18 



HARDWOOD RECORD 



May 1 ), 191!) 



average for all kinds of lumber at the mill was $20.32. That was 

 an increase of 33 per cent over the prices of 1916, and 23 per cent 

 above the high average of 1907. Every wood shared in the advance 

 but not all alike. The highest average value was walnut, $72.99, 

 which was $30 above the average for this wood in 1916, and $41 

 above its average in 1911. The output of walnut in 1917 was 

 53,676,000 feet, and Missouri led all the other states in quantity 

 of walnut, but twenty-nine states contributed. 



Though the lumber production in 1917 was smaller than in any 

 other year for a long time, the aggregate value was greater than 

 ever before. That value was $731,520,000, but in the year of largest 

 production, 1907, the total value was $672,136,000. 



Labor Leaving America 



ESTIMATES BASED ON RELIABLE FIGUEES show that more 

 than 1,300,000 foreign-born residents of this country have 

 either returned to their native homes, or will do so in the near 

 future, and that they will carry away savings aggregating $4,000,- 

 000,000. They are being attracted by opportunities which they 

 believe await them in Europe during the work of reconstruction 

 which has already begun and which is expected to increase rapidly 

 after the signing of the peace treaties. 



This movement, which is bound to have its effect on the labor 

 situation in this country, is a serious matter. Not only will much 

 labor leave America, which is needed here, but the removal of 

 $4,000,000,000 in money will take out of circulation a sum so large 

 that it will be missed in business. 



The question naturally rises, will not immigrants from the war- 

 burdened countries of Europe offset the loss resulting from so 

 large a return of workers from America? In numbers the loss 

 may be made good, but hardly in efficiency and certainly not in 

 cash; for those who coms will not be the equal in skill of those 

 who have spent years here learning American ways and practices; 

 and those who come will certainly not bring with them four billion 

 dollars to make good that which is being taken away by those who 

 are leaving us. 



Weighed and Found Wanting 



FOR TWO THINGS that the war brought we should be thankful. 

 One was a practical test of government ownership of railroads; 

 the other was a sample of how radical socialism works in practice. 



These two issues have been before the public for years and have 

 had numerous advocates who expounded the doctrine so far as 

 theory can go; but there was lack of actual tests to show how the 

 theories would work. We have now tried out the railroad ques- 

 tion in this country and the radical socialist problem has been 

 tried out by Russia under the name of bolshevism, and we have 

 had an opportunity to see how both work when g^ven a chance. 



America has had enough of government ownership of railroads, 

 if popular decision may be inferred from the action of many meet- 

 ings and associations in various parts of the United States which 

 have passed resolutions asking that the government desist from 

 further operation of railroads and return the property to its owners. 



As to bolshevism, or radical socialism, Russia has not been able 

 to express its decision so freely; but information from many parts 

 of that troubled country show that the bulk of the people have 

 had all they want of the wild doctrine of common property or no 

 property at all. The bolshevists in one year have issued the equiva- 

 lent of $300 (face value) in paper money for every man, woman, 

 and child in Russia; and the people with their pockets full of this 

 money are starving because it will buy nothing. For instance, 

 farmers will not sell wheat, meat, or other products for this money, 

 but are willing to exchange produce of the farm for clothes, tools, 

 and shoes. The cry, "plenty of money, plenty of prosperity," which 

 has been so often screamed from political platforms, even in this 

 country, has been proved to be a dangerous and deceptive cry, 

 particularly when the money is based on only hot air. Since it had 

 to be put to the test, let us be thankful that it was Russia and 

 not the TTnited States that tried it out. 



Some may say that the ignorant Russians did not givti their 

 problem a fair trial. Who else wants to try that brand of social- 

 ism f Even the Germans have begged to be excused from trying it. 



But it was government management of railroads that was our 

 particular problem, and a little more than a year seems to have 

 settled it in the negative. Possibly, as a few persons still say by 

 way of apology, it would have worked better under management 

 of other men. Perhaps the choice of men was bad; but that would 

 always be likely to happen under government ownership when 

 politics instead of fitness, controls appointment to responsible posi- 

 tions. Be that as it may, the American people are to be congratu- 

 lated that they have been given a chance to see what government 

 ownership of railroads means before it became a fixed policy. They 

 are likewise getting a dose of government control of telegraphs and 

 cables, which is turning out just as the railroad experiment turned 

 out in bungling, mistakes, and general disappointment and dis- 

 satisfaction. Business should be in the hands of business men, and 

 business men are not graduates of political gymnasiums. 



Buying Will Begin 



ANNOUNCEMENT HAS BEEN MADE by Walker D. Hines, the 

 director of railroads, that buying for the roads will begin at 

 once; or, at any rate, he intends to ask for bids at once on 200,000 

 tons of steel rails. 



The controversy between the director and the steel interests has 

 not been settled. The manufacturers of steel have refused to lower 

 their prices to meet the views of Mr. Hines, and he still insists that 

 steel prices are too high. It is presumed that he proposes to test 

 that matter by calling for bids, in which competition will be open 

 and general. It remains to be seen what the response will be. 



At the annual meeting last month in Chicago of the National 

 Lumber Manufacturers' Association President Kirby expressed his 

 opinion publicly that if the railroads would begin to buy material 

 business would increase almost immediately. The announcement 

 by Director Hines that he will call for bids on steel rails is a step 

 forward, but whether it is the kind of movement expected or will 

 have the effect hoped for remains to be seen. 



The fight between Director Hines and the Industrial Board has 

 not been called off. To the contrary. President Wilson is reported 

 to have sided with the director and to have called for the resigna- 

 tion of the board, and its president, George N. Peek. So bitter has 

 the feeling become in the inner circles that it has been intimated 

 that a member of the President's cabinet, Redfield, may follow the 

 Industrial Board into retirement. 



The interest of lumbermen is less concerned with tlic politics 

 and scraps of the inner government circles than in what is likely 

 to be the effect on business. If the purchase of supplies on a large 

 scale by the railroads shall result in substantial increases in the 

 sales of lumber, the inconvenience of quarrels between the railroad 

 director and the Industrial Board can be overlooked. The main 

 thing is to get the wheels of business started and to keep them 

 turning. The result will be watched with deep and general interest. 



Export Trade the Immediate Problem 



For the first time in history American industries are approach- 

 ing the question of export trade with a comprehensive and in- 

 telligent plan before them. In the years gone by export business 

 has been a reservoir market serving mainly to take care of any 

 surplus of goods that accumulated after a dull domestic season. 

 With a reviving of domestic demand export possibilities were 

 promptly forgotten. Today the tables are turned. America is 

 a world power and recognizes that she has a place to fill in world 

 commerce. Foreign trade will be thrust upon us even if we do 

 not seek it. Recognition of this fact has convinced most manu- 

 facturers that as long as this business is bound to come it may as 

 well be handled in a way that will make it a permanent market 

 factor. There are many lumbermen in this eountrj' today who 

 might well take that idea to heart. 



