16 



HARDWOOD RECORD 



January 10, 1921 



ever, if the manufacturers could not be lower in their present offerings 

 than present prices indicate. 



Apparently the year is opening with the sales inertia which charac- 

 terized the end of the year 1920 still undisturbed. The closing week 

 or two of the old year was more or less encouraging in that a con- 

 siderable number of inquiries and orders were forthcoming. Many 

 such inquiries, of course, were market feelers. Others were to estab- 

 lisli markets for inventory purposes, which many sales were made to 

 establish losses for the same reason. 



The new year opened even less auspiciously, uncevtainty of the out- 

 come of the furniture shows being a dominant reason so far as hard- 

 wood movement is concerned. At the same time the shows are not yet 

 over and more strength may develop as buyers have the opportunity 

 of more fully analyzing what they find. 



The apparent predominance of well-designed new lines gives hope:; 

 that retailers may be converted partially, at least, to a " buy now ' ' 

 policy before the sales are concluded, but expectations should not be 

 too keen in that direction. 



It is quite apparent that walnut has become an even greater factor 

 in the furniture market this year than ever before, and from the 

 standpoint of the oak men, the evidences of oak used in the higher 

 priced goods is also encouraging. Now if these exhibits will but result 

 in some actual orders placed, even though those orders be not especially 

 large or particularly numerou.s, the outcome will be entirely satis- 

 factory. 



The continued depression prolongs the period of inactivity in manu- 

 facturing circles, the number of mills shutting down being constantU- 

 augmented, with occasional reports of renewed operations. 



However, there has come about a substantial liquidation in labor 

 circles, which coupled with general decreases in other costs and in- 

 creased efficiency, may eventually work to the point where lumber can 

 be manufactured cheap enough to sell at somewhere near prevailing 

 level. This will come about, though, only even if price reductions are 

 substantially checked in the very near future. 



Hardwood Record believes, as it has for some time, that the first 

 months of the year will be marked only by further adjustments, by 

 continued shifting and sifting of the industrial mass, until it reaches 

 a greater equilibrium. This will merge gradually into the phase of 

 returning business, which change will be marked not by abruptness, but 

 by steady, healthy, accretion based on efficiency, competition and 

 other licalthv business influences. 



Financing the Lumber Industry 



A RECENT ISSUE OF HARDWOOD RECORD contained a well 

 executed article on the financing of the lumber industry, the 

 article being written not so much to give information as to point 

 a condition and seek a remedy. The necessitj' for some additional 

 means of financing the industry is conceded. In fact, the need for 

 half way means is imperative. 



A letter received by H.-^edwood Recoud recently from a well 



known lumber manufacturer of good standing, exactly fitted the 

 point raised in tlie financing article referred to. This man has an 

 accumulation of exceedingly well manufactured lumber^ on which 

 lie has not been able to realize for the past few months. He seeks 

 $40,000 to $50,000 to carry him over the present ' period of 

 depression. 



The difficult requirement of his ease, as in the ease of so many 

 others in similar position, is that he needs the money for more 

 than the usual thirty, sixty or ninety days, and further that the 

 amount he desires is not large enough to make possible a bond 

 issue that would carry him over a longer period. 



It is quite apparent that a short time loan to this manufacturer 

 would not relieve him of the present strain. The maturity of such 

 short time paper would undoubtedly find him in the same condition 

 as at present. Therefore, the necessity of a loan of an intermediate 

 period. 



This, and similar instances suggest the thought that lumbermen 

 might thus build an instrument for their own relief, under condi- 

 tions similar to those now existing, through the formation of a 

 co-operatiA-e financing company. Would such corporation be 

 feasible? Of course, it would operate on a business basis, and would 

 reflect the operations of similar instruments in the general field. 

 There are existent today various financing corporations, but they 

 apparently do not wish to touch anything less than several hundred 

 thousand dollars, arguing properly that the cost of analysis and 

 investigation of a small project is just as great as in the case of 

 the larger loan. Therefore, the small offering was not attractive. 

 Probably such co-operative financing body niiglit require a greater 

 charge for service, but if it functioned to relieve well established 

 members of the industry during times when they could not get 

 relief elsewhere, would it not serve as an instrument of tremendous 

 benefit to the industry? Many a block of lumber has been dumped 

 on the market during the past few months merely because financial 

 tightness made it essential. The banks either could not let any 

 money out or if they would make a loan it was for a short period 

 and hence of no real value. In most cases a bond issue was 

 impractical. 



In other words, there is an intermediate point in lumber financing 

 not now served by any financing medium. In the interest of each 

 other, and hence of the industry at large and for the purpose of 

 relieving reputable members in distress, the formation of such a 

 corporation might be sufficiently practicable to warrant attention. 



Reprints of Hardwood Cut Figures Available 



In order to be in a position to promptly meet further demands 

 from the trade for reiirints of the statistics showing "Why There 

 May Be a Famine of Hardwood Lumber," a large new lot of 

 reprints have just been made. These will be given to the trade in 

 reasonable number, without charge. The statistics, gathered from 

 aliout .'lOO answers to a questionnaire, were published in H.VRnwooD 

 RECORn Dec. 25, 3920. 



Table of 



REVIEW AND OUTLOOK: 



General Market Conditions 15-16 



Financing the Lumber Industry 16 



SPECIAL ARTICLES: 



The Federal Taxation Dilemma 17-18 & 24-25 



Lumber Unites to Revive Building 19-20 & 25 



The Grand Rapifls Furniture Exhibit 21-22 



The Chicago Furniture Market 22 



Wood and Plywood in the Commercial Airplane 31 & 38 



The Mahogany Situation Today 32 & 36 & 44-45 



POWER LOGGING AND LUMBER HANDLING: 



Clearing Cut-over Land with Tractors 26 



Single or Three-Speed Tractors 26-27 



NEWS FROM THE NATIONAL CAPITAL: 



Miscellaneous 23 



Lunibermen Gain Inventory Decision 23 



CLUBS AND ASSOCIATIONS: 



Miscellaneous 28-29-30 



Contents 



HARDWOOD NEWS 4«-5S 



HARDWOOD MARKET 55-59 



CLASSIFIED ADVERTISEMENTS 62-64 



HARDWOODS FOR SALE 64-67 



ADVERTISERS' DIRECTORY 61 



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