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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 



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. XXXIX 



CHICAGO, JANUARY 10, 1915 



No. 6 



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Review and Outlook 



General Market Conditions 



THERE IS NOTED ELSEWHERE in this issue the opening of 

 the mills of two of the largest hardwood manufaeturing insti- 

 tutions in the United States. The policy was adopted after mature 

 consideration by the directorates of the respective institutions in 

 regular meetings, and it is significant that in each case the men who 

 are responsible for shaping the policies of these firms are men who 

 are closely in touch with the varied mesh of business and whose 

 views are not narrowed to perception of problems facing the lumber 

 business alone. Hence this note of optimism has an even deeper 

 meaning than if the companies in question were onem&n institutions. 

 Hardwood Record has contended for many issues that the thing 

 most vitally lacking in business is sufficient confidence. By far the 

 most valuable effect to the remainder of the trade from the opening 

 of these two plants, involving many million feet of production, will 

 be the general tendency to increased confidence with other institu- 

 tions. It can be supposed, with utter confidence in the correctness of 

 the belief, that these two firms have made their decisions only because 

 they feel that conditions warrant. It can be supposed with equal 

 belief in the correctness of the supposition that the men behind these 

 firms are in a position to so judge conditions as to make their opinions 

 fully authoritative. 



At present there is a season of inactivity as far as the furniture 

 factory trade is concerned, due to the recent opening of the furniture 

 exhibits in different ])arts of the country. Even under the best of 

 conditions it is not possible to sell furniture men any quantities of 

 raw material imtil they see the probable trend of demand for their 

 own goods. It will not then be possible to secure orders of any 

 magnitude for hardwood lumber, veneers or panels for this class of 

 trade until the probable condition of furniture sales is fairly estab- 

 lished by the attemlance at the shows and the activity of orders. 



It is frankly admitted by some of the leading manufacturers in the 

 furniture trade, however, that they feel altogether optiuiistcc regard- 

 ing the outcome of the sales, and further, that with fair business 

 resulting, they will be in a [losition to purchase tlieir entire .stocks 

 of lumber. Until that point is established, however, one way or 

 another, it is practically useless to look to this class of trade for very 

 much in the line of hardwood orders, and the reasonableness of this 

 condition should be fully appreciated. 



As indicated by statistics of commercial and industrial development 

 of late, the money situation is easing I'onsiderably. However, the 

 banks have not yet done their part to put the country on its feet 

 and in many cases are being severely criticised for their continued 

 high rates of interest and for their unreceptive mood as far as 

 backing is concerned. The interest rates are of course considerably 



more favorable than they were for several months, but even at that 

 it is hardly a pleasing comparison to note the rates prevalent in this 

 I'ountry, which presumably is enjoying fair business, and the rates 

 in effect in England where money can be had at as low as five and a 

 half per cent, and for year periods at that^. 



Considerable disappointment has been expressed in many quarters 

 at the lack of active buying on the part of the railroads of the 

 country iuiniediately following their successful fight for increased 

 rates in tlie eastern teriitories. This disajipointment has haidly Ijeen 

 justified as there has hardly been sufficient time for a fair align- 

 ment of purchases, as it hardly seems possible that the railroads 

 should have gone to the expense of shaping up policfes for increased 

 expenditure before they knew they would have increased revenue to 

 take care of such added outlays. It seems that it would really take 

 considerable time to spend .$2.5,000,000 to $30,000,000 intelligently, 

 and getting right down to it that is exactly what the railroads are 

 up against. 



The average c(niiuiercial house in any of our big cities counts 

 prol)ably more on printer's ink than upon any other means of getting 

 in touch with its customers. Whether it has men on the road or not 

 it considers the publication of catalogues and other sales literature 

 .in absolute essential to business advancement. During the piast few 

 months the stagnation of business has been more clearly and con- 

 clusively demonstrated by extremely slack times with the printers 

 ■ than ill any other way. Several of the largest printing institutions 

 nt ( hi ago had closed up their plants entirely on certain days of the 

 week on account of the absolute paucity of orders for this class of 

 literature. There comes encouraging word from this source during 

 the past few weeks to show beyond a doubt that this condition is 

 rajiidly being lemedied, and that the general tone of increasing 

 c(iiifideni-e. which appeals to be spread over the entire country, has 

 made itself felt in n concrete and result-getting way. Printers are 

 now doing a great ileal more wiirk than they did during the ex- 

 cesi-ively dull period, and it is impossible to put any other construc- 

 tion on this condition than tii su)ipose that it indicates a return of 

 confidence and increased business. 



We have a hopeful sign in reports of bnilding for 1914. Statistics 

 show that there was a loss of only about fifteen per cent in the 

 country as a whole. The average individual probably believed that 

 the falling oflf in buihling operations was much more serious than 

 this, and there should be considerable hope in this condition as well 

 as in the fact that building of all kinds is assuming a much more 

 active attitude than it has for several months past. 



In the lumber trade, specifically, the tone of inquiries has been 

 much better. They have not been so flagrantly mere feelers of 



