884 AMERICAN FORESTRY 



country and to the resulting increased million dollars. The balance of the 



interest rate. imports of South America amounting to 



The rural sections of the farming nearly 900 millions came largely from 

 regions of the Middle West have not Europe. We have had no direct bank- 

 felt the money stringency to as great a ing facilities with our sister republics 

 degree as many other sections since and because they owe heavily in Lon- 

 thcir farm products are in great demand don the trade accounts between the 

 and prices for farm products are high, two American continents have been 

 The trade, therefore, in that section normally adjusted at that place. Under 

 docs not show the fluctuation that is existing conditions this is impracticable, 

 evident in large centers, especially in We are ready and willing to purchase 

 the East. and pay for South American products, 



The loss of foreign trade in lumber but Itimbermcn, along with other mer- 



has not been so vital to the lumber chants, are reluctant to sell their com- 



industry, except in an indirect way, since moditics in countries which have de- 



reccnt estimates show that only ap- clared moratoria, as have several of 



proximately eight per cent of the lumber those in South America, 



cut of 1913 was marketed abroad. The future holds promise for better 



European trade in lumber almost ceased things since American banking firms 



during the early period of the war, due are now permitted to establish branches 



both to the cessation of purchases in foreign countries and steps have 



abroad and also to the withdrawal of already been taken by at least one 



vast numbers of vessels from the cargo banking firm to do this. However, it 



carrying trade through fear of capture will be some time before the situation 



by the navies of hostile nations. This will be relieved to the extent that the 



trade has been resinned only to a trade in lumber and other commodities 



limited extent, and it is doubtful if the will again resume its normal course, 



amount fonvarded to the European Indirectly the loss of foreign trade 



markets for some time to come will be has been a hard blow to the lumber 



of sufficient importance to have any industry. There are many sawmills 



appreciable effect on the industry in along the South Atlantic, the Gulf 



this country. Coast and the Pacific Coast, which 



Lumber trade with South America have been engaged to a large extent in 



was reported unsatisfactory for a year supplying hmiber to foreign countries, 



previous to the war, due to unfavorable and with this field cut off they have 



crop conditions especially in Argentina, naturally turned to our domestic mar- 



the largest South American consumer of kets and have invaded the field previous- 



our lumber, but gave promise of marked ly occupied almost exclusively by in- 



improvement about the time that the terior mills. 



war broke out, when it again became The interior market, already in an 



depressed due to the disorganization of unsatisfactory condition, has been un- 



the credit systems of the South Ameri- able to assimilate this increased output 



can countries. at a price which would yield a reason- 



We always have supplied a large part able profit to the producer, and, as a 

 of the lumber imported by South consequence, many have been liquidat- 

 American countries and will still con- ing and still continue to liquidate on 

 tinue to do so, but at the present time their investment in stimipage at a loss, 

 their buying power has been greatly It may be asked why production does 

 curtailed by their inability to make not follow the law of demand and 

 settlement for goods purchased. Our adjust itself to market conditions, 

 imports of all commodities from South There are many reasons why the 

 America during the fiscal year 1913-14 industry responds rather sluggishly to 

 were valued at approximately 223 the general trade barometer. The 

 million dollars, while our exports of all limiber manufacturer has a large in vest- 

 kinds to that continent during the ment in plant and often in raw material, 

 same period were approximately 125 on which he must pay interest or else 



