Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-24
REAL ESTATE men
OPPOSE ENGLAND'S
AID TO BUILDERS
Take View That It Destroys
Incentive to Take
Own Steps.

ton, or government cooperation in
financing operations. as practiced in
England and other European coun-
tries. does not meet with favor among
local real estate men and builders.
Discussion of the subject suffered a
revival this week through the an
nouncement of E. H. Bouton of Bal
timore that paternalism may have to
be introduced in this country to re-
lieve the housing shortage.
Mr. Bouton. who is president Of the
Roland Park Company. has just re-
turned from Poland, where he spent
fourteen months in studying housing
conditions there.
While in Europe he made a careful
survey of government paternalism in
building and found that England has
tried it with some success.
England realized clearly that with
the amount of rentals restricted to a
point which does not produce ade-
quate return on cost. it would be folly
to suppose that private enterprise
would build" said Mr.. Bouton. las a
consequence. two methods have been
attempted. as follows:
Britain Offers Bonus.
The British government offers a
bonus of 1850. equivalent to $1,250 at
normal exchange rates, to each indi-
vidual who will build house costing
not more than certain sum: This
method is producing some. but very
little results"
Under another plan construction of
houses is undertaken by joint coop
GRAFTON of various municipalities and
the national government. 1t is real
lied that since rentals to be charged
-
of construction that there will be an
inevitable loss. and under the plan
this loss is divided between the mu-
nicipality and the government"
The second plan has met with
scarcely any success. No one Knows
yet how much the loss will be. but it
is certain to be very great"
Mr.. Boutop said there is absolutely
no privately financed home building
in progress in England. This is the
condition existing in every country
of the world where rents are restrict
ed to an amount less than will pro-
duce adequate returns for invest
ments. he declares.
Keep Facts In Mind.
People interested in solving the
housing problem in this country need
only keep these facts in mind and
they will see only two possible poll
cies adopted Mr.. Bouton continued
They are as follows:
The governmental adoption Of a
paternai policy Of assuming the
with homes at rentals less than the
cost justif1es. Such a policy, in ad
dition to being un-American, and, in
my opinion, unfair to persons al
ready owning their homes, would
mean the embarking of the govern
ment on a road that would lead to
the expenditure of millions upon
millions of dollars of public funds.
The other plan is the time-hon
ored and only. economically sound
one of allowing the law of supply
| and demand to have its full play
This will mean, of course. rentals
, considerably in excess of those a,
| Is no way to avoid a rise in prices
Of other. commodities, neither is
! there any private means OF holding
rentals down. These. after all. mus
represent a fair return on the CAPT
tai. invested"
The outstanding feature Of the inter
which Mr.. Bouton attended, was a clear
demonstration Of the fact that the hous-
ing problem Of all countries engaged in
the war 10 virtually identical. differine
in the various centers only in degree, he
said.
Limited Since war.
Since the war the perplexing problems
of builders have Kept their Operations
practically as limited as during the war
he said. The paramount dificulties are
the extremely high prices Of material
scarcity Of labor and the inability to OBJ
tain capital. The ultimate trouble, he
believes, is the world wide money infia-
ton, and until that. is remedied no line
of business will get back to a normal
footing.
Discussion Of the probability Of the
Introduction Of paternalism in the
United States has long held the atten-
The subject received an important
place in the program at the convention
Of the National Association Of Real Es-
tate Boards in Atlantic City, June ~,
that time was adverse to the plan, it
developed.
Incentive Ii killed.
The principal argument against the
adoption Of paternalism in this coun-
try advanced BY local real estate men
is that it has a tendency to kill in
centive and that. it tends to hold out
false hope of ultimate ownership to
tenants. Political influences are ant
ious to obtain government shelter, it
is further pointed out
1t is explained that conditions in
England with regard to housing are
different from those in the United
States. There it is common for the
employer to. provide homes for his
men and their families for the pur-
pose of keeping them at work in his
establishment This custom has been
practiced for years past, and the con-
sequence is that the. laboring man has
come to feel that the protection and
assistance, Of the government is nee
essary to furnish him With shelter.