The Birmingham age-herald., 1923-08-27
C8ST OF MATERIAL CAUSES GREAT LET DOWN IN BUILDING
Steel Companies ExperenCe Slowing Down Of About
 Ten Per Cent
Ny WALTER B. BROWN Editor New York Commercial 1 InmnnH Wire Ia uhA An.n.II nrn 1 !

Leascd Wire to The AEe-Herald)
 NEW YORK. August 26.-That there has been some let-down in in- drxtrial activity cannot be denied. It Is, perhaps. more noticeable in build Ing materials than elsewhere, and be- gan when large building projects were laid aside because of the high costs of labor and materials. Labor has not come down, but there has been some recession in material prices, which, however, have had the effect or again encouraging building operations, although not on the heavy scale on which they were being un- dertaken In the spring. How much of this lessening of activity Is due to inability to proceed at present high costs and how much to completion of building programs cannot now be es- timRted, but 1t is quite probable that both of these causes require consid- eration. In the larger cities building is still going on without apparent cessation, but these are projects that were under way before the more con Servative feeling manifested itself The end of building activity is not yet in sight, and 1t is more ques- tion of degree.
 Steel Output Slows Down.
 
 enced 0 slowing down of about 10 per cent in output, a. s compared with the peak of the activity in the spring There is probability that the thrilled tonnage report of the United states Steel corporation, as of August 31, will show a still further decline, but 1t ought to mark the minimum and subsequent reports should show in- creases. There is the possibility that September may not respond fully up to expectations, but beyond that there should be a recovery unless some PNthing has developed in the meantime that will mean a complete alteration of the general business outlook.
 Automobile manuracture during uly was not as heavy as in June by about l5 per cent but it was a season. al falling off. In fact seasonal let down has to be taken into considers- tion in all lines. It cannot be ac- counted for on this basis, however, great deal of it being due to scare, and to nervousness over the Euro- pean situation.
 Another fact that has to be faced is that production in costs of manu- factured articles are too high and in the course of time will have to come down. This economic distortion is reflected in the low purchasing power of the farmers dollar. Ills prices are governed by world market
  for the things he buys he is governed by high domestic production costs. lie feels that he has been unduly de- Hated and is disposed to blame some one for it.
 Ultimately labor Twill have to be delated. It will be painful process for it will be accompanied by pusl ness depre ssion and unemployment! The recent depression did not last long enough to reach labor to ans extent It is not likely that wage scales will overreach prewar levers and it sisl to. zbe-heped that the&- W1tt not because the higher standards ol living attained blythe working cldss es are decidely beneficial to the con munity. The level to be reacheu thai which will bring them into ','cro harmonious relationship with ths general earning power Of ths community so that manuIacturet'ui roods and services generally VII come within the range of the larSel number of people.
 Revond the fact that there mas peeh chanr1 wa presidents the aarntnis tration for eN shington is procee1ins as befor5 yer. Coolidge mas tbs tok.n no radical changes ana t' ete caIinet is just as it was under MT EYardinr The most noteworthy req t,'ra ,s the feeling of Confidence m naw president although ne h@S
 t as ve. had an opportunity to d1monstrate himself. He may q, nHS snch opportunity if the coal e. so i,, materfaliezs but 1t is certain sn@ can
 %staver action he takes ne ,l ',non the full backing of puolc inion kIe has a reputation I9h onrraqe and if he continues 10 Man Ses+ if hs will make strong @p ,onai to pOpular support