July 10, 1921 



HARDWOOD RECORD 



23 



is confidently expected to show some real buying and a very large 

 number of buyers present. 



Stabilization Approaches 



As to stabilization of prices, in which buyers are equally inter- 

 ested with manufacturers, it may be said that in the first week 

 of the market there was no concerted attempt to beat prices down 

 below what they are, very little objection to the prices found on 

 the goods and no inclination on the part of manufacturers to 

 make any further cut. Indeed some of them are guaranteeing 

 their prices for five or six months and all this is serving to give 

 a stability to the market which it has not known since the days 

 of the war. Immediately following the war, prices w^ere marked up 

 even as the buyer deliberated on w^hether to take a particular 

 suite or not. Since last January furniture has been sold at what- 

 ever price the buyer was willing to pay with the result that a large 

 share of it w^as sold below cost of production. This market seems 

 headed toward stabilization. It is the desire of everybody and it 

 will in all liklihood come about. 



Lumber dealers who are present in the market are feeling more 

 than optimistic over the outlook. Most of them profess to see a 

 return of demand for cabinet woods. Indeed some rather decent 

 orders have been placed recently because furniture manufacturers 

 are themselves convinced that lumber prices will not go lower and 

 that lumber at present prices is a good buy. 



The whole tone of the industry is vastly better than for several 

 years. It looks as if the manufacture of furniture might shortly 

 place itself upon a sound and conservative basis. That is the aim 

 and the desire of all concerned and it looks as if their hopes and 

 ambitions might soon be realized. 



William B. Baker, secretary-manager of the National Association 

 of Chair Manufacturers, made a most encouraging report to his 



constituents on the first three days of the Grand Rapids market. 

 In part, Mr. Baker said: 



"Buyers are actually placing orders induced by the low values 

 on new designs. Buying applies to all types of furniture shown in 

 the market. While individual orders are not large, yet immediate 

 shipment is wanted for merchandise ordered. 



'The atmosphere of the Grand Rapids Market is distinctly 

 one of confidence on the part of the sellers and a great improve- 

 ment is apparent in their attitude over that of last January. 



New designs have such marked value over the regular or 

 staple patterns that factories will doubtless be unable to ship the 

 new designs as fast as the trade desires. 



"Minimum chair values are priced more in line with each other 

 than w^as the case in January, hence the market is largely devoid 

 of criticism or comparison. 



"The luncheons of chair manufacturers were well attended on 

 Tuesday and Wednesday and a canvass of conditions indicated 

 that practically every line represented had booked more business 

 the first three days than was the case during the entire first week 

 last January. 



"It is safe to predict that the present prices of furniture will 

 compel the retail merchant to greatly reduce prices of furniture 

 now^ on hand resulting in further liquidation of stock and a greater 

 necessity to place orders w^ith the manufacturer in the next few 

 months. 1 found no chair factory making any guarantees of 

 prices whatsoever. A few lines advise that when the market 

 season closes some patterns will be advanced in price as they are 

 now too low to be satisfactory." 



Mr. Baker expressed the opinion that there will be no fluctua- 

 tions in chair prices whatsoever during this market because of 

 the thorough manner in which these prices have been figured 

 down to rock bottom. * 



Buyers Buy on Chicago Furniture Market 



The furniture industry is promised a continued steady progress 

 back tow^ard the long swing of normalcy by conditions made mani- 

 fest during the first two weeks of the Chicago mid-summer market. 

 Very little business was done during the week which preceded 

 Independence Day, but buying began in substantial volume on 

 Tuesday, July 5. 



This day w^as rated by practically all the exhibitors as really the 

 first day of the market and in the main the exhibitors were'pleased 

 w^ith the number of buyers and amount of business secured. Nearly 

 700 buyers registered at the manufacturers' building, "Thirteen 

 Nineteen" South Michigan boulevard, and they began buying im- 

 mediately. 



Buying on this market is distinguished by a careful conservatism. 

 The buyers are doing a great deal of shopping. They are buying 

 in no large volume and they insist on being shown that prices are 

 figured closely. But the point is that they are buying. They are 

 canny, but they are taking merchandise. There is apparently no 

 effort to conduct on this market a buyers' strike, such as featured 

 the January market. 



As usual the rumor was floating about the Chicago market that 

 the exhibitors at "The Rapids" had been slashing prices. But 

 little attention was paid to this kind of talk and it was discounted 

 to zero by the fact that buyers who had just come from Grand 

 Rapids w^ere placing orders. 



Thus far there has been no evidence on the Chicago market of 

 a break in prices, such as demoralized the January market. Ap- 

 parently the great majority of the exhibitors, especially the manu- 

 facturers, are determined to adhere to the prices with w^hich they 

 entered the market. The manufacturers co-operated with the 

 efforts of their various associations and opened the market with 

 prices figured down to rock-bottom on carefully compiled costs. 

 Almost without exception those with whom Hardwood Record 

 talked said that their prices are as low as they can be figured 

 under present costs and that they are not going to budge a nickel. 

 There appear wide differences in the prices of virtually the same 



items, because of the differences in costs and methods of figuring 

 costs. But apparently these differences must stand, because the 

 manufacturers are not trying to meet one another's prices, but 

 intend to sell their stock as cheaply as they can according to cost. 

 They are demonstrating their confidence in the stability of present 

 quotations by gviaranteeing against decline for periods of from 

 three to six months. 



This firmness is increasing the confidence of the buyers each day 

 and building up the size of orders. It is suspected to sustain a 

 good volume of buying throughout the market. 



The third week of the market is expected to improve upon the 

 two preceding, as many buyers deferred their buying until the 

 semi-annual meeting of the National Retail Furniture Dealers' 

 Association could be held, on July 7 and 8. Others put off their 

 appearance in Chicago until time for the convention. Thus it is 

 expected that the climax of buying will be reached during the 

 week beginning July 1 I. 



An especially good business is being done on the Chicago market 

 by offerers of day beds, davenports, davenettes and other space- 

 economizing sleeping appliances, indicating little improvement in 

 the shortage of housing facilities in the country. 



Walnut again leads the other woods in popularity, but more 

 oak is in evidence on this market than for several years. Oak 

 is evidently enjoying a rapid "come-back," because of the radical 

 reduction in price of oak, making a substantial differential between 

 articles of furniture made of that wood and walnut or mahogany. 

 Some exhibitors are featuring oak this time and notable among 

 these is the Knox-Hutchins Furniture Company. This concern 

 is really showing some exceptional designs in oak dining room 

 suites and davenport tables. They are offering dining room suites 

 in the early English and Italian Renaissance periods in the antique 

 and the dusted polychrorr.e finish.- These are medium priced suites 

 with all the style and individual beauty generally found only in 

 costly oak suites manufactured to special order. These offerings 

 are enjoying a most favorable reception from the trade. 



