54 JOURNAL OF FORESTRY 



standard and sold at a standard price, the cost of purchasing would be 

 cut down. 



Another most effective field for this department might be in pur- 

 chasing abroad those articles needed by the industry which could there 

 be purchased more cheaply. This foreign purchasing could be made 

 a definite lever for expanding exports of lumber, by doing lumber industry 

 purchasing in certain lines in those foreign countries and cities which will 

 purchase American lumber. There are still many who think that we 

 can produce all we use at home and send a surplus abroad, that is to 

 say, take nothing but money for our exports, but recent discussion of 

 "economic alliances," etc., is gradually forcing on the popular intelli- 

 gence the idea that foreign trade means trade of goods for goods or goods 

 for credits. Therefore, there is no reason why the lumber industry 

 should not definitely use its purchasing power abroad and at home to 

 sell more lumber. It means strictly that we trade something we can 

 produce more cheaply than the foreigner for something the foreigner 

 can produce more cheaply than we. This is the only proper kind of 

 foreign trade — that whichis mutually beneficial. It should be decidedly 

 effective in promoting trade if the trade representatives of the lumber 

 industry abroad be able to go to the commercial organization of a 

 foreign city and say, "If you can arrange to buy the lumber your city 

 imports from us, we shall be able to purchase certain of the products 

 you manufacture for exportation to the United States." The exchanges 

 resulting could, of course, be easily arranged through the banks. This 

 method only brings us back to the original trade method of barter 

 which is really the basis of trade today though lost sight of in the com- 

 plicated exchanges now effected through the use of coin and credit 

 money. It is still a most effective method when the person you wish to 

 sell to, and who wants what you have to sell, has something you wish 

 to buy. 



Selling and Price Regulation 



This subject must be treated because it is one bound to be raised. 

 This is not an absolutely essential activity of the central association 

 but is one which it should be free to enter if desired. It is extremely 

 unlikely that any plan of price fixing would be successful in an organiza- 

 tion of this kind where members are free to withdraw. Members 

 who are unable to operate and sell enough lumber above the total 

 cost of production or above any certain fixed price, to pay such fixed 

 charges as interest and faxes, are going to sell for less, if possible to 



