Evening star., 1922-09-23
BY j. C. ROYLE.
Special Correspondent Of The Star.

Copyright. 1871
NEW YORK, September 23.-The
building boom in the United States will
reach its peak in the next week. This
does not mean that there will be a
heavy falling off in building operations
after that time Building projects will
throughout the country for the re-
mainder of the year. But operations
for the next three months will be on a
| diminishing instead Of an increasing
scale.
The reasons for this situation are
plainly apparent from business dis
patches received from various sections
of the country within the last twenty
four hours. First. all except minor
portion of the building construction of
the United States is done on borrowed
capital. Money rates have hardened
| perceptibly in the last two weeks. This
| is not a reflection Of uneasiness on the
part of banks about building, but it is
due to the demand for money for crop
| movements, for the payment Of duties
| on foreign goods in bond and to the
, needs for capital entailed by industrial
expansion.
Winter Weather q Factor.
in every section of the country is the
approach Of winter weather. Construc-
tion will be rushed within the next few
days in order to get present structures
! under roof SO that interior work may
proceed during the cold weather. But
new projects will be held in allegiance
until the opening of spring.
A third factor in the situation is
scarcity and high price of materials.
Producers of building materials have
had to go into the open market for
labor and pay correspondingly high
prices for it. Costs of production
have increased and while advances
have not been reflected to consumers
in corresponding degree. they are
becoming more and more apparent
daily.
The shortage of skilled labor in
the building trades has been one of
the problems which has faced build
ing contractors for months. Carpen-
ters, plumbers, plasterers. bricklay-
ers. masons, electricians and other
skilled artisans are being offered
from So to $13 a day for their services
They are being provided with free
transportation and house rent in an
effort to lure them to other localities.
Transportation Lacking.
Lack of transportation facilities
has entered forcibly into the calcula-
tion of builders. Not only have they
been unable to secure shipments of
materials. but they have been forced
to keep high-priced workmen on the
pay rolls though idle to prevent losing
them
Costs, taken in conjunction with
the interest rate on funds to finance
the operations, have approached a
point where prospective builders are
halting plans until transportation,
credit and labor conditions readjust
themselves. The principal reduction
will be in dwellings. just as the prin-
cipal activity has been in homes for
families. The first check to opera
tions is reported in dispatches from
the central states and the northwest
In those localities the housing needs
are less imperative.
Housing Shortage Continues.
Housing facilities are still far be-
low the needs. But the actual extent
Of the shortage will not become fully
apparent until after October 1. when
the semi-annuai renting season is
over. New building within the last
year has made a tremendous impress
sion on the housing situation. Rents
have not come down materially. 1t
is doubtful If they will be reduced
after October l, although apartments
in many eastern and middle west
cities will be vacant. Other induce
ments, however. will be offered after
that date which will be equivalent
to material reductions, such as CIV
ing new tenants and those who renew
leases one to two months rent free.