Copyright, The Hardwood Company, 1921 



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

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



THE HARDWOOD COMPANY 



Edwin W. 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 8087 



Vol. 



CHICAGO, SEPTEMBER 10, 1921 



No. 10 



I »in . » w ¥ 



Review and Outlook 



BOTANICAL 



Qakuhn 



B" 



General Market Conditions 



rSIXESS IS STILL PLODDING ALONG the road to the 

 future, ratlier weary and ragged and cautious in its steps, 

 but conscious that the worst of the mires :uv l)ehind it and that 

 somewhere ahead lies the warm fire glow of prosjierity. The con- 

 sciousness that the worst is over and that the goal is within reach 

 is inspirational, even though it be a fact that other rough spots 

 must be passed. In the beginning of the long journey through the 

 sink holes of the past year and a half, the procession started 100 

 per cent fit, rendered strong and confident by unprecedented pros- 

 perity. Some dropped immediately, others fell out of line in the 

 midst of the gruelling punishment, but the outstanding feature 

 was the steadfastness with which business withstood the shock of 

 depression. Hakdwood Becord has cautioned that any increase 

 in business failures which might come now in the face of current 

 slight improvement in conditions could not be attributed to further 

 slump in business, they being rather the result of a thorough 

 exhaustion entailed by the long and arduous fight. Many have come 

 through the worst part of the journey unable, either because funda- 

 mentally not strong enough, or because of unfortunate judgment, 

 to conclude the final steps to prosperity. The toll will be heavy 

 during the next few months, though gradually decreasing because 

 of slightly returning strength brought about by the stimulus of 

 slowly improving business. 



The claim that the road ahead will permit consistent progress, 

 .■ilthough marked by difiicult spots, is borne out l)y the circum- 

 stances. In the furniture trade, for instance, the much, improved 

 prospects immediately following the furniture shows have recentlv 

 been rather dissipated by cancellations of slack orders since then. 

 Hahpwood Becord, though, still insists that good furniture, cor- 

 rectly priced, will find a market. Then, too, in connection with the 

 furniture sales it must be remembered fhat building records are 

 .-ictually favorable, and that an exceptionally high percentage of 

 the total is in residence building. Large quantities of new fur- 

 niture will go into these homes. The difficult feature is the surplus 

 of older designs, manufactured before the new lines were put out 

 , _,at the July markets, and in most cases merely to keep factories 

 Cvjand workers going. The most active sales were in the new articles, 

 , — the result being a practically nil movement of the warehouse stock. 

 Hardwood Becord is of the ojiinion that right prices would have 



moved considerable of this stock and can be counted upon still to 

 considerably reduce it. 



The whole country has been cheered by evidence of improvement 

 in the South, due to the advance of cotton, but will be shocked by 

 the sudden drop a day or two ago. It must be remembered, how- 

 ever, that this latter influence is without a doubt the result of 

 usual manipulation, it being a further encouraging fact that the 

 cotton men apparently were not overly optimistic as to the rapid 

 advances holding, the belief being rather general that the rise was 

 more rapid than was justified by actual conditions. Attention is 

 called to the rather analogous fact that in the South a short crop 

 is looked upon as a favorable feature. A very large measure of 

 the weakness in lumber and business in general has resulted from 

 the disastrous collapse of cotton values, ;ind the vast frozen credit 

 resulting from the impossibility of moving cotton at any price. 

 Now, though, with cotton movement substantially improved, even 

 though the drop in cotton value set them back again somewhat, 

 the credit situation in the South will be eased. The result, of 

 course, can not be in the nature of improved sales. Just as impor- 

 tant, though, is the matter of increased financial strength behind 

 the stocks already piled at mills. Kven the slightest measure of 

 improvement in money condition in the South, due to cotton 

 improvement, will directly react favorably upon Southern hard- 

 wood lumber, and the degree of this improvement in lumber will 

 be in direct proportion to the improvement in cotton. A noticeably 

 better tone has been experienced of late in Southern sections, due 

 to the widespread betterment in the cotton situation. The current 

 reaction will, of course, have its effect, but the net result is a sub- 

 stantial gain over the recent low ebb. 



It is, indeed, pleasing to note the consistency with which build- 

 ing is fighting to gain its normal position. While there is still a 

 general dearth of large projects, the total figures arc encouraging, 

 and the heavy percentage of resident construction, either houses 

 or apartments, is a good omen in that such work averages a sub- 

 stantial portion of wood. The millwork trade is in general reported 

 to be doing a brisk business, and a further reflection of the build- 

 ing activity is seen in the strength with which the demand for 

 building lumber holds. 



At the preseiit writing it is not at all unlikely, though not as 

 yet provable by definite statistics, that at least ninety per cent 



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