Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-09
SLUMP |SPRED|C7ED
IN BUILDING PRICES
Economic Conditions to Be
Uncertain for Two Months,
Says Building Review.

Fundamental conditions in the en-
tire construction market today die
tate still weaker price quotations
during the next sixty days. at least.
/ declares statement just issued by
the Dow Service Daily Building Re-
! ports.
according to this source, there are
; going to be two months of doubt be-
cause of the unsettled industrial and
economic conditions usually attendant
,, upon the close of an important pres
| idential election. The statement con-
tinues:
In the meantime manufacturers
either are unable to manufacture be-
! cause of lack of cars to bring the raw
products to them, or have closed
down because they cannot get cars to
| move their stock. Even where cars
are available conSigneeS do not want
to receive the goods because their
building projects are halted by
strikes or threats of strike or the Job
has been stopped indefinitely through
the timidity of the financial sources
| behind the builder.
Concessions In Prices.
Under such conditions, with tight
ened bank credits in manufacturing
centers, the building material manu-
facturer will be inclined to make con-
| cessions on price. Lumber. clay prod
! ucts. linseed oil and some other com
modities have already shown the
weakness long expected at this time.
Others say they will not follow suit,
but in times like these, where indf-
vidual action is the sole choice be-
tween ruin or survival. the alterna-
tive easiest to follow is to throw
what is availa BILE to sell on the mar
ket at attractive figures.
In this dlStreSSful situation the
building investor seeks an opportu
nifty. He is retarded from sweeping in
with his building plans by the DIS
NAL hope that perhaps the market
will be lower. if he waits. He asks al
most daily how much lower they will
go and whether they are going to
stay low.
"In these inquiries there is reveal
ed timidity against a general and
prolonged price break as great as
that timidity which prevented him
| from entering the market on price
rising market
immigration the Key.
But there is only one hope for
permanent lowering of building ma
terial prices. not from present price
levels. but from price levels that will
rule in the spring of next year. That
hope lies in the continued volume of
immigration. Ship companies tell the
Department of Labor that immigra-
grafton capacity westward is taken
for a whole year at the rate of many
thousands of Woodworking unskilled
laborers a month. AS basic building
material is almost entirely a product
of unskilled labor, this factor is like
ly to have an effect upon building
materials, but not for another year to
eighteen months, because fuel also is
factor in price conditions. The coal
for 1920-21 has practically been ar
ranged for, at least sold on a 1920
labor market price level and new
labor cannot affect those prices. Be
sides, the 1920 building material man
ufacturing season is closed, with the
products still unsold or under con-
tract at 1920 prices. Manufacturing
costs of common brick and many
other basic building materials in 1920
are not yet known, nor will they they
be known until the close of the year.
so that it is definite certainty that
the present is a real. genuine oppor-
tunity for those financially prepared
to get into the building construction
market, because there cannot be
sudden return to pre-war price levels.
Demand will prevent that, coupled
with the moderate cuts of material
made necessary by railroad restric-
lions this year"