Evening star., 1934-08-12
Lack of Capital for Housing
BY FREDERIC J. HASKiN.

A good deal Of actual activity and
the spending of money on the en-
larEed public works program OF the
Federal Government has not made
itself felt as yet. Figures for the
last quarter OF 1894 and certainly for
early in 1888 will be higher on the
public works account. The money has
been alEocated by the Public Works
Administration. but time Is required
TO draw plans, make surveys. assemble
material and so on.
The fact Of outstanding importance
in the situation is that. even though
public expenditures are going Up. As
/ shown. private expenditures appear still
to be on their way down. The simplest
/ calculations will reveal that this sort
OF thing can not long continue. No
I government can maintain public
works expenditures on a scale equal
to that Of which private capital Is
/ capable-not, at least, under the form
OF government and civilization which
the American people have adhered to
throughout their history thus far.
Houses Are Most Needed.
or all kinds Of building construction.
| that in the residential classification
has undergone the heaviest decline.
/ In 1928 the value Of new residential
| construction. including single dwell
ings. apartment houses. tenements and
hotels, amounted TO $3,050 100000. It
reached q peak In 1928, when the
value rose to $3, 3,0o5, 900 900. Since then
| the decline has been swift In 1929
such building absorbed only $2.l27.-
| O00. 600; in 1880, only 81 .222. .000. 900;
| in 1891, only $500, 900, 900. and in 1892,
only $3ll 100000
The lower figures are accounted for
| in a measure by lower wages and
! lower costs of building materials. but
these elements are responsible for only
a small part Of the decline, Wages
dropped, especially as to non-union
work. but the cost OF building ma
terials was reduced but slightly. The
plain fact is that building of resi-
Dental properties fell of TO only
about 10 per cent Of what II had been
In 1923.
Buildings have a way Of wearing
out and, especially, Of becoming obso-
lete as to many of their appurtenanees.
For this reason and because of the
hiatus during which the industry
dropped away, 1t now is held that
there is deficit to be made up. Presi-
dent Hartman Of the Chamber OF
Commerce Of the United States has
recently made the statement that be-
tween $4,000, 900 and $4,000, 900 addi-
tional residential rooms must be con-
stEucted to bring housing up to proper
standards. Moreover, the National
Recovery Administration made a sur
| vey which showed that instead of the
normal average Of 100000 new dwell
ings or residential units being built last
year. but $4,000 were built. A deficit
OF about 100000 dwellings has accumu-
lated, according to that survey.
These figures reveal to what extent
the strike Of capital against invest
ment in the building industry is reach
ing to affect the every day lives Of the
! American people. 1t Is striking at
the people in their homes. these state
mentS indicate. There is possibility
that when private capital sees the
new Federal Housing Corporation be-
ginning a sort of competition it will
be stimulated to regain its ascendancy
by lending more freely. On the other
hand, there Is always present the pos
sibility that private capital, as in some
other fields, viii take the position that
Uncle Sam can do IL.