The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-29
MONEY AND
MARKETS
Building and the General Busi.
ness Outlook

The present activity in building
operations is an outstanding fea-
ture Of the general bu siness situa-
ton. The building industry in the
United States is second in import
ance only to agriculture and many
million workmen directly and indi-
rectly are dependent upon if. In
the more active building sections of
the country that are Systematically
reported. comprising about half
the states, considerably more than
two billion dollars in contracts
were awarded last ,:Aar.
High freight rates due to labor
conditions and high wages to labor
are the controlling factors in build
ing costs. They maintain con-,
struct;on prices at levels that in
terfere with the full and we'll
rounded development Of building
They also serve to in
ject an element Of fixed initiation
into this, the greatest construction
movement in the nations history. /;
The lack of well-balanced devel-
opment is made manifest by an
analysis Of contracts let and per-
mitS issued to date. Residence
construction leads. Public build
ings, roads, bridges, and other
types Of building for public pur-
poses are next in importance, stlrn-
ulated somewhat by desire to re-
lievc unemployment. Business and
industrial construction, which N st
bed one on. a basis Of cost that will
permit present and continuing
return on the investment, has not
expanded correspondingly.
Despite the handicap Of high
costs, home building activity is
being maintained for the present
because the housing necessity COM
pcls il. even on the basis Of un-
economical investments. Public
building and construction are also
being done on q high cost basis
which will be reflected in high tax
rates for years TO come. Public
building. like residence building,
cannot continue indefinitely under
these conditions.
Labor itself is the chief suffer-
er in the situation. Resistance by
important classes Of labor TO wage
declines in a period Of declining
prices disorganiZeS the enire pro-
ductiVe organization of the country
and contributes to unemployment
in other lines. The maintenance
of building operations on high
wage levels delays general wage
4! adjustment. 1t means eXorbl-
tant rents and prohibitivc costs for
homes for workmen. 1t is q gen.
eral deterrent to return to nor
NAL industrial. commercial and
financial activity.
on the whole labor costs in the
building field are not greatly re-
! duced from their maximum.
Transp ortation is a Very large part
Of the laid-down cost OF building
] materials and the adjustment OF
railroad rates is deferred by the
=; refusal OF railway labor 10 recoG-
| niZe that the period Of war wages
! is over. In other words, high
! building costs are being maintain
cd directly and indirectly by labor
costs. 1t is there that the funda-
i mental correction must be made.
The worlds immediate needs for
/ investment capital must be largely
/ supplied by the United States and
prosperity within the country Will
be dependent upon its making
sound investments in foreign mar
ke1s as much as upon finding Tor
eign markets for its goods. The
recent marked increase in foreign
securities flotationS in New York
sisnaliZes the growing importance
OF Americas position as an inter-
national lender For many years
! before the war, the annual total
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