The Washington herald., 1921-03-13

which fall with particular severity
upon all bulky and heavy materials,
such as lumber.
The skilled trades which con-
stjtute the major part Of the labor
engaged in the construction Of build
ings, are very much under-manned
many of the unions having fewer
members than they had ten or
fifteen years ago.. There has been
a tendency toward increased eff
cheney since the falling OF in build
ing, but the question of how long
this efficiency would be maintained
IL building were to resume Is. to
say the least, q very uncertain
factor.
Perhaps some of the most serious
deterrents to increase volume OF
buildings are high interest rates and
a disproportion between the amount
loaned upon a building and its pres
ent cost of production, which re-
quires a builder to invest very
substantial amount of his own capi-
tai In the construction Of buildings.
The effect of this Is to limit the pos
sible building to a relatively small
number of people who have suffi-
Client funds to make up the differ
ence between the small loans and
the high cost. These builders are
not going to put their money into
rental propositions under the pres
emit rent laws. particularly in view
of the fact that IL the situation Is
not relieved the rent laws are likely
to be continued in effect for a fur
ther period. They can only be in
duced to build II they can sell.
Much Time for Building.
This brings US to the root of the
whole matter. Buildings are not
like shirts-they cannot be produc-
ed in a day. The shortest time in
which a building enterprise, even
under the most favorable conditions,
can be started and finished Is one
year. and in many recent instances
it has taken a longer time.
THE only possible inducement for
a builder to take the risks and naz-,
ards, which extend over so Ions =
period Of time, is a feeling that he
will have a ready market for his
completed article. As long. tnerc-
fore, as the public refuses to buy
what little is now offered no buiIo-
ings will be produced. 1t Is only
the encouragement of an active
market which will induce capital
to go into new building with an
of the unfavorable factors that a
builder has to contend with to ere
ate the buildings.
What the public wants IT must
pay for, not in prewar costs Or in
some future reduction in price, but
in terms of the present costsof con-
struction, whatever that may be.
Waiting will not do any good. be-
cause waiting simply intensifes the
demand which nobody Is attempt
ing to supply, and in the normal
growth of cities a very short ces-
sation of production in such a mat
ter as building causes very serious
public discomfort.
Must BE Sold at Profit.
Building is like every other COM
modify which finds its way into the
markets of the world-to be pro-
duced it must be sold at a profit when
completed. Many people entertain
a vague idea that buildings will be
put up by the rich and sold or rent
ed at cost. Why this delusion
should persist in regard to building
when the mere statement of 1t with
regard to the production of any
other fundamental human necessity
would be considered absurd is a
mystery, but it still persists in some
minds. Others of a more radical
complexion vociferate in favor OF
State building. Such building has
been a failure wherever attempted.
While the State builds one house. ten
houses which might have been built
under private enterprise are not
undertaken. II the State sells at
cost, its cost would represent a
handsome profit to the experienced
builder-such Is the inefficiency OF
public efforts of this kind in which
politics plays so large a part.
New York. London, Paris. Berlin,
Chicago. all the great cities of the
world, have been built by the spec
ulative builder, who has made his
living by the profits he has earned
in the construction of these cities.
Until the public is willing to pay
a fair price to net the builder a
profit on the cost of production. the
present housing shortage is likely
to continue"