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Copyright, The Harhwood Company, 1922 



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

 Mill and Woodworking Machinery, on the 10th and 2Sth 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 South Dearborn St., CHICAGO 

 Telephone: HARRISON 8087 



Vol. LII 



CHICAGO, MARCH 10, 1922 



No. 10 



General Market Conditions 



NOTHING OF GREAT MOMENT has characterized the past few 

 weeks. Undeniable further improvement in fundamentals has 

 apparently outweighed some further hesitation in hardwood buying 

 as evidenced during this period. The interval since our lasj; issue 

 has contributed its bit to developing evidence of such improvement. 



Of greatest import is the widespread improvement in the agri- 

 cultural field, as marked essentially by rising prices for farm 

 products and developing sales at better figures. The outstanding 

 result is not entirely a matter of dollars and cents return, but 

 rather the upbuilding of confidence in the agricultural regions. In 

 this connection the implement people are getting a substantial ray 

 of hope, both in the matter of immediate sales and future transac- 

 tions. Eegardless of the extent of this improvement, it holds great 

 promise in the matter of lumber sales, as for some time past a great 

 volume of lumber in small orders has been moving into many agri- 

 cultural districts, and with development of better conditions among 

 the farmers this should necessarily be expanded in future months. 



The falling off in sales of hardwood lumber and veneers reflects 

 most specifically developments in the furniture markets. A tardy 

 reaction came from what was possibly a too optimistic attitude dur- 

 ing and immediately following the January markets. Furniture 

 orders were placed at and immediately after the markets to cover 

 ordinary means and then, as might naturally be expected, there 

 was a slight lull which, when carried back to the manufacturer, 

 caused him to experience doubt as to the correctness of his early 

 estimates. 



The retailer having bought essentially for current demand was 

 covered for but a limited i)eriod, and it has since developed that 

 his sales have shown further increase, with the result that he is 

 already beginning to manifest interest in further purchases. 



In the meantime, though, the manufacturer experienced this 

 reaction and in turn carried it on until it affected his purchase 

 of hardwood lumber and veneers. With the evidence that the 

 retailer will again get back into the market, and that he quite 

 likely will require consistent purchases in future months, the tem- 

 porary check which the manufacturer experienced, which he in turn 

 passed onto the lumber and veneer man, will duly work out its 

 course with the resumption of buying at an early date, if in fact, it 

 is not already under way. 



As the building season advances, the improvement continues to 

 be more and more marked. The multitude of building projects is 

 such as to give evidence of a real boom, but because of the abseni' 



of the great number of large ]iro.jects, the total does not appear 

 us large as normal figures. The large percentage of residence con- 

 struction offers, though, a favorable feature in the matter of hard- 

 wood sales, and while it can not be said that this year's building 

 will conform absolutel}' to normal volume, it certainly will reflect 

 a tremendous progress in the matter of residence construction both 

 of apartments and dwellings. 



While no great or outstanding feature marked the progress of the 

 past month, it is a self-evident fact that apparently each week there 

 is some additional reason for gaining confidence and H.VRDWOOD 

 Record's past convictions still apparently hold, namely, that as 

 the year progresses, each mouth will be marked by a slight addi- 

 tional progress over the preceding month until eventually a volume 

 of business will have been reached comparing very favorably to 

 what would ordinarily be accepted as normal. 



With the agricultural district representing normally some forty 

 per cent of the buying power of the country, it has all the time 

 been obvious that until the situation in this district is righted, 

 things will not progress satisfactorily. The improvement in the 

 past couple of months has already shown a f.avorable reaction upon 

 business in general, and as this improvement is apparently sound, it 

 may fairly be anticipated it will advance further in the future. 



The outstanding obstruction in the immediate future is the possi- 

 bility of a coal strike. It is futile to attempt to say whether the 

 promise is favorable or unfavorable; whether there will be a strike 

 or not. But it is significant that non-union mines have been very 

 busy, and in addition have taken over a considerable number of 

 union men from other points. The retarding influence of a general 

 coal strike needs no particular description. It would, indeed, be a 

 misfortune were a strike to eventuate. Possibly the best procedure 

 would be to reckon on the strike actually developing, thus playing 

 safe. In event it does not materialize, so much the better. 



This situation is closely linked with the position of the railroads 

 and from two staudjioints. In the first instance one of the unfavor- 

 able evidences having to do with railroad development is the con- 

 sistently high wage level. It is conceded everywhere that this must 

 be reduced before the railroads can hope for normal activity. The 

 coal strike would obviously further involve the railroad situation, 

 but in the meantime the roads arc gradually extending their pur- 

 chases, and if some fair and reasonable adjustment of wages (night 

 be effected their contribution to returning normal business would 

 be very materially increased. 



H.\i!i)WooD Rkcohi) is iniprissid liy the fact that regardless of 



