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Copyright, The Hardwood Company, 1921 



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 

 537 So. Dearborn St., CHICAGO 

 Telephone : Harrison '-SOS? 



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Vol. L CHICAGO, MARCH 10, 1921 No. 10 



Review and Outlook 





General Market Conditions 



THIS EEPORT IN THE LAST ISSUE of Hardwood Eecobd 

 was based essentially on excerpts from market analyses com- 

 ing through our corps of trained correspondents throughout the 

 country. Their entire freedom of action in reporting on condi- 

 tions as they find them convinced Hardwood Record of the value 

 of presenting a consensus of the opinions expressed, as their 

 activities cover practically every large lumber center in the 

 United States, that is, with the exception of the West Coast. So 

 strikingly general were their opinions of gradual improvement 

 that a careful watch of market reports coming in for this issue 

 was made, and with practically no exception the opinions expressed 

 two weeks ago have been borne out, indicating that the gradual 

 increase in orders and inquiries was not merely a matter of passing 

 coincidence. 



It is of course entirely reasonable to adjudge the situation 

 as entirely correct purely on the basis of what has been 

 presented during the past few weeks. Conditions are still pretty 

 near the low water mark, and orders and inquiries represent but 

 a fraction of normal value. Taken, however, in comparison with 

 the immediately preceding period it is perfectly obvious that an 

 improvement can be recorded. Apparently the course of events 

 during the coming months will reflect a careful building on firm 

 foundation, which will react favorably during the continuance of 

 reconstruction in the future. The process of returning to normal 

 tained for the past several years. Corrective influences of this 

 a sudden revival might even be looked upon with alarm rather 

 than satisfaction. 



A gradual, steady growth, making possible the stabilization of 

 markets and commodities, will eliminate the tendency towards 

 loose methods and will gradually instill a much higher degree of 

 efficiency and a more finely developed sales ability than has main- 

 tained for the past several years. Corrective influences of this sort 

 became absolutely essential to the welfare of this country during 

 the period of laxness and open-handed dealing that has characterized 

 business of late years. 



While reports of improvement in orders and inquiries are suffi- 

 ciently profuse to indicate a general increase of this sort, a care- 

 ful survey within any one region reveals a continuance of spotty 

 condition as one is just as apt to encounter an outright pessimist 

 as a conservative optimist. At the same time the moral effect as 

 to what has actually developed in the way of new business is of 

 great importance anel has already made itself felt. As this devel- 



opment continues it becomes apparent that a very fair volume of 

 present production is moving on this new business, and in the 

 meantime total production is being strictly limited, apparently in 

 accord with the figures prevailing about the first of the year. It 

 will be recalled that Hardwood Record's survey of the hardwood 

 industry at that time revealed a total production in effect of not 

 more than fifteen per cent of normal capacity. Some mills have 

 started since then, others have shut down, others which have 

 started being occupied primarily with sawing up logs supplies 

 threatened by serious deterioration if not utilized. When these 

 supplies are exhausted it is likely that these mills will again 

 cease operations. 



In short, it may be anticipated with a safe degree of accuracy 

 that the 1921 volume of hardwoods, inclusive of all territories, 

 will not be in excess of from twenty-five to thirty-five per cent 

 of what might be normally manufactured. In the meantime come 

 reports from various large woodworking centers citing gradual 

 increase in hours of operation. A number of the large Grlttid 

 Rapids factories are now running on a six-day schedule, and the 

 same gradual increase in production is noted elsewhere. Obviously 

 the furniture factory can not ge* along without hardwood lumber 

 and veneers. 



The point which has most deeply interested both the producing 

 and the buying trade ever since hardwood lumber was utilized 

 for remanufacture has been stabilized value. The woodworker 

 does not of necessity demand an unfairly low purchase price for 

 his hardwood and veneer stocks. The thing which disturbs him 

 is the great disparity in past prices, which is always most mani- 

 fest when conditions are dull. Therefore, the woodworker wOl wel- 

 come, just as much as the man who makes the stuff, any influence 

 which tends to' bring greater stability to the hardwood lumber and 

 veneer markets. This action has practically gotten under way as 

 the result of the realization on the part of mill men that they 

 could not long continue to sell at less than cost and as a result 

 further of t^-e gradual increase in volume and definiteness of their 

 inquiries and orders. It can not but be apparent that prices have 

 gone to the low point. Indeed^ even at the present stage standing 

 timber, which it is impossible to replace, is being cut for sale at a 

 loss. It is not at all difficult to understand why the hardwood 

 man, realizing the ever-increasing difficulty of buying good stand-' 

 ing timber, is loathe to continue cutting his trees'on the basis of 

 the present market. 



