Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-07-09
NENACING CONDITION
DUE 7 D PROHIBITNE
COSTS OF BUILDI n c
Survey of Industrial Situation
Says Demand For Construc-
ton Cause of Instability
RELIEF MEASURES SEEN
Curtailment of Activity Necess-
ary to Cause REIMBURSEMENT
Of Price Levels

NEY YORK, July "a menac-
ing condition in the building indus
try, as a result of much greater de-
mand for construction than could
be met with the available mater
ials and labor has furnished an out
standing example of the instability
which arises in an industry when
comparative costs reach or threat
en- to reach prohibitive levels, the
Guaranty Trust Company of New
York points out in the current IS
sue of "The Guaranty Survey"
Relief from such condition, "
the Survey" continues, "may be
effected gradually or through
drastic curtailment of activity and
sweeping readjustment of prices.
That the particularly threaten
ing situation in the building indus
try has been so generally recogn-
lied is cause for qualification.
Concerted efforts are being made
by representatives of the several
interests most Immediately con-
cerned to bring about reasonable
degree of sterilization in this
industry. If they succeed, the re-
sulting benefits will be shared by
all classes of business.
Some effects of these efforts
are seen in the postponement or
abandonment of contemplated I'M
dertakings which had not been con-
tracted for. In addition, consider
able work that had reached the CON-
tract stage has been deferred, and
in some cases, work already under
way has been suspended.
Building is a key industry, and
upon conditions in this field de-
ponds in large measure the proba-
bility of sustained business activity
in general. Products of forests,
fields, mines and quarries, the fab
rication, transportation, and es-
sembling of these products, and the
equipment and furnishing of COM
pleted structures, although these af
feet more or less directly practtic-
ally every branch of industry.
From the outbreak of the war,
and not merely after the entrance
of the United States, the volume of
building began to sag below it's Gus
tomary level. From 1917 to 1921
the shortage grew rapidly, although
1919 and 1921 were characterized
by considerable increases in con-
struction activity. Not until the
spring of 1922 did the efficiency
begin to be reduced. In so brief a
period as has elapsed since, only
fraction Of the shortage could be
overcome. The extent Of the short
age cannot be precisely measured.
Various estimates indicate that, at
the beginning of this year, the
building deficit represented about
two years normal construction,
which would cost, say $2,000,000,-
600 at pre-war prices.
"With the general lack of suffi-
cient housing so pronounced after
the depression of 1920, the revival
of activity in building antedated
the upturn in business as a whole,
and in intensity of activity this in
dustry has continued we'll above
the average for other lines of bust
ness. In other words, the response
to the urgent need for new construc-
ton now only fastened the recov-
cry from business but has remain
ed a major factor in the continu-
ance Of a high scale of general ac-
tivitv.
"The scarcity o fhousing has con-
tributed both directly and indirect
lv however, to the lack of enuil-
jbrium in wages and in prices which
is now a fundamental obstacle to
sustained prosperity. Inadequacy Of
housing facilities lies back of
the continued rise in rents, which
in turn has increased the pressure
for higher wages"