Evening star., 1923-03-19
HOOVER ASKS HALT
! ON j. S. BUILDING
Urges President to Stem All
But Necessary Federal
ga Construction.
TOO MUCH PRIVATE WORK
Secretary Declares Demands of
Homes and Industry Push
! Capacity to Limit.

Building and construction work
now under way by the government
should be slowed down and the ini-
tiation of new projects delayed, Sec
retary Hoover recommended TO Pres
ident Harding in d letter made public
Today, in order that they may be
pushed forward at some later period
when there is less private construc-
':on activity and need for alleviat-
ing and preventing unemployment.
Mr. Hoover i'll a report made a the
request of the President, suggested
that state and municipal governments
consider the adoption of Il similar
policy, which accords with sugges-
tons resulting from the national un-
employment conference Of 1921, that
government projects OF all sort be
utilized IS an employment reserve, so
far as possible. by which demand for
labor and materials might be thrown
into markets during periods of de-
preston.
Material Stocks Cut.
Mr.. Hoover said that a survey of
the situation i'll the construction
trades had brought out several fun
damentaI conclusions. which he listed
follows:
l. The year 1922 was a year of
very large employment and activity
In the construction TRACES and at the
end of the year stocks of construc-
ton materials were very much re-
duced. Since the beginning of the
present year tAcre has been even
more activity than in the same period
last year and the contracts let in the
past few months are ~f larger volume
than any hitherto entered into in
similar period Advance orders for
construction materials are upon a
very large scale.
Shortage of Labor.
Labor in the construction trades
ana IN the manufacture of material
Is not only at fun employment. but
there is actually shortage in many
directions
. Transportation facilities avail
anie for the building materials are
fully loaded and almost constant car
shortages are complained of with
consequent interruption in produc-
ton
My conclusion said Mr.. Hoover,s
letter. from all this is that. at
least for the next several months,
the trades will be fully occupied in
private construction. all of which is
generally needed by the country
Deplores Competition.
For the government to enter into
competition at the present moment
will give no additional employment
to labor and no additional production
OF materials, but must in the broad
sense in the end displace that much
private construction. The govern
ments. nationally and locally, are in
much better position to hold con-
Structi0n work in hou 10,
private concerns. and are in better
position to speed up in times of less
demand as we did in the last depres-
sion as the result OF the unempIoy-
ment conference. We can by this
means contribute something to a more
even flow of employment not only
directly in construction work but in
the material trades.
Il would recommend therefore. that
you direct the different divisions OF
the government to initiate no new
work that is not eminently necessary
to carry on the imm mediate functions
of the government and that there
should be a slowing down OF work
in progress so much as colnports with
real economy in construction until
after there is relaxation in private
demands"
Prices on Increase.
With his report to the President
Mr.. Hoover coupled a statistical study
which declared that the capacity of
rhe industry and its related sources
FOR production of raw materials was
low being fully utilized and that
prices had shown marked increases
throughout its scope
During 1922. according TO data ac-
companying the Secretary's letter,
cement, lumber and fabricated steel
output was greater than for any OF
the three preceding years. while con-
tracts awarded for construction called
for greater investment and more eX-
tensive operations than in the period
1919 to 1921.
Wholesale prices during February
of the present year. it was added.
were 25 per cent greater than those
year previous, while brick house ma
terials advanced l6 per cent during
the same time. and frame house ma
terials II per cent. Building permits
granted in the twenty-seven north
eastern states during January and
February, it was stated, involved
total expenditure of $447,271 900. Is
against S343,6S5 900 during the same
two months last year. Full labor en-
ployment in the construction indus
tries is now in effect, the study con-
cluded, with a prospect of labor
shortage during later spring months.