The Washington herald., 1921-02-09

who keeps in close tOuch Win the
trend Of events nationally.
Such a turn will be taken by the
great pendulum which has moved
little backward during the period OF
reconstruction that the country Is
passing through now that it Will be
hard to keep il from going too far
he said. The great change which ne
predicts will even surpass anything
that has ever been experienced be
fore.
Depends on Money.
1t all depends on the money situa-
tion. now somewhat tight. The
great detonatOr which will set off
the charge and send money in un-
limited quantities into real estate
and building will be the expected
favorable action by Congress on a
gross sales tax and a revision of the
income tax laws to relieve real es-
tate investment earnings from the.
provisions Of the income tax.
The whole trouble in realty and
building circles today is the diff
Guilty of obtaining money. No mat
liter where the troubles in this Busl-
I,ness are discussed they Invariably
revert to the question of sufficient
FUNDS The causes are well known
10 those who follow the evOlutlons
IN this field. Even small investors
with a few hundred dollars to put
out for earning purposes know the
trouble. 1t is simply that the realty
mort gage today is most unattrac-
tive from an earning standpoint.
Even the fact that it is the most
gilt-edged Investment that can be
found in which the man who can
not afford to lose can invest his
money does not serve to make 1t
attractive against the high interest
rates being offered in other fields.
An investor, who purchases stock
in a large corporation, has but
small say in the activities of the
organization. He has nothing to do
toward directing activities which
will insure him the retVrn which
he expects On the other hand,
man who holds a mortgage on
home is the king. He controls ev-
ervthing II he thinks the building
is being allowed to depreciate too
fast he can command that it be i'm
uroved before he will renew the
mortgage. If he is met with re-
fusal he can withdraw his money
and put it somewhere else. This
will indicate very we'll the control
over his money which a real estate
mortgage investor commands.
Congress has it within its power
! to help the prosperity of the cOun-
ry and at the same time do great
krk toward relieving the great un-
bitary and un-American cOndi-
mil nF
1erican people today are living.
bey are being cramped in the cit
rs. in many cases several families
GrruDvinE space which was intend
cd for only one family to live in
under real -merican standards of
living.
No Hope This Session.
However. with the end of the cur
rent session of Congress near at
hand no relief is expected at this
scssion. Practically the remainder
n the session will be given over to
handling the big governmental sup
ply bills and emergency legislation.
hos who favor the adoption of a
sales tax to sUpplant the present in
rome tax on mortgages feel that
the matter is a subject for a spC-
,iaI session of Congress and they
have but little doubt that it will
hc adopted should the incoming
President call a special session.
Tan exemptions also are respOn-
sInl. for a large part of the short
are Of investment funds now in the
TraItv market. While a great many
business men do not favor tax eX-
emptions. they point out that as
Ing as the prec cedent has been in
mi II
h.. rrsorted to to help the present
conditions which are here and must
ns faced as they stand. Exemptions
must be allowed In this case of real
" in order to allow mortgages Ia
Seet the competition of outside cor
,orations and also non-taxable
ouds issued by the government.
When this law is adopted and be-
omes effective there win be a flow
or money into the realty mark et
4 srch as never before has been ex'
rerienced. Then will follow the
l-reat building boom which will II
|. Iba course of a few years make ~
for the lack of housing due to M
tonnage Of building during the
var Prices then will be stabilized
Realty May. Go Higher.
While prices in other fields hav,
,.or,e down to meet the public de
land. prices of realty if anything
will 90 higher, it was pointed out
they certainly will not be lower
The old law of supply and demand
,,-i1I make itself more strongly fel
nan ever before. While prices o
building materials have shown SOM
light reductions, it is merely I
,anporary condition due to the slacl
Iamand. But building materia
rrodueers are not working full tim
\ - lay up large stocks. Report
5rom all parts of the country ar
aence of this. Brick manufaCtu
have cut down their produc
Lumber manufacturers are no
up any large stocks. In othe
rhes of the building industr!
lar reports are coming. Whel
great demand does come ther
not be large stocks, and price
be forced up again.
pointed out, the EEeat Difficult
will be to keep the pendulum oil
return swing from going ou