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Copyright, The Harpwoou Company, 1922 



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

 Mill and Woodworking Machinery, on the 10th cuid 2Sth of each Month, by 



THE HARDWOOD COMPANY 



Edwin W. Meeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 

 Llovd p. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St.. CHICAGO 

 Telephone : HARRISON 8087 



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Vol. LIII 



CHICAGO, MAY 25, 1922 



No. 3 



Review and Outlook 



General Market Conditions 



So IMPRESSIVE have the results of the Hood condition in the 

 Mississippi delta become that during the past ten days it has 

 apparently reached home to a considerable number of large hard- 

 wood buyers, with the result that a substantial acceleration in order 

 placement and a certain measure of firming in prices is noticeable. 

 Personal reports coming out of the Memphis district clearly indicate 

 considerable improvement during the past two weeks and a much 

 more cheerful frame of mind so far as orders and prices are con- 

 cerned. At the same time the whole southern producing region is 

 agitated by inability to produce stock which it is apparent will be 

 much more salable during the next few months than, perhaps, for 

 some time thereafter. 



With more accurate observation of the extensiveness and serious- 

 ness of this year's floods, it becomes even more apparent that 

 former estimates of damage were conservative rather than radical. 

 Production is almost totally stopped, not only for a temporary 

 period, but with a condition that makes it certain that any measure 

 of sawing can not be accomplished inside of two or three months, 

 making it certain that new stock will not be ready for market be- 

 fore the end of the summer at the very best. 



It is unquestionably the realization that various reports coming 

 out of the South are based on the absolutely tangible facts that has 

 led buyers to look for cover in their hardwood requirements. 



Up to date the amount of southern hardwoods, particularly in 

 the lower grades, which was moved out ahead of the floods on sac- 

 rifice prices, has contributed largely for maintaining unsatisfactory 

 price levels, especially in the lower grades. Hope is expressed by 

 the northern manufacturers that practically all of this stuff has 

 now moved to market, evidences coming of late substantiating the 

 belief that this hope has been realized. There is no reason to sup- 

 pose that the box industry will in the near future take any aug- 

 mented quantities of lower grades, but other lines are beginning to 

 show life, providing additional markets which undoubtedly will 

 take the edge off of excessive pressure of accumulated low grade 

 stocks. 



In so far as the upper grades are concerned, there is no change 

 in this situation except still further shipments out and still further 

 strengthening in values. Many items are notably scarce, and in 

 some instances real difficulty has been experienced in picking up 

 the requirements, this development being coincident with notable 



improvement in the automobile trades, building trades, and factory 

 lines in general. 



At present considerable slackness exists in the demand for fancy 

 veneers, even though there continues discernible activity in the 

 movement of lumber to the same points. The imminence of the 

 furniture shows is undoubtedly having the usual influence on pur- 

 chases, as a month or so back there was quite a little activity in 

 the movement of this class of high-priced stock. At present, 

 though, things are quiet in this particular, and while there is no ac- 

 cumulation of fancy woods, there is no especial reason to believe 

 that exceptional activity will develop before the shows are well 

 underway. 



The furniture trade as well as the producers of fancy veneers and 

 hardwood lumber are looking with considerable expectancy to this 

 year's Grand Rapids and Chicago markets as, while experience 

 would not necessarily indicate an extensive amount of buying, it is 

 assured that there will be a large attendance of retailers sincerely 

 interested in manufacturers' offerings. At least, a fair measure of 

 buying will eventuate and the present status of furniture produc- 

 tion and purchases can reasonably be expected to continue as a 

 result. 



The situation of low production and shortage of stocks, charac- 

 teristic of the South, is repeated in the North, mainly because of 

 drastic unproduction of logs last winter and consistent outward 

 movement of lumber during the last few months, particularly the 

 last month. This slow but steady shipment has cut deep into the 

 under-supply'and though lower grades are still plentiful, the better 

 class of lumber is in many cases reaching the point approaching 

 actual scarcity. 



This same situation holds in all regions inclusive of the South- 

 eastern hardwood territory, and as a whole a general survey of the 

 hardwood situation indicates continuance of the relative shortage 

 of upper grades, comparatively plentiful supply of lower grades, 

 fair volume of demand with every promise of further and con- 

 sistent increase. Unquestionably fundamental conditions are very 

 much improved even during the past two months, and while the 

 general policy of business would be well based on a conservative, 

 though optimistic and hopeful attitude, there is every reason to 

 counsel a substantial purchase of hardwood lumber on present 

 prices for shipment as soon as delivery is possible. 



