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Hardwood Record — Veneer & Panel Section 



December 25, 1920 



Veneer Will Be Nationally Advertised 



(('ontiitiicii fvi'ii! paijc 32) • 



This brought him to the next important note of his 

 address, which was efficiency. He told the veneer manu- 

 facturer that they must apply economy and efficiency to 

 every phase of their operations; they must insist upon the 

 highest efficiency from their salesmen, their office help and 

 the workers in their plants. Efficiency of operation now 

 and in the future will be necessary to insure fair profits, 

 he said. 



Retiring President's Address 



In full, Mr. Anderson's address is as follows: 



Since we met last, six months ago, a change has come over the 

 spirit of our dreams. Then we were all at the height of pros- 

 perity. More orders booked than w^e could fill; customers begging 

 for goods, which w^e could not supply even at the peak prices 

 then prevailing. We do not know exactly w^hat has happened to 

 us. We know our shops are idle, or practically so. No one wants 

 our goods even at the very conservative prices that we might be 

 tempted to quote if the opportunity w^ere offered us. It is a dif- 

 ficult matter to adjust ourselves to present conditions. In the 

 classic inquiry of a generation ago we are all asking "Who struck 

 Billy Patterson* ? The search for the cause of our present situ- 

 ation can only be valuable as it may help us to solve the very 

 serious problems now^ facing us. 



Are present conditions indicative of w^hat w^e may expect regu- 

 larly in the future, or are they simply a letting up to catch breath? 

 Undoubtedly the American public w^as for a year or two buying 

 mad. Will they rest awhile and take hold again in a reasonable, 

 moderate w^ay, or have they quit? It strikes me that this is the 

 whole question: Has the American public the every-day Ameri- 

 can citizen quit buying for his wants permanently; quit with a 



good bit of money lying around loose, or is he just resting up? 

 I think we all know him well enough to be able to answer this 

 question, and I think the answer will be unanimous. If my diag- 

 nosis of the case is correct, what are we up against? We are up 

 against a spell of waiting, more or less drawn out, but I hope not 

 an exceedingly long spell. We were flying pretty high, and in the 

 course of events we could not expect to always continue on the 

 wing. I think, though, the shots that brought us down were fired 

 a little early. The propaganda of the Treasury Department at 

 Washington, and of the Reserve Banks, while probably well in- 

 tended, was efficient, but I think premature, and probably more 

 efficient than intended. An immense debt had been created dur- 

 ing the war. while prices were high and business rushing. The 

 only time that a big debt can be paid is when prices are high and 

 business good. It is a poor time to attempt to pay when prices of 

 commodities are low, business poor and profits small. I think, in 

 the desire to lower the high cost of living, this fact was overlooked, 

 and the "goose that was laying the golden eggs" into the U. S. 

 treasury was killed, or, at least, temporarily put out of business. 



Time to Plan for Future 



I think now is the time to get ready for a good business in the 



near future not such a business as we had last year, but a good, 



healthy business. We all must sharpen our pencils as prices w^ill 

 be close. We must cut out extravagance and useless waste, and 

 introduce economy in the conduct of our business. We will prob- 

 ably all have something of a strain in adjusting ourselves to con- 

 ditions coming, but I believe any well-equipped, well-organized 

 and w^ell-managed plant w^ill soon again be doing a reasonably 

 profitable business. I fully realize that the buying capacity of our 

 people will be somewhat contracted. The shrinkage in value of 

 farm products during the past few weeks, estimated in some quar- 

 ters at around seven billion dollars, the reduction in wages will 

 reduce, more or less, the buying capacity of the farmers and the 



workmen, and these are the two classes of buyers that make busi- 

 ness good or bad. I have before stated that I thought the interest 

 of the business man ran along with good prices for farm products 

 and good wages to our workmen. I think anything that can be 

 done to restore farm products to a good paying basis should be 

 done, not only in the interest of the farmers, but in our ow^n inter- 

 est; in the interest of the business man in general. I think it stands 

 the employer of labor in hand to w^atch himself very closely to see 

 that he does not, in his effort to reduce cost of production, use the 

 pruning knife too freely, and so, while possibly doing an injustice 

 to his employees, injure himself by crippling the buying power 

 of a very large proportion of the American public, a portion that 

 always spends freely if it has anything to spend. The menace fac- 

 ing business is cheap farm products and low w^ages. Eighty-cent 

 \vheat and $1.25 w^ages buy little furniture. 



While it is not to our interest to force wages too low, w^e should 

 not allow the opportunity to pass without bringing about great 

 improvement in labor efficiency. Labor should understand fully 

 that a good day's work must be returned for a good day's wages. 

 If this is not understood and heeded, the w^orkman is simply in- 

 viting disaster. We should weed out the inefficient workmen and 



encourage the efficient workmen by paying good, liberal wages 



in fact, all the business will stand. We will, by this course, reduce 

 labor cost of our products, and at the same time keep the buying 

 ability of the workingman at a high point. 



Reasons for Prosperity 



The natural grow^th of population of the country has been in- 

 creasing during the past few years with the usual rapidity, but 

 house building has very largely stopped. It has failed to keep 

 pace with the growth of population so that it is in all cities dif- 

 ficult to find quarters in which to live. Families are doubled up — 

 young couples are living with the old folks instead of starting a new 

 home for themselves. Money has been scarce with w^hich to build. 

 Building material has been too costly to encourage investment in 

 new^ residences. With the lowering of cost of building material 

 and labor, money will again be obtainable for building, and this 

 industry will revive. It appears to me that on this one point hangs 

 very largely the future of the furniture trade, and we all recognize 

 the dependence of our line of trade on the prosperity of the furni- 

 ture business. With the revival of house building w^ill come an 

 enlarged call for furniture. It is estimated that a million new resi- 

 dences are needed now. Think for a moment what the building 

 of a million houses in the next few years would mean to the furni- 

 ture trade, and, incidentally, what it will mean to us. And the 



building is coming it cannot be put off much longer. 1 believe 



there is every reason to feel encouraged. We will be compelled 

 for a while to go slow, but the good time is coming. In the mean- 

 time get ready. 1 believe that we must depend on a good output 

 at close figures for our profit and not a large profit on a small 



output and this is better in the long run. Low prices encourage 



buying and put goods within the reach of a large buying public. 

 1 believe the ideal conditions will be w^hen cost can be made so 

 low that good goods can be placed within the reach of the larger 

 portion of the community. This does not mean that goods will be 

 made without a fair profit, but it means good management, good 

 machinery and good work. 



Withal we have reasons for a hopeful outlook. There is much 

 to inspire confidence. The accumulations of the last few^ years 

 are still in existence. The crops, in spite of low prices, will bring 

 a very large sum of money. The world needs our surplus, and 1 

 believe will make some arrangements by which it can make pay- 

 ment. Our transportation system is greatly improved so we will 

 be able to get our goods to market. The majority of our work- 

 ingmen are still receiving good wages. Credits are slowly easing 

 up. With all this, why should we be pessimistic? Let's cheer up. 

 This of itself will help. Feel optimistic and talk optimism. This 

 will help sales. No one will buy if you bring gloom with you, 

 iContiiiU' fl on iiinii 44 I 



