Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-22
HOME BUILDING
OvERLAST YEARS
Steady Revival in Construc-
ton Seen as StimuIant for
All Line; of Business.
BY MARK SULLIVAN.


Among the indexes of business, the
one that is watched with particular
closeness and some cheerfulneSS in
washington is residential building. This
line of business in February showed an
increase of about 9 per cent over the
same month in the preceding year.
This was the first occasion in % months
when residential building showed an
increase over the corresponding month
of the preceding year.
The incident suggested the possibility
that this branch of business activity
might have ended its period OF decline
and begun a gradual upward curve.
Building construction began us decllne
earlier than any other line OF business.
It began to drop in volume in November,
1929. a wear before the stock exchange
debacle of November, 1929, which Is
commonly taken as the beginning OF the
present depression. 1t is thought that
Just as residential building was the first
to decline, so may 1t be the earliest 10
begin recovery,
The authorities who look upon the
construction of new residences as the
most dependable index to business in
clude the most sure-footed in WASH
ington. Their conviction is that II
things are right with this one business
activity everything else will follow.
All Markets Increased.
The construction of new house Is,
so to speak, the creation Of a new
cell of the social structure. Into 1t go
lumber, metals, paint, masonry and
skilled and unskilled labor. Completion
of the house is followed by wires and
pipes carrying essential services. 1t Is
followed by purchase of furniture, auto
mobiles and all the other attributes OF
a home. The aggregate of a seasons
construction of new residences is like
the addition Of years growth to the
trunk of tree.
One classic authority on economics
believes that in modern society, new
construction Of residences and other
building accounts for more than so per
cent of all business activity.
The Washington authorities who fol-
low the course of residential construc-
ton take elaborate pains to get the
latest data from all over the country.
Equal pains is given to interpreting the
data for its bearing on other business
activity.
Comparisons Difficult.
The Interpretation is made complex
by the fact that comparisons with the
past Is years are difficult. The history
of residential and other construction
since 1915 has been very irregular.
There was first of all practically COM
plete cessation of building during the
war years. The filling of the void thus
created was again postponed by the
business depression of 1922. 1t was
not until about 1924 that construction
got under way on a scale large enough
to take up the slack of some seven or
eight years during which construction
had been almost non-existent.
This irregularity of conditions, dur
ing some Is years past makes it diff
cult to estimate just what should now
be expected as a normal years output
of construction.
About all that is meant to be said
here is that some particularly we'll in
formed authorities in Washington take
home building as the starting point of
their judgment about the state of
business. Accepting this standard
they think it likely that home building
has begun new period of expansion.
They are very confident In their judg-
ment about home building being the
underlying unit of improved
business. From home building nearly
everything else follows.