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Publiahed In the Interest of Hardwood Lumber, American Hardwood Forests, Wood Veneer Industry, H&rdwood Flooring, 

 Hardwood Interior Finisli, Wood Cliemicals, Saw Mill and Woodworking Macltlnery. 



Vol. XXII. 



CHICAGO. MAY 25, 1906. 



No. 3. 



Published on the lOlh and 25th of each month by 



THE HARDWOOD COMPANY 



Henry H. Gibson. President 



Frank W. Tuttle, Scc-Trcas. 



OFFICES 

 Sixth Floor Ellsworth BIdg., 355 Dearborn St Chicago, 



Telephones; Harrison 4960 Automatic 5659 



1, U.S.A. 



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The entire contents of this publication are covered by the general copy- 

 right, and articles must not be reprinted without special permission. 

 Entered at Chicago Postoffice as Second Class Matter, 



Advertising copy must be receiyed fiye days in advance of 

 publication date. Advertising rates on application. 



General Market Conditions. 



I'roin a review of tlie market reports from practically every liaril- 

 wood trade center in the United States, found in this issue of the 

 JlAKDWOOD Record, a very encouraging view may be taken of the 

 situation. The demand seems to be strong all along the line, ^Yith 

 a general strengthening of values. However, there is apparently a 

 disposition on the part of some large consuming buyers to make their 

 jnirchases with a good deal of caution, refusing to place new orders 

 until shippers fulfil old contracts. The markets throughout the East 

 manifest even more strength than in the middle West. In this 

 great consuming center, Chicago, trade seems to lack vim. A good 

 deal of lumber is being placed, but apparently the trade is being 

 forced. 



In times of general commercial prosperity, with advancing values, 

 it often happens that all woods do not receive their just proportion 

 of accretion in price. Just now it is particularly noticeable that the 

 standard northern hardwoods — maple, gray elm, birch, basswood and 

 beech — are not commanding nearly the proportionate price that has 

 been obtained for oak, chestnut, white ash, hickory, poplar and even 

 Cottonwood. During the last three or four years the advance in the 

 price of northern woods has been very moderate as compared with the 

 high values achieved by the southern woods. Apparently these woods 

 have been overlooked, as certainly the intrinsic value of maple, birch 

 and gray elm particularly for a multitude of purposes, is not ex- 

 ceeded by any other woods growing in the United States. Beyond 

 question, in relativity of value, either northern hardwoods are too 

 low or southern hardwoods are too high. 



There are some encouraging signs of a betterment in prices of 

 northern woods given in the several reports from northern sections, 

 but still the increase in demand and value is not sufficient to war- 

 rant the opinion that the.se hardwoods are reaching a just scale of 

 value. 



Plain oak, chestnut, white ash, ]io|)lar and Cottonwood still remain 

 exceedingly scarce, at high values. The output of northern woods 

 has been pretty well absorbed for the season by jobbers and whole- 

 sale consumers, but the price is far from being satisfactory. What 

 stock remains in the hands of manufacturers is dragging. 



Money. 



students of monetary affairs profess to see some clouds on the 

 horizon. Undeniably the banks of New York and Chicago and of 

 some of the other chief commercial centers are short of money. The 

 interest rates are increasing and a good many loans are being 

 railed in. 



Some explanation of the condition of the New York money market 

 may be found in the figures of the banks themselves, as disclosed in 

 comparative statements of the Clearing House Association. The 

 figures of last Saturday showed that compared with one year ago 

 there has been a decrease in deposits of over ,$1.38,000,000. A year 

 ago the figures stood at $1,16.5,151,700; Saturday's figures were 

 $1,026,832,900. Such a shrinkage in deposits has necessarily caused 

 a curtailment in loans, and that item on Saturday showed a contrac- 

 tion of $94,000,000 as compared with a year ago. The money that 

 naturally .sliould have grown in volume with the New York banks 

 in the last two years has steadily declined. The country has grown 

 wealthier and prosperity has been unabated, but demands have 

 gradually increased from commercial borrowers, and the money to 

 satisfy such needs is now being distributed by the country banks 

 themselves. 



Western country banks are being besieged by metropolitan insti- 

 tutions today for rediscounts. High finance as practiced in the con- 

 duct of New York insurance companies and certain railroads as well 

 and the relations of a good many bank officials to these institutions 

 has brought its punishment to the financial center of the United 

 States in the way of a withdrawal of confidence. Chicago banks 

 gained a good deal by this situation until within the last few months, 

 when they have had some untoward events of their own, and are 

 now suffering in a milder way, but still suffering. The money which 

 naturally would have come back from the country for deposit in 

 Xew York and Chicago has remained with the country institutions, 

 and they are now large buyers of commercial paper. 



There is nothing of a serious, menacing nature in the financial 

 situation, but at the same time it would seem wise for lumbermen, 

 who notoriously depend very largely on banks for money, to keep a 

 little nearer shore, and exercise a good deal of conservatism in the 

 conduct of enterprises, which, however promising, may fail of fulfill- 

 ment owing to a handicap for easy money. 



American Agricultural Implements Abroad. 



One of the Anierii-an consuls in South Africa says that if all 

 American exporters showed the same energy in selling their wares 

 abroad that is shown by the agricultural machinery man, the United 

 States would soon become the leading nation in foreign commerce. 

 The Cape Town Journal states that the energetic American drummer 

 selling agricultural machinery is not satisfied with keeping his stock 

 in central store-rooms or with being a regular exhibitor at the shows. 

 He endeavors to bring his machinery to the gate of every farm. 

 Wherever he can sufficiently engage the attention of the farmer he 

 gives an experimental demonstration of his machines. The result 

 of a tour of this character is a large number of orders, which more 

 than repays the heavy outlay incurred. Thus it will be seen that 

 American agricultural implement producers are pursuing exactly the 

 same business methods abroad that they did at home for years. Dur- 

 ing 1904 more than half the farm implements and agricultural ma- 

 chinery imported into South Africa came from the United States. 



