December 10. 19:;u 



HARDWOOD RECORD 



HARDWOOD LUMBER 



THIRTEEN BAND MILLS 

 SIX PLANING MILLS 

 ELEVEN FLOORING UNITS 



The present status of the hardwood 

 study of all buyers of lumber. 



Generally speaking, the history of hardwood lumber prices 

 is a history of change. Sometimes the fluctuations up or 

 down are more or less violent, but nearly always the price 

 situation has a trend, in one way or the other, according to 

 conditions — prices are seldom in a stabilized condition, in the 

 sense of remaining constant during a great length of time. 

 So the wise buyer must endeavor to determine in advance 

 what will be the condition in the future. 



Good authorities say stocks at mills are now, on the 

 average, not above normal. Many mills now out of produc- 

 tion will not be able to resume until next spring or summer; 

 those operating are upon schedules of reduced production, 

 and the cost of manufacture is increasing. 



The average normal production is sufficient to supply the 

 average normal consumption: but production is now sub- 

 normal. For the future, not only must the normal con- 

 sumption be supplied, but in addition a great arrearage in 

 building and construction must be made up. SelUng prices 

 generally are as near production costs as fundamental con- 

 ditions warrant, and rather than further reduce prices, manu- 

 facturers are ceasing to produce. 



Students of the subject expect a great revival of building 

 and construction work, and a tremendous increase in the con- 

 sumption of lumber. There are many who expect such a 



Annual Capacity 

 130,000,000 Feet 



lumber situation deserves the careful 



shortage of the better grades as to bring a recurrence of the 

 auction-market condition of the early part of 1920. 



Whether hardwood lumber prices have "struck bottom" 

 may be indicated by' the fact that prices generally have not 

 gone lower than the low levels reached in mid-October. 



On January 10. 1920, we wrote our customers that prices 

 under the intluence of an auction-market were too high, and 

 among other things we said: 



"We would counsel against a policy of heavy buying to 

 unnecessarily cover future needs. Such a policy tends to 

 keep prices high. If you wa/it to help the situation you will 

 confine your purchases as nearly as practicable to your 

 imniediate necessities." 



Our motive in giving that advice could not be misunder- 

 stood. A manufacturer of lumber, who advised his customers 

 against buying lumber at high prices could not be accused 

 of a narrow selfishness. 



If, under a reversed price condition, he advised buying, 

 his motives might be misjudged. Therefore, we refrain from 

 giving such advice. We cannot know what the future holds 

 for the seller or the buyer. 



We have indicated a course which may be followed. If 

 it is not and the wisdom of our view is proved by future 

 events, we trust we will be given credit for at least a good 

 guess, and a sound suggestion. 



W. M. RiTTER Lumber Co. 



COLUMBUS, OHIO 



stabilize foreign oxchanjir on the ha.sis of approximately ^4 for the pound 

 sterling. This should he done, according to my view, for a period of not 

 less than ten years. Fixing of exchange on this basis would tend to 

 greatly increase the purchasing power of the various nations of Europe 

 and it would, at the same time, correspondingly decrease the present huge 

 cost of importing raw materials from America. European firms, importing 

 raw materials on this cheaper basis, would be able to manufacture these 

 into finished products and export them to America and other countries 

 where they would receive a reasonable price therefor. This exportation 

 of finished products on a profitable basis would start reducing the enormous 

 adverse trade balan<-es and would inevitably have the effect of increasing 

 the value of exchan,';e in England. France, tJermany and all other nations 

 of Europe. 



"Credits are not what Euroitean nations need now. What they need, 

 above everything else, is sufficient purchasing power on the part of their 

 currencies to enable them to enjoy a reasonable margin between the co.st 

 of raw materials and the sale of the finished products. The matter may 

 die worked out in other ways but this plan enjoys the distinction of offer- 

 ing an imme<liate basis for revival of business in Europe, and. l)y the 

 same token, for the opening of Kuropeon outlets for raw materials which 

 are accumulating in America. 



"Manufacturers of furniture and other wood products in Europe have 

 enough money with which to pay for what they want but they do not 

 want very much for the reason that the process of importation and con- 

 version into finished goods is so high that it i.s well nigh prohibitive. 

 Business is very slack now in the United Kingdom and other foreign coun- 

 tries and prospects are not very bright for the immediate future. If 

 costs remain as high as they are now. due partly to the first cost in America 

 and partly to the high rate of exchange, there is not going to be much 

 iloing for a good long while." 



Mr. Farber dechired that stocks of hardwood lumber in the United 

 Kingdom, France. Helgium, Holland and Italy are not large, intrinsically, 

 but he pointed out that they are relatively large. "Stocks in the United 

 Kingdom, for instance." he said, "would not last more than two or three 

 months at the longest under normal trade conditions, but they will last 

 for an indefinite period if there is not something done to bring about a 

 revival of demand. There is comparatively little business passing at the 

 moment and it takes a mighty little to go a very long way under such 

 conditions." 



Mr. Farber also emphasized another fact.' "Holland is importing large 

 quantities of German oak," he said, "and Belgium and France are im- 

 porting white oak from Austria for the reason that these are available ou 



much cheaper terms than hardwoods of equal quality irum America. 

 Lunber prices were advanceil so rapidly in America and their first cost 

 became so high that European buyers sought lumber in other countries. 

 Thus. American lumber interests, by asking such high prices, have not 

 only invited active European and (4erman competition but they are now 

 actually experiencing it. There are very large quantities of Japanese 

 oak in Antwerp, approximately 0,000,000 feet, some of which has only 

 recently arrived. German oak is available in Holland at materially lower 

 prices than American oak. Franco and Belgium are both able to buy much 

 more cheaply in Austria than in America for the reason that, whereas ex- 

 change ratea on America are highly adverse those on Austria are highly- 

 favorable. 



"England," continued Mr. Farber, "is using large quantities of native 

 ash in preference to importing this kind of lumber from America. Ordi- 

 narily native woods are not used at all in that country but large quan- 

 tities of jish are l>eing used now because of the relative cheapness thereof 

 as compared with ash imported from the United States. The majority of 

 the native woods, however, are not being used quite as freely a-s a short 

 time ago. Many of the firms which handled native woods during the war 

 and during the period since the armistice have liquidated their business as 

 far as possible and this process of liquidation is still under way. 



"There is more building in progress in London than in many cities 

 in America. Numerous big buildings are under construction and they will 

 require considerable quantities of hardwoods for interior finish." 



Mr. Farber will probably be in the United States for several months, 

 durinij which time he will make his headquarters in Mcmpliis. 



Controversy Regarding Steam Production Formtila 



A recent issue of Habdwood Record contained an article on kiln drying 

 of lumber, the introduction to which contained the following: **At the 

 most. 4,250 pounds of steam will not cost over $1.50 to produce." 



A large manufacturer of furniture on reading this article wrote Haud- 

 wooD Record for the formula for producing steam at the rate mentioned. 



The article was by H. T. Tiemann. kiln drying expert of the Forest 

 Products Laboratory at Madison. Wis. Mr. Tiemann's answer to this 

 inquiry is as follows : 



"In reply to yonr letter of September 15 with enclosed criticism on steam 

 cost data : 



"A statement of the cost of producing steam would depend largely upon 

 what is included in the estimate. At many of the largest dry kiln installa- 

 tions in the country the question of fuel is not an item, inasmuch as the 

 waste material from the mill is burned in the boilers. The production of 

 steam would in this case be figured on the labor and repairs to plant and 



