San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
Record-breaking Residential
Construction Is Backbone
of Revival.
AN ADVANCE In WAGES
Cement and Structural Steel
Orders Set New Records
for All Time.
BY JOHN NJ. CRIES.
Chief, Division of Building and Housing
nfuartment of Commerce

p Department of Commerce.
I General building activity in 1922 has
exceeded that of any other year in the
<ySsst decade. The record-breaking resi-
Dental construction in many cities has
furnished the backbone of the revival.
A record amount of highway construc-
ton, which was encouraged by Fed
eral aid, also contributed TO the large
total. The construction of business
buildings was active, but that of indus
trial structures amounted apparently
to less than half of what il did in 1919.
I. With regard TO the cost of building,
the index of the Wholesale price of
building materials, compiled by the
Labor Department, reached its recent
low point of 155 in March of this year,
the comparison being with 100 in 1913,
and advanced 10 per cent by the middle
of November, when it stood at 1S5.
There was no shortage of building
materials that seriously interfered with
building operations throughout the
country, although there were temporary
local shortages of lumber, cement, brick
and other materials, due to the coal and
railroad strikes, and many producers
were severely Handicapped by inability
10 make shipments.
j A striking development in the build
ing material situation was the fact
that cement shipments were more than
20 per cent greater than in 1920, the
previous high year, and were 80 per
cent greater than in 1913, the highest
pre-war year. Structural steel orders
were the highest since 1916, and were
well above the 1913 figure.
Wages Advance Generally.
The general tendency of building
trades wages was upward. Common
labor, which was receiving compare
lively low wages in many places at
the beginning of the year, benefited
considerably by the increases, while
some scattered decreases in the wages
of skilled mechanics were more than
offset by increases. In many cities
workers in certain trades were scarce
and received premium wages.
In general, money to finance build
ing operations was much more plenti-
full than during the previous two
years. In number of cities there was
a surplus Of funds seeking first mort
les< Investments. though the rate of
interest was not always satisfactory TO
the borrower. Building and loan as
sociations from available reports in
creased their assets considerably and
municipalities found it easy TO finance
roads and other public works by issu-
ing tax exempt securities.
The year 1923 should see building
activity more evenly distributed
throughout the country, and the per-
centage of the different types of build
ings erected approach more nearly
those of pre-war years. For example,
there will probably be less feyeriSh
activity in some of the larger cities to
supply the demand for costly houses,
and there are some signs of reaction
against continuing such large road
building program. Industrial build
ing Droduc. are almost sure TO in
crease as the better business COndi-
tons promised in certain lines will force
the latter to extend their plants. But
with a shortage of medium-priced houses
reported in at least twv-thirdS of our
cities, inadequate schools in nearly
every community. the needs of expand
ing industrial activity, and other UNI
satisfied demands for construction, il
hardly seems that building activity will
be much less in 1928 than il was in
1922. The activity could hardly be
very much greater than in 1922 without
,overtaxing the resources of the con-
struction industry.
Even though the capacity of the con-
struction industry should be somewhat
curtailed in 1923 by n coal strike or
transportation priority orders, It does
not appear that fundamental economic
conditions would encourage n runaway
market. which would inevitably bring
a. reaction.
Pressure Less Acute.
As stated above, the acute pressure
for construction in certain quarters has
been lessened, and the composure with
which building operators handed such
Titrstions as the brick shortage in New
York, not allowing themselves to be-
come panicky over temporary condi-
tons, seems to indicate that the les
sons of 1920 have had their effect. Ap-
parently most bankers will use their
Influence on the side of caution, IL
building costs advance sharply.
There is nothing yet to indicate a
downward tendency in the prices of
building materials, nor in building
trades wages during the coming year.
The total volume Of contracts awarded
in 1922 was not appreciably greater
than in 1919. based on quar- feet Of
floor space, but in 1922 there was a
far greater carry-over of partly finished
from the preceding Hu-
|tumn. and the contracts awarded in the
First four months of 1922 substantially
Exceeded those for the corresponding
period in 1919, so that the actual volume
bf building operations was much great
| r. The figures on shipments and stocks
|Pf building materials support this con-
illusion.
Local Variations.
The types and volume of building |
|ctivity varied greatly between differ |
| mt cities and regions. In New Eng |
and and the Middle Atlantic States, |
residential buildings. for instance, were |
relatively much more important than |
n the Middle West. Industrial build |
Ings and public works, including high |
Vays. were relatively more important |
. n Middle Western States than IL the
Few England and Middle Atlantic |
Etates. New York and Chicago led the |
. he country in volume OF building per-
bits. with Los Angeles third.
ns.ifential construction. as reported
u the T. W. Dodge Company for
venty-seven Northeastern States,
mounted to about IS per cent of the
ltal contracts awarded The per-