Copyright, The Hardwood Company, 1920 



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. Meeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 



Seventh Floor Ellsworth Building 

 53 7 So. Dearborn St., CHICAGO 

 Telephone : Harrison '-8087 



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Vol. L 



CHICAGO, JANUARY 10, 1921 



Lmfr.- 



No. 6 



7?^^ 



" f t^ iT ": 



Review and Outlook ""'""^^ 



QAKua« 



General Market Conditions 



FORTUNATELY THOSE WHO LOOK to tlie first of the year as 

 a magic turning pest in business have been in tlie minority. The 

 processes of general liquidation proceeding during the Jiast few 

 months, had before them at the lieginning a road too long to be 

 traveled over-night. The most fortunate phase during the current 

 depression is continued lack of panic. What has come about was 

 anticipated and the beginning of the decline found industry in genera! 

 well prepared to meet it. Today we have, according to the best 

 authorities', truly sound domestic condition with everything to gain 

 and nothing to lose from export jiossibilities. 



Summing up the possible future of export business, one authority 

 says that quite apparently there is a tremendous actual demand in al- 

 most all countries for American goods, but no money as yet «ith 

 which to satisfy that demand. Until some of the financing machinery 

 recently designed is put into operation in the export field, this 

 auomolous situation will proliably not be remedie.d 



Domes'tieally, there apparently is a similar combination of cireum 

 stances, though the absence of buying is due more to disinclination 

 than to absence of money. Increasing unemployment, though, has 

 probably injected a factor of moment through decreasing fundamental 

 buying power. It is, therefore, especially encouraging that many of 

 the large' industries have resumed operations: in the past week or two. 

 Whether or not these industries are resuming because justified by 

 orders, or merely as a matter of policy, regardless of orders, remaius 

 to be seen. The list includes large operations in essential lines includ- 

 ing automobiles, implements, foundries, etc. This resumption will at 

 least operate to partially cheek decreasing buying power. 



The two outstanding avenues of lumber consumption, considering 

 the matter primarily from the hardwood angle, are the building and 

 the furniture industries, the latter being of course substantially de- 

 pendent upon the former. 



What the prospects are for resumption of building are still not 

 quite clear. According to the best digest, lumber has gone off fifty to 

 sixty-five per cent, thus quite obviously reducing it to a point where 

 prospective builders may make more definite calculations. It becomes 

 apparent, however, that other items of building expense have not been 

 reduced in a like manner. The mass meeting of lumbermen held at 

 Chicago last week finnly established the position of lumber in the 

 building outlook, and the resulting general call to building material 

 handlers of all kinds, scheduled for this month, will undoubtedly result 

 in action tending to reduce and stabilize the cost of other building- 

 factors. It is apparent that houses are being offered on the market 



today at considerably less than two months ago. Thus it is even more 

 essential that the cost of original construction be substantially reduced. 



The great success of the lumber mass meeting and the spirit that 

 prevailed, give promise of equally gratifying results from the general 

 meeting of building material handlers. At least, it will result in evi- 

 dence that may be presented to the public indicating the precise situa- 

 tion relative to present and prospective building costs, and these have 

 at least the effect of steadying the outlook. 



As H.AKDWOOD Recotd has repeatedly stated, the tremendous po- 

 tential demand for building can not be permanently denied. Resump- 

 tion even in a partial measure would tend greatly to stimulate lumber 

 conditions. With such stimulation an actuality, the reaction will be 

 strongly felt in hardwoods as well as in building lumber circles. 



This month is notable especially for the current furniture exhibits at 

 Grand Rapids and Chicago. As this issue goes to press the show has 

 been on but a week and it has already become quite apparent that the 

 buying has been exceedingly quiet. One finds, though, a very sane 

 attitude on the part of the exhibtors, most of whom frankly state 

 that they did not anticipate business from the shows. Apjjarently 

 retailers have not yet liquidated old stocks and certainly are not going 

 to place new orders until their iloors are cleared more than at present. 

 Some manufacturers have expressed themselves as believing the absence 

 of buying indicates a buyers' strike. This, though, is not a likely 

 version. 



The retailer came to the show to find out what prices are gojng to 

 be, and second what new styles and lines would be shown so that he 

 miglit be able to determine what his chances for stimulated retail sales 

 might be. He did not come prepared to buy, but merely to investigate. 

 He will now return and complete his liquidation, at which time it may 

 be anticipated that the beginning of renewal of stocks may be expected. 



One point which apparently does not add lustre to the outlook is 

 the prices quoted by exhibiting manufacturers. Evidently the average 

 reduction lies somewheres between ten and twenty per cent, it more 

 likely being below than above fifteen. One manufacturer, in fact, 

 made the observation that he had seen retail stocks offered in Chicago 

 during the current liquidation sales at about the price of similar 

 articles on the floor of the exhibition. On the other hand, some price 

 reductions are as high as one-third off. The all-important point is, can 

 retailers take on goods at these figures and turn them over on their 

 own floors when they have had to resort to spectacular sales during 

 the past month or two in order to effect what liquidation has taken 

 place? Fortunately, though, there will be a price guarantee hitched 

 to current furniture sales. With this knowledge, the retailers may 

 be able to work out their problem. One is impelled to wonder, how- 



