Copyright, The Hardwood Company, 1922 



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

 Mill and Woodworking Machinery, on the 10th and 25th of each Month, by 



THE HARDWOOD COMPANY 



Edwin W. Meeker, Vice Pres. anti Editor 

 H. F. Ake, Secretary-Treasurer 

 Lloyd P. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St., CHICAGO 

 Telephone: HARRISON 8087 



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Vol. LIII 



CHICAGO, JULY 10, 1922 



O-^K 



No. 6 



Review and Outlook 



General Market Conditions 



THE LUMBER BUSINESS IS SO FAB IMPROVED over a 

 month or six weeks ago that a very large measure of genuine 

 and justifiable optimism has resulted. In fact, for the first time in 

 many months one finds an almost enthusiastic spirit prevalent in 

 hardwood circles. 



This is not the result of any greedy resolve to get the utmost 

 dollar, or any grasping elation over the slight advancement that has 

 materialized here and there. It is the result, rather, of a tremend- 

 ous relief that the strain of the past two years has been alleviated. 



A great measure of the reason for this improvement goes back 

 directly and pointedly to demand. Production continued slack as 

 long as physical conditions were unfavorable. But over the past 

 several weeks these conditions have greatly improved and in many 

 lines of lumber production output is now almost one hundred per 

 cent. This is not yet true in hardwoods, but as rapidly as important 

 producers can get under way thej' are beginning operations. 



The big event before the trade at the moment is the furniture 

 market at Chicago and Grand Rapids. Anyone but a rank radical, 

 prejudiced beyond conversion, can not but draw the conclusion 

 from tours of the exhibits that the furniture industry is doing 

 notably well in the present season. In fact, so far have sales pro- 

 gressed that some of the most fortunate have reached the point of 

 declining further orders of immediate placement. In short, the 

 insignificant movement of new furniture over the past several years 

 has caused such a want that it finally became irresistible. The 

 housing program, too, has required a tremendous new supply and 

 withal the demand has just naturally reached proportions where 

 it is distinctly gratifying. A normal total has not been reached, 

 but the condition is so far improved over any recent market that 

 favorable conclusions are entirely justifiable. 



At present the automobile trades are taking a great deal of 

 hardwoods, but there is reasonable doubt as to this demand holding 

 up consistently without interruption. It seems to be reasonable to 

 expect a considerable falling off as the big production season wanes 

 during the summer. However, there is one factor in this connec- 

 tion which must not be overlooked, the agricultural regions have 

 been in bad shape for some time and their purchases of automo- 

 biles fell down to practically nothing. The situation with the 

 farmers has improved materially of late and it is generally con- 

 ceded that with one more good crop they will have money to spend 

 for new equipment. 



The auto today has become almost a necessity with the average 



farmer, and therefore a considerable increase in purchases from 

 agricultural regions may be expected. 



Hardwood Record believes that hardwood prices are still in a 

 process of flu.x and that as the new lumber comes in the tendency 

 will be toward some restriction in values of the upper grades and 

 with steadilj- improving demand some improvement in the value 

 of the lowers. 



A Startling Version of the Hoover Program 



IT IS FREQUENTLY FORCED on the attention of sideline ob- 

 servers that one of the greatest weaknesses of the average Amer- 

 ican manufacturer is his lack of thoroughness. Thoroughness in 

 production implies painstaking investigation leading to correct 

 knowledge of all those things affecting one's business. 



It can not be intelligeuth- disputed that raw material is to almost 

 any manufacturer, regardless of his line, a fundamental and all- 

 important consideration. Thus it would seem to follow logically 

 that the manufacturer spending thousands, possibly many hundreds 

 of thousands, of dollars a j'ear for raw material, should post him- 

 self not only on the physical aspect of that which he purchases, 

 but on those trends and developments within the industries which 

 supply him with his raw stocks. 



This evident duty is often neglected and the side-liner is fre- 

 quently astonished at the total lack of information which many of 

 our notable manufacturers manifest regarding their raw materials. 



To bring the matter home and tie it to specific cases, the editor 

 of Hardwood Record received just such a jolt from a very promi- 

 nent furniture manufacturer who during the current market in 

 Chicago expressed his various views as to his own sales and further 

 as to his raw material purchases. 



There was no mistaking that he resented recent advances in 

 hardwood prices, advances that have resulted alone from increas- 

 ing demand and depleted stocks. But the most astonishing part of 

 his tirade was that which placed the whole blame for this price 

 tendency squarely upon what he termed "the new combination of 

 manufacturers." 



It is not the function of this editorial to deal with past events 

 even briefly. Its sole purpose is to endeavor to secure a better 

 understanding among wood-users of the Hoover program which 

 represents the most forward-looking single step that has ever been 

 undertaken in the lumber industry, a step which means as much, 

 and possibly more, to the consumer as to the manufacturer. 



This furniture man should have known what the Hoover pro- 



