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Copyright, The Hardwood Company, 1922 



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

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



THE HARDWOOD COMPANY 



Edwin W. Meeker. Mce Pres. and Editor 

 H. F. Ake. Secretary-Treasurer 

 Llovd p. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St.. CHIC.A.GO 

 Telephone: HARRISON' 80S7 



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Vol. LIII CHICAGO, JULY 25, 1922 No. 7 



Review and Outlook 



General Market Conditions 



WERE IT NOT FOE THE IXDUSTEIAL disturbances there 

 wouM be no "flies iu the ointment" that is lubricating busi- 

 ness back to a more acceptable basis. The coal strike, which has 

 now been under way for about seventeen weeks, proceeded until 

 recently without much disturbance of industry. Had it remained 

 the single factor of major industrial disturbances its effect would 

 ';uite possibly have continued more or less negligible. But the coal 

 strike, coupled with the rail strike, presents a combination of two 

 extreme emergencies, the demoralizing effect of each being sub- 

 stantially augmented by the existence of the other. 



Statistics of the Department of Commerce show that labor diffi- 

 culties are beginning to affect industrial output. The coal strike 

 has endured sufficiently long to have made substantial inroads 

 into surplus supplies, available stocks having become sufficiently 

 depleted to have caused the formulation of rather drastic plans 

 for replenishment. 



What the outcome will be in either the coal or the rail strike is 

 a matter yet to be determined, but from the standpoint of national 

 prosperity, these developments certainly came at an inopportune 

 time. It cannot be disputed that business has emerged from 

 obscurity and has disentangled its feet from the mire of depres- 

 sion. It is most encouraging that a consistent improvement over 

 the past two or three months has shown such acceleration as to 

 have spread itself over most sections of the country and most 

 industries. At least, where noticeable improvement has not made 

 itself keenly felt, the alignment of prospects and determining 

 factors has become so much more favorable as to have wedded 

 practically the entire country to the realization of the imminent 

 return of normal sales volume. It is further most encouraging to 

 note from significant banking figures that this improvement has 

 come about practically without inflation and based strictly on a 

 sound foundation of expanding demand and improving production. 



The strikes have hit at the fundamentals in both phases. Stead- 

 fast demand results from universally improved buying power, 

 which can follow only when the conditions of employment are 

 good. The coal strike pulled out several hundred thousand men, 

 and if the rail strike becomes purely national its immediate effect 

 upon buying power is easy to understand. The second effect of 

 these imfortunate occurrences would be restriction of pro- 



duction, fir.'^t, due to the shortage of coal, and second, as trans- 

 portation facilities are gradually restricted with the spreading 

 influences of the strike inbound movement of raw material and 

 outbound movement of finished articles will be congested. 



Carrj'ing the thought still further, any such restriction of pro- 

 duction would of necessity result indirectly in further decrease in 

 employment and hence in buying power. Thus it becomes apparent 

 that while the influences of labor disturbances are still more or 

 less a matter of speculation, the possibility is a very serious one, 

 and iiarticularly serious in that the country has through herculean 

 efforts and sane tactics pulled itself literally by the boot straps 

 from the quagmire. 



For the immediate present it would probably be sufScient to 

 consider only such conditions as function in a current manner and 

 without relation to future influences. In the matter of hardwood 

 markets, the condition has certainly improved very materially over 

 the past several weeks, and notable advances have been recorded, 

 with a general strengthening in tone all along the line. This tone 

 is the result of fundamental facts having to do primarily vfith con- 

 sumption, the matter of supply, though, still having a substantial 

 effect. The primary avenues of consumption are the building 

 industries, the automobile trades, furniture industries and a scat- 

 tered miscellany of industries less important singly but mounting 

 to a huge aggregate. Building keeps up though with some slight 

 indication of lessening contracts as the fall approaches, while the 

 automobile trade has set and maintained a most encouraging pace. 

 In the furniture industry the prospect is probably more encourag- 

 ing than the manufacturers themselves would admit, it being 

 unofficially established that sales at the mid-summer market at 

 Chi< aso and Grand Eapids probably doubled the sales in January 

 markets. In other words, the furniture shows resulted in splendid 

 success, and without outside influences the progress of the industry 

 would be notably satisfying. It is because this period of splendid 

 demand has followed a more or less protracted state of restricted 

 buying, and is linked with the continuance of broken mill stocks 

 that the tone of hardwood prices has shown material improvement. 



Last fall buyers were warned by producing interests to stock up, 

 but because of counsel within their organizations they held back. 

 There followed a sudden period of heavy concerted buying, result- 

 ino- in excessive increase in luices. This condition did not last 



