-51- 



pending currency legislation caused a pronounced decline in building activi- 

 ties and a fall in railroad purchases, which were immediately reflectea in a 

 sharp reduction of Yellow Pine prices. Under the stress of low prices ,any 

 small Yellow Pine mills were shut down during 1913. The normal seasonal in- 

 crease of building activities in the spring of 1914, checked the fall in 

 prices for a tiiie but this slight prosperity was short-lived. The curtail- 

 ment of pine exports on account of the war increased to some extent the lum- 

 ber to be absorbed \n domestic markets, while the general depression in busir 

 ness caused by the outbreak of the European war stopped mucn of tne fall 

 building, and what was even more significant, the inability of the planters 

 to market their cotton without a European outlet, almost completely cut off 

 the demand for pine lumber in the agricultur.allregions of > the South. 



The effect of tnese forces was to force pine prices to stall lower level 

 until the end of 1914. While building permits issued during the first half 

 of 1215, ($371, 867, 000) were even lower than the preceding year, thus reflect- 

 ing the adverse conditions of the fall of 1914, recovery was already in pror 

 gress, Improvement of business conditions following the study of the effects 

 of the European war, the financing of Southern cotton, the den.and for lumber 

 from factories with war orders, increased building activity increase cf or- 

 ders from the railroads, large crons and high agricultural prices stimulating 

 building on farms and settlement of the Chicago building strike, all increase': 

 the demand for lumber and started an era of rising prices by the end of IS 15. 

 Lumber pricas lagged behind prices of othsr staple coirtnodities, but when the 

 advance in Yellow Pine prices started it was very rapid, 



The accumulation of stocks, and increased production of Yellow Pine sti- 

 mulated by rising prices, the difficulties in securing steel for building c^r; 

 (affecting the demand for limber used with steel) , the shortage of export ton- 

 nage and the late development of building activity in the North caused a ten.- 

 porary set back in the price of yellow pine during the early part of 1916. 



The rapid development of building to a new level of $463,735,000 in first 

 half of 1916, some increased purchases of lumber by the railroads, ana in- 

 creased labor costs started Yellow Pin.3 prices on an upward trend in the fall 

 of 1916. The slump in prices in the early part of 1916, had caused curtail- 

 ment of production and a reduction of stocks so that supplies .vere lov, while 

 fears of a car shortage and a general railroad strike checked the tendency 

 toward over-production. 



The demand for pine lumber ker>t increasing on account of good building 

 conditions and eagerness of retail dealers to replenish their stocks whenever 

 cars could be obtained. This demand was swelled by large govsrnment orders f^ 

 cantonment stock and for Aooden ships. While the demand for pine luri.ber was 

 thus rising, the labor shortage was becoming more and more acute on account c 

 the draft, so that a curtailment of Yellow Pine production was enforced. The 

 result was that the Yellow Pine industry s&cured more orders than it could ii 

 fill, and Yellow Pine prices kept advancing throughout 1917,until they have ni. 

 reached a point that is slightly in advance of the average price of all com- 

 modities. 

 (W. I.E. -359-51) 



