December 25, 1918 



Hardwood Record — Veneer & Panel Section 



25 



The Future of the Veneer and Panel Business 



Address by S. B. Anderson of Memphis 

 Before the National Veneer and Panel Manufacturers' Association 



I take it that I am to consider the near future of this trade. flj,^ 

 There can be no question about the position these products will 

 continue to occupy in the general wood producing trade. Their 

 position is won and will be maintained. The recent growth of 

 the veneer trade has been extensive. With the growth of the 

 furniture trade and the dependence of this trade largely on the 

 panel factory for its panels and tops — with the growing demand 

 for cheap packages and the demonstration of the availability of 

 cut lumber for the manufacture of the lighter packages — with the 

 remarkable growth of the wirebound package, the veneer mills are 

 becoming in a degree as common as the lumber mills. Nothing 

 can replace this product. 



It is unnecessary for me to remind you of the position the panel 

 factory has attained. Its position will be retained as long as reg- 

 ular panel and top factories can make and sell their product at a 

 less price than it can be produced by the consumer. It is as 

 impractical for the smaller consumer to make his own panels as 

 for the shoe factory to make its own pegs. A good business for 

 the panel factory is assured as long as good work is turned out 

 at a reasonable cost and a fair profit and general business is good. 

 If general business is good this will be reflected in the veneer and 

 panel business. What are the conditions facing business in 

 general? 



We are about entering on a transition period, during which 

 business must adjust itself from war conditions to conditions of 

 peace. There are some untoward conditions to be faced while in 

 this transition period. There are many government contracts 

 placed which will be cancelled, leaving raw material bought at war 

 prices in large quantities on the hands of the manufacturers. 

 Very large amounts of supplies of various kinds are now held by 

 the government which cannot be used by it, and will sooner or 

 later be placed on the market. The authorities at Washington 

 have given assurance to the representatives of the contracting 

 manufacturers that the government will not work a hardship on 

 the manufacturers who worked faithfully to provide for its wants 

 when in distress by cancelling orders without making proper pro- 

 vision for absorbing the loss resulting therefrom. Furthermore, 

 that supplies of non-perishable manufactured goods, of which 

 there is no schedule, will not be thrown recklessly on the market, 

 thus demoralizing business. On the contrary, the advice of busi- 

 ness men interested in the market will be sought and the utmost 

 care exercised to unload with the least possible jar to industry. 

 A large per cent of the manufacturing capacity of the country 

 must be taken from war work and placed on work for peace, and 

 nearly four millions of men now in the army will be returned to 

 peace occupations. Briefly, this is a statement of the difficulties 

 facing business. 



On the other hand, the world is short of goods of all kinds — 

 warehouses are empty, stocks everywhere are low; manufacturers 

 have been diverted from regular work to war work; crops have 

 been good — money is plentiful; under the new banking system 

 no panics will frighten us; the courage of the people is high, their 

 hopes are exalted — supplies of raw material are abundant; labor 

 will very soon again be plentiful and well paid; life will move 

 along in its wonted course, with the usual deaths and births; ne-w 

 families will venture out with the old wants to supply; the light 

 buying of the past year or two will give way to the usual expendi- 

 tures. All this will bring a good, normal business. This much 

 for this country; but in addition to this, the world stands denuded 

 before us and must be clothed. England will want our raw mate- 

 rials in wonderful quantities. France, Belgium, Italy, Russia and 

 all eaatern Europe will want our manufactured goods, The Orient 



will demand our cotton, cotton goods and machinery. Spanish 

 America is just learning that its northern neighbor can supply, in 

 large quantities, goods that have heretofore been bought in Europe. 

 In fact, the whole world must look to America for supplies, and 

 we have them. We have the supplies for the ordinary demands 

 of life; and in addition to all this, western Europe must be rebuilt, 

 and again we have the supplies. It appears to me that the only 

 question is, will we be ready to meet the demands? 1 think we will. 

 We must expect a recession in prices. This should not be un- 

 welcome. 1 do not take this position from altruistic reasons, but 

 simply as a good business proposition. We cannot hope for trade 

 outside our own country for our manufactured goods, unless we 

 are able to meet competition, and competition will be keen. Even 

 during the darkest days of the past few years reports were current 

 that England and France, in spite of the agony of the struggle in 

 which they were engaged, were preparing for after-the-war work. 

 Their war factories, especially England's, were built with an eye 

 to use in regular line work after peace should come. We cannot 

 afford to limit our exports to raw material, but must have our 

 share of trade in finished goods — to get this we must be able to 

 meet the price. If the goods offered are loaded with unneces- 

 sary costs ability to compete is lessened. If a piece of fine furni- 

 ture offered in London or Paris is loaded with even one dollar 

 of unjust profit to the veneer man or to the panel man — there is 

 just one dollar in the way of competition. The cheaper goods 

 can be sold the greater the ability of the consumer to buy and 

 the greater the volume of business and the more general the dis- 

 tribution of the good things of life. We should look for our 

 reward under the coming conditions in a larger trade with good 

 profits— fair profits. While we must profit from the misfortune 

 of the world we must avoid the temptation to profiteer. 1 fear 

 our danger lies here rather than in a lack of business. With the 

 entire world crying to us for help; with our vast supply of mate- 

 rial wanted— with energy— with a good supply of labor— with our 

 means of local transportation — with the American merchant 

 marine ready to transport our goods to the furthest quarters of 

 the globe, and with our financial leaders laying plans to protect 

 our foreign credit, only our inability to rise to the occasion can 

 keep us from reaping the benefits of these wonderful times. 



In order that we handle the business that will be offered in the 

 immediate future to the greatest profit to ourselves and to meet 

 new conditions, we must practice economy— economy in buying— 

 economy in manufacture and economy in credit. Old and slow 

 methods must give way to later and improved ways. Efficiency 

 in the shop— efficiency and clear figuring in the office must rule 

 —methods having only the recommendations of ages if found de- 

 fective must be dropped. Because certain ways of doing things 

 have gotten us along in the past gives us no reason for refusing 

 the benefit of other and better methods. 



I want to say a word possibly foreign to the subject. A result 

 of the war just closed is the great progress of democratic institu- 

 tions throughout Europe. For many years the struggle between 

 autocracy and democracy has continued, and the last effort by 

 autocracy to intrench itself and retake lines won by democracy 

 has resulted in the practical overthrow of autocracy, and today 

 democracy is enthroned. Now, the problem to work out is to 

 make this great victory of the greatest benefit to the peoples of 

 the world. It will possibly be considered heresy, but 1 sometimes 

 doubt the automatic benefit to the individual flowing from po- 

 litical liberty. 1 believe in political liberty, but not as an end, but 

 rather as a means to an end. Political liberty must lead to eco- 

 nomic liberty or its greatest good is lost. We will fight for our 



