Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-19
BUILDING REVIVAL
DEPENDS ON CREDIT
Material and Property Values
Declared Low Enough for
Construction Program.

The revival OF the construction OF
homes and apartments Is declared by
flnanciers, contractors, promoters and
Government officials alike to depend
on sound credit policies. But ell these
authorities seem to differ TO some exc
tent as to what constitute sound credit
policies in building construction.
The flnanciers declare that policies
must involve decided conservatism as
compared with these in effect when ex-
pansion in all lines was at its height q
year ago. The borrower must now
show, they say, that the building Ia
needed, that he Is highly responsible,
that he is able to carry through his
project and that the loan viii be re-
paid or amortized in short time.
Urge Liberal Credit Policies.
The builders and borrowers, on the
other hand, declare that while the
banks have ample money to loan for
building purposes they are willing to
loan 1t only to those in such financial
position that they do not need the
loan. The constructors assert that now
Is the time for the banks to relax their
restrictions, loan money freely and
make the terms advantageous for the
borrowers, who in turn are thus able
to make favorable terms with home
owners and thus stimulate building.
Independent observers hold that each
is partly right. There Is small doubs
that the material markets are advan$
tageous for home building, and thai
property prices are such that land MAD
be bought profitably. Labor is plenti
ful and labor costs are down trifia
But before home building can get 4
real start, the public must be inspires
to desire TO build homes, and apparently
that inspiration is temporarily lackina
1t is to settle the question of what 2
wrong that President Hoover has ape
pointed his Building Commission.
Residential building, according to re-
ports to the American Federation "a
Labor, has not commenced to increase
as has public work construction. There
is o general drop of 10 per cent as
compared with last year, but housing
shortages are beginning to be noticed.
strong efforts are being made to keep
wages in construction lines up to 1923
levels. Appeals are being made to en-
ploy local workmen instead of hiring
newcomers willing to work for less. In
some districts, master workmen are re-
ported willing to work as helpers in
order to secure Jobs. State officials
are making efforts to insure that only
local workers are employed on State
and municipal projects.
Looking Tor Turn.
1t is generally admitted that any
definite improvement in general buSi-
ness may serve to aid conditions in tbs
construction lines. Such an uptlrn is
anticipated by or before Autumn, but
| construction men do not want to walt
for this upturn There has been a
comparatively long period of residential
building cessation. This has been ac-
companled by drop In rents The
| construction men desire to see the turn
come before rents are raised to any
large extent and before space costs
rise above their present levels.
There seems to be no oversupply Of
individual homes. and if the financiers
and the construction men can agree on
a policy Of financing. the revival may
come sooner than anti pated. Low in
terest rates and activ in municipal
bonds have stimulated municipal hor-
rowing for road building and the effects
of such expenditures viii aid in reviving
other forms of construction, it is felt,
Copyright. 1901