352 JOURNAIv OF FORESTRY 



character can be done within the industry itself, in the way of cost 

 accounting, adaptation of manufacture to the needs of the trade, sci- 

 entific merchandizing, economies in manufacture, conservatism in 

 finance, diffusion of information about production, markets, price 

 movements, existing stocks and shipments, and so on. I judge 

 that progressive steps are very generally under way in such 

 matters, and that lumbermen are going as far as they can to improve 

 the internal situation. There are other things that can be accom- 

 plished through co-operation with existing public agencies, as in eco- 

 nomic, industrial, and technical research, and in demonstration of 

 technical methods. I believe that a great many valuable things for 

 the lumber industry can thus be brought about. 



But neither the lumber industry nor the public can ignore the fact 

 that the great fundamental problems, which not only involve the per- 

 manence and stability of the interests dependent on our forests, but 

 also gravely affect the national welfare, are not being solved. These 

 problems fall into four general groups : those relating to the causes of 

 over-production, those that concern the supply, character, well-being, 

 and stability of labor, the problem of the continuance of private for- 

 ests and of stumpage supply, and certain questions relating to our 

 public forests. 



THE LUMBER INDUSTRY STIEE UNSTABLE 



We must frankly recognize the fact that the elements that caused 

 the unstable condition of the lumber industry prior to the war still 

 remain, and constitute a danger for the future. To recall the situation 

 at that time and the principal cause of trouble would be only to re- 

 peat the oft-told story of the speculative character of ownership of 

 timberlands, the pressure to liquidate, the difficulties of financing 

 stumpage, the excess mill capacity, the unorganized character of the 

 industry, and various like matters ; all contributing to cause prema- 

 ture cutting and over-production, with its depression, losses, failures, 

 interrupted operation, intermittent employment, and other ills. We may 

 be able to point out certain elements of strength that may tend to 

 steady the industry for a time, but we still have a great factor of un- 

 certainty in the existence of large bodies of timber which their owners 

 are seeking every opportunity to place on the market, and in many 

 cases will be forced even at a loss to manufacture, because of financial 

 pressure. Whenever markets improve there is the inevitable tendency 

 to increase production to utilize surplus mill capacity, and there are 



