740 JOURNAL OF rORKSTRY 



region of im])ortance for softwoods in the East, namely, the South. In 

 the past tlie prices of lumber in the general market have been gov- 

 erned by competition between different large producing centers. With 

 the- exhaustion of the Lake States as an important source of general 

 utility lumber, it was the competition between the South and Northwest 

 that was the controlling influence on prices. Conditions were already 

 established, through the exhaustion of the old lumber centers near 

 the points of greatest demand, to make the stability of lumber markets 

 depend upon ample production and distribution from the remaining 

 competing sources. Any critical circumstances that interrupted such 

 production are bound to react at once on prices. Labor troubles, bad 

 weather, car shortages, and doubtless in some cases difficulties in 

 reorganization from war conditions, operated to hold down the pro- 

 duction and distribution of southern timber. This shortage and the 

 removal of the competition from the South were sufficient to create 

 the conditions that made possible the uncontrolled and inflated lumber 

 market. With nearby local supplies exhausted we are dependent upon 

 distant sources. The more these recede and the more they become 

 restricted, the more easily a crisis in transportation or curtailed pro- 

 duction will upset the equilibrium of the market ; and this situation 

 will be accentuated with continued progress of forest depletion. 



Immediately after the armistice there was a great deal of activity 

 in organizing for a large export trade in lumber. Many persons looked 

 for a greatly increased export trade because of the exhaustion of the 

 forests of western Europe during the war, the disintegration of the 

 Russian lumber industry, and the inevitable requirements for recon- 

 struction in Europe. This occurred at a time when our own industries 

 were short of needed raw materials, and the question was frequently 

 raised whether we should not place checks on lumber export. In the 

 Capper resolution the question is specifically asked, "whether the 

 export of lumber, especially of hardwoods, jeopardizes our domestic 

 industries." 



This is a very pertinent inquiry, for our Government has been en- 

 couraging the building up of a large export trade in lumber. In dis- 

 cussing the effect of export trade on our industries, the Forest Service 

 report shows that a material increase in the export trade would have 

 a very real influence on the shortage of high quality products. This 

 would be particularly the case with high grade hardwoods that are 

 essential to our vehicle, furniture, and implement manufactures. 



