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Copyright. The Hardwood Company, 1015 



Published in the Interest of the American Hardwood Forests, the Products thereof, and Logging. Saw 



Mill and Woodworking Machinery, on the lOlh and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh. President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell. Technical Editor 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street. CHICAGO 

 Telephones : Harrison 8086-8087-8088 





Vol. XLI 



CHICAGO, NOVEMBER 25, 1915 



No. 3 



'H WicaKi«R:!roros!gTO!!TOtii>iTOro^;i;^^ 



Review and Outlook 



General Market Conditions 



THE MOST INTERESTING FEATURE of the present standing 

 of the hardwood trade is its effect upon the policies of pro- 

 ducers of hardwood products. To lay down anything in the nature 

 of a general policy that would fit all concerns manufacturing hard- 

 wood lumber and veneers would be an impossibility as circum- 

 stances invariably differ as between different operators. 



The northern operator is constantly faced with the low grade bug- 

 bear. This stock does not find the diversified and regular market 

 that the low-grade products of the southern mills commonly enjoy. 

 Hence the northern operator's production must be regulated to the 

 condition of his low-grade piles. He has had an accumulation of low- 

 grade lumber, and while his upper grades are moving in good shape 

 and stocks are well in hand in this particular, the average northern 

 operator is counting upon a reduction that will probably shorten 

 the input of hardwood logs by about ten per cent during the winter 

 months. 



On the other hand the southern operator has a better balanced 

 product and the markets for his low-grade are more normal and less 

 subject to fluctuations. As a result, the present rapid improvement 

 in the hardwood situation has found many southern operators with 

 stocks somewhat broken, but the probabilities are that there can be 

 anticipated a nearer approach to normal production of southern hard- 

 woods in the next few months than has prevailed for quite a long 

 period. 



It is diflScult to tell how far the upset in the export business has 

 affected and will continue to affect the hardwood situation, but no 

 one has any right to believe that this policy will be negligible. 

 There isn't very much in the way of improvement in this direc- 

 tion and it is hardly to be anticipated that a normal movement of 

 the common run of hardwoods designed for foreign consumption 

 ■will be resumed until conditions are well settled after the close of 

 the war. In the meantime the export situation will continue its 

 effect on the whole lumber market, but fortunately it is apparent 

 that the domestic situation will be so overwhelmingly better as 

 to partly nullify the bad influence of the partial cessation of the 

 movement abroad. 



In speaking of prospect for better prices in hardwoods, it can 

 be said with absolute truthfulness that there have been advances 

 in a good many items, but it is undoubtedly true that the most 

 notable advances have been in those items which were most off 

 list before. That is, there has been a general tendency toward 

 •establishing a common stable level and anybody who can not get 

 an immense measure of encouragement from the steadying tone 

 on going prices of all grades and kinds of the usual types of hard- 



woods is indeed a pessimist. As yet, it is hardly jjossible to make 

 an intelligent statement showing in a specific way a general ad- 

 vance in hardwood values, for as a general thing where better 

 prices have been realized on stable articles they have been the 

 result of circumstances which could not be taken as establishing 

 a market precedent. At the same time each and every instance 

 of orders placed on advance quotations will have its effect upon 

 offerings of the whole trade, and in the course of time these indi- 

 vidual cases will determine the going prices for hardwoods. But 

 for the present and for a reasonable period in the future about the 

 best that can be hoped for is the absence of the ridiculous sacri- 

 fices that have characterized trade in hardwood lumber, veneers 

 and kindred products for a good many months. After that will 

 come a marked upward movement. 



The recent contention of one southern manufacturer that the 

 inventory season this year will not have the depressing effect that 

 it usually docs is certainly being borne out not only by the state- 

 ments of others, but by the conditions that everyone has surely 

 become aware of by this date. 



The forging ahead is going to keep steadily on right through the 

 ordinarily dull fall months. Hardwood Record has predicted in the 

 last few months that better prices that can be classified as gen- 

 eral and which offer tangible form, will go into effect. The evi- 

 dence in this direction is growing stronger week by week, and it 

 was never stronger than it is now. In the meantime buyers are 

 still able to get reasonable quantities of stock for immediate use at 

 favorable prices. 



Probably the biggest reason for rejoicing in the lumber ranks is 

 the continued evidence that the railroads' resumption of buying 

 in all directions is a direct result of more money in their coffers. 

 They are getting more business and are embracing the opportunity 

 of getting their equipment and trackage in good shape. 



The increased call from the country yards is another evidence 

 of the influx of money into the farm sections, which in general 

 realized handsomely on their crops this summer and fall. About 

 everything that is used in the farming business is being over- 

 hauled and added to and being put into good working form for 

 next year 's prosperous activity. All in all, while there is still a 

 good deal to be hoped for, there is no prospect that there will be 

 any kind of a slump for a long time to come. In fact every 

 prospect of much clearer, cleaner and more satisfactory business 

 for the remainder of 1915 and during the greater part of 1916 is 

 evident. What will come after that is problematical, but if we 

 get well launched in 1916, it is very likely that we will have 

 started on an indefinite period of prosperity. 



