The American Architect
Vol. CXV
Wednesday, March 12, 1919Number 2255
Build Now!
A. Symposium on the Necessity for an Immediate Resumption of Building aid the Method of Financing as Expressed by Leading Authorities
in Banking, Real Estate, Building, Engineering, Supply
and Architectural Fields
HOW will the expected boom in building be financed ? In order that readers of The American Architect may have a more comprehensive understanding of a question of such timely interest, a symposium of interviews with leaders in the field of architecture, finance, real estate, building and material supplies has been carefully prepared, with a result that more than a hundred opinions on the topic have been received. While these opinions vary, the majority of statements hold that the conditions affecting an exceptionally active building season are steadily improving.
Although in the main the high costs of materials are held to be the chief obstacle, it is noted that many of the writers express the belief that the public should be willing to pay the price and reap the benefit in the reduction of unemployment, the absorption of the products of many industries, and the forwarding of many public works, of which there is great need. The increased revenue on the investment is also a big factor in starting new work quickly. As several executives consider it—“What can I do with my building after I get it?”—and not “What is going to be the first cost of the building ?
One of the most interesting views on this point is that of Samuel H. Beach, president of the Savings Banks Association of the State of New York, in which he says that “a strong feeling is prevailing in financial circles that small annual payments of principal should be required on all mortgage loans and under such a plan of loaning money the lender would be safe in making a fairly liberal loan even based on prevailing high costs, for the gradual reduction of the principal would counterbalance the possible eventual fall in values to a lower level.”
According to the survey of the situation made
by The American Architect all sections of the country report that despite the immediate factors
that might operate to hinder construction, the great need for additional buildings of every description and the growing feeling that nothing can be gained by waiting longer for reduced material prices and construction costs, will cause a resumption of building as soon as the weather permits.
Several of the larger financial institutions comment on what may be a difficulty in some quarters in securing loans for building on bonds and mortgage on account of probable heavy participation in the next Victory loan and also the fact that there are many attractive investments in the market that have the advantage of liquidity. Others are only too eager to lend money on good sound investments. That large loaning interests are going to do their share in the big construction movement may be judged from the view of Festus J. Wade, president of the Mercantile Trust Company of St. Louis, Mo., a well-known banker in the Central West, who says that the organization which he heads has been unable to secure enough loans to meet the requirements of its business. He says: “We are to-day ready and willing to finance any legitimate real estate enterprise where the property is improved with substantial buildings of the character that can be utilized for the benefit of the industrial, commercial and manufacturing interests of the country.”
As to how the boom will be financed, Gerald R. Brown, comptroller of the Equitable Life Assurance Society of the United States, believes that “operations of any size in the near future will have to be accomplished by serial bond issues underwritten by investment bankers and title and trust companies who have a large clientele seeking investments of this character.”
Within the last month new building projects have
been announced which in number and importance
Copyright, 1919, The Architectural & Building Press (Inc.)
Vol. CXV
Wednesday, March 12, 1919Number 2255
Build Now!
A. Symposium on the Necessity for an Immediate Resumption of Building aid the Method of Financing as Expressed by Leading Authorities
in Banking, Real Estate, Building, Engineering, Supply
and Architectural Fields
HOW will the expected boom in building be financed ? In order that readers of The American Architect may have a more comprehensive understanding of a question of such timely interest, a symposium of interviews with leaders in the field of architecture, finance, real estate, building and material supplies has been carefully prepared, with a result that more than a hundred opinions on the topic have been received. While these opinions vary, the majority of statements hold that the conditions affecting an exceptionally active building season are steadily improving.
Although in the main the high costs of materials are held to be the chief obstacle, it is noted that many of the writers express the belief that the public should be willing to pay the price and reap the benefit in the reduction of unemployment, the absorption of the products of many industries, and the forwarding of many public works, of which there is great need. The increased revenue on the investment is also a big factor in starting new work quickly. As several executives consider it—“What can I do with my building after I get it?”—and not “What is going to be the first cost of the building ?
One of the most interesting views on this point is that of Samuel H. Beach, president of the Savings Banks Association of the State of New York, in which he says that “a strong feeling is prevailing in financial circles that small annual payments of principal should be required on all mortgage loans and under such a plan of loaning money the lender would be safe in making a fairly liberal loan even based on prevailing high costs, for the gradual reduction of the principal would counterbalance the possible eventual fall in values to a lower level.”
According to the survey of the situation made
by The American Architect all sections of the country report that despite the immediate factors
that might operate to hinder construction, the great need for additional buildings of every description and the growing feeling that nothing can be gained by waiting longer for reduced material prices and construction costs, will cause a resumption of building as soon as the weather permits.
Several of the larger financial institutions comment on what may be a difficulty in some quarters in securing loans for building on bonds and mortgage on account of probable heavy participation in the next Victory loan and also the fact that there are many attractive investments in the market that have the advantage of liquidity. Others are only too eager to lend money on good sound investments. That large loaning interests are going to do their share in the big construction movement may be judged from the view of Festus J. Wade, president of the Mercantile Trust Company of St. Louis, Mo., a well-known banker in the Central West, who says that the organization which he heads has been unable to secure enough loans to meet the requirements of its business. He says: “We are to-day ready and willing to finance any legitimate real estate enterprise where the property is improved with substantial buildings of the character that can be utilized for the benefit of the industrial, commercial and manufacturing interests of the country.”
As to how the boom will be financed, Gerald R. Brown, comptroller of the Equitable Life Assurance Society of the United States, believes that “operations of any size in the near future will have to be accomplished by serial bond issues underwritten by investment bankers and title and trust companies who have a large clientele seeking investments of this character.”
Within the last month new building projects have
been announced which in number and importance
Copyright, 1919, The Architectural & Building Press (Inc.)