fliMwoM EocoS 



Cof'yntjht. The IIaki)W(iui) (."' 



■MPAN \ , I '.)j I 



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

 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 

 Llovd p. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 So. Dearborn St., CHICAGO 

 Telephone : HARRISON 8087 



Vol. LI 



CHICAGO, AUGUST 25, 1921 



No. 9 



Review and Outlook 



LTKRaTT? — 

 NKW y(>4<K. 

 BOTANICAL 



T' 



General Market Conditions 



'HE ADVANCE OF THE SEASON seems to be clearly bearing 

 out Hardwood Record '.s prophecies of the past few months. 

 It has seemed to the editors of H.\rdwood Record that the turn 

 definitely set in this spring, and though the low level might likely 

 be maintained for a period, the worst part of the depression passed 

 with the gradual checking of downward tendencies. Hardwood 

 Record still believes that many dark clouds must pass over before 

 the full effect of advancing business is felt. The situation taight 

 be likened to a summer sun shining steadily behind the storm 

 clouds and eventually breaking through with the final dissipa- 

 tion of storm indications. Confidence is unquestionably on the 

 increase and aggressive business policies are having their direct 

 as well as psychological effect. Liquidation is now nearing com- 

 pletion, though some lines are still lax enough in this feature to 

 retard purchases. It is notable, however, that even during the last 

 two or three months a number of high lines receded rapidly until 

 today they are on a level insuring a steady measure of buying. 



Here and there one notes failures, due not so much to any further 

 depression of business as to the awful strain under which most busi- 

 ness houses have been laboring during the past year and a half. 

 Most of them were able to weather the trial; others carried on for 

 a long period until ultimately worn out by the protracted nature 

 of the depression. 



One finds in the consuming industries a continued hesitancy 

 which has become a habit. Purchasing factors on their part have 

 experienced continued draggiuess in their own sales, and naturally 

 their purchasing policy reflects this condition. Among the mills 

 at the present a slightly better tone is prevailing, with apparent 

 checking of price recession, not marked, however, by any strong 

 conviction that a fixed level or advances may be expected. A 

 slightly better tone of inquiries and orders has prevailed in most 

 markets, but due to the excessive quantity of low grades, which 

 because of unfavorable freight rates can not be moved to distant 

 markets, mills here and there are liquidating high-priced stock in 

 order to carry large quantities of the inferior material. Because 

 CSj of the presence of this accumulation of low grade it may be 

 ^^ expected that the uppers may show some recessions, though any 



In the North one finds considerable activity in the shipment of 

 grain doors, a number of the mills at present being occupied with 

 this work alone. A good many of the yards are pretty well filled 

 up, though everywhere the much talked of shortage of upper grades 

 is in evidence. As current supplies of logs are cut out operations 

 are closing down consistently. In connection with this general 

 policy of suspending operations, w^hich is common throughout all 

 the hardwood territory, it seems to have progressed far enough so 

 as to minimize the possibility of any sudden or general resumption 

 of operation. A distince shortage of lumber is the inevitable result 

 and undoubtedly this pronounced scarcity of desired materials is 

 going to have a considerable bearing on the work of gradually 

 bringing back a normal market. 



CD ; 



character of low grade hardwood lumber should be bought today 

 in quantities by any user in position to make such purchase. 



Repeal the Excess Profits Tax Now 



TnHE LUMBER INDUSTRY'S INTEREST in the excess profits 

 1 tax would be entirely academic, were it not for the fact that the 

 tax is an obstruction to the general revival of business, without which 

 there can be no real improvement in the lumber or any other industry 

 in this country. Therefore, the lumber industry and Hardwood Rec- 

 ord, as the representative of one important branch of it, is hopeful 

 that the decision of the House will be reversed during the Senate 

 debate on the tax re%-ision bill. There is no advantage to be gained 

 and a great deal of harm will be done, by postponing the repeal of 

 the excess profits tax another year. Immediate repeal of the tax, 

 making it retroactive to Jan. 1, 1921, would promptly have a stimu- 

 lating effect on business. This is not a time above all time to with- 

 hold any stimulus to business revival. Relieved of the excess 

 profits tax, business will be encouraged to renewed efforts of 

 economy and efficiency; a worthwhile incentive will be raised up 

 for further elimination of extravagances and a good measure of the 

 present diffidence and hesitancy in business will be removed. In 

 short, the recovery from depression will be accelerated, instead of 

 estopped for another six months. 



It does not square with the facts to say that the excess jirofits tax 

 has already been passed on to the public, for the unprecedented de- 

 flation in nearly all lines of business has precluded this almost en- 

 tirely. But even if this were true, it would not be of enough impor- 

 tance to justify discouraging business economy and confidence at a 

 time when both are so desperately needed. 



