The New York herald., 1922-01-22

December building contracts in tho
twenty-seven Northeastern States of tho
country. as reported by the +. w. Dodge
Company. amounted to more tnan Tor
any previous December. with the ex-
ception Of December. 1919. The total
amount of these contracts was $685.
51S, 900, an increase of per cent. over
the November figure. whereas Decem-
Der usually shows a decline from NO
vember. The closing month or 1921
showed an increase Of SO per cent. over
the corresponding month of 1920.
The total amount OF construction con-
tracts let during 1921 was $2,S59.01
600, only per cent. under the 1920
sotal. 1t Is doubtful whether any other
business Jared SO well in 1921 as the
construction industry as whole has.
even though the volume of construction
has been unevenly distributed as to
classes of projects and as to locality.
The predominating factor in the
years program was residential building.
which amounted to $3.50. 900. which
was 81 per cent of the 1921 total and
represented an increase of "a per cent.
over 1920 residential construction. Pub
lie works and utilities took second place.
amorf ting to s459.1S4.000, or 10 per
cent. on the years total. Other import
ant items were: Business buildings.
sass, 800, 900. or II per cent. educa-
t.onal buildings. s242,562.0oo. or 10 per
cent. (this figure representing a very
considerable increase In q number OF
projects and In total value over 1890;
and Industrial buildings. s172.a25.ooo.
or per cent. of the years total.
The remarkable showing Of the
month OF December. following the good
records of the four previous months,
gives added confirmation of the revival
of construction activity. Every present
indication Is that 1922 will see a meas
urably larger volume of construction
than the program carried through In
1921.
The principal factors favorable to q
big construction year are the still un-
satisfied demand for buildings of every
class and the steadily increasing amount
OF money available for investment in
construction projects. These factors are
not uniformly favorable everywhere.
Recovery In recent months has been
rapid in tho East and very slow In the
Central West This unevenness In the
rate of recovery may be expected to
continue we'll into 1929. The recovery
of general prosperity in the Central
West will continue to be slow. and gen.
eral business conditions In that section
will retard speedy revival of obstruction
activity. particularly in agricultural
communities.
While II Is reasonable TO expect in-
creased activity In every class OF
construction projects II is probable that
residential building will again predomi-
nate. Public works, business buildings
and educational buildings, an Of which
made good records for activity In 1921,
may be expected 10 continue at n satis-
factory rate. Even Industrial buildings,
which special class Is likely to be about
the last to return 70 a normal rate of
activity, should show an Increase over
1921.
The. records OF construction that was
contemplated during tho last three years
indicate that the community comprised
within the II. w. Dodge Company's
territory (including about three-fourths
OF the total construction OF the country
has collectively worked toward a three
billion dollar total each year. The aver
age Accomplishment per year has
amounted TO two and q half billions.
The year 1920 was the only one since
the war that started off at sufficiently
high rate to reach a three-billion-dollar
total. The ratio was maintained for four
months and then the reaction came. This
reaction was caused not only by the
reaction In general business conditions
but Il was also Influenced by the fact
that there was not q sufficient supply
either of materials. labor or transporta-
tion facilities to carry through tho ex-
tensive program that was mapped out.
In 1922 tho community's collective eff
fort will be toward three billion dollar
construction year Cor four billions for
the entire country. The supply of ma
terials, labor and transportation facili-
ties is still inadequate to carry through
such large program. 1t is neither
likely nor desirable that n program OF
such magnitude be actually started.
Slowness of recovery In general busl-
ness, labor disputes still unsettled and
ether rstarding factors may be expeatsd