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

 Mill and Wood-Working Machinery, on the lOlh and 25th of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell, Technical Editor 



Entire Seventh Floor Ellsworth BuildinK 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



NEW YO 



ttOTANlC 



QAKL»U 



±=r 



Vol. XXXIX 



CHICAGO, OCTOBER 25, 1914 



No. 1 



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Review and Outlook 



General Market Conditions 



FROM REPUTABLE FIXAXCIAL SOUKt'EW in New York comes 

 the word that there is actually a discernible easing in the money 

 situation at that pulse of the financial arterial system. This report 

 does not seem to be substantiated as yet by any general developments, 

 but it comes from such an authoritative source that it is distinctly 

 worthy of mention. If it is an actual fact, it is unquestionably the 

 most important development within the past couple of weeks. 



The banks have been pretty severely criticised all over the coun- 

 try for the extreme tightness in the money situation, but there is 

 room for doubt as to whether or not this criticism is entirely war- 

 ranted. It is true that thousands of entirely legitimate and per- 

 fectly solid enterprises have been really embarrassed and inconveni- 

 enced by the arbitrary attitude of the banks, but on the other hand 

 it must be remembered that were money as accessible as during more 

 normal times, there would unquestionably be thousands of mushroom 

 enterprises started; there would be expansion where expansion is not 

 good business policy, and in general the entire likelihood of artificial 

 inflation of business, which would quite possibly result disastrously 

 for the whole commercial structure erf the country. 



If .the above, reported easing in financial circles is true, it is 

 probably the result of a realization on the part of the controllers of 

 the money situation that the rough edges have been worn off, and 

 the country has started on a period of well-balanced plans of think- 

 ing and that in general business men are in a position to use money 

 more intelligently and to better advantage for the country at large 

 than when the composite business mind was thrown out of its normal 

 plane by the calamitous happenings abroad. 



Market advices from representative points during the past week 

 establish two most pertinent facts. The first is that commercial 

 bodies everjTvhere are putting forth their very best efforts — are 

 utilizing their keenest intelligence and most thorough training for 

 the purpose of outlining in an intelligent, scientific and business-like 

 manner plans for taking full advantage of what opportunities are 

 offered to this country in fields of export which have not as yet been 

 exploited to any extent whatever. From everywhere come reports 

 of meetings of commercial bodies for the definite and specific pur- 

 pose of solving this problem as expeditiously as possible, but primar- 

 ily in an intelligent and permanent manner, so that the trade which 

 wiU be worked up will be established on a permanent basis and along 

 lines which will to a degree mitigate the iU repute of the exporting 

 business which our American business men have felt for so many 

 years. "With the thought of the entire commercial structure concen- 

 trated on these plans, it is simply a question of time when definite 

 strides in the direction of increased foreign trade in new fields will 



be made, and judging from actual acconlpli^hJllt;lH.s up-to-date, this 

 period of time will not be unduly long. 



There have been especially gratifying reports of actual shipments 

 of any number of American commodities, the orders for which can 

 be filled only in this country. Of course it is to be considered that 

 this business came naturally because this is the logical place now to 

 secure such equipment as is used by the armies abroad and which the 

 beUigereut nations can not now manufacture. However, actual or- 

 ders and actual shipments to date ha\e aggregated a very substantial 

 sum in dollars and cents. 



As far as the export lumber business is concerned, it is true that 

 the month of August showed a very alarming falling oflE as com- 

 pared with the month of August, 1913, and that the month of 

 September was even worse. But statements of leading exporters 

 indicate beyond dispute that so far in October unofficial estimates 

 establish the fact that the tide has already begun to turn, and that 

 there are considerable quantities of forest products now going abroad. 

 Of course, this trade is limited entirely to those of the warring na- 

 tions who control shipments on the Atlantic ocean. However, the 

 possibilities there are many and seemingly are increasing. It can- 

 not be claimed, of course, that exports even approach normal volume, 

 but at a time such as this when exporters look for nothing but abso- 

 lute cessation of business, even a fair volume of business at fairly 

 remunerative prices offers a gratifying tone to the situation. 



The other point which- our advices have demonstrated and have 

 shown to be a fact, is that actual figures on building operations 

 indicate the building situation in the country to be much more favor- 

 able than has been the case for some time. The last issue of Hakd- 

 wooD Record called attention to the probability of this development 

 and it is very gratifying to be able to state that specific reports 

 prove the entire truth of this surmise. There is, of course, only one 

 meaning to this development, namely, that the demands for lumber 

 will be augmented materially. Consumption will be kept up on a very 

 fair plane, and the excuse for haphazard slashing of prices will be 

 obviated. 



The average lumberman has been looking for an absolute ces- 

 sation of all orders and has waited with crossed fingers for the 

 clap of dooin. However, as each day goes by he may receive an order 

 here and an order there, and he begins to see a little ray of optimism 

 in the situation and to actually believe that dire calamity has not 

 yet reached us, and that there is a real hope that it will be side- 

 tracked in time to prevent disaster. 



The tone of the lumber trade is diificult of analysis. It consists 

 of strong mixtures of optimism and pessimism, but the proportion 

 seems to be shifting in favor of the optimistic element. This seem- 



