Evening star., 1938-09-03
EDITOR ANALYzES.
BUILDING CFACTORS
Draws Lesson From Boom
in Great Britain and
Lag in France.

ana NE" 1orK-the three great cities
OF three nations-refiects to a remark
able extent the political, social and
economic conditions that prevail in
those countries" states Joseph B,
Mason, Eastern editor of American
Builder, who has just returned from
. European tour.
In London, as we'll as in all England,
he found that private home building
continues to f1ourish-the first half
Of 1888 being only II per cent less
than in 1887, which was a banner
year In which some 100000 houses
were built. In England building
credit is plentiful Confidence in the
government prevails, labor is not
unreasonable in its demands (the
46-hour week being standard), and
the average skilled building worker
earns about 40 cents an hour. Build
Ing material prices have also been
maintained at reasonable levels.
Most important of all for American
building men to consider at this time"
Mason says in an article in the Sep
tember issue of American Builder.
rs that in England private initiative
has not been restricted or frightened
out of existence by government COM
petition in housing. England has
tackled its frightful slum problems
aggressively and intelligently and is
doing large volume of public hous-
Ing, but this housing is built for slum
dwellers by local housing authorities
and in such way apparently as
not to destroy the market for private
homes built by private builders and
developers.
Reform Progresses Slowly.
Housing reform. like social and
labor reforms in England, has pro-
gressed slowly but surely over period
Of years and is generally accepted
by all. Government subsidized hous-
ing for the very low income groups
now amounts to less than 20 per
cent of the total home building in
England
Confidence in the future is shown
by the fact that in England homes can
be purchased at 10 per cent down or
less and paid for over period of 20
years. Interest is generally low-that
is, Az to 5 per cent The British
budget is balanced, and business and
industry are reasonably satisfied that
future prospects are sound.
This picture presents vivid con-
trast with conditions in Paris and in
France There private home building
is practically non-existent. The French
politicians have done a great deal of
talking about public housing but have
actually done very little construction
The building trades generally and the
building industry are dormant. Why?
1. Money is scarce because capital
has fled to America, Holland. England
and Switzerland in fear of further de-
valuation of the franc. No banker will
make 20-year loan on a house or
even l0-year loan because he is
afraid of further imitation, which
would mean he would not get his
money back. Interest rates are ex-
brilliantly high, financing terms diff
cult. The national budget continues
to be unbalanced, and the political
situation is such that there is little
hope that it will be balanced in the
near future.
Business Conditions Upset.
-. Radical labor and social reforms
have been put into effect so rapidly
that they have seriously upset busi-
ness conditions. Labor has strong
political position and has secured a
universal 40-hour work week law,
which has been a great shock to busi-
ness and industry in a country ac-
customed to long hours. Building costs
and building wage rates have sharply
increased, while at the same time
rents have been fixed by law-an un-
wise and unWieldly government ac-
killed private construction for profit.
3. Confidence is lacking both in
government policies and future labor
activities The international situation
and the possibility of war also have
an unsettling effect. In Paris in 1886
bulllng permits were taken out for
only 35 single-family dwellings-this
for city of 100000 persons Permits
for all kinds of dwellings, including
apartments, totaled only 154. covering
less than 1000 family units. The
normal renewal of dwellings should
be 1000 permits or 10000 dwelling
units per year. Permits for all types
OF construction were IS per cent less
than in 1918.
Thus We see in London and Paris
the working out Of two different sets
Of governmental policies. In one
country the national budget is bal
anced, social, labor and housing re-
forms have progressed slowly but
effectively, building, labor and ma
terial costs are low The result is an
active building program that pro-
Ndes large volume of employment.
, In the other country there is no pros
pect of the national budget being
balanced, radical reforms have been
put into effect so quickly that industry
has not been able to absorb them,
and as a result costs have risen, con-
sumption fallen off and unemploy-
ment increased. There is no incen-
tive to build and the unemployment
problem Is thus greatly accentuated."
ks-H flgin HTlHTggMn