Morris tribune., 1921-01-14
THE LADY WITH THE s1XPENCE

a. roos If the central thought of this editorial COM
ment Whatever of wisdom folly there is IN II snouo
be credited not to the editor but to the
sources of business financial and nursery Wlsoom'
To start with the advertisement. 1t presents the
cause of lumber and is signed oy tne NorCnein u0
Manufacturers Association 1t says tnat OuAoIns 10 W
nations largest industry and 1t tnen proceeos " us
cuss the present disastrous conditions which are aHect
mo the armies of workers directly and indirectly con-
eerned in this industry long as the present stagna
ton continues is the reason for the stagnat1on!
ION first thought" says the advertisement you
might attribute the shortage but that as
Sumption be exactly correct There IS plenty
of money available to finance building operations but
it will not come of hiding until building costs
return to sound values.
Homes are high! They still cost entirely too
much money! The average cannot afford to build
a home now because he cannot afford to stand the
shrnkage brought about by the return to norm
al prices true that lumber is back to normal
it is necessary public to know that lumber repre-
only about 80 cent of the total cost of the
binary building The remaining 70 per cent which goes
to up of the cost has not returned to
the normal basis.
'The reduction in the price of lumber is from 40
to As per cent. This decline reduces the cost Of a
$4,000 Figured at peak prices) building to $4,000
When other declined in the proper
tion will then cost $4,000 which is it's normal
value.
"The redundancy of the 20 per cent (Which in
cudes labor) get back a normal basis, has stag
mated business activities There will be resumption
of work until these prices return to normal
1.-THE public will not buying until every
body is willing to get back onto normal basis AS
this is brought about things will begin to
Money which is always available when building
normal will be plentiful People will begin to build
homes: Rents will begin to down. Building mat
erials will begin to and mills will oper
ations."
Taking the statements in the advertisement at their
face value-and the statements therein be easily
verifed-the lumber industry has just for COM
plant Lumber is down 40 cent, but still building
operations stagnate because there many other
factors and other materials entering into the
construction of building Steel has been Stabilized"
at present prices which four times
values Cement should off so per cent, and common
brick is too high-perhaps double what should be-
Wages being held up.
Says financial letter of the National Citv Rank
Of New York: 1--WE have suddenly come back to the
old situation, where the producer does not name his
price, but learns the price at which the
It, and sets himself to the task supplying it at that
figure and at profit. While the are not as easy
and agreeable those that prevailing in re-
cent years, they conducive to economy good
management and progress in industry
The answer to the question, when will recovery
come is that it will when everybody gets ready
to do his part in the readjustment When everybody
gets thinking that enjoy low prices at the
expense OF others and high wages high prices for
himself the situation will begin to improve. But the
economic law will not be deceived tried with The
N-"U""AOA
RECOGNITION of the fundamental condition of prosperity
industry must be brought into balance.
we would repeat that the greatest opportunity for
starting Industrial activity construction work and
particularly In BODYBUILDING Every town needs
houses but here everywhere, essential condi-
ton is faced. Costs must down far enough to
protect the investment People not build houses
any more than they will make goods grow crops I'M
less costs come down to point where they believe the
product will be worth what they expended upon it.
tney think houses will be cheaper to build next year
than this they will build this year Periods IF
depression last until such questions are settled When
there is concensus of prices have fallen
ABOUT as low as they will fall when in each in
dustry they seem to be in line prevailing nrices in
other industries conditions for the forward
movement When the forward movement ia started .
general advance likely to take place as sentiment
changes and demand in all lines improves but the gen.
eral decline is necessary to restore confidence"
The letter then goes to review the billions of
dollars worth of construction waiting be done in
this country, but concludes with the significant state
ment that nobody needs imagine that work will go
ahead upon the present level of COSTS"
AT another point the letter states that "the iron
and steel industry has been RAPIDLY in the
last month";, which indicates it will have to be
"unstabilized" before the buyer will buy
No, neither steel, nor cement nor brick nor labor
anything else of importance can stav ont of this
readjustment game and it will play without hav-
ing to bear the odium Of spelling the game for all the
rest OF u.s. Construction waits for the nrice Of
steel and cement to be adjusted (the Morris aro IN
case in point) and while these are not tbe univ +hr.