7? 



HARDWOOD RECORD 



January 10, 1921 



Little Buying on Chicago Market 



Early indications at the January session of the Chicago, fur- 

 niture market are to the effect that the dealers in the mass arc 

 not yet ready to resume buying. However, there is the possibility 

 that the situation may improve somewhat before the termination 

 of the market at the close of the month. The National Retail 

 Furniture Dealers ' Association will hold its annual convention at 

 Chicago Jan. 13 and 14, and this is expected to swell the number 

 of buyers in the market very substantially. The increase in the 

 number of buyers may in turn add substantially to the volume of 

 orders placed. Nevertheless, this is only problematical. 



Up to the end of the first week of the market, however, the buy- 

 ing had been practically nil, and tlie attendance only nominal. But 

 200 buyers registered the first day (Jan. 3) of the present market, 

 while 600 registered on the first day of the July market. Up to 

 Friday, the fifth day of the present market, the buyers registered 

 totaled only 500, as compared to a registration of 1,300 by the fifth 

 day of the January, 1920, market. 



But this small registration may be partially accountable to the 

 fact that during the first week of the ' previous markets, with 

 which this one is compared, the dealers held a convention in Chi- 

 cago, which naturally had the effect of drawing a good many 

 buyers into the market who otherwise might not have attended. 

 This time the convention will not be assembled until the second 

 week of the market. And, also, it is said that many buyers have 

 the habit of visiting the Grand Rapids market first, later coming 

 on to Chicago. 



The manufacturers exhibiting in the market make various inter- 

 pretations of the almost total lack of buying, some of them even 

 expressing the extreme opinion that the buyers are conceitedly 

 holding out of the market in the effort to smash present price 

 levels. The lines offered on the market, according to the various 

 estimates of the exhibitors, show a reduction in prices from tlie 

 July market of from 10 to 33% per cent on the average. The more 

 pessimistic of the manufacturers say that the buyers are not satis- 

 fied with this reduction, having expected to be able to buy at prices 

 representing much more radical reductions and nearer what they 

 consider normal prices. The furniture manufacturers in the main 

 Jiave merely marked their prices back to the April levels. 



Other manufacturers take an exceedingly optimistic view of the 

 situation. One exhibitor said that he was convinced, after talking 

 to a large number of dealers who have been in to look over his 

 exhibit, that the revival of buying will be only the matter of a few 

 weeks. When he opened his exhibit it was his belief that the 

 revival might be two or three months off. One large maker of 

 dining room and living room suites was not the least dismayed by 

 the dearth of buying. He said that he believed that by the first 

 of April the dealers would resume buying in considerable volume. 

 Retail stocks are now considerably depleted, he said, but the dealers 

 are determined to further liquidate them before replenishing. This, 

 he said, they will be able to do within the next ninety days, and 

 they will then be forced to make new purchases early in April. 

 Their attitude is an exceedingly healthful one, in his opinion, and 

 will result in more good to the industry in the long run than if they 

 should buy heavily just now. By shrinking their stocks instead of 

 buying the dealers are increasing their financial assets and reduc- 

 ing their liabilities, thus augmenting their ultimate purchasing 

 power. This method will minimize failures during the period of 

 extreme depression. This man believed that by April a large num- 

 ber of the furniture manufacturers will have resumed operations, 

 and that by July 1 over 60 per cent of them will be operating on 

 full or nearly full time. 



Views more or less similar to this hopeful one were expressed by 

 other large manufacturers on the market. One man said that while 

 only a small volume of orders might be taken on this market, he 



believed. many of the manufacturers would go back to their plants 

 and start making up small numbers of their patterns in prepara- 

 tion for the demand that would develop between this time and 

 spring. 



The opinion was frequently expressed that following this market 

 the manufacturers would begin to enjoy a good road business. 

 Many of the dealers who merely looked around in Chicago and 

 Grand Rapids will buy the stock they need when salesmen call on 

 them at their stores. 



The optimist referred to above said that at present price is no 

 object to the dealer. He is simply not in the mood to buy, and 

 attractive reductions will not tempt him to deviate from this 

 attitude. He won't buy until the depletion of his stocks has 

 reached the point where he is compelled to do so. 



One manufacturer said that the dealer is deterred from buying 

 at present prices because- of the fact that he is being forced to 

 offer his furniture ab about the same figures the manufacturers are 

 now asking for replacement. 



Virtually all the manufacturers are offering their stock at prices 

 guaranteed against decline, some of them until time of delivery of 

 goods and others for from three to even six months. In other words, 

 the dealers may buy goods and place them in his warehouse and be 

 guaranteed for a substantial period against any depression in the 

 value of his purchases. 



In the main the manufacturers are offering revised, though not 

 many entirely new, patterns in the January market. The Queen 

 Anne and William and Mary periods still dominate. Patterns were 

 revised with a view to improving their value as related to price. 



A further growth in the wide popularity of American walnut 

 was very definitely indicated in the patterns offered in dining 

 room, living room and bed room furniture. Mahogany appeared to 

 be holding its own very well in living room and bed room furniture, 

 especially the latter. Most of the better class of patterns are 

 offered in both the walnut and brown mahogany finishes. But one 

 manufacturer, at least, was offering his high class dining room 

 suites in oak as well as walnut and mahogany. 



Indications were that 1921 will see some increase in the employ- 

 ment of oak in high class furniture. Oak was still the dominating 

 wood used in the construction of dining and living room suites for 

 the less cultivated classes of trade in the southern and western 

 industrial communities. But walnut was the outstanding finish 

 employed for stock made up for the sophisticated eastern trade. In 

 short, American walnut will be the premier cabinet wood of 1921. 



{Contiiiu,ed from page 21) 

 wanted but not accessible and the furniture manufacturer will find 

 that his then need for lumber will put him in competition with other 

 fabricators of hardwood and the supply on hand with the saw mill 

 interests of dry lumber will, in my opinion, be very soon exhausted. 



One fundamental fact which largely contributes to the confidence 

 existing with most furniture manufacturers, that the future business 

 for this year will adjust itself to a satisfactory degree, is the greater 

 universal knowledge as to costs which the furniture craft as a whole 

 has achieved through the past few years. Manufacturers are willing 

 to reduce their values as costs permit, but are not willing to manu- 

 facture at less than cost in order to meet with a competition based 

 upon an unsound method of figuring costs with a sharp pencil, ignor- 

 ing the conditions as they actually prevail. 



The opinion exists that there will be no decisive buying of lumber 

 by the furniture manufacturers until orders are received from the 

 retailers in sufBcient volume to warrant factories operating. On the 

 other hand, as fast as the furniture factories start operations they 

 will be in the market for the lumber they require. 



