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Lumber and Shipbuilding in Scotland 



Before the "wooden walls of Old England" gave place to vessels 

 constructed of steel, a boom in the shipbuilding trade always 

 meant a boom in the timber trade as well. Now, conditions are 

 different, and although the shipyards of the Clyde are experiencing 

 a period of industrial activity, that is almost unprecedented, the 

 timber trade of the west of Scotland is still far from experiencing 

 that revival which has been looked for so long. Fot many months 

 the trade has not found conditions of too satisfactory a character, 

 and improvement seems to come slowly. 



The best outlet for timber has, of course, been the shipyards, 

 for though the metals now enter so largely into the construction 

 of boats, huge quantities of woods of various qualities and descrip- 

 tions are also required for the making of decks and for many other 

 obvious purposes. Indeed but for the steady flow of orders from 

 shipbuilders, the timber trade would frequently in the past year 

 have been in a condition bordering upon stagnation. It is there- 

 fore a comfort to those engaged in the business of woods to know 

 that for many months to come busy times will continue to prevail 

 at the shipyards, and that consequently from that direction, at 

 any rate, there is not likely to be any cessation in the active 

 volume of orders. Some of the larger liners at present being built 

 on the river and others in prospect have meant very large orders 

 for timber in the market, and if other consumers could only have 

 been put in a position to put forward a similar request, the timber 

 trade would now find itself in a decidedly cheerful condition. 



The shipbuilding boom is due to the expansion of overseas trade. 

 Shipowners having passed through a long period of depression 

 found that the supply of tonnage, which unfortunately for them 

 was over adequate for the requirements of shippers, was insuffi- 

 cient in face of the increasing overseas trade demands. Such a 

 situation of course means, first, the placing of new orders and, 

 second, a rapid rise in the freight market. The competition for 

 ships has been so keen that it is not surprising that freights have 

 had such a steady upward tendency. It may be asked what of the 

 immediate outlook? Will the present prosperous condition of trade 

 last, or will it begin to dwindle and show a serious shrinkage in 

 the next few months when the large number of car^o steamers at 

 present under construction are ready for the sea. An examination 

 of the principal factors in the situation leads to the belief that 

 the present advantageous times for shipping trade have come to 

 stay for awhile. In brief, the various signs and portents go to 

 show that the demands upon shipping in the months that are 

 ahead will still be enormous. The question of the high rates of 

 freight that now rule are a pretty accurate barometer of the 

 encouraging position in which the shipping trade finds itself. From 

 a ship-owner's point of view one of the most interesting develop- 

 ments of the early future will be the opening of the Panama canal. 

 It is fraught with enormous possibilities for the shipping trade, 

 but first there is the question of the treatment of the ships of this 

 ■country compared with American tonnage to be settled. 



Before touching upon some of the trades whose lack of activity 

 is reflected in the quietness of timber, it is advisable to mention 

 the manner in which labor troubles have this year affected the 

 market. First there was the lockout of the dock laborers at the 

 beginning of February. Business at the harbor was in consequence 

 brought to a standstill and the impossibility of unloading ships 

 coi;taining cargoes and consignments of timber from across the 

 seas inconvenienced the trade to a very serious extent. Happily 

 the ■dockers' trouble was not of very long duration, but coming 

 quickly upon its heels was the national strike of the coal miners, 

 and, like almost every other important industry in the country, 

 timber interests found business brought practically to a full stop.- 

 Considerable difficulty was experienced in delivering supplies at 

 the shipyards; then after a time some of the sawmills were forced 

 to close down through lack of fuel, and, to allude to only one of 

 many other directions in which the timber trade was made to feel 

 the pinch, the demand for pitprops, which is always so lively when 



operations are in full swing in the country collieries, fell off to 

 infinitesimal proportions. 



The prosperity of the timber trade of the west of Scotland 

 ■depends to a very fair extent upon the condition of the house 

 building trade. It is hardly necessary to remind readers of the 

 long period of depression through which house-building has passed. 

 Another notable class of wood consumers is that of cabinet-makers 

 and furniture manufacturers generally. In 1911, with a distinct 

 scarcity of orders, and somewhat unremunerativo prices, a rather 

 poor j-ear was experienced. The present year opened none too 

 promisingly, but in recent times the outlook has undergone some 

 improvements. 



Neither last year, nor this year, has the packing case trade 

 enjoyed anything in the nature of a boom. Sporadically conditions 

 have been busy, and the timber merchants thereby have received 

 little spurts in the volume of orders from time to time, but there 

 has been an unfortunate lack of strong and steady demand. A fair 

 business has been done this year by wagon and carriage builders, 

 though here it has been of a quiet and unexciting character. 



For a considerable part of the season the import of wood from 

 Montreal was unusually light, though an exception is provided in 

 the case of birch logs. Surprise has been caused by the paucity 

 of the request for Canadian pine. It has been almost directly 

 •directed towards first-class wood suitable for decks, the demand 

 for which, during the opening months of the year was quite good. 

 For other varieties the inquiry has been meager. The outlet for 

 Canadian elm has fallen short of the average, this being attributed 

 to the fact that transactions have been confined within the narrow 

 limits of the small stock on offer, as well as to the stiff quotations 

 in vogue. In the case of birch logs, although as already indicated, 

 the import has been large, it has been speedily absorbed, owing to 

 the low levels merchants' stocks had reached. In contrast to prices 

 for most other woods, values of birch logs have been inclined to 

 sag. The import of spruce has been the lightest known for a con- 

 siderable time. The freight market had practically all to do with 

 this. Shippers would not risk cargoes, always anticipating a fall 

 in rates. However, supplies from the Baltic were quite numerous 

 and from this direction buyers fulfilled their requirements. The 

 pitch pine market also suffered from the freight situation. Record 

 prices were quoted and paid and those who contracted for supplies 

 at the time when freights first advanced have found it very much 

 to their advantage. 



From the foregoing it will be understood that there has been 

 much wanting in the timber market for some time past. The 

 situation from the trade 's point of view, however, has not been 

 without its gratifying features. Throughout all the'Se months of 

 restricted demand, prices have preserved a remarkably firm front. 

 This is in some way due to the strength of the statistical position, 

 the stocks on hand having been for the most part low. Indeed, 

 ■in almost all cases where changes in prices have taken place they 

 have been of an upward character. In staples such as pitch pine 

 and spruce the advances in quotations have been quite substantial. 



As to the outlook for the timber trade, it has been shown that 

 it has nothing to fear from the score of shipbuilding. While the 

 laying down of new warships is of comparatively little interest 

 to the trade, owing to the character of the material used for 

 these vessels' construction, the high pressure prevailing in the 

 shipyards in regard to new tonnage for the mercantile marine is 

 of first rate importance, owing to the large amount of wood our 

 modern leviathans in this age of steel require. There is less com- 

 fort for the trade in the prospects of house-building and some of 

 the other wood consuming industries enumerated, but whatever 

 happens these are not likely to go backward. The probability 

 seems rather that they will improve. The anomaly of good prices 

 when trade is disappointing is not in the least likely to be followed 

 by the anomalous situation of good trade and disappointing prices. 



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