flaMwoMRecoM 



Copyright, The Hardwood Company, 1922 



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

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



THE HARDWOOD COMPANY 



Edwin W. Meeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 

 Lloyd P. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St., CHICAGO 

 Telephone: HARRISON 8087 



Vol. LIII 



CHICAGO, AUGUST 25, 1922 



No. 9 



General Market Conditions 



THERE IS A HEALTHY BALANCE of demand and supply '» 

 the hardwood lumber markets at this time, and were it not for 

 the retardant influences of car shortage and seriously congested 

 rail traffic, the trade would be in a very satisfactory condition. 

 Due to a reasonable demand from nearly all sources, orders for 

 hardwood lumber and veneers have been steadily increasing for 

 the past few weeks, but because of the transportation situation, 

 shipments have as steadily declined. Thus a fundamentally pros- 

 jierous condition in the trade is being discounted b\' the weakness 

 of transportation. 



There is no reason to expect substantial relief from this situation 

 for months to come. Had there been no coal miners' nor shopmen's 

 strikes, a serious measure of ear shortage and congestion would 

 have developed in the fall, because this season is normally the 

 period of heaviest transportation on our railroads, and there are, 

 besides, bumper crops to move, as well as an increased shipment of 

 all commodities, due to the returning tide of prosperity. But the 

 strikes did happen, available railroad rolling stock has greatly de- 

 creased, congestion has resulted on virtual!}' all lines, shipments 

 have been held up and priorities and embargoes have been estab- 

 lished. 



At the date of this writing the bituminous coal strike is virtually 



settled, four-fifths of the unionized mines, which had been shut down 



since April, have resumed operations. As a result, the movement of 



coal will soon be tremendously increased. This must continue at an 



excessive rate well into the winter, and will further aggravate 



the car shortage and congestion. The settlement of the shopmen 's 



strike, which must reasonably be expected within the next few 



days, will afford a great deal of relief, but will not for a long time 



succeed in offsetting the accumulated damage occasioned by the 



long idleness of the shopmen. Thus there is every prospect of as 



serious a transportation shortage this fall as the country has ever 



kno-ivn. Prospects of the lifting of present embargoes and priority 



orders are vague. Food and fuel will for some time continue to take 



precedence over hardwoods, and thus the movement of hardwood 



lumber and other forest products must inevitably combat a serious 



handicap throughout the fall months. 



vj The plain moral of this is that the consumers of hardwood lumber 



1^ should look sharply to their requirements for the next few months. 



— The hand-to-mouth buying policy, which has been the prevailing 



._ ( one since our prosperity bubble burst in 1920, will involve very 



J serious risks during this period of transportation shortage. But 



■J 



< 



buyers are already giving plenty of evidence that they realize the 

 danger of too brief a coverage at this time. Some buyers have been 

 hard pressed during the last few weeks and this has occasioned a 

 great deal of "spot" car buying, buyers eagerly snapping up offer- 

 ings of transit shipments that had reached their localities or were 

 well on the way to do so. This pick-up buying will continue to offer 

 some measure of relief in emergencies, but buyers must consider 

 the placing of orders well in advance of their immediate recjuire- 

 men s in order to build up a reserve of stocks that will give real 

 protection. 



The settlement of the shopmen 's strike will have a decidedly 

 tonic effect upon all business, and the powerful undercurrent of 

 returning prosperity, which even the prolonged strikes have not 

 succeeded in turning back, will gather momentum. There are other 

 assurances of a general prosperity, or at least a healthful business 

 situation, in the autumn. These assurances include a bumper corn 

 crop, in excess of 3,000,000,000 bushels for the fourth time in the 

 history of the country; a total grain yield above the average of the 

 record production of the war years; a record hay crop; a white 

 potato crop but 2,000,000 bushels under the best on record; a sweet 

 potato yield never before exceeded; a tobacco crop nearly on a 

 parity with the three big years of 1918 to 1920 inclusive; the 

 twelfth 200,000,000 bushel apple crop in thirty-four years; a peach 

 crop nearly equal to the record yield of 1914. There is also a promis- 

 ing cotton croj), all of which means a substantial increase in the 

 basic wealth of the country and the buying power of the farmers. 

 There may be added to this, too, an improving European market. 

 These circumstances are bound to be reflected in increased demand 

 for hardwoods and a further firming and advance of prices. 



One unfavorable feature of the outlook, however, is the decided 

 slump in building, brought about by the strikes. It is possible that 

 some of the loss which July statistics show may be recovered with 

 the settlement of tlve strikes, but the trend of prosperity has been 

 greatly damaged. Nevertheless, this building slump, in so far as 

 hardwoods are concerned, will be offset in some measure by a 

 lessening of the usual fall slump in automobile manufacturing ac- 

 tivities, due to the increased demand for both passenger ears and 

 trucks resulting from the shortage of rail transport. Another cir- 

 cumstance specifically favorable to good hardwood lumber demand 

 this fall is the marked recovery which has been underway in the 

 box making industry for the past few months. The box makers of 

 the Middle West and South are busier than they have been for 

 two years and are optimistic of a continuation of this good business 



