow as rapidly as ban
in the United States from 1913 to 1918.
so. Savings banks, insurance COM
panies, n building and loan ~associa-
tons, the chief financial institutions
making real estate loans. did not grow
as rapidly in resources as banks, other
than savings banks in the United
States.
So. Real estate loans of banks in
New York. which hold one-sixth per
cent of the total banking of
the country, did not grow as rapidly as
the total u of New York banks
from 1914 to 1918.
"a. Savings banks in New York did
not grow as rapidly as other classes
of banks in New York from 1914 10