WAGES AND RENT.

New Zealand Herald, Volume LIX, Issue 18077, 29 April 1922, Page 9

WAGES AND RENT.

HIGH COST OF BUILDING. . AMERICAN VIEW OF PROBLEM Activity in building "peration. is an | outstanding feature of the general busiI ness situation in tlio United States, -ays I the National Bank of Commerce in New 1 York, in a review dated March 21. The ) building industry in the United States I is second in importance only to agncidturo and many million workmen directly ■ and indirectly are dependent upon it. High freight rates nu<- to labour ■ omii tions <yid high wages to labour aie the controlling factors n butldins.' o*t» Thev maintain construction pnee* at ' levels that interfere with the fni! »nl well-rounded development of bunding operations. Tliey also serve m mject an ; element of fixed inflation into lis, tin greatest ».-*-»nsTrnci.ion movement n 'ii * nation's history. Despite the handicap of high costs, home building activity s being mam tamed for the present because 'he iiousuii: i necessity it. even >n 'ho basis >f uneconomical investments. Public build ing and construction are sj:n> being done .nn a high cost basis whi< :i will b.> -<- rifted in high tax rates for rears 'n ome. Public building, iiko residence building cannot continue indefinitely under these conditions. I Labour itseif is the chief suiferer tn the ■ i situation. Resistance by important | classes of labour to wage reductions in a . ! period of declining prices disorganises the i entire productive organisation of the ; country and contributes to unemployment ! in other lines. Tne maintenance of build ! ing operations on high wage levels delays 1 general wage readjustment. It mean* j exorbitant rents and prohibitive cost* for ' homes for workmen. It. is a general deI terrent to a return to normal industrial, j commercial and financial activity.