

Copyright, The HARinvoon Company, igr:? 



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. Mkeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 

 Liovn P. Robertson, Associate Editor 



Seventh Floor, Ellsworth Building 

 537 South Dearborn St., CHICAGO 

 Telephone: HARRISON 8087 



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Vol. LII 



CHICAGO, FEBRUARY 10. 1922 



No. 8 



General Market Conditions 



THE VOLUME OF HAHDWOOD BUSINESS placed since the 

 first of the year has not come up to expectations aroused by 

 the apparent success of the furniture markets and the bright spots 

 appearing at other points on the horizon. It would perhaps be well 

 to qualify that assertion with the further statement that behind the 

 expectation of inquiries there was perhaps a too great impatience. 

 It is difficult to pursue a watchful waiting policy with one's yard 

 well stocked with lumber which would serve much more usefully if 

 transferred to the bank balance. But there is no more reason at this 

 date to anticipate immediate activity in inquiries and orders than 

 there was during the course of the furniture shows, as by reason 

 of the very condition of things buying must be accelerated very 

 gradually. 



Apparently there is a general tendency among buyers to arbi- 

 trarily withhold purchases as long as possible, either with the ex- 

 press intent of gaining a greater price advantage or merely to main- 

 tain purchases on an actual parallel with current utilization. 



There has also been apparent a general misunderstanding of the 

 freight reduction, many buyers either through misunderstanding or 

 misconception having achieved the idea that it was a material re- 

 duction. In such cases they have held out to secure the advantage 

 of this fictitious reduction for themselves. In other cases buyers 

 have had the impression that because of the comparatively unsatis- 

 factory findings of the commission, rates would again almost imme- 

 diately be disturbed, therefore they have withheld unnecessary pur- 

 chases still longer. These phases are touched upon editorially on the 

 next page. 



May we again emphasize that any "long haul" movement en- 

 compassing a complete economic turnover must and always will be 

 marked by jogs rather than by any even uninterrupted processes. 

 By some, the general improvement in the fall was proclaimed just 

 as a temporary spurt in the midst of the depression. Hardwood 

 Eecord's opinion of the case is that it was a striking proof of the 

 basic soundness of developing conditions and that due to peculiar 

 combinations of circumstances in effect at that time, the temporary- 

 upward swing was more marked and more rapid than could have 

 been logically expected. Hardwood Eecord believes nevertheless 

 that without strong underlying factors there would have been no 

 such demonstration. 



It is also our conviction that these factors are still making for 



gradual improvement just as has been emphasized in this column 

 repeatedly. 



In addition to the favorable.furniture and building outlooks, other 

 very notable achievements have been recorded recently. One of 

 these is the outcome of the automobile shows held last week, results 

 here showing comparatively satisfactory sales, genuine liquidation 

 in prices and an almost universal acceptance by the public of the 

 prices offered as legitimate and bona fide. Further, the marked 

 increase in popular demand for closed cars is of great promise in the 

 matter of increased lumber consumption in this field. 



Looking to the,railroads we find still further favorable evidences 

 in the shape of orders placed for new and repair equipment, and in 

 many cases substantial increases in payroll for the purpose of 

 carrying on this work. Contracts for substantial equipment orders 

 in rolling stock and for other developments are becoming again 

 comparatively common. 



The picture of production is the same as before. The only in- 

 crease over figures anticipated last fall is shown by those compa- 

 nies who planned to log up to the close of the logging season in the 

 South, which effort was sustained because of the long period of open 

 conditions in the woods, giving many of the operators several 

 additional weeks, in many cases with limited crews, it is true, but 

 nevertheless helping in quite a few instances to bolster up stocks. 



The net result, though, is substantially in line with anticipated 

 possibilities in the matter of stock plans, the grades still showing 

 marked disproportion, decreasing rapidly in quantity from the 

 lower grades up. Up to and including No. 2 common, there can be 

 said to still be an over-accumulation and it is this element which 

 is worrying the operator. No. 1 common and up is still in decreased 

 quantity, particularly the upper end, which in many cases is now 

 practically nil. 



Due to the necessity for realizing on some of this stock, there 

 has been exhibited a tendency to somewhat soften hardwood values 

 over the past couple of weeks, but it can not yet be said that this 

 is accepted as general or that it has yet reached anything in the 

 nature of alarming proportions. Hardwood Becord is convinced 

 that the inherent conditions will operate soon enough to check such 

 tendency before it is really serious. 



The truth of the matter is that volume of inquiries issued and 

 orders placed by consuming industries so far in 1922 is substantially 

 as much as could rightfully have been expected for the improve- 

 ment manifest for the future can not but be gradual. The fact that 



