Notionol Deolers See Better 1957 in Retqil Yords

Yeqr-end Review qndOutlook

Retail lumber dealers enjoyed a year of good sales and relatively good profits, on the average, in 1956-and L9S7 shottld be as good or better if international conditions do not rvorsen, according to a statement by H. R. Northup, executive

vice-president of the National Retail Lumber Dealers Association

An increased volume of home improvement business has helped to offset the decline in housing starts in recent months., Commercial and industrial construction has continued strong, and the prospect for the new year is at least as good as in the last few years.

After several years of lorv activity, farm construction promises to show some increase in 1957 as a result of higher farm incomes.

There is good reason to believe that housing starts will stay above 1,000,000 in 1957, particularly if the Administration can be prevailed upon to approve a realistic increase in the FHA interest rate, lr'hich is permitted by law, and if the Congress will take follorv-up action in regard to the VA interest rate. Certainly the Congress must realize by now that it is doing the nation's veterans no service by holding interest rates on VA housing loans dorvn to a point rvhere mortgage funds cannot be obtained. Both FHA and VA must be permitted to compete in the money market.

NRLDA will urge that the Congress, as a long-range solution to the mortgage money problem, accept the prin- ciple of a flexible mortgage interest rate with provisions whereby a group of designated Federal officials will recommend future adjustments in the interest rate, .in light of the changing conditions.

The trend toward roomier homes promises to continue in the months ahead. There is an ample supply of small homes for young families and those wtih lower than average incomes. The need today is for larger houses with room for more people and more comfortable living.

When the full impact of the promotional t-ork done in Operation Home Improvement is felt in 1957, the amount of residential repair and modernization work should reach a new high. There is good evidence that more dealers are actively cultivating this type of business and are making it easier for home owners to get plans, financing, and labor.

Jos. L. Muller Resigns from NHLA

Chicago-Jos. L. Muller, secretary-rnanager of the National Hardwood Lumber Association for the past five years, advised the Executive Comn-rittee October 20 that he was tendering his resignation as of that date to enter private business in the near future. The board, in formal session that date, accepted his resignation and thanked him for his past services. Before joining the NHLA in 1950, Mr. Muller r.vas with the Department of Con-rmerce in Washington.