MwoMRocoffl 



Lopyri(}ht, liit: Makdwoud (..ompany, igji 



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

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



THE HARDWOOD COMPANY 



Edwin W. Mkeker, Vice Pres. and Editor 

 H. F. Aki;. Secretary-Treasurer 

 Li.ovD P. RoBKHTsoN, Associate Editor 



Seventli Kloor, Ellsworth Building 

 537 So. Dearborn St., CHICAGO 

 Telephone: HARRISON 8087 



Vol. LII 



CHICAGO, JULY 10. 1921 



No. 6 



L> Kii ■ w ' l 



Review and Outlook 





I «t 



General Market Conditions 



SUCH CHAXGE AS HAS DEVELOPED iu the last few weeks 

 has not created encouragement, but with due consideration 

 of the facts, it becomes apparent that the still further shrinkage 

 of orders is by no means an inexplicable development. While it 

 might be argued that as nothing is functioning normally, the 

 explanation of the mid-summer dullness will not hold this season, 

 the fact remains that this influence is distinctly at work and quite 

 naturally so. During the past two or three weeks trade has been 

 marked by a distinct slowing up after a noticeable improvement 

 immediately jireeeding. There could be nothing more natural, 

 though, than that this should happen, as the furniture industry 

 is calculated to normally absorb 30 or 40 per cent of the hardwood 

 lumber, and at no time has the immediate future of the industry 

 been more uncertain than imuiediately preceding the current fur- 

 niture market. The experiences which the furniture manufacturers 

 encountered at the last two preceding shows naturally aggravated 

 an apprehensive and undetermined state of mind. Fortunately 

 the manufacturers at large did not discount the necessity for get- 

 ting down to serious business at the July shows this year. Thus 

 every possible effort was concentrated on first reducing operating 

 costs to the absolute minimum, then accurately determining those 

 costs .and basing prices on such figures, allowing but a fair margin 

 of profit. 



The exhibitors this year have come to the markets with rock- 

 bottom quotations from which they apparently are not receding 

 one penny, and as these figures and this attitude give to the 

 retailer assurance of future stability, particularly as jiriees are 

 guaranteed for from three to six months, his state of mind is in 

 turn rendered more receptive. The full accounts of the markets 

 contained elsewhere in this issue paint an actual picture of what 

 has transpired practically up to the date of publication. It is an 

 evident fact that were the retailers entirely lacking in interest, 

 were their own business hopeless, they would spend neither the 

 time nor money to .iourncy to the markets in the great numbers 

 which have characterized the influx both at (Irand Eapids and 

 Chicago. 

 ,. The sincerity of the manufacturer's position .-lud intentions has 



CM been demonstrated to the sntisfaction of the buyers, who \\\\\\e 



, they are by no means overwhelming the producers with orders, 



^^ are placing a very fair volume of business. In some cases this 



business has assumed old time proportions, although in the aver- 

 age case the volume so far placed is nominal. It is significant, 

 however, that even though there were never before so many uncer- 

 tain equations to be figured by the retailer, he has placed as much 

 business for the first three days of the show this year as during 

 the first week a year ago. Then, too, for the same reasons Ijuyers 

 were in the main intent at first on analyzing offerings and condi- 

 tions, ])lanning to place their business later when they had fully 

 determined future probabilities and the genuineness of quotations. 

 A very fair volume of sales was developed in spite of the inter- 

 ruption of two important events — the holiday and the "big 

 doings" at Jersey City. It is confidently expected that the last 

 half of the show will evidence a substantial improvement even over 

 the favorable beginning, and that the results presage a much more 

 favorable volume of furniture business than has materialized for 

 some time. 



Lumber sales to the furniture trade have been distinctly slow, 

 and it may be readily appreciated why the furniture buyer has 

 been entirely unwilling to take on the lumber stocks until the 

 aggravating uncertainties at the show period shall hiive been 

 eliminated. The hardwood trade selling to the furniture trade 

 can take heart from the common scarcity of stocks in buyers' 

 hands, and the necessity which will certainly develop with the 

 new business placed at the markets. That habit of buying which 

 has been developing during the past few years, which is described 

 to the trade as "hand-to-mouth" trading, has been spoken of 

 much of late as possibly denoting the permanent future policies 

 of the wood-using industries. This opinion may or may not be 

 true, though Hakdwood Record doubts whether the continuance 

 of such policy under normal turn-over of business among consum- 

 ing industries would be feasible. In the first place, the production 

 and curing of lumber from the tree to the "shipj)ing dry" boards 

 is too involved and lengthy a process to make possible a close 

 figuring of supplies when business is moving briskly. Then, too, 

 the development of kiln drying facilities at mill points has only 

 begun in the hardwood trade, which fact obviates any possibility 

 of speeding up the preparatory processes. Under ordinary air-dry- 

 ing requirements the lumber manufacturer must have a certain 

 length of time in which to air-dry his stock, and insistence by the 

 buyers of the permanent adherence to the hand-to-mouth policy 

 would be an exceedingly demoralizing influence among the mills, 

 as their efficiency is dependent upon continuance of smoothrun- 



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