The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-06-02
KEEP BUILDING
GOING, SAYS
STRAUS
Head Of Big N. Y. Firm Tells Of
Needs Here After Wide
Survey in Europe.

sui Hl&uRI DullulUS COSISs HAEuCi
rents, general unemployment and a
slowing up of all business. will re
suit unless necessary building opera
tons are continued, declared S. w
Straus, president of S. w. Strauss
& Co. yesterday. Strauss returned
to New York few days ago after
an intensive study of building con
ditions in England and France.
Summing up his views on the
building situation in this country
Strauss said:
Above everything else all neces
AIRY building operations must be
kept going on as extensive a scale
as the supply OF labor in the build
ing crafts will permit. If building
operations generally slacken It will
mean a let-down in all other lines
of business. 1t will mean the cfea'
ton of a still more acute building
shortage, higher rents, increased
costs of living and general unem.
. ploynnent.
''The situation as 1t now stands,
however, is by no means alarming.
The law of supply and demand as
well as the equally immutable in
stincts of human nature comprise
the entire problem.
MuSg WUAh AU6OVAAOAS
"All elements Of the industry
must work together not only ami
cably, but patrioticaIly, to bring
about sterilization Of building costs.
Prices generally win not go
lower. and the longer stabilization
is postponed the higher will be the
eventual stabilized level. Also the
higher building costs go, the higher
every other commodity will go.
Ever since the summer of 1918.
people have been talking about
lower rents and lower building
costs, but prices have continued to
20 higher. The fundamentals that
have caused this upward swing are
still in existence.
Stabilizatien of building costs
can be effected only through al
equalization of demand and supply.
This can be accomplished by post
poning operations on basis of
priority in keeping with the situa-
ton in each city or community
affected For example, one city
may have an adequate supply of
commercial buildings, but may be.
short of residential structures. Con-
ditions of progress in another city.
may be impeded through a short
age of Industrial buildings or hotels.
Still another city may have an
alarming lack Of school facilities
Build to City's Needs.
1T is the patriotic duty of labor.
finance, contractors, material inter-
ests and all other elements to con-
centrate their efforts on such types.
of buildings as are most vitality.
necessary to the general welfare
Of the respective communities, thus
giving to the people the buildings.
now most needed and postponing
for the future benefit of the indus
try the construction of such struc-
lures as can now be delayed in
the interest of public welfare,
Such a program will, in my
opinion, stabilize prices and assure
long period of prosperity. not
only IN. the building industry, but
IN all lines of business as well.
Such a plan will give labor more
money by furnishing steady en-
ployment throughout the year. and
thus remove the incentive for a
continually higher daily wage.
The situation merits the un.
stinted patriotic, support of. all citi-
zens not only because of the effect
such an attitude will have on their
present condition, but also 9oTf ac-
count OF its effects on the welfare
OF their children in later wears. For
II must be borne in mind that cur
rent conditions If not corrected will
Erow more acute and chaotic as
time goes on. Labor. particularly. j
should assume this attitude IN lend.
Ing every help to tide over the
delicate situation. It is 4 matter
of simple reasoning and logic that.
we cannot go on indefinitely anvra.
niding building costs, thus nnaking
1t impossible for the builder to sestf.
mate with accuracy the cost of his
operation at completion.
Banks Can Help. /,
Il realize that the means Of e.
fecting such q program lies to- quite
an extent in the hands OF tn,
hanks and other lending Institutions,
because they have 1t. in their ffnoJXwe,
to make only. such loans on new
construction as shall prove helpful
to the situation: -
TN behalf of s. w. straus & Co.
can say that it will be our policy
- 0NHStC 'uItSWSEFIuSty TO such a.
aourse as shall make possible fha
practical application of the plans
OF sterilization and relief here ont.
lined. Not only must each indi.
vidual loan comply with all our
usual requirements for safety. but
the borrower must be able to show
that his project is a vital and i'm.
mediate necessity in his community
and that it will not interfere with
any other project OF perhaps stiIl
greater public need.
Such course has in fact been
one OF the fundamental policies of
>. W. Straus & Co. in making loans
on new buildings throughout the
country, and our course in the pres.
ent situation represents no change
or attitude on our part excepting
an absolute refusal to finance anv
project which might. through the
processes of competition. in the
slightest degree tend to create nm.
que advances in building costs in
the community affected and tT,Is
delay the advent OF stabilized con-,
ditions." WI