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1. u|.vrit;ht, The IIakuwood Comi-anv, I'Jls 

 Publi»hed in the Inlcrcsl of the American Hardwood Forests, the Products thereof, and Logging. Saw 

 Mill and Woodworking Machinery, on the 1 0th and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh. President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell, Technical Editor' 



Stvrnlh Floor KlUworlh Buildmg 



537 So. Dearborn Street, CHICAGO 



Telephones: Harrison 8086-8087-8088 



Vol. XLV 



^ TO!g)iraCTtgtPiailMm !tiWi>SW>i^^ 



CHICAGO, AUGUST 10, 1918 No. 8 



General Market Conditions 



Ax 0BSERV.\BL1-: SLl'CHilSliNK.ss l,:.s partially enveloped the 

 hardwood market in roc'cnt weeks. In faet it is notioeable to a 

 degree rather surprising considering the influences toward strength 

 that are growing more pronounced with each passing month. The cir- 

 cumstances would not be worthy of especial comment were it merely 

 a matter of mid-summer slow-down in orders. But it appears that 

 there has been enough price shaving to have caused general com- 

 ment. It is, fortunately for hardwoods, true that the weak sisters are 

 in the minority and the trade at large is still suflJciently confident of 

 the future that retroaction in prices smacks more of a strategic re- 

 treat of some who lack the strength to sit tight, than a general trade 

 inclination. 



There is a clear reason why some oflferings are made at prices mov- 

 ing in the opposite direction to producing costs. In the first place 

 there is as usual a percentage of people who cannot stand the financial 

 strain of holding lumber for price on an easing market. It is this 

 i-lass who are doing the cutting today. They are inspired by the un- 

 deniable falling off in orders and the fear of piling up money in 

 stock that will not move. In the ranks of the price cutters one will 

 find those who are still uninformed as to their true cost of produc- 

 tion. 



The extent of orders placed and shipped prior to July 1 is more 

 plainly recognizable than while the movement was still going on. Trade 

 canvasses show that buying to cover on old freight rates was quite 

 general, and as at that particular time there was a liberal supply of 

 freight cars, most of this stuff was placed en route and is now pretty 

 well stored on final foundations at the factory and in the yard. 



Another fact which has not been so widely spoken of concerns the 

 |>urchases by the larger industrial users of lumber who are farsighted 

 enough to see the growing production troubles and doubtful shipping 

 facilities. Taking these things into account, many of the large indus- 

 trial plants have been quietly filling up their foundations with lumber 

 and are now pretty well provided for. When to this is added the un- 

 certain status of the non-war wood-using industries and the effect which 

 is always felt at this season of the year, there is no room for wonder 

 that new business has fallen off. But the big consideration now before 

 the hardwood trade is not one involving orders, as the present day 

 production of hardwoods will be very easily taken care of by develop- 

 ing demands. The question is one rather of analyzing the situation 

 fully and satisfying one's self tliat to lower market prices will be not 

 only disastrous but distinctly out of line with what the situation truly 

 .iustifies. The hardwood business is now practically on a war footing 

 as far as consuming demand is concerned, there being Jvery few mills 



which are not turning out their quota of production which ultimately 

 goes into some article or construction having to do with the war. And 

 yet there is still a very large volume of hardwood lumber moving out 

 on commercial orders. 



The conclusion of the July furniture shows left the furniture man- 

 ufacturers in a fairly satisfactory frame of mind as far as orders are 

 concerned, the chief cause for worry being the attitude of Washington 

 toward manufacture and shipment of such lines. Were the furniture 

 trade assured of being permitted to go ahead as usual and taking its 

 regular chances of getting labor, the outlook for hardwood consump- 

 tion in this field would be rather good. The chief cause for concern 

 though now has to do with necessary labor. With the new government 

 regulations governing the labor market, the outlook is not encourag- 

 ing. With the reported shortage, uncovered by government canvass 

 of unskilled labor, of .500,000 on August 1, and with many returns still 

 to come in, it is apparent that the non-war industries will be left to 

 shift pretty much for themselves in the matter of help. The govern- 

 ment is already laying its plans to draft labor from non-war fields to 

 make up the deficit at war production plants, and it is very doubtful 

 if many non-war industries will be able to retain sufficient unskilled 

 help to maintain even a reasonable production. 



There is arising, moreover, the spectre of fuel shortage and the 

 probabilities that the government will be much better organized to ar- 

 bitrarily regulate the distribution of fuel in the directions -where it 

 will be of the greatest benefit in the prosecution of the war. The most 

 serious reason for concern though comes from consideration of reduced 

 capacity for other than war work. The total value of all manufactured 

 products in America has reached an annual sum of about $24,000,- 

 000,000. With the government planning an expenditure of a like 

 amount on war work, there seems little room for doubt that non-war 

 work must be set aside to a considerable extent. A clear field must be 

 given to war production as it can be expected that the bulk of this 

 expenditure will be for manufactured materials. Of course, the 

 manufacturing capacity of the country is being radically increased so 

 far as it appears on the surface, but the truth of the matter probably 

 is that a good deal of this added capacity is in specialized industries 

 and there is a concurrent accumulation of idle capacity in other iudus 

 tries which are not strictly adapted to the production of war com- 

 modities. .-Vt any rate, the labor supply will probably be the govern- 

 ing factor here and that is truly strained to the breaking point. 



Thus witli the government planning to spend on manufacturing ma- 

 terials practically as much as the entire worth of the country's manu- 

 factured products, it stands to reason that practically all of the manu- 

 facturing capacity must go into war work. It is a reasonable predic- 

 tion that il" within a year there is not a definite and unmistakahh' . i : 



