Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-23
Building for Prosperity
CONTINUED From First Pags.l

ln the wake Of the stock market collapse
construction programs have been i'm
portant news all over America. The
pledges made ut the White House In
roads and Of big public utility companie:
and leaders in other major branches OF
industry had an important part In re-
Viving public confidence at a very criti-
cal hour IN our economic history: Tor
all business men now realize that IN
time Of stress no dollar Is so important
Is the construction dollar, for no other
dollar touches so many parts OF the
highly intricate business machine Of
modern America.
The 10-hillion estimate already mem
toned may he tribe high. Circum-
stances now unforeseen may make some
eurtailment advisable during the Sum-
Hner and Autumn, which are still long
way ahead of US. But, because it is q
convenient figure, let us take 1t and try
% arrive at its economic significance.
We are told that on construction jobs,
Including their supply industries. wages
constitute from 20 to 80 per cent Of the
total cost. At least seven billions, there
fore, viii go directly to the man who
tolls with his hands, whether in the
bowels of the earth when excavation is
under way or on the dizzy heights
where steel Orders are being put into
place. Hall Of these wages, We are told,
are going to find their way without de-
lay into the retail store, and as the
merchants stocks disappear he sends
el1is money travelling again to the whole
Saler, and then through factory, and
producer Of raw materials 1t finds its
way to other wage earners.
Meanwhile those other billions are
shaking demands on the industries
which produce brick and cement and
humber and iron and steel and hundreds
Of other building materials. Skilled
Workmen find the need for tools. Ex-
cevation calls for steam shovelS and
trucks and drilling machines. And as
the new structure nears completion
there are orders for carpets and rugs
and draperies and desks and other ONCE
furniture.
Il Postwar Development.
Before the war the importance Of
The construction dollar was q fact
recognized by the economist, and per-
haps by few business men. But now,
through the far better appreciation Of
the American people OF certain In
exorable economic laws and. through
the more reliable data which are avail
able to the American business man, the
fact no longer requires calculation.
Newspaper headlines inevitably reflect
the views Of their readers, and nothing
associated with the business problem Of
the last Winter has seemed quite 80 i'm
portant as the new construction
programs.
IN one sense, therefore, the emphasis
on building construction in times of
bushes recession Is q postwar develop
ment, but it can be traced q little more
definitely than that, and for that pur-
pose would like to recall an event In
American history which the average
person perhaps long since has forgot
ten, but which in my opinion will be
regarded, In the long future, as an i'm.
portant milestone in our business ex-
pertence. ] am referring to the con.
ference on unemployment which Presi-
dent Harding called in the Autumn Of
1891, and which in sessions lasting only
IL days laid the groundwork for much
OF the material prosperity we have since
enjoyed.
In . preceding article remarked
that Herbert Hoover was the dynamic
leader of that conference. President
Harding himself understood that fully.
In his opening address he frankly told
the members Of the conference that
he had no suggestions other than that
they should follow the leadership Of
Mr.. Hoover. If we think that our I'M
employment problem of the last Winter
mas been serious, we should reflect on
the conditions which confronted us
when that conference met on Septem-
Der 90, 1921. Between four and six
million Americans were approaching Q
Winter without jobs, and It was symp-
tomato OF the chaos Of the times that
even the highest officials Of the Gov.
eminent did not know whether the
figure was nearer 100000 or 5000 900.
Unemployment involves something more
than Q temporary cessation of wages,
EIn
prfvation Of the comforts Of life. It
takes o heavy toll Of savings; 1t brings
the discouragnig searching for Jobs, loss
OF health, perhaps the breaking I'D of
families. And when the moral re-
sistance Is at its lowest point it may re-
suit In criminality. All these factors
were presented to the members Of the
conference, and in summing I'D the re.
Sponsibility Of the Government to its
people Mr.. Hoover said:
There Is no economic failure 50 ter
T1ble in its import as that of a country
possessing 3 surplus of every necessity
OF Life In which numbers, willing and
anxious to work, are deprived OF these
necessities. 1t simply cannot be If our
moral and economic system Is to sur
ytve."
Construction Il Balance Wheel.
It Yves apparent to that conference
back In 1921 that the first necessary
step was to bring about q revival Of
building. During the war we had
neglected our domestic needs to con-
centrate on the production of war ma
terlals. Public works, except those
necessary to health or convenience had
been set aside. Residential construc-
ton had fallen on so materially that
an acute housing shortage was an ele-
ment Of the prevailing distress. In
addition, commodity prices were so high
thAt the prudent builder was reluctant
to plunge In.
Mr.. Hoover declared almost at the
outset that construction was the balance
wheel OF industry and that through it
America could most quickly start to
climb out OF its difdculties. He named
o representative committee, which In.
cluded the head of the General Con-
tractors Association, the leader Of the
building trades, groups Of organized
LABOR, an engineer, an architect, an
economist and several representatives of
the building materials industry. They
Knocked down the major problem into q
number Of subdivisions and within a
fortnight had submitted comprehen-
etve report which considered ways of
restoring confidence, Improvement In
financing, reduction Of material costs,
removal Of unfair practices, readjust-
1nent OF freight rates, development of
more scientific and economical building
codes and the need Of more reliable
statistics. Out of this report, which
was ratified by the general conference,
came the appointment of a permanent
committee which proved Of tremendous
assistance In the building revival which
began soon after the conference ad.
dourned.
the experience of 1921 and the years
which followed stood US in good stead
last November when another business
recession, with alarming increase in I'm.