16 



HARDWOOD RECORD 



July 2.), 1U21 



Commerce Hoover delivered before the National Shoe and Leather 

 Exposition in Boston, Mass., on July 13. Mr. Hoover discussed the 

 broad aspects of the present world economic situation, with particular 

 reference to our country 's relation to them. Ho showed how the former 

 combatant nations, spurred on by the necessities which the war 

 created, are struggling desperately for economic regeneration. The 

 difficulties with which these nations are encompassed are compelling 

 them to make extraordinary efforts and extraordinary sacrifices, 

 against which we mu.st compete. Thus far America enjoys every ad- 

 vantage in this economic world war, but these advantages are 

 tempered by innumerable handicaps, which give challenge to the full 

 measure of our industry and intelligence. The peoples of the world 

 are so interdependent, modern civilization has so inextricably en- 

 tangled their many interests, that we are confronted by the piaradox 

 of being unable to triumph in this "war of peace" unless our 

 "enemies" achieve a certain measure of victory. In short, we must 

 so conduct our campaign that European and other nations will be 

 lifted toward our own prosperity and own standards of living, rather 

 than pushed further down where our own standards would surely 

 follow. 



The great American problem seems to resolve itself into this: 

 Maintaining our own standards of living, our characteristic American 

 wellbeing, and at the same time meet European competition for the 

 markets of the world; while meeting this competition being careful 

 not to put Europe out of business, thus bankrupting our best customer 

 and biggest debtor. Secretary Hoover gives a few opinions as to 

 the means of accomplishing this most difficult feat. 



"In competing with Europe's manufactured goods, either in Europe 

 or in our much larger market outside of Europe, we quickly find two 

 directions in which we occupy a position of some security," Mr. 

 Hoover declares. "The first is in those exports of lower production 

 costs which are the result of great repetitive production, which has 

 its firm root in our enormous consumption. The second is in that 

 large number of special manufactures in which the inventive genius 

 and skill of our people have been developed beyond any country in 

 the world ... I believe we will recover and can hold our share 

 of the market for these products after the present world depression. 



"As to our manufactures containing a large element of labor costs, 

 in which we do not enjoy special advantages, we must look out and 

 take measures of our own. We can no doubt devise tariff measures 

 that will protect our domestic market. But if we are to hold our 

 foreign markets in this vast gi-oup of our manufactures, and thus to 

 keep our peoples employed, we have several things to attend to. 

 Fundamentally we must get our production costs down. That lies 

 only along the road of increased efficiency in our whole industrial 

 machine. It means a willingness of our working people to put forth 

 every effort that is in them consistent with health, proper family 

 life and good citizenship. The surest road to a continued high wage 

 and the surest safeguard against unemployment is to remove every 

 restriction on effort. This must extend from our mines to the rail- 

 ways, to the factories, to the wharf and to the ship. It means smaller 

 margins of profit. It means that ultimately we must have much 

 lower transportation rates. It means we must have better organized 



marketing machinery abroad under Americans themselves. It means 

 the establishment of adei|uate short time credit machinpry and much 

 more care in foreign credit risks than our merchants have shown in 

 the last twelve months. It means elimination of the great wastes in 

 industry. For instance, in the Atlantic seaboard alone, by the 

 development of these great water powers and through economies by 

 electrification generally, we could profitably save 30,000,000 tons of 

 coal per annum if we had the courage to go at it. It means the 

 Government must remove as quickly as possible those unnecessary 

 domestic burdens ujion commerce to wliich the Government is a jiarty, 

 by the reorganization of our tax system, the settlement of the tariff 

 question, the reduction in Government exi)enditure through the re- 

 organization of the Federal Government, through reduction of arma- 

 ment and through reduction of shipping losses. We must carefully 

 determine what particular trade routes we will maintain in develop- 

 ment of our lommcrce over a period of years, and let our merchants 

 know them. It means the Government must provide such information 

 to commerce and industry, from both at home and abroad, as will 

 enlarge its judgment. It means we must extend scientific research 

 into the problems of waste, the perfection of proees.ses, the simplifica- 

 tion of methods that are beyond the ability of one manufacturer act- 

 ing alone, and we must co-operate with industry to perfect these 

 things. I am confident we can hold our markets, our higher standards' 

 of living and of wage if we will all put our backs to it." 



In putting forth these ideas, Mr. Hoover saw fit to answer those 

 critics who maintain that the importance of foreign trade to the 

 welfare of this nation is exaggerated. He pointed out that our ex- 

 ports represent the margin of prosperity. They are of much more 

 importance to the economic life of our country than the plain fact 

 of their being but 10 per cent of our total production would indicate. 

 ' ' Our exports are the great balance wheel for our production. Exports 

 are vital to the stabilization of our industries, of price levels, of 

 wages and of employment. While our 'exports do cover but a small 

 per cent of our total production, on the other hand they do comprise 

 a large percentage of the production of certain industries. For 

 instance, we generally export 20 per cent of our wheat, 60 per cent of 

 our cotton, 75 per cent of our copper, not to mention others. Unless 

 we find a market for the surplus production of our great industries, 

 we shall continue to keep some twenty-five millions of our people in 

 reduced buying power. We might even drive them into poverty — 

 luring the many years that would be required to shift the whole basis 

 of our internal production. ' ' He said that imports also play an 

 important part, as ' ' our whole standard of living greatly depends 

 upon our imports" and we must buy if we sell. A nation does BOt 

 ' ' become rich by exports alone — but by its trade, ' ' ho said. 



Concluding his discussion Mr. Hoover got down to the fundamentals, 

 or basis, for our successful passage through the troubled waters of 

 depression and disruption. They are "courage and applied intelli- 

 gence and the return to the primary virtues of hard, conscientious 

 toil and economy in living," he said. He was pleased to say further 

 that ' ' on every side there is evidence that the vast majority of our 

 whole nation is making again an effort in those directions equalled 

 only by that of 1918." 



Table of Contents 



REVIEW AND OUTLOOK: 



General Market Conditions IS 



How to Win the Economic War lS-16 



SPECIAL ARTICLES: 



Forests Shovild Be' Public Utilities 17 & 20-22 



Standardization As It Looks to a Real Tree 18-20 



Grand Rapids Does "Normal" Business 3S 



Fair Business Continues in Chicago 36 



Evansville Does Well at Chicago 36 & 52 



NEWS FROM THE NATIONAL CAPITAL: 



Miscellaneous 24 



CLUBS AND ASSOCIATIONS: 



Miscellaneous 2S 



Northern Wholesalers Meet at Rhinelander 22 



Northern Hemlock & Hardwood Mfrs. Assn. Meets at Chicago 24 



HARDWOOD NEWS 30-34 



HARDWOOD MARKET 35-57 



CLASSIFIED ADVERTISEMENTS 60-62 



HARDWOODS FOR SALE 62-64 & 65-67 



ADVERTISERS' DIRECTORY 59 



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