Evening star., 1937-12-28
HOUSING SUCCESS
SEEN BY WAGNER
New Bill Will Aid Business,
Increase Home Owners,
Senator Declares.

and provisions of the administrators
new housing bill was delivered last
night by Senator Robert F. Wagner,
Democrat, of New York, co-author
OF the bill speaking on the National
Radio Forum, arranged by The Star
and broadcast over a Nationwide
network of the National Broadcasting
Co.:
Friends Of the radio audience:
The Federal Government now has
we'll under way comprehensive pro-
gram for housing the masses of our
people. The first major step was
taken a few months ago, when ap-
proval was given to the slum clear
ance law which had been considered
In several sessions Of Congress. The
second major step was taken just
the other day, when both Houses
OF Congress passed far-reaching
measure to stimulate residential con-
struction by private enterprise, as
recommended in the Presidents re-
cent housing message. Final enact
ment of this new legislation is certain
to take place when Congress recon-
venes in January.
hope tonight to tell you some-
thing of the rounded plan of action
that has gradually been developed.
Experience has surely taught us
that unemployment relief, budget bal
ancing and economic recovery can
not be relegated to separate air-tight
compartments. Miraculous cures can
not be worked by the application of
temporary expedients alone. Our at
tention and our energies should be
concentrated on long-range objectives
going to the heart of our economic
difficulties.
Housing Program BEST Promise"
Thoughtful observers of our. eco
nomic scene are agreed that in the
long pull, a housing program holds
out the best promise for a lasting
recovery. Indeed the United States
Chamber of Commerce declared in a
report last year that 1.-The greatest
business opportunity of the age is
to provide more and better homes for
the average citizen at reduced costs"
way oAA VAAko CAik k|AAdo1o Oll llOuSlllk
For some time it has been apparent
that a completely sound economic con-
dition could not be attained unless the
construction industry and allied trades,
where recovery has Jagged so far be-
hind, are stimulated and brought into
appropriate balance with the consump-
ton goods industries, where recovery
has been substantially achieved It is
in this connection that the tremendous
decline in residential construction
since 1890 takes on the greatest sig
nif1cance.
The number of new dwellings built
throughout the country for our nom
farm population declined from over
100000 in 1925 to about $4,000 in 1888.
While some revival of new construc-
ton has taken place. the volume of
residential building this year was only
one-third the annual average for the
period from 1925 to 1890.
What this means in terms of unem-
ployment and industrial dislocation is
readily perceived. In October of this
year the lag in construction activi-
ties, particularly residential construc-
ton, more than accounted for our
failure to reach the employment level
of October. 1929. It is not enough to
say that 100000 of the men who had
steady work on construction projects
in October. 1929, are out of jobs to-
day. We must also realize that every
hour of work on a construction job
creates about two and half hours of
work in the mining, manufacturing
and transportation of the materials
and supplies that would be utilized for
construction purposes. In other words,
almost three million men are out of
Jobs as direct consequence of the
falling of In construction activity.
Nor does the effect stop there, for the
absence of purchasing power among
such a large segment Of our wage
earning population exerts a cumula-
tive drag upon all industry and upon
agriculture as we'll.
While these consequences have en-
sued largely because new homes have
not been built, Americas need for
new homes has increased at an ac-
celerated pace. There Is normally
steady increase Of almost 100000
new families every year because of
the growth of our population. Today
we must also take account of the
increased marriage rate since 1888
and the re-establishment of separate
homes by families who doubled up
during the depression years.
Shortage of Dwellings.
Studies undertaken by the Brook
ings Institution, the National Re-
sources Committee, the United States
Chamber of Commerce, and very
recently. by the National Housing
Committee, all agree that today there
Is great shortage of dwelling facili-
ties. This shortage, estimated at about
three million private homes or apart
ments, exists almost entirely in the
f1eld available for rent or ownership
by families Of modest income. To
house these families according to the
standards of 1929 would require us
to build about 100000 new dwelling
units a year during the next five years.
In other words, we should be build
ing at about three times our present
rate.
Let us suppose that next year we
made a reasonable approach toward
supplying our essential needs by in.
creasing our present volume of con-
struction to 100000 new homes. This
alone would give steady employment
throughout the year to about 100000
additional men in the construction
and allied industries. When we con-
slider the effect of such a volume of
new employment on our economic
structure as whole, the total of
workers re-employed would come to
. million or more.
The entire picture thus presented
Is challenge to the effectiveness of
our Government and the enterprise of
our industry. The way is pointed by
the experience in Great Britain, Ire
land and other foreign countries,
which recently had occasion to
ktlldv at first hand Ennlov,nopt ora