Copyriijhl , Tm; IIakdwood (omivw,, it.i 



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

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



THE HARDWOOD COMPANY 



EuvviN VV. Meeker, Vice Pres. and Editor 

 H. F. Ake. Secretary-Treasurer 

 Lloyd P. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 So. Dearborn St., CHICAGO 

 Telephone: HARRISON 80S7 



Vol. LI 



CHICAGO, AUGUST 10, 1921 



No. 8 



General Market Conditions 



FKW GENKRAL FACTS liavo lent more encouragement than re- 

 ports from banking eirclos. Just as inflation was primarily 

 responsible for the break in jirosperity, its opposite liquidation can 

 be accepted as the foundation for permanent rebuilding. Easier 

 money can today be the result (mly of liquidation of a geueral 

 character and as gradually receding rates have marked money move- 

 ments of late one conclusion of deep significance is natural, viz., 

 there is more available money because stocks of goods and mate- 

 rials have been liquidated. It matters not now how such results 

 were brought about. The travail which marked the accomplish- 

 ment is now for the most part history. True, its results are not 

 entirely discounted, but the realization of the necessity and the 

 performance of required action have now been written into the 

 past of most business lives and the long climb back on the safe 

 Toad is ahead. This, as stated before, is revealed on the gauge 

 •of money rates. Cotton prices, metal prices, lumber prices receded 

 only when supply exceeded demand. With long stocks and such 

 restricted call for merchandise, much money was required. To 

 make it go farther the banks liemanded liquidation no matter 

 Tiow it might hurt. Such selling of high cost goods has been the 

 cause of rapid falling in prices. But the money has been adding 

 up and today total results of distress sales have reached a figure 

 justifying a readjustment of relation between supply and demand 

 in the money market. Lower rates are the result and their deepest 

 significance is in the fact that lower money is the last of the 

 major influences anticijjatod. 



This statement is not intended as a promise of early prosperity. 

 On the other hand, it is given as bearing out Hardwood Record's 

 contention that favorable indications are multiplying and that the 

 trend of the future will be for the better. The troubles of business 

 are by no means over, as returning business must of necessity be 

 slow and the burden of carrying on under the pressure of nil 

 markets is excessive. Quite likely the next few months will see 

 more weeding out and a more complete exposition of the survival 

 of the fittest than the period that has passed. It is the last laj) of 

 the race, the gruelling home stretch that tries the nerves of the 

 audience and eliminates those who have been too much weakened 

 by the cruel pace of the last year and a half. For markets cannot 

 return towards a profitable plane until buyers have difficulty in 

 getting what they need. Such difficulty will result from a natural 

 ishortage plus a firm adherence to fair quotations by sellers who 



know the value of what they offer. This sticking to price is pos- 

 sible only for those who can finance such a policy. 



It might well be declared in this conjunction that the time ap- 

 parently has come for adherence to values. Indeed, the accumu- 

 lation of small movements has been sufficient to have caused some 

 such natural tendency, and while nothing that can truthfully be 

 described as improvement is manifest, the state of change is char- 

 acterized by this inclination to get a fair return. As in the past 

 the business placed is still in small volume so far as the individual 

 order is concerned, but with a volume in toto that represents good 

 proportions. Having been accustomed so long to big business, there 

 has been too much tendency to discount the importance of small 

 shipments and, in fact, of the small trade in general. It is true that 

 the flooring business has been one of the bright spots of lumber 

 movement. Most of this flooring is going into small jobs. So all 

 through the avenues of demand. Today there are many mixed car 

 orders and the usual inquiry is for price and possible shipping date. 

 Then, too, we are today in the midst of what is invariably a dull 

 season and betterment in the fall is natural. 



The general economic situation is most encouraging, a condition 

 which is bound to be favorably reflected in the hardwood market. 

 The winter wheat crop has been made and surpasses pre-war normal 

 volume. The marketing of this cro]) is already well on the way at 

 prices, which, while low, are better than pre-war prices. This means a 

 substantial restoration of the farmer's buying power, for the crop was 

 produced much more cheaply than the crops of the inflation period. 

 Wheat farmers made their crop with hands costing around J.S a day 

 and keep ,as compared to $8, $10 and $12 for the two previous years. 



European wheat crops are good but there has been no surplus pro- 

 duction and there is no indication that Australia and Argentina will 

 produce any more wheat than they did last year. Rus'sia is hopelessly 

 out of the market as a wheat exporter is buying wheat from India 

 and will probably take large quantities from America if Hoover's 

 Russian relief plan goes through. It is predicted that Roumania will 

 have no wheat to export. Thus there is no world suryilus of wheat, 

 though America 's crop is good. In short, the economic thcrnioineter 

 registers favorably to America. 



There is promise, too, that the corn crop will be the biggest this 

 country has ever produced. 



The cotton crop is short and will command better prices than the 

 last crop. In curtailing their cotton acreage southern planters turned 



