The Barre daily times. (Barre, Vt.) 1897-1959, 1920-09-13
Why Houses Are Not Built.

The Federal Reserve Bank Of Phila-
delphia, in a recent report upon bust
ness conditions, presents a summary OF
the causes, as it sees them, of the al
most total cessation of building. IL
finds this unfortunate condition due TO
the uncertainty of securing materials,
unsettled labor conditions, transporta-
ton difficulties, and the inability on
the part of banks, and building aud
loan associations, TO take on more
mortgage loans. The scarcity Of mort
gage money is aseribed to the tight
money market and to the fact that a
great deal of money which formerly
was placed in first mortgage is now
being diverted TO other investment
channels, where the returns are great
er. Figures quoted in the report indi.
cate that rents in Philadelphia have
been affected by the shortage Of hous-
ing in much the same proportion as
elsewhere. II is stated that two-story
houses which formerly rented for s25
and $50 a month are now bringing 500
and $50 a month.
This Philadelphia report, in common
with other discussions of the housing
situation, may be taken as indicating
that the question of making real es-
tate investments attractive through
legislation. or by other means, will
bulk large among subjects of discus
sion during the coming months. Sen
Calder, who recently conducted a hear
ing in this city in his capacity as chair
man Of the Senate committee on hous-
ing and reconstruction, stated that the
possibility of encouraging building
through the amendment of laws gov
erning taxation was receiving the at
tention Of the committee. From other
quarters m a demand for action by
the federal reserve board with a view
to relieving the situation. Those who
think that relief may thus be obtained
take the ground that, in its efforts TO
prevent oyer-expansion Of credit, the
board has gone too far and has worked
an injury TO legitimate enterprise.
II is encouraging 10 find that, in the
opinion Of the Federal Reserve Bank Of
Philadelphia, as set forth in tie report.
the present s~tagnation in building is
a decline in the prices Of build
ing materials. On the other hand, a
warning against over-sanguine eXpec-
concerning the extent Of the
is contained in a letter writ
ten by a humber company Of Kansas
Mo. 70 the editor of the Manu-.
facturers' Record. In this letter the
idea that there will be a return TO be.
fo~re-the-war conditions is described as
7the great illusion" with reference 20
pres in general. Applying the state
particularly to the lumber indus
il is said;
To-day IL costs more TO put the log
n the mill pond than il did 10 wears
20 put the finished product on the
This Is not a temporary condition
lit has conn 70 stay. We have
,kimmed the cream of our timber sup
,ly. There is timber in the country
o supply our needs for many years
o come. but always a. increased cost
Ne have u and shipped the easily
accessible trees. Each year We must
each ont farther. build more railroads.
Increase our lodging costs 20 get pro
We ship to-day from Wash
ngton to Maine. Transportation alone
.ss killed the old normal price. Aft
n Aug. . a new normal VIII have
zen established. only 70 fall before
ONE other onslaught Of progress or
hanEe.
The New York legislature Il 70 meet
D special session this month primarily
or the purpose Of considering the hous
ne shortage. Il Il "a be expected that
be proceedings viii include the pre-
entation ~ a mass of facts and q body
{ opinion that should Be- 81 value in
ther states called 10 deai With the
IA Of living accommodations IN the
Il 3 already indicated that a
sterminei effort wiIl Be- made 10 con
inoe the legislature that the best
lHans q obtaining relief e q b found
! q policy whirh viii snocura-e pm
ate investors 20 enter TIE real estate
ed rathsr THAI uns Which involves sr-l
azsivs hSasag ssisNsking ;. ~