OCR Text |
Show INFORMATION AND I 00CAII0N SERVICE Governors and Mayors at Washington Wash-ington Conference (iet Behind Be-hind Campaign. CONSTRUCTION WORK TO STIMULATE Hl'SINKSS ! Yale Professor Claims I mini States Has Reached a New Price Level, and Doubts if We Will Ever Return to the Pre-War Level Again, The governors and mayors in attendance at-tendance on the recent Washington conference appear to have been convinced con-vinced generally of two things: There is to be no immediate or marked reduction re-duction in the price of building materials mater-ials and lalor wages, and an immediate immed-iate resumption of building and construction con-struction activities throughout the country, more than any one thing, is essential if business Is to get back to the "as usual" basis of peace, or the "better than usual" possibilities of the present and future. , Some went to the conference believing be-lieving materially lower prices might be had if the Federal Government would "just do something." Others were convinced that the situation would take care of itself if the Government Gov-ernment would do nothing but keep 1 it's hands off business and let the law of nppl) and demand run its course. These latter were disposed to believe prices in the building and construction industries were too high. For this reason a statement by Prof. Irving Fisher of Yale University, Univer-sity, an acknowledged authority on price und market conditions, in which , he aays the United SUiles has reach-Mi reach-Mi a new price level and it is doubt ful if prices ever again will go back to the pre-war level, was read with interest. in-terest. Prof. Fisher says that one certain way to bring about business stagnation is for everybody to wait for busines to get better. Prof. Fisher Fish-er states it this way: "The fundamental practical question ques-tion confronting business men is whether the general level of prices is iroiny; to fall. In my opinion, it is not going to fall much, if at all. We are on a permanently higher price level and the sooner the business men of the country take this view and adjust themselves to it, the sooner will they suve themselves and the nation na-tion from the misfortune which will come if we persist in our present false hope." This international authority on prices shows there have been times in history when new price levels were established. He says: "The general level of prices depends de-pends upon the volume ami rapidity of turn-over of the circulating medium med-ium in relation to the business to be transacted thereby. If the number , of dollars circulated hy cash and by check doubles, while the number of Koods und services exchanged thereby remain constant, prices will double. "'I'h' great price changes in history have come about in just this manner. 1 The Price Revolution of the sixteenth century came upon Europe as a result re-sult of the great influx of gold und silver from the mines of the New World. Europe was flooded with new money. More counters were used than before in effecting exchanges, and prices becume 'high.' People talked then of temporary inflation just as they talk of it now. But it was not temporary; it was a new price level. A similar increase in prices all over the world occurred between 18'.tf( and l'.il 1 following the discovery of the rich gold fields of South Africa, Crip pie Creek and Alaska, the invention of the I vanide process in mining and the vast extension of the use of bank credit." After analysing our gold supply ami erthlU and pointing out that pines in '.' are higher than in America. 1'rot IVher arrives at this conclusion: "Business men should fuce the fact To talk reverently of 11(18-14 prices is to speak a dead lunguage today. The buyers of the country since the armistice, have made an unexampled attack on prices through their waiting wait-ing attitude, and yet price recession- have btan insignificant. The reuson H is that we are on a new high price fH level, which will be found a stubborn H reality. Business men nre going to B tind out that the clever man is not the fH man who waits, hut the one who finds H out the new price facts, and acts itc H cordingly." At the sume time Prof. Fisher's H conclusions were made known there ,H came from the Division of Public H Works and Construction Development of the U. S. Depart mon t of Labor H a resume of the work of ten or H twelve experts on price and market H conditions. Here again it was mude H plain there is no evidence justifying . the expectation of a general, material 4M reduction in the price level. This re- H port makes these statements: M "The fact is that cost of construe JH tion is not high today. It is low com- M pared witii food, clothing and com- 'H modities in general. Although some M readjustments in the wages of nidi- "1 vidual trades and in the prices of indi- M vidua! classes of building materials " may take place, the cost of construe M tion will not come down to such an ex- M tent us to endanger a judicious in- H vestment made todnv in the erection fl of a new building." H The Washington conference wa H called to discuss ways and means of Hl stimulating busine and providing flV buffer employment for labor during fl the period necesary for industrial re- H adjustment. It was submitted that H building ami construction work serv- H ed these two purposes more complete- wfll ly and directly than any other indus- flH try It was brought out that the .H country is short between 660,900 and Sssssl u million homes. Therefore, while bbbbbbbI public officials are going in for pub- H lie improvements, many, communities H are organising "Own Your Home" IH campaigns, These serve several im- UM portent Ond desirable ends. Home flOB Owning means home building, home 9 building moans Uilnir an. I stimulated J DUI in every locality where a M dwellng IS built, the home owner M t a better citi.en because Ins very own- SH orship makes him responsible and im - t mediately interested in the social and political welfare of bis community. B Further, the horns owner does not take up quickly with radical move- U meuts such us arc now threatening the H security of governments in Europe h The Department of Labor, through the Division of Public Works and Con- H struction Development, is cooperating H with many communities in the "Own M Your Home" movement. BI |