The Washington herald., 1920-02-29
STRAUS LOOKS
FOR SETBACK
Believes Building Industry
Will Experience Tenn
porary Slump
SOUND FOUNDATION
Public Extravaganza, How
ever, Has Resulted in
Extreme Initiation.
SOUND FOUNDATION

S. w. Straus, head of the real
estate investment firm of 5. w.
Straus and Company. believes the
time is not far distant when a tenn
porary depression in the building
industry may be expected. Mr..
Straus bases his prediction on the
vast amount "f imitation existing IN
business generally and the con-
tinued public policy of extreme eN'
t-aVagance. He says:
There arc indications that the
building irdust"y may receive some-
ling II q setback in the nef' 20
ture in connection with similar con-
ditions which may result In general
business lines. While fundamental
conditions are sound, and while the
outlook is favorable to a long and
prosperous era in this country, il
would not be surprising II we
passed through a transitory crisis,
the severity and duration of which
depends on the determination of the
people to give up their present false
standards of living and settle down
to a solid period of hard work and
thrift.
The pronounced housing short
age throughout the country would
building, but conditions are such
that the law of supply and demand
may cease to function for a while
The tremendous shortage of ma
terial wealth of all kinds as a re-
suit of the war and the vast
amount of imitation has been aug<
mented by an orgy of waste, ex-
travagance and speculation. For
RxVa
been destroying, consuming and
wasting more wealth-more mater
ial resources, than we have been
producing. Def1ation and stabiliza-
tion only can be brought about by
increased production and lessened
consumption. Moreover this country
mas been shipping to Europe a vast
amount of material wealth and re-
ceiVing, therefore, only credit. That
this credit is now greatly impaired is
shown by the condition of the for
eign exchange market, Our people
also have been going thru a process
OF kiting wages which has resulted
In moving up living costs with each
new wage advance. We have been
simply going around and around In
a circle of higher costs.
VuT mas
grown better. 1t has not advanced
as rapidly as the level of living
costs. There has been a great
amount OF speculation in the COM
modities of life which has produced
profiteering and boarding. Money
has been borrowed and savings d.
verted to these purposes which
should have been used In building
-
of life.
what the country needs is more
factory buildings, more homes, more
apartment houses, more ONCE struc-
lures, and more hotels, as we'll as
greater supply Of commodities of
all kinds.
Nothing but the widespread
practice of thrift will bring this
about, and 1t Ia apparent that our
people will not learn this lesson
until they have been given the stern
warning of temporary backset in
business.
When such a warning does come
the intelligence and patriotism of
the American people will be assert
ed, conditions soon will be rlghted
and the country will face the most
prosperous period 1t has witnessed
in great many years.
Building operations can not be
expected to proceed on q large scale
and the general, substantial pros
.perity to which the people of this
country are entitled cannot be
brought about on our present eco
nomic basis. No country can be
continually prosperous when IL is
habitually thriftless. Before We
have enduring prosperity and stabil-
lied conditions in the building in
dustry. we must have general
adoption of the principles. of thrift.r