SALE VALUES 



183 



There has not been, however, any such marked advance in the 

 average price of lumber. The hardwoods make up only about 

 25 per cent of the total lumber cut. The advance in softwoods 

 has been much less on the whole. Spruce frames, one of the 

 most used grades of eastern lumber, increased 116 per cent. To 

 get a true notion of how this compares with other prices it should 

 be compared with advances of 92 per cent in food and 135 per 

 cent in clothing (National Industrial Conference Board Report, 

 1920). 



To sum up the situation at the beginning of 1920, lumber was 

 in great demand with stocks low, labor in the woods and saw- 

 mills subnormal and distribution hampered by railroad deprecia- 

 tion. What are the prospects in the future? The factors that 

 tend to keep prices up are as follows: 



Low stocks at the mills and retail yards. 



Shortage of dwelKng houses. 



Accumulated repair work. 



Depreciated rolling stock and lowered efficiency of railways 



which prevent normal delivery. 

 Demand from Europe for reconstruction material. 

 Diminishing supply of accessible stumpage. 

 General inflation of currency. 

 Low productivity of labor. 



Over against these influences are such depressing factors as : 



Increasing substitution. 



Decrease of exports on account of unfavorable exchange 

 rates and rehabilitation of lumber business in Russia and 

 Austria. 



Development of waterways to relieve the strain on the rail- 

 roads. 



