AMERICAN BOOM PASSING

Wanganui Chronicle, Volume LXXXI, Issue 19032, 9 June 1924, Page 12

AMERICAN BOOM PASSING

THE BUILDING INDUSTRY.

SAN FRANCISCO, May 6. The long-expected fizzling of the business boom in the United States appears to be showing itself on the horizon, and there is more than one indication that, despite what optimists have been declaring before gatherings of boosters in many of the great American cities, a tendency has become evident that the peak of America’s extraordinary trade boom has been passed, and a more conservative trend of business is in the offiing. Moreover, there are those who believe that the period of slackening has more than arrived, as witnessed by a falling off in many of the industries in the Eastern States. Domestic business has reached that stage where increased imports are essential to keep up America’s producing activity, and among the nearer effects of a reparation settlement there is mentioned the likely demand for products, particularly raw materials, to accommodate the larger manufacturing programme to follow a stabilisation of European conditions. Accompanying the. larger demand for these materials prices would, of course, be apt to advance, but domestic consumers of these products, however, | show a marked lack of interest in this possibility. There is indicated in New York and other Eastern cities a feeling that it is better to wait and see what will happen, particularly as supplies of manufactured goods are plentiful and surpluses rather than shortages are in sight. BOOM PETERING OUT.

In short, the industrial situation in general in the United States represents a contrast with the scheme of operations which was projected last autumn, and at the turn of the year. This is marked especially in those lines supplying both building and transportation activities. These branches have been by far the most active, the needs of the railways contributing the major share of last year’s boom. On these requirements the steel mills have been kept on high operating schedules. The daily output of steel ingots last month Yvas the largest in the history of the industry in America. In spite of this recent showing, however, all indicaions point to a slackening. Automo.ile production has been curtailed 30 er cent, in mar.y instances the railays have purchased enough new equipicnt and supplies to put them in exdlent shape, and the building boom in any centres shows signs of subsiding > a more normal volume. Not only in the East has a slump )ccurred in the building industry, but it is beginning to make itself felt even n the West, where conditions climatically are more favourable to all-year operations. In Los Angeles, where there has been a phenomenal building boom, almost approaching madness, the bankers have commenced shutting down granting loans for financing speculative building, and the same is occurring in San Francisco, Portland, and Seattle. The financiers have announced that in future they will only allow monetary loans for actual requirements, ane they will not be a party to speculation in the building of homes on a wholesale scale, such as has been in vogue for the last eighteen months in the West.

The principal reason why building activity has continued is owing to the astounding high rents being paid by tenants especially in New York, Chicago and other Eastern centres of population. In some instances the rents are no less than fifty per cent, of the tenant’s monthly income. Naturally, this has tended to drive the tenant to purchase a home of his own by applying the monthly payment of a new bungalow, thoroughly up to date in every respect* LABOUR’S NOBILITY. The workingmen of the United States, at least those engaged in the building industry, are continuing to obtain princely wages, especially in Chicago and New York, and a large percentage of the artisans travel to and from their work in the popular automobiles. The hod-carrier, for many years regarded as the least skilled of labourers, and made the butt of many a jest in the funny pages of the newspapers, is to-day earning five shillings an hour, and has risen into the aristocracy of labour, according to figures made public in New York by the National Industrial Conference Board. The Board also stated that building costs in 1924 are 200 per cent, above those of 1914. Both have been higher. In 1920 materials went up 3| times what they were ten years ago. But back to the hod-carrier. He has reached the level of masons, bricklayers, and lathers in some cities. On an average, he earns only 90 cents an hour. Gasfitters, steamfitters, and plumbers get but sixpence more an hour than the hod-carrier. It is not necessary any longer to “bring up father.” He has brought himself up.