JVI»" 



FMilM RocoM 



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

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



THE HARDWOOD COMPANY 



Henry H. Gibson, Editor and Manager 

 Edwin W. Meeker\ . 



Hu Maxwel 



^-Associate Editors 



Entire Seventh Floor Ellsworth Build. ng 

 537 So. Dearborn Street, CHiCAGO 

 Telephones: Harrison 8036-8037-8088 



Vol. XXXVI ■ CHICAGO, JULY 10, 1913 No. 6 



'' CBOi^^^^Hsirgv:;;\ 



Review and Outlook 



T 



General Market Conditions 



nv: TWO DAY.S' HOLIDAY occurring last week undoubtedly 

 had a bearing on general business conditions in local markets 

 throughout the country, as the decision to close down for Friday 

 and Saturday, particularly in the cities, was pretty general. With 

 liuying jn-ogressing on a norniaL basis, no particular effect would have 

 iieen felt, but purchases have undoubtedly been more or less of a 

 [larcel nature, for immediate use, and for that reason the taking of 

 two days from a business week contributed to the general effect. 



The country 's business on the whole shows very little change during 

 the last two weeks, the consideration uppermost in the minds of 

 liusiness men being, as for several weeks past, the proceedings at 

 Washington. AVith the announcement that the Kepubliean contingent 

 in the Senate is organizing to oppose certain provisions in the tariff 

 and income tax measures now being acted upon, there is further 

 reason for apprehension as the consideration of the measures will 

 undoubtedly continue for a longer period than had been anticipated. 

 Inasmuch as the principal plea of business has been for a speedy 

 settlement of the much-hashed-over tariff argtmients, business men 

 generally cannot view with complaisance any movement which will 

 prolong the turmoil, if it can be termed such. 



As applied to the lumber business, these national questions have the 

 same bearing which they have on any other branch of business in 

 general, not probably as directly as in some lines, but through in- 

 direct means the result is felt distinctly. In addition, the continued 

 unsatisfactory condition of the money market has a distinct bearing 

 on the consumption of forest products inasmuch as they are utilized 

 entirely in constructive work, which, because of its nature, neces- 

 sarily involves larger expenditures than does the purchase of almost 

 any other raw material. Thus the railroads, because of their inability 

 to secure adequate funds at reasonable rates in many cases, are 

 hesitant in making their usual and in some cases necessary pur- 

 chases. This is true to a lesser extent in other lines of building, and 

 getting down to the individual, high rates of interest rather retard 

 home building in some instances where it is necessary to borrow 

 money in order to erect new homes. 



These conditions, however, in the opinion of those in a position 

 to judge accurately, are not to be prolonged indefintely. It is highly 

 probable that the tariff and currency measures will be acted upon 

 ■definitely within the course of a montji and a half, or maybe a slightly 

 longer period, which, in connection with the unquestionably remark- 

 able prospects for crops, will make a combination which will bring 

 liusiness back to a thoroughly satisfactory state. 



As to the lumber business, specifically, the pronounced shortage in 

 hardwoods which was manifest up to a short 'time ago is easing off 



somewhat in certain items, although it continues to be apparent in 

 other lines. There is one condition, however, which will have a 

 favorable effect upon production with a tendency to holding it down 

 to normal, and that is the effect of the present season on the working 

 class generally. As a general thing mill and woods-workers in the 

 South are rather disposed at this season of the year to take life 

 rather easily, seeking easier employment in other directions, or laying 

 off altogether for more or less prolonged vacations. The effect of 

 this condition has been felt somewhat in certain sections of the 

 South alread}', and will undoulitedly have a greater effect as the 

 summer goes on. 



The domestic consumption of hardwoods is not only affected by 

 the national conditions suggested above, but in addition by the inven- 

 tory season which still continues and which certainly has done its 

 share toward retarding the wholesale consumption of hardwood 

 products. There is no marked inactivity in the purchase of furni- 

 ture, pianos and i^imilar lines; hence with the closing of the mid- 

 season inventories and the finish of the furniture exhibits, furniture 

 manufacturers will have a better idea of "where they are at," and 

 will probably resume their normal purchases. In fact, the general 

 opinion prevalent throughout the trade is that the closing of the 

 summer months will see a satisfactorily increased activity in all pur- 

 chasing lines. This is unquestionably true of building operations 

 also, although they have for the most part held their own very nicely. 



The renewal of hostilities in the Balkan states of Europe has seri- 

 ously affected export business. In addition to this condition the 

 shipment of export planks has been very heavy up-to-date with the 

 result that there is considerable accumulation on the other side. A 

 great deal of short stock went with the general cargoes, which stock 

 will probabl}' be held up for a long time or sold at a very distinct 

 loss as only during the tunes when all stock is scarce is the market 

 for short material active. This condition in shorts will also have 

 a marked effect upon the market for the better class of export 

 Wlumber, and where it arrives in cargoes mixed with the more called- 

 for lengths there will luujuestionably be a considerable amount of 

 rejects. 



The early indications at the various furniture exhibits in this 

 country are that the buyers are showing a keen interest in the new 

 styles offered, which augurS well for the future. 



Summarizing, the situation doesn 't offer any features which should 

 cause undue worry, nor does it offer any very satisfactory aspect. 

 The waiting policy seems to have been adopted generally, and, while 

 there has been some little recession of values noted in various mar- 

 kets, it is proving itself to be the safest policy, fTnd is being carried 

 out by the majority of the trade in the hope that the near future 

 will bring conditions back to a normal state. 



