The New York herald., 1921-08-08
Big LENDERS STILL
In BUILDING FIELD
Nothing TO Indicate a General
Withdrawal Of Funds Say
Dow Reports.

IL there is any unfavorable reaction
IN the Eastern building situation It can
not be laid at the doors of the big lending
institutions. says the current poto Ser
tioe Daily Building Reports, Certainly
there is nothing to warrant the fear ot
4 general withdrawal OF funds from
building. Two OF the foremost lending
compa nies whose names have been the
subject of rumors in this connection are
still in the market. and intend TO remain
there.
The METROPOLITAN Life Insurance Com
pany. for instance, intends 70 go on
making loans on dwelling constructor
projects of the walkup type, although u
ID temporarily out OF the market as Tar
as loans on other housing projects are
concerned. Nor has the city Mortsas9
Cosnpany's 1921 quota been eAnausteu'
1t is making it's loans. however, at tne
same rate that 1t adopted IN thc carrier
part of the year. not because OF any uo-
sire to bring about shrinkage IN tne
pr;ce OF building materials, but rather IN
anticipation OF the economic readJust-
noent In the construction industry. This
coupauy is shaping its present course
entirely upon supply and demand IN the
building mortgage field, and the supply
II NAV be said now, bids fair TO become
moro plentiful judging from recent
statement made by Gov. Harding of the
Federal Reserve Board.
Furthermore there is nothing in the
general building material price SITUATION
10 Indicate that there is anything to be
gained by the holding up Of ouiidlns
plans. The railroad freight cuts are
not going to be radical and neither are
the wage rate cuts. Still, facts are be-
ing cited TO prove that the housing con-
struction movement has been falling Off
and that something has happened to
check the flow of building materials sup
plying the large number of building
projects represented by plans filed with
the Building Department of New York
city.
Some Contradictory Cases.
One well known firm OF mason ma
terial dealers reports that up to June
their gross sales had been within $4,000
or what they were for the first six
months OF last year, but that since June
! they have dropped off $4,000 by COM
parison. Opposed to this case. how
ever. is the reported loss OF S3,S00 in
gross sales in the first six months, as
compared with the identical period last
year, but offset by gain during the
subsequent period by a gross of s11 900.
ness of building contraction in the five
boroughs and contiguous territory. as
well as the disparity between the volume
or housing plans filed and the uuanti-
ties Of building materials being sold with
which to erect them.
In further illustration OF the solid
ground that investing builders feel them
selves upon when contemplating improve
ments in established specialized neigh
borhoods is the fact that when the Fred
r. French Company purchased for clients
an East F'ifty-first street plot it had
two building loan propositions from two
separate interests to carry on tho build
Ing operations Immediately.
The fact is that the building invest
ment and building material supply mar
kets are now so open that those who
heretofore have been doing business un-
der the old closed systems are bewil-
dered- Builders have complained to ma
terial dealers that under the open mar
loet price system now in vogue they can
not tell where they stand, what with
over-competition and bld-baiting, and
they are often afraid to proceed as freely