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Published in (he Interest 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. Defebaugl,, President 

 Edwin W. Meeker, Managmg Edil 

 Hu Maxwell, Technical Editor 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHiCAGO 

 Telephones: Harrison 8Ce6.8C8;-8l;68 



Vol. XXXVIII 



CHICAGO, SEPTEMBER 25, 1914 



No. 11 



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Review and Outlook 



General Market Conditions 



THE STRKNGTH OF THE ALLIED FLFETS ami the strong 

 financial condition with Great Britain have made possible a slight 

 reopening of export business from southern ports within the last ten 

 days. Three concerns have exported orders of considerable size on 

 new business within this period, and a quantity of stock has been 

 shipped on old orders. While none of this new business has been 

 transacted with private parties but with the government for use in 

 necessary construction work, it is a good omen, and will probably 

 lead to a still further broadening out of demand, at least approach- 

 ing more normal conditions. 



Of course sales in the English market total but a small per cent 

 of all sales abroad, still they are of very considerable consequence 

 and with the opportunities presented of shipments of magnitude, 

 quite a little relief will be felt. 



It is not urged that it will be good policy to resume general ship- 

 ments even if possible, but under favorable circumstances this busi- 

 ness is desirable and will help relieve the situation very materially. 



The general financial situation of the country seems to be some- 

 what eased, and there is a reasonable prospect that following the 

 drastic course adopted by Secretary McAdoo, the banks will be com- 

 pelled to show a more patriotic and lenient policy regarding legiti- 

 mate credits and interest rates. There is absolutely no reason why 

 the financial situation of the country should not be about normal 

 and, if money were obtainable under normal conditions, there would 

 without question be a very strong uplift in the general construction 

 work, and the consequent renewal of demand for lumber products. 

 This action would be reflected favorably upon hardwoods as well as 

 the general run of building lumber, as an improvement in one Mne 

 is necessarily favorably felt by others. 



A very noticeable change in the last couple of weeks is the gradual 

 but easily perceptible adjustment of conditions in this country to pre- 

 vailing circumstances. The consummation of that change is all that ' 

 is necessary to create general prosperity when once the banks have 

 demonstrated that they can operate with as much regard for the wel- 

 fare of the country as for their own selfish purposes. The course of 

 readjustment is necessarily slow, but its completion is nevertheless an 

 assured fact, and can be contemplated with the full belief in the 

 benefits which will accrue. 



While reports from certain hardwood sections have been slightly 

 more favorable within the last week, it is hardly probable that this 

 indicates anything of a real definite or stable nature. It is very 

 likely probable that these reports are due to co-incident circum- 

 stances, that is, it probably merely happens that buyers in different 

 lines have co-incidentally placed orders for varying amounts of lum- 



ber at about the same time. The result would naturally be that 

 sellers would look upon this occurrence as indicative of opening up 

 of general demand, while it might be merely a co-incidence and the 

 orders grouped rather than strung out as heretofore. 



It may not be truthfully said that anything further than a hand- 

 to-mouth buying policy is evident in any section, although the situa- 

 tion in the West is stronger, and more confidence is seen than in the 

 eastern markets, which are closer to the fickle financial centers. This of 

 course is true during any period of depression and is necessarily so 

 at this time. 



The buying is about evenly distributed between the yard and fac- 

 tory trade, but both are continuing to place their orders only as 

 necessity demands and are still doing considerable shopping. How- 

 ever, this has not resulted in any further break in prices. 



The trade in general is to be congratulated upon its wise and un- 

 selfish policy of holding lumber rather than sacrificing it as a gen- 

 eral thing at ridiculous figures. This does not mean, of course, that 

 there is no lumber sold without profit as there are very considerable 

 quantities sold every day at prices which, if continued, would pre- 

 cipitate the concerns so disposing of their' stock into bankruptcy. 

 However, such circumstances are not general and are probably the 

 result of particularly drastic conditions which face the individuals in 

 question, which must be met in this way. 



Eailroads have not yet gotten fully back into the buying market, 

 and in fact are not doing very much more in this line than they have 

 been for several months past. Their lecent appeal to the president 

 to re-open the five per cent increase case is probably but an excuse tor 

 their continuing to remain out of the market, although this policy 

 might indicate that they actually feel the pinch of necessity and are 

 making this latter move as a last resort in order to provide really 

 necessary funds. 



Building operations are still held up to a very considerable extent 

 by the inability to secure sufficient credit from the banks or suflScient 

 cash at reasonable rates of interest, but there is nevertheless a very 

 satisfactory volume of business now going on and being planned. 



In the meantime mill trade is curtailing its output very generally, 

 and there seems an entire likelihood that mills will go through the 

 winter with badly broken stocks, which will unquestionably result 

 in strong prices before the winter is very far advanced. 



It does not seem that sufficient importance has been attached to 

 the remarkable grain crops and the probable stiff prices to be realized, 

 as far as the effect of this condition on the country's general pros- 

 perity is concerned. The remote position of the farmers makes it seem 

 to the average individual, that even though they are well supplied with 

 money their prosperity can not result very favofably upon the coun- 

 try at large. This, however, is an erroneous idea as the effect of 



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