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Mwol RSoM 



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

 Mill and Wood- Working 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 



New V6, 



"•'Ta.'vjca 



Vol. XXXVIII 



CHICAGO, AUGUST 10, 1914 No. 8 



Review and Outlook 



General Market Conditions 



TIIH BIG QUHSTION NOW BEFORE tlie lumber trade, as well 

 :is all other business men, is to the probable effect of the European 

 upheaval on business in this countrv. It is a deplorable but none the 

 less generally admitted fact that the lumber business feels any un- 

 favorable develoi)ments not only sooner but more acutely than does 

 almost any other line in this country. The probable reason for this 

 is the fact that lumbermen to a large extent operate on borrowed 

 capital, and, of course, in times such as these there is likelihood that 

 banks will rather tighten up. This, of course, would be a serious 

 proposition, for sawmill men particularly. There seems, however, to 

 be a pretty firm belief in the effectiveness of the recently passed cur- 

 rency bill to provide for emergency money, and if this enactment 

 proves effective the condition which lumbornicn seem to be afraid of 

 more than any other will be obviated. 



The press and public opinion seem to be divided into two groups 

 in their attitude toward the wars in Europe. One group is extremely 

 optimistic as to the probable effect which will result to American 

 business; the other faction takes an extremely pessimistic view of 

 the whole situation, declaring that no good can result from such a 

 dreadful catastrophe. 



It is, of course, difficult to determine which is the truth, though it 

 does seem entirely logical that if the business men of this country 

 wiU take full advantage of the opportunity it wiU offer a chance of 

 getting so firm a foothold on foreign trade in certain localities that 

 the result wiU be not only immediate but permanent. This is particu- 

 larly true, of course, of the South American countries, which naturally 

 offer the best opportunity, although there are certain neutral European 

 nations who will necessarily draw their supplies from the United 

 States during the period when all commerce is suspended between 

 belligerents. 



On the other hand, of course, it is necessary to consider the un- 

 favorable and demoralizing effect which this new development must 

 necessarily have on the entire world. Its tremendous proportions are 

 beyond conception. While there doesn't seem to be any reason to 

 suppose that this country will be dravm into the conflict, stOl the 

 general feeling of apprehension and the generally upheaved condition 

 of business affairs must necessarily be felt to a considerable degree 

 throughout the United States. 



The best policy is unquestionably that advocated by President Wil- 

 son, who so forcibly appealed for calmness and sane-mindedness at 

 this time. 



As far as the outlet for lumber abroad is concerned, it seems 

 the best policy for American exporters to turn their attention from 

 European markets, partially at least, and, of course, only for the time 



being, and to concentrate their energies on the development of mar- 

 kets elsewhere which are not now recipients of large quantities of 

 American forest products. It seems that the opportunity would be 

 equally favorable in certain sections of South America and, of 

 course, it must be remembered that if we can once get into that ter- 

 ritory the results will be permanent and of great importance. 



One favorable development which is showing greater and greater 

 strength is the opening demand for lumber for rebuilding purposes 

 throughout Mexico. In that country there are numbers of excellent 

 yards of good proportions which are placing orders of no mean size- 

 for building lumber which will go into the reconstruction of de- 

 vastated northern Mexico. Of course this favorable effect will be- 

 enjoyed more by yellow pine people than by anyone else. 



As far as our domestic business is concerned, it has not as yet. 

 been seriously affected by the European brawl and it is really a 

 question whether or not it will experience any unfavorable reaction. 

 Immediately before the declaration of war there really seemed to be 

 a noticeable improvement which covered both sales and prices 

 realized. Trade seems to be going along about on the same plane 

 since hostilities actually opened and indications point to continued 

 purchases of about the same proportions unless something unforeseen 

 develops of a reactionary nature. Conditions at home all point to 

 what promise to be pretty good business conditions for the fall 

 months. If our remote position from the field of conflict makes im- 

 possible our feeling its disorganizing influence, it seems entirely 

 probable that we will get along very nicely during the next sir 

 months. If we can maintain our domestic markets in the face of this 

 world-wide calamity, there is every reason to believe that the Euro- 

 pean struggle will add a little to our general prosperity. It is 

 surely to be hoped that this result will materialize, as if it should it 

 would he about the only bright spot in the whole barbaric mess. 



The Cover Picture 



T-HK PICTURE WHICH ILLUSTRATES the front cover of this 

 ■•■ issue of Hardwood Record represents a scene pretty far away 

 toward the setting sun. It is a hardwood view. Every tree in the 

 picture is an oak, and there are three species, not one of which 

 occurs east of the Bocky Mountains. It is a scene in a mountain 

 valley in California, at an altitude somewhat more than one thou- 

 sand feet above sea level, and two hundred miles from the Pacific 

 ocean. It is a characteristic foothill view among the Sierra Nevada 

 mountains, in the vicinity of King's river, which is a stream that 

 pours in a deluge out of the mountains, but never gets anywhere 

 in particular, but disappears among the orchards and vineyards of 

 the plains. 



Locally, the place shown in the picture is known 



