Copyright, Tnn 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 25th of each Month, by 



THE HARDWOOD COMPANY 



Edwin W. Meeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 

 I-i.oYn P. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St., CHICAGO 

 Telephone : HARRISON 8087 



Vol. LII 



CHICAGO, JANUARY 10, 1922 



No. 6 



Review and Outlook 





General Market Conditions 



TT IK TOO KAKLY IN THE MONTH to aeeuniijlish inu.li iiuiro 

 1 tluin marking time in the matter of trade propheeies as tlie rle- 

 ments which will conduce more largely to devclopiiiciit of conditions 

 have not as yet fully established themselves. 



The essential features having the greatest immediate effect on the 

 hardwood industry are the furniture markets and inventory activi- 

 ties. Taking the last first this influence is direct and active but is 

 not as usual laden with potential unfavorable possibilities for the 

 simple reason in general there is no uncertainty as to amount of 

 stock and amount of manufactured goods at the various woodwork- 

 ing establishments. Inventory this year is serving rather as a 

 direct and specific check and its influence in holding up hardwood 

 jiurchases comes as a result of the fact that inventory taking and 

 buying just naturally don't go together. Hardwood Eecord does 

 not believe, though, that there are many eases where buyers are 

 at all doubtful as to their purchasing requirements and does not 

 b(dieve that purchasing policies in general are dependent upon 

 inventory results for the simple reason that a relatively very low 

 ]ioint has unquestionably been reached in consuming stocks in all 

 lines of industry. 



As to the furniture markets it is too early at this writing to 

 record specific indications, though it can definitely be stated that 

 the markets are eminently satisfactory in their initial aspect. Con- 

 servative optimism is the dominating tone, the conservative influ- 

 ence being noted specifically through the absence of demoralizing 

 hysteria either in the matter of over-buying or excessively cut 

 l>rices, which features have characterized the several last shows. 



Apparently the manufacturers have sincerely endeavored to 

 establish a rock bottom basis for pricing, with due consideration to 

 the dictates of sound business which require the elimination of 

 former practices of selling at a loss for the single purpose of keej)- 

 ing organizations together. Also the retailers have apparently ac- 

 cepted the manufacturer's viewpoint at its face value and conceded 

 that the manufacturer has done his utmost to meet the retailers' 

 requirements. The result is a more frank, sound basis of relations 

 which augurs well for the future weeks of the markets at both 

 Chicago and Grand Eapids. 



A conservative tone pervades the markets at both points and 

 thus reports on developments must of necessity have a conservative 

 flavor. Hardwood Eecord does though specifically believe that the 

 conclusion of the markets this year will reveal a highly satisfactory 

 record and one which will go a long ways towards correcting such 

 unfavorable factors as at the moment are reflected in the relation of 



the consuming factories with their source of hardwood supply. 



If it develops as it now appears certain, that the markets result 

 in substantial volumes of bona fide orders accepted, it is quite likely 

 that the credit phase of this situation will be materially alleviated 

 as orders coming at the markets are in general more apt to represent 

 a more stable basis in the matter of terms than oi-ders secured by 

 dint of extensive sales effort in the regular course of business. 



It is interesting to note evidences of business development as 

 coming in .lanuary 1 analysis and statistical reports in many lines 

 of industry. From the whole maize it is indisputably apparent that 

 the favorable factors have been steadily overcoming the unfavor- 

 able factors (luring 1921 and that the new year starts out with 

 favorable influences definitely dominating the situation. 



Hardwood Kecord has repeatedly pointed out in this column that 

 in the current reconstruction era each specific factor of improve- 

 ment and favorable development in each specific industry will have 

 a reflex influence far greater than the actual scope of such factor 

 as limited by its own specific proportions. Thus any improvement 

 we will say in the automobile industry, or the musical industry, or 

 the furniture industry, will in each case show reflex advantages to 

 industry at large that will be of greater scope and proportions 

 and have a greater influence in improvement than the value of that 

 improvement in itself as measured and prescribed by the size of the 

 respective industries in relation to industry at large. As these evi- 

 dences of respective favorable developments are materializing 

 consistently, their influence will multiply in what might be de- 

 scribed as geometrical proportions. 



From varied and important statistical analyses emanating from 

 many sources and bearing on many businesses, Hardwood Eecord 

 is more fully convinced than ever that its definition of major unfa- 

 vorable factors as previously expressed in this column on several 

 occasions has been correct. Leaving aside the matter of export 

 possibilities, the real future of which still seems to be much in 

 doubt. Hardwood Eecord has always believed that the one outstand- 

 ing unfavorable influence was the continued depression in agri- 

 cultural sections. In its initial report for 1922, Hardwood Eecord 

 wishes to repeat that opinion, emphasizing that agricultural possi- 

 bilities are the one dominant unfavorable influence, the develop- 

 ment of which should be watched closely. Hardwood Eecord be- 

 lieves, though, that the preponderance of favorable accomplish- 

 ments is distinctly more marked than it was even six months ago 

 and that the evidences of indications supporting optimistic prophe- 

 cies are of such weigh as to hold down the relative value of the agri- 

 cultural situation as a retardant factor. 



