The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-18
BUILDING MATERIAL
PRICES ARE SAGGING
Reaction Impedes Construc-
ton Just as Rising Market
Did a Year Ago.

Mixed feeling of hesitation and con-
fidence combine at present to make the
Eastern construction situation spotty.
according to the Dow Service Daily
Building Reports. Building investors
are hestitant because of pending price
readjustments downward In some basic
building commodities and the possibility
Of the present wage conf erences culmi-
mating this autumn In more aggressive
tactics.
Confidence, on the other hand, is re-
sponsible among a different type Of
building investor in proceeding with
building projects. notably. huge build
ing construction enterprises or modest
alteration work The speculative builder
of the type that would most quickly re-
duce the housing shortage IL he could
have a free and favorable market, Is
finishing up the work he has on hand as
rapidly as possible and Is inclined to
await further development before pro-
ceeding with other enterprises.
Building material prices are under
manipulation downward to all intents
and purposes especially as they appeal
to prospective builders. identically as
they were being manipulated upward
upon the building public is also about
the same. namely. to check building en-
terprise of a general character.
Building Projects on Increase.
Yet there Is an increasing number of
building projects being recorded and
some building construction Jobs that
have been abandoned for year or
more, awaiting final pit levels Of ma
terial and equipment prices. are being
refigured and are being awarded. The
gain In building material movement that
has been showing an ascending move
ment since March is apparently settling
down to a plateau level. Price cuts in
all departments that are being an
nounced are. in nearly all instances due
to a willingness upon either the manu-
facturers or distributors part to sacri-
flee already meagre margins in order to
keep their organizations together.
Competition Is keener than II has
been in this market for almost decade.
Many firms doing building construction
work that never before have had to
seek business In competition. are eg-
Rressively meeting rival prices and de-
livery promises. The situation for some
building interests Is developing into
novel lines.
say. TO obtain from purveyors OF build
ing materials and manufacturers pro-
lection on their contracts against fur
Their decline running as long as one
year from date Of contract Brick Is a
fairly safe barometer of this phase OF
the building market. The price move
ment in this basic commodity has been
generally upward for nearly a month.
Prices 70 the ordinary quantity buyer
havs advanced dollar, from ~ TO $l5.
In the wholesale market. Some brick OF
the finest selection has actually been
sold here for SIS, although the run of
the open market for this material Is slo
a thousand, 70 which must be added, for
delivery price. cost of handling. haulago
and 10 per cent.
Reserve Stocks Disappearing.
The cause OF this stiffening process is
low volume of production. that is. no
great piling up of reserve. In the abb
sence of general confidence In the East
ern building market. This is identical
with the policy OF building material
production In general. Manufacturers
are not 10 be expected, in these days OF
doubt and distraction, TO display con-
fidence In n building market in which
the building investors themselves have
no confidence.
Until all factors making I'D the item
OF construction cost uniformly contrib
ute to general reduction of financial
outlay involved In building projection.
Investors need expect no large reserve
volume OF building material 10 be laid
UP. Until that time both dealer and