The Washington times., 1937-11-29
Full Text of Presidents Message

} vide all the financial mocha
nisms essential to a widespread
and sustained revival Of hous-
ing construction. The terms of
financing would be the most
favorable ever made generally
available in this country for
housing purpoSeS-half, or less
than half, the cost Of loans of
comparable proportions under
the sSstem of first, second, and
third mortgage financing that
was widely prevalent in the
1920's. Large and continuous
activity and employment in
housing construction, .5hich is
not feasible under our present
limited methods of financing,
would be put decisively on a
practicable basis.
The success of such a program
as this, however, cannot be as
Sured by governmental action
alone. It will depend mainly on
the willingness of industry and
labor to cooperate in producing
housing at costs that are within
the reach Of the mass Of our
people. The goal at which both
industry and labor should aim
is sustained large-scale produc-
ton at lower costs to the con-
sumner. This will mean a larger
annual wage for labor because
of the larger amount of employ.
ment than is possible at high
hourly rates with long periods
of unemployment. It will mean
a larger annual income for in.
duStry because of the larger
volume Of production than is
possible at high-unit prices with
greatly restricted output.
COST RISE TOO RAPID
Because this was not the goal
of industry and labor during
the past construction year, the
result soon proved injurious not
only to the building industry
and its workers, but to business
and employment generally. The
sharp rise of wage rates and
prices in this industry, just be-
fore the last building season,
reduced by 100000 to 10000
the number of new dwelling
units that competent authorities
had estimated were in prospect
for 1887.
It is now clear that we cannot
have q strong revival Of hous-
ing construction on the terms
that were exacted by industry
and labor last spring. The rise
in hourly wage rates and in ma
terial prices was too rapid and
too great for the consumer to
bear. A similar rise in costs
likewise checked production and
buying in other industries as
we'll. In emphasizing these facts,
I am not seeking to apportion
blame, for manifestly no indus
trial or labor groups would de.
liberately adopt a policy that
would react to their own dis .
advantage. I am simply point
ing out what did occur and what
the consequences were.
In the budget of the great
mass of our families, the point
is quickly reached where
increased costs mean reduced
consumption. Reduced con-
sumption, in turn. means a de-
cline in someone's business and
someone's employment. The es-
sential problem of the construc-
ton industry and its workers,
then, is to find a reasonable
way, through continuity Of pro-
duction and employment, to adj
just the costs Of housing to the
consumers means.
PLANS CONFERENCES
To help ,attain this end, it Is
my intention to initiate series
of conferences with representa-
tives of industry, labor, and
finance, with a view to giving
housing construction a fresh
start in the coming building
year and averting a recurrence
of the conditions that brought
about the reverses of the pres
ent year. If these groups will
cooperate in this effort, as
believe they will, the result can
not but work to the advantage
of our whole national economy.
Comparatively simple changes
in and additions to existing
laws will make this start pos
Sible.
FRANKLIN D. ROOSEVELT,
The White House,
November 81, 1887.