^ 



MwoM RocoM 



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

 Mill and Wood- Working Machinery, on the 1 0th 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 BuildmS 

 537 So. Dearborn Street. CHiCAGO 

 Telephones: Harrison 8086-8087-8088 





Vol. XXXIX 



CHICAGO, NOVEMBER 10, 1914 



No. 2 



^tyroCiili>S il>5t;;\^^i-r^i XJtatt7-'t}/Si^>a>^^ 



Review and Outlook 



^2U 



General Market Conditions 



MONEY seems, without any doubt, to be somewhat easier than it 

 Las been on the whole. This with greater activity in stock trans- 

 actions at a better level of prices shows a more normal trend of 

 thought among the financial men and large handlers of securities, 

 who together do more toward shaping the destinies of business 

 in this country than almost all other interests combined. There 

 are reported considerable negotiations for substantial increases in 

 railroad purchases, although for the most part these have not been 

 actually consummated, and where orders have been placed they 

 are usually for future delivery. However, it will not require im- 

 mediate purchases on the part of the railroads to effect the desired 

 end. If they should show a disposition to get back into the field, 

 the effect on the whole of our business fabric would be noticeable. 



Nothing outside of the general advancement toward the ultimate 

 complete adjustment of the country to present unusual couditions 

 has been noted. The continuance of the war is already beginning 

 to result in our being more or less satiated with war thoughts, the 

 effect being the impression is not so vivid or so startling as it was 

 in the beginning. As week after week goes into history this effect 

 will become more permanent and more favorable in its bearing on 

 our own affairs. If we could all but think business instead of war, 

 nothing further would be necessary toward the establishing of our- 

 selves in a period of unusual prosperity. 



It is difficult at this time to see just what effect the surprising 

 results in the recent election will have on business, but it seems 

 likely that any change would be favorable to a degree at least. It 

 is pretty generally conceded that the big business and financial 

 affairs of the country lean strongly to the republican side, and 

 there is an entire likelihood that with the return of the republican 

 faction to a position which gives at least partial control, the big 

 interests will loosen up for political reasons if not because of actual 

 justification. There is a possibility that business men of repub- 

 lican leaning will seize the opportunity of advancing the repub- 

 lican cause by pushing prosperity as actively as possible in order 

 to be able to hold before the people during the next presidential 

 campaign the alluring results of but partial resiunption of republi- 

 can control. 



There is no certainty that this would be a wise course, even, of 

 course, if possible, but a normal and natural return to good busi- 

 ness would unquestionably be more desirable. We have had too 

 many false starts in the last few years and what we want now is 

 a resumption in normal activity based on a perfectly sound founda- 

 tion. 



'There has been within the past couple of weeks a very gratifying 

 return of over-sea business in which lumber has shared to a con- 

 siderable extent. Shipments from New Orleans and eastern ports 

 have gone over regularly. This is true not only in lumber but in 

 other commodities, and its effect upon the cotton situation has 

 been most helpful. In fact, cotton is now in an easier position than 

 it has been at any time since the opening of hostilities. It is al- 

 together probable that these foreign shipments will increase in fre- 

 quency and volume gradually as the war goes on. We cannot hope, 

 of course, for export shipments resembling shipments of normal times, 

 but it must be borne in mind that there is at least one favorable 

 feature of the present export situation — that is, in place of the usual 

 balance against this country when all features are reckoned, exports 

 now return a very favorable balance in favor of the United States. 

 In fact, for October the balance was quite astonishing, running well 

 into millions of dollars. When the trade of any country is finan- 

 cially unable to meet its obligations, there is no particular encourage- 

 ment in selling goods there while payment is not forthcoming. 

 However, this situation will result in big sales abroad and a flow 

 of actual cash to this country as our imports from these foreign 

 customers are practically nil. The result would be that while we 

 are sending our goods abroad in exchange for actual cash we are 

 planning at home to provide for ourselves suitable substitutes for 

 many articles which heretofore we have been importing because of the 

 lack of sufficient incentive to manufacture them at home. The scope 

 and importance of this development is probably not fully realized 

 as yet, but instances are coming up every day to prove that it will 

 be of great importance to American industrial life. 



Probably the one thing which has resulted more than any other 

 in maintaining the present depression is our weakened purchasing 

 power which comes as a result of a long period of depression fol- 

 lowed by the present abrupt demoralization. To start a general 

 improvement that all will feel favorably, it is only necessary to give 

 omployment to those who, because of lack of employment, have been 

 unproductive and nonpurchasing. 



In lumber there is not much particularly to be said as to actual 

 changes. As for f|^||f0l months back, the box trade seems to have 

 taken considerable qmntlties of low grades of various species, keep- 

 ing that variety of lumber in its position as the best seller. Nothing 

 of import has developed to change the relative strength of demand for 

 other varieties of lumber, and while there is absolutely no future 

 buying or speculation, as consumers cannot be induced to obligate them- 

 selves even for the sake of making good purchases under existing 

 prices, there are so many statements of hope for the developments in 

 the near future that they compel attention and belief. 



