The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1923-05-31
CALL HALT ON
BUILDING LOANS
Mortgage and Insurance Com
panies in the Commercial Gen.
tiers Await Sterilization.
BOON TO LABOR SEEN
stoppaoe viii Save Work for Other
Years, Financier says-Affects Big
Projects-Ban Doesn't include
Necessary Apartments

New York All building loans in
New York city have been virtually
stopped Indefinitely by most of the
life insurance and mortgage compan-
les and other controlling interests, 1t
was announced on unquestionable au-
thority.
The ban would not be lifted, 1t was
said, until present uncertainty in cost
and supply Of labor and building ma
terials had disappeared.
Under this pressure, or lack Of sup
port, it was expected that the build
ing industry would begin to distribute
it's. construction program over per-
iod of several years.
Some loans will still be made on
smaller housing projects affording OBJ
vious public relief, and on commit
ments entered into prior to adoption
of the new policy.
Joseph w. Phair, treasurer Law
yers Mortgage Company, $9,000,000
corporation which is one Of the Lead
ing agents in building loans, con-
firmed the report.
Loans on all the large projects
have been stopped generally" said
Mr.. hair. "Our company is. now ac-
cepting mortgages only on apartment
houses, and those, the smallest. Of
which there is greatest need
First definite intimation that the
money market had begun to frown
on present building construction pa
per was conveyed by an official Of
one of the largest financial organiza-
tons. He said
Building loans have been practi-
cally stopped by everyone indefinite
ly. The present supply of labor and
building materials make it impossible
for any builder to say when he can
complete building, or for how much.
Pledges made on applications we had
already approved we are, Of course,
living up to. But we are making no
new loans.
There is no rightly about it, un-
derstand, for we stand ready to meet
emergency needs. Nor has there been
any getting together or anything
like concerted movement-rather, it
reflects consensus Of financial opin-
ion. 1t is just that any one can see
the building situation will take sew
eral years to become stabilized again.
There is no disposition to blame
labor, nor to blame building materials
men. There is shortage in both
fields, and we realize conditions are
such that labor and materials can
command almost any price. The eff
feet of curtailment in loans should
relieve them as much as everybody
else. 1t will pass the load on over
several years, instead of piling it on
in one. 1t will also hasten return
to normal.
I'VE do not share any feeling
against so-called speculative builders
They built New York Without them
present housing would not have been
achieved We welcome them, and are
always ready to- back them. But right
now the only relief seen by the lend
ms AAobAhub4Oha 10 q oLOPPGSS VI lOduc
on all new building until the builders
can begin to give some assurance of
performance, both as to cost and as to
time. There is no indication now as
to when that would be-"
In other quarters not prepared to
admit building loans were being
stopped on the scale described, at
least in SO far as these firms them
selves were concerned, the careful
scrutiny admission was made frank
ly. They also indicated that only the
most gilt edged propositions were
meeting with any favor
Labor's own comment carried d.
reetness when one of the union off,
cials said:
It's all dollars and cents. They'll
all loan, for housing, at least, as long
as there's money in it, | just bought
house myself up in The Bronx and
had to borrow. $4,000 from the bank.
The money cost me IL per cent"