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Published in the Interest of the American Hardwood Forests, the Products thereof, and Logging, Saw 

 Mill and Wood-Working Machinery, on the 10th and 25th of each Month, by 



THE HARDWOOD COMPANY 



Henry H. Gibson, Editor and Manager 

 Edwin W. Meeker"! 



Hu Maxwell 



■Associate Editors 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



Vol. XXXVI 



CHICAGO, SEPTEMBER 25, 1913 



No. 11 



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Review and Outlook 



General Market Conditions 



STATEilEXT.S I'KOM LEADING LUMBERJIEN in different 

 hardwood sections of the country would indicate that contrary 

 to the usual condition of' affairs, the hardwood trade in the eastern 

 states at present is considerably more active than in the middle- 

 western territory. While the reverse is usually the case, the Middle 

 West for some reasons seems to be slow in picking up. The best 

 evidence that this is a fact is seen in the reports from millmen in 

 the lower Mississippi valley as compared with reports from hard- 

 wood mills in the mountain territory of eastern Kentucky and Ten- 

 nessee and West Virginia. These mills are seemingly almost unani- 

 mously optimistic regarding present hardwood conditions. Stocks in 

 that territory are unquestionably well sold up and firmly in hand. 

 In fact, one of the biggest of the eastern Tennessee manufacturers 

 states that the only item on which he is not unusually short is hem- 

 lock, and in this he has a very small accumulation, but not enough 

 to cause him a moment's worry. Coupled with this are optimistic 

 reports from consuming sections in the eastern states as against 

 reports of a more or less pessimistic nature coming from the consum- 

 ing states of the Middle West. It is safe to say that the condition 

 which is now apparent in the East will either maintain its present 

 level or will improve. There is no logical reason why there will be 

 any recession in demand or prices from the present status. It is 

 an equally safe statement that this condition wiU before very long 

 be duplicated in the no\v quiet territory through the m-iddle-western 

 states. 



In fact, the chief cause for worry among hardwood producers is 

 the general condition resulting from the highly unsatisfactory state 

 of the export market. The extreme laxity in call from abroad, 

 coupled with the policy pursued by most of the wiser element of the 

 export trade to ship as moderately as possible, because of the excessive 

 freight rates, is turning a lot of export stock into the domestic 

 market. There are various factors which taken together hold back 

 export shipments to a very marked degree. Industrial unrest 

 throughout the British Isles, the after-effects of the Balkan hostilities 

 and political agitation in England, all have direct bearing on general 

 conditions in business. ' These facts, of course, are reflected directly 

 upon the lumber business. The most effective influence, however, is 

 the recently installed schedule of ocean freight rates which makes an 

 almost impossible level of ocean shipping prices. As a result Amer- 

 ican exporters find it impossible to ship goods in many items at a 

 profit under present market conditions abroad. It is the opinion, 

 however, of those most closely in touch with the general export 

 situation that this disinclination to make large shipments will result 

 in a shortage of stocks abroad which will ultimately effect a decidedly 



more urgent call for goods to take care of this shortage. Thus 

 exporters while at present rather pessimistic are anticipating a resump- 

 tion of excellent trade at a not too remote time. This resumption 

 of activity in foreign business will w'ithout question reflect favorably 

 upon domestic trade. 



The domestic market generally seems to be showing the greatest 

 activity, especially in the states through the Mississippi valley, in 

 the manufacturing lines, such as chair factories, piano factories, etc. 

 All of these trades report unusual activity, and whOe in the majority 

 of cases they are not buying in large lots, they are consuming a 

 great quantity of lumber, which keeps those supplying them satis- 

 factorily busy. 



The slight decrease in the building records for the month of August 

 probably caused to an extent the inactivity in the interior finish 

 industry. This branch of the trade is unquestionably dull. 



Reports from northern mills indicate that the Michigan and Wis- 

 consin hardwood, producing sections continue in the very favorable 

 condition which they have enjoyed for some little time. The fig- 

 ures for August issued by the association of hemlock and hard- 

 wood men in Wisconsin and upper Michigan show that the cut for 

 August was 17,500,000 feet against shipments of practically 22,- 

 000,000 feet. These figures, however, as compared with August, 

 1912, are not distinctly favorable, as the cut reported during that 

 month was about 14,000,000 feet, as against shipments of 30,000,- 

 000 feet. These figures can safely be offered as an indication of the 

 condition of trade generally this year. There is no doubt that it is 

 slower than the corresponding months of the fall of 1912, and the 

 reason behind this general condition is everywhere ascribed to 

 "too nmeh politics in Washington." The country is basically in 

 excellent shape but is continuing its policy of marking time. 



As to the various hardwood species being offered, oak, plain and 

 quartered, is still very active, but should not be taken as an indication 

 of the general market conditions. Eed gum, which has been experienc- 

 ing a marked slackening in demand, seems to have partially regained 

 its feet, although it is not by any means in a condition which its 

 producers desire. 



The diminished call for wide poplar has led a number of the large 

 manufacturers to cut but a limited quantity of the exceptionally wide 

 stock, and to rip a good percentage of it into narrower widths, giving 

 a large quantity of high-grade lumber in more salable form. The 

 ordinary grades of it are of such a staple character generally that 

 this policy seems to be a safe one to pursue. 



It is probable, however, that the next month will develop better 

 collections as far as lumbermen are concerned, and will also see a 

 renewal of a much more satisfactory demand for hardwood products. 



