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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 10th and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh. President 

 Edwin W. Meeker, Managing Edil 

 Hu Maxwell, Technical Editor 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street. CHICAGO 

 Telephones: Harrison 8086-8087-8088 



Vol. XXXVIII 



CHICAGO, SEPTEMBER 10, 1914 



No. 10 



T OiTOiTOSWg 



Review and Outlook 



General Market Conditions 



FOK THE BENEFIT of those most inclincil to immediate blue 

 funk upon the appearance of any condition which is not 

 entirely normal and which requires a little more thought and, 

 perhaps, a little more courage and resourcefulness to meet than 

 conditions during normal times. Hardwood Record asks them to 

 consider the significance of the fact that during the month of 

 August the steel mills ran to almost normal capacity and that 

 the general outlook in that barometer of business conditions is 

 surprisingly good, considering the disorganization in financial and 

 industrial affairs generally as a result of the European struggle 

 inunediately following the general depression throughout this 

 country. That this impetus in demand for steel products comes 

 entirely from the new business secured in markets heretofore 

 taken care of by foreign manufacturers is improbable. It is ap- 

 parent, then, that the domestic business as far as steel is con- 

 cerned is looking up. On the other hand, there has actually been 

 an increase in foreign trade, or at least in immediate prospects 

 for new business abroad as instanced by recent active inquiries 

 from England and Italy. By referring to other editorials in this 

 issue, the reader can secure the details of these developments. 

 The significant fact is presented that English and European mills 

 are absolutely unable to fill either the domestic or foreign require- 

 ments, the significance being mainly in the fact that this will 

 leave us markets heretofore taken care of by these mills and now 

 entirely open to American trade. Furthermore, the very favorable 

 size of the requirements of English and Italian purchases means 

 that the markets there created will have a very beneficial effect 

 on steel in general. For instance, the Italian government will 

 very shortly require 150,000 tons of steel for the ordnance to be 

 used in the navy. This will unquestionably be followed up by 

 similar orders within the next few months and when it is con- 

 sidered that England and perhaps France and other belligerent 

 and neutral nations will feel the same necessity for purchasing, 

 the importance of the total becomes very apparent as an indication 

 of prosperity in this line. 



It is not claimed that this will have a direct effect upon the 

 lumber business, but it is a too well established fact to be over- 

 looked that conditions in the steel industry reflect conditions in 

 general. Thus the logical deduction is that increased prosperity 

 will result to general business in this country. 



It is a question as to whether this development in steel 

 is more important than the attitude of the farmers. It used to be 

 , that the farmer philosopher solved the affairs of the nation and 

 ; the world, in his own mind at least, over the cylinder stove in 



the corner store. He was very sensitive to conditions in other 

 lines, or at least thought he was, as he allowed his mental condi- 

 tion to be affected by what he heard through the stale columns of 

 his local paper. That there seems to be an entirely different atti- 

 tude at present is established by substantial authority. Success- 

 ful farmers are almost without exception giving their undivided 

 attention to the prospects of realizations from the tremendous 

 crops of this year, and are indifferent to the war situation and 

 its effect on business in general in this country. They know that 

 they have a tremendous asset and they are determined to make 

 the most of it. There are tremendous possibilities for good to 

 the country from this attitude, as it was a preadmitted fact that 

 if farmers stood together for full value from their big crops the 

 result would be a tremendous increase in the purchasing power 

 of our big farming population. The possibility was there in the 

 crops and needed only the support of the farmers themselves. 

 With this support evident, it cau be logically anticipated that the 

 farming element will be more prosperous in the next few months 

 than it has been for years. 



In another part of this issue, Hardwood Record refers to the 

 fact that if each farmer were to add 1,000 feet to his lumber 

 purchase for the coming year the total increase would exceed many 

 times over the export trade lost through the war. It is, perhaps, 

 not probable that the average increase will be 1,000 feet, but if it is 

 a small fraction of that the only change in the relations between 

 supply and demand will be for the better. 



The only unfavorable situation' among the agriculturists is seen 

 in the South, where cotton has fallen off very considerably, and 

 there the growers are showing a disposition to forego all luxuries 

 on account of reduced purchasing power. It does not seem likely 

 that cotton consuming interests in this country will be able to 

 develop sufficiently to take care of the surplus which would have 

 gone abroad, but it is probable that the falling off in cotton 

 values was effected to a great extent by the general situation. 

 That the English and French navies will be able to keep the seas 

 open to merchants is absolutely certain and with the decision of 

 Italy to cast its lot with the allies, which decision now seems 

 certain, the probability of free shipments of commodities for 

 English consumption seems doubly assured. Of course, working 

 time will be considerably reduced at the textile mills as well as 

 other industrial lines in England, but it is reasonable to suppose 

 that those plants will be kept going at least in a moderate way 

 even during the war period as a tremendous amount of textiles 

 will be absolutely necessary. Thus it is reasonable to hope that 

 cotton values will show an upward tendency even though they do 

 not reach normal levels this year. The purchasing power of the 



