Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-29


been at any time in the period &C
goes back to 1926. The bureaus i
ing materials takes 1926 prices as
For the years following 1926 whole
sale prices are shown to have reached
their peak in March, 1929. when the
bureaus index figure was 98.8. In Oc-
tober, 1929 the month of the stock
market crash, the figure was 97.8. The
figure showed only small variations for
Q number of ensuing months.
April Shows Decline.
The present lowered costs begin to be
indicated in the April index, Mr.. Nelson
points out, and the lowering has been a
comparatively rapid movement The
index for May was 92.9, for June 900,
for July $50, for August S7.4, for Sep
TENDER So 3. and for october 85.8, a
decrease of II points over october of a
year ago and a decrease of Is points
over the figure for March of 1929.
Retail prices should be found to accord
In general with the wholesale trend. AS to
specific materials, lumber, according to
the August wholesale index figure of the
Department of Labor, is down 13.1
points from its price of a year ago;
brick is down IL points; cement down
O.3 points; structural steel is down 1873
points and other building materials are
down 81 points.
"Prices of building materials have
been reduced from IS to so per cent,
compared with 1923 costs" B. c..
Forbes, observer of financial and eco
nomic trends, declares, Residential
costs are lower by Is to 35 per cent
1Sunber is selling at Is per cent under
1925 prices; cement, rock and sand, the
three ingredients of concrete, at almost
SO per cent under prices five years ago.
Wiring and electrical supplies are down
more than 20 per cent plumbing mate
rails are 10 to Is per cent cheaper.
Brick is IS per cent cheaper than in
1925: roof tile 40 per cent less. Plaster
has dropped 40 per cent: wood lath, so
per cent; metal lath, 80 per cent.
Labor Supply Plentiful.
There is a plentiful supply of skilled
workers. producing approximately 20
per cent more, due to modern inven-
tons, than in 1923-an important fac
tor in costs"
F. w. Dodge figures on contracts
awarded in the 81 States east of the
Rockies approximately go per cent OF
the United States totaD show that for
September residential building increased
10 per cent over August. This con-
trasts with a usual seasonal decrease of
from to 10 pcr cent The reports
show the total volume for September as
only II per cent below September, 1929
"a gain of 80 per cent when compared
with tn" average decrease for the pre-
ceding eight months. Dodge figures for
October show an increase of more than
six million dollars over the figure for
September in total residential construc-
ton.
The Bureau of Labor Statistics, which
tabulates reports from 266 cities, re-
ports estimated cost for residential
building construction as shown in builoS
ing permits to have taken for October
an upturn of 1 per cent.
Financial journals generally at this
time view the recent advance in copper
as a move of outstanding significance
as forecaSting a tendency toward
coming sterilization of prices generally.
They point out also as an interesting
indication for general business the
October reports of chain stores, which
show for Is of the chains an appre-
ciable increase in business over the Sep
TENDER totals. Money for financing
needed home building is accommodating
1t is plentiful and cheap and waiting
for an opportunity of safe investment
Truman S. Morgan, president OF the
F. w. Dodge Corporation, says, in a
recent article in the Real Estate Record
and Builders Guide.
According to the Financial World
the accumulation in. banks is now at
the maximum amount ever recorded in
our history" Mr.. Morgan points out
During the past quarter century our
population has increased 43 per cent,
while the wealth or purchasing power
Of the workers has increased 800 per
cent. During 1929 the public invested
more than eight and one half billions in
building and loan associations, or more
than 10 times the amount invested in
1906.
Life Insurance Rises.
Life insurance jumped last ysar to
seven and one-half times the amount
written in 1905. Interest rates on COM
mercial paper turned downward about
q year ago. A month or two later the
bond market toak definite swing up
ward and has continued steadily up
during 1890. These are the customary
first indications of easing money condi-
tions that usually result in increased
residential building. Surveys made Of
vacancies have revealed normal vacancy
conditions in many cities of various
sizes and in various sections of the
country"
Savings bank deposits for the State
OF New York for September were the
largest for any Of the preceding five
years for which monthly reports are
available. with the single exception of
1925. according to compilation made
bv the Savings Bankers Association of
New York
"Al Of which means that from banks
and insurance companies money is now
available for sound. well conceived
building projects" the realtor states.