The Washington times., 1921-01-01
BUILDING OUTLOOK
|. OF 1921 IMPROVES
S. W. Straus Sees Many Fac
tors Which Augur for
Better Conditions.

Summing up the building outlook
for 1921 S. W. Straus. president of
S. W. Straus 4 Co, says:
THE enormous housing shortage
will constitute potent impelling
force back of building activities In
1871. There are times when the law
of supply and demand ceases to
function, but such periods must OF
necessity be transitory. With
deficit estimated at 100000 homes,
o. housing facilities equal 10 the
ormal requirements of about 10 per
cent of the population OF our coun-
try. the year 1920, while witnessing
considerable building activities In
some places, has not relieved the
situation These are abnormal CON
ditions. and the economic tendency
is always toward normality. When
we have an over supply OF buildings
the industry slackens and when
there Ia great shortage such AS
now exists, forces of prodigious
strength are at work seeking TO re-
store normal balance OF supply
and demand.
CONDITIONS IMPROVING.
AT the present time the trans
portation situation is adjusting it.
self satisfactorily. Labor also ~
becoming stabilized. Price stabiliza-
ton for materials has not yet bcch
effected. but conditions seem to be
growing better and will continue
to do so In conjunction with more
stable labor situation and the ability
of manufacturers 10 move materials
freely.
"Ample capital will be found to
k,,1
ments. with the development of other
favorable factors. The more general
adoption OF the amortized form or
real estate mortgages Will help pro
vide a more plentiful supply of FUNDS
as needed for the industry. Also the pun
lie should be given the greatest posi-
BILE opportunity of participating IN
the financing OF worthy building
projects, and. in the face OF colossal
operations, one of the best ways IN
which the public can gain participa-
ton in such operations is through
the medium of first mortgage bona
issues in popular denominations
Various conditions make 1t impossible
for all people to live In their own
homes, but through the medium or
the first mortgage bond they can par
ticipate in the financing OF the ma
tion's building projects, and thus
benefit both themselves and society.
at must be borne in mind, also,
that the attitude OF capital toward me
building industry will be governed to
a great extent by conditions that ar"
imposed upon 1t. Too drastic legs
lative restrictions tend to avert capi-
tai to other channels OF investment.
Legislative enactment should be care
fully studied with a view OF what is
;,rl.. oil snnrarnaU
situation cannot develop satistac-
torily otherwise. for if legislation IL
oyerdrastic, thus driving capital TO
other channels and slowing up build-
ing activity. 1T means in the ehd
greater hardships for those who were
meant to be benefited.
THE situation. therefore. must al
WAYS be studied from the one stand
point OF fairness and justice TO all.
No permanent progress VIII be mace
toward the amelioration of present
conditions excepting with these prin-
ciples as the guiding impulse.
INTEREST a FACTOR.
at also is to be remembered that
the encouragement OF too high rate
of interest is to be viewed with dis
approval because the corporation
paying an inflated price for the CAPT.
tai IL - 10 ~
ture stability and another menace lies
in the stimulation of profiteerinG.
There also are indications OF
permanent revision OF income from
property. 1t Is not to be denied that
before the war in many instances and
localities income from improved real
estate was not commensurate with
what should have been the case. How
ever, in the course OF current post
war developments definite read
justment OF this situation is taking
place.
at may be said in general. there
fore, that underlying conditions are
favorable to the resumption Of very
extensive building program in 1921.
But even granting that such proves
to be the case ii will take a good
many seasons of strenuous building
to make up the shortage that now
exists"
~