HARDWOOD RECORD 



19 



through uormal channels, and the position of the government at the 

 beginning of the hostilities announced its intention of standing behind 

 the banks to a good degree, '^'herefore there was absolutely no legiti- 

 mate reason for the withholding of legitimate credits or for the charg- 

 ing of excessive interest. It has appeared for some time that this 

 policy of the banks has been inspired more by a desire to hold money 

 for speculation in the future when they consider it will be even 

 more needed than at present, rather than to relieve the situation by 

 getting behind the wheel and pushing with the rest. 



Aside from the indirect effect which necessarily results from the 

 disruption of the regular channels of commerce, there is no reason for 

 the present tightness of money, which is so clearly shown in the very 

 meager collections in all quarters. 



Secretary McAdoo has fully appreciated the significance of the 

 bankers' attitude and has adopted stringent measures to overcome 

 this policy as much as possible. A few days ago he telegraphed the 

 ten national banks in the four reserve cities in the South that their 

 request for additional crop moving funds from the government would 

 not be granted at this time, and made it clear that his action was 

 taken in consequence of reports of excessive interest rates and re- 

 striction of credits. Mr. McAdoo emphatically criticizes the with- 

 holding of money which is revealed in the reports of the comptroller 

 of the currency, and states definitely and emphatically that the policy 

 is contrary to public interests, is indefensible from any point of view, 

 and is not inspired by any necessity or any occasion whatever. As 

 a remedy he states he will begin issuing a daily list of banks which are 

 hoarding money by maintaining excessive reserves, in order that the 

 country may know how they are performing their public duties. 

 What this means is too plain to require explanation. 



The secretary urges that such action on the part of the bankers not 

 only hurts legitimate business, but tends to impair confidence and to 

 injure business generally. He urges that if all the banks of the 

 country will do their duty under the present conditions in extending 

 legitimate credits, at reasonable rates of interest, the most serious 

 of our difficulties will most promptly (liKai)pear. 



This last statement is of more significance as it clearly shows the 

 condition as expressed in the opinion of a man who is in imminent 

 position to know what he is talking about. 



Hardwood Record has urged for some time that this condition 

 was responsible for a considerable percentage of the business trouble 

 in the country today, and that if the conditions could be remedied, 

 business would resume a much more normal tone. It is extremely 

 gratifying to have this opinion substantiated liy Secretary McAdoo, 

 and it would be even more gratifying to note the good effects of his 

 stringent action. That he intends to follow the oflicial announcement 

 up closely and drastically is absolutely assured. There is also a 

 reasonable assurance that if he does so the good effects will be felt 

 very shortly on the business situation throughout the country. 



Don't Miss This Opportunity 



THE USUAL PBEFIX to any boast or self-commendation is "I 

 (Ion 't want to blow my own horn, but . ' ' Hardwood Record 



will not indulge in this prefix, but will state frankly and directly that 

 it believes it has really accomplished something in compiling the 

 series of articles which began in the issue of August 25, last, entitled 

 "World Markets for American Lumber." 



Hardwood Record is perfectly willing to blow its own horn on this 

 occasion, as it feels that ■ the reception of this series of articles 

 amply warrants calling the attention of those of our readers who 

 ■have not followed the stories and who are in a position to benefit, 

 to the information to be presented. 



The best indication of a favorable reception of the series comes from 

 conversation with a Forest Service ofiieial who has to do with the 

 ii-suance of the government literature referred to in the first of 

 the series. According to this man the consequence of that story 

 was that the government's stock of these pamphlets was very nearly 

 exhausted within two weeks after the publication of the issue of 

 August 25. 



Hardwood Record wants to urge that any concern or individual 

 who is in a position to profit by information regarding the export 

 iiossibilities in new fields, take advantage of the information con- 



tained in the tabulated list of government literature, and secure the 

 necessary pamphlets and bulletins before the supply is entirely 

 exhausted. 



In planning this series of articles it seemed doubtful whether or 

 not sufficient information would be available to make it a logical prop- 

 osition. However, it was not long after the work was actually started 

 before it developed that a tremendous amount of information was 

 at hand, and in fact it was entirely possible to develop a series of 

 articles that would give practically first-hand information, which 

 would be fully as effective as could be the report of any individual 

 making a personal investigation of the various foreign fields right 

 on the ground. 



The articles which have followed the introductory story, of which 

 the third appears in this issue, have been fully as instructive and 

 contain just as much valuable information. Of course, in compiling 

 this series. Hardwood Record has done all it can to facilitate manu- 

 facturers of lumber and wood products in developing new export 

 lines. It feels, however, that the opportunity is too great to over- 

 look, and hence urges that anyone who is in a position to consider 

 such new business and who has not followed the articles, give them his 

 close attention in the future. 



Hardwood Record will be very glad to send issues of August 25 

 and September 10 to any readers who did not analyze the articles 

 appearing in those numbers, and have not saved those particular 

 papers. The preservation of the stories through the entire series 

 will give to any reader a remarkable collection of highly authentic 

 information that would serve as a valuable trade adjunct under any 

 circumstances, but would be particularly effective under present condi- 

 tions. 



If you are in a position to profit to any extent whatever from 

 the opportunities offered in foreign countries not yet developed, don 't 

 overlook the i)]jportuiiity iprcsented liy these stories. 



Railroads Appeal for Re-Opening of Rate Case 



RAILROADS THROUGHOUT THE EASTERN CLASSIFICA- 

 TION TERRITORY recently petitioned the Interstate Commerce 

 Commis.sion for the re-opening of the famous five per cent increase 

 case, and have asked that the railroads be permitted to make effective 

 the increases which the commission denied them in the decision which 

 was handed down some time ago. 



President Wilson by replying favorably to an appeal from the 

 eastern roads asking for a new hearing, really opened the way for 

 this latest move. The favorable reply of the President and of the 

 commissioners is probably because of their realization that dras- 

 tic changes in the commercial fabric of the country, resulting from 

 the European troubles, necessitate readjustment of calculations upon 

 which the recent decision was based. 



Regardless of the justice or injustice of the last decision, it really 

 seems that conditions have changed sufficiently to make further in- 

 vestigation the only fair course to pursue. Railroads maintain that 

 the decision was not fair, and it may be that it was not. Never- 

 .theless the railroads should be treated with the same justice that 

 other lines of industry enjoy for the most part, and should be given 

 an opportunity to prove whether or not there is a necessity for re- 

 consideration of the decision owing to the present upheaval in busi- 

 ness conditions. 



It is not announced as yet definitely whether or not the commis- 

 sion will actually grant a reheai'ing. It is simply intimated that 

 this seems probable on account of the appeal having actually been 

 made, as it hardly seems likely that this would have occurred had 

 the railroads not been given an intimation that their appeal would 

 be favorably considered. 



A rumor was circulated the day this issue of Hardwood Record 

 went to press to the effect that political exigencies had resulted in the 

 recall of Franklin H. Smith and H. E. Simmons, who are just start- 

 ing, after special appointment, to investigate lumber markets in 

 Oriental and South American countries, respectively. The Department 

 of Commerce assures Hardwood Record that this is absolutely not 

 true and that there is now even greater need for the investigations 

 than before. 



