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Copvright, TiiE Uakdwoou Comtany, 1918 

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

 Mill and WoodworLing Machinery, on the lOlh and 25th of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defehaugh, President 

 Edwin W. Meeker. Managing Editor 

 Hu Maxwell, Technical Editor' 



Seventh Floor Ellsworth Building 



537 So. Dearborn Street. CHICAGO 



Telephones: Harrison 8086-8087-8083 



Vol. XLIV CHICAGO, APRIL 10, 1918 No. 12 



Review and Outlook 



General Market Conditions 



WAR WORK has come to still further dominate lumber markets. 

 This fact iu itself is not more important than is the further 

 fact that lumber makers and lumber users fully realize the bearing 

 which direct and indirect war needs are having on markets as a 

 whole. The psychological effect of the growing mobilization of 

 wood producing and woodworking industries, of course, takes a 

 different angle in the two cases. The position of the lumber pro- 

 ducer is strengthened because he sees an assured market unaffected, 

 in so far as its requirements are concerned, by conditions of supply 

 and demand. He knows that Uncle Sam -will buy, and if he is 

 shown what a fair price should be and that figure is properly sup- 

 ported, the price at which he will purchase will be eminently fair 

 to the producer. He knows that the demand and the price will not 

 be fluctuating and that his goods will be converted into cash through 

 expedited movement of government purchases. 



On the other hand, the consumer who does not hold government 

 contracts or sub-contracts is greatly concerned over his future 

 supply of lumber and is now endeavoring both to avoid purchasing 

 too far ahead and at the same time cover himself on needed mate- 

 rials. 



The tendenej- which war work is taking is illustrated by two 

 developments of recent date; one, voluntary, though probably 

 inspired, action by manufacturers of pianos and musical instru- 

 ments, who agreed to curtail production by thirty per cent as a 

 starter, the announced reason being the switching of that large 

 producing capacity to war work. On the other hand, manufacturers 

 of mahogany and walnut are requested to refrain from turning into 

 commercial veneers such mahogany or walnut logs or flitches as 

 would be suitable for airplane or gunstock work. The idea behind 

 this suggestion, which in effect Ih an order, is not that there is not 

 sufficient walnut stumpage, but is, rather, recognition of the difficul- 

 ties attending getting out walnut logs and importing mahogany logs. 

 In other words, the implied contention is that every available 

 facility for manufacturing war materials of these woods should 

 be turned to that one purpose, in order to speed up such production 

 to the utmost. This does not mean that such veneers will be out 

 of the market, as there is a good deal of such wood, particularly in 

 walnut and in some of the varieties of mahogany, which is not suit- 

 able for any war purpose. Walnut and mahogany are exceedingly 

 good property. 



In the domestic lumber lines production of direct and indirect 

 war materials has assumed such growing proportions that the manu- 

 facture of the strictly commercial grades and thicknesses is not 

 any longer of sufficient significance to seriously affect the general 



market. Woodworking factories of which the furniture plants are 

 typical are, though, buying a good deal of lumber, and retail fur- 

 niture conventions of late have brought out sentiment indicating 

 that the furniture demand is going to keep up in good proportions. 

 The population as a whole seems to still have sufficient money 

 wherewith to purchase needed furniture and the probability is that 

 good sales will continue. The branch of the furniture business 

 which has the greatest cause for concern is the dealer, as the future 

 holds the probability of shortage rather than surplus, as the factory 

 will be turned over either in part or altogether to war production. 

 Thus this market for hardwoods and veneers will be conserved even 

 though the quantity of furniture and similar products turned out 

 is reduced. This is not merely a surmise of the future, but is a 

 statement of the situation as it is now actually developing. 



The hardwood trade should not anticipate too much of direct 

 benefit for that branch of the lumber business as a result of Secre- 

 tary McAdoo's explanation of his famous anti-building statement. 

 Mr. McAdoo explains that he is opposed to the erection only of 

 luxurious structures and those built purely to give pleasure. Thus 

 this real damper on building construction is removed, but as the 

 luxurious dwelling and that erected as a permanent home for the 

 owner have shown the greatest proportionate demand in com- 

 parison with other buildings for hardwoods, Secretary McAdoo's 

 modifications of his anti-building prediction is not of so much direct 

 significance from a hardwood standpoint. 



Hardwood Record has prophesied, though, that apartment and 

 residence construction in the large cities would be resumed in spite 

 of great increased cost. This prediction is supported rather than 

 weakened by developments of late. The spring renting season in 

 all of the big centers found a total absence of new construction. 

 Rents have climbed to a point where building, even on the present 

 basis of cost, would be profitable, and this fact, coupled with the 

 more significant fact that new building is sorely needed, means 

 that the economic ban on apartment house and residence construc- 

 tion must gradually be lifted even though its removal is but par- 

 tial. It must bo remembered also, that even though hardwoods do 

 not enter so largely into the type of construction which Mr. McAdoo 

 is in favor of, the turning of that much of the building lumber 

 supply into such types of construction must of necessity leave room 

 for a certain proportion of hardwoods to be used where that quan- 

 tity of softwood otherwise would go. In other words, there is an 

 inter-relationship throughout the lumber business as a result of 

 which conditions in one line must of necessity have a direct bear- 

 ing on conditions in nil other lines. That there must be a pro- 

 nounced stimulus in building in this country in the very near future 

 is everywhere granted. Such activity is an economic necessity. 



