10 BULLETIN 1119, IT. S. DEPARTMENT OE AGRICULTUEE. 
a situation that was revealed in the crowded housing and soaring 
rents. Before the war a million famihes lacked houses. In 1918 
the construction of houses was less than in 1919, and in 1919 only 
70,000 houses were built when 500,000 ^ were needed. A similar 
postponement of lumber consumption took place in the other large 
industries using wood as a raw material. Immediately following 
the armistice this enormous demand was freed of all restriction by 
the Government and began to exert its influence upon an industry 
which in the East, at least, was ill prepared to expand its produc- 
tion. For several months following the end of the war there was 
little activity in the lumber busmess. Then the wheels of business 
began to turn, slowly at first but with increasing momentmn, under 
the stimulus of increasing orders. By August, 1919, the demand 
for lumber was overwhelming, and prices were rising rapidly. Manu- 
facturers were straining to increase their cut, for production was 
still below normal, and the stocks were badly depleted. The mill 
price of yeUow pine had advanced from $27 a thousand to the un- 
precedented figure of $40. At this point many people thought the 
top of the price wave had been reached. Consumers, many of whom 
assumed that prices would fall at once after the war, were com- 
plaining bitterly and urging investigations of alleged price fixing. 
Domestic orders continued to increase, the price of lumber con- 
tinued to rise throughout the winter. The demand was such that 
purchasing agents were virtually bidding against each other for the 
possession of any kind or grade of lumber, badly milled, half sea- 
soned, or otherwise. The market was practically in the hands of 
the sellers, who were in a position to ask what they chose. Prices 
were so unstabilized that no one had an accurate idea of value. In 
early February, 1920, southern pine went to $55. The eastern mills 
had no stocks and cars were scarce. By that time home builders 
were unable to pay the enormous prices asked for lumber, although 
the building operations of many large firms continued as fast as 
lumber and workmen could be had. The high rents received may 
have justified building by wealthy landlords, but there was no 
chance for the smaU home builder, especially as bank credits could 
not be obtamed in proportion to the vastly increased cost of con- 
struction, which had risen nearly 200 per cent in five years. The 
conditions were impossible for the maintenance of business on a 
large scale. In March the demand for lumber checked decidedly. 
Rumors of price softening became persistent, but just as persistent 
was the lessening of retail inquiry. The whole mental attitude of 
Americans had changed, and the period of reckless expenditure was 
over. The public had made up its mind not to buy. 
Then came the crash. On or about March 20 the lumber market 
went over the top of the greatest price peak ever known, with the 
southern pine mill price at $61.60, and other woods in proportion. 
At retail southern pine was costing the pubhc from $66 to $175 a 
thousand, depending upon the grade and point of consumption; red 
gum, $247.50; and quartered oak, $385. Concessions to buyers in 
certain instances were followed by a flood of canceled orders. Prices 
continued to slip downward, while stocks increased, and numerous 
mills shut down. By June the market was practically dead, North 
a In March, 1922, a national conference of builders at Washington, D. C, declared that there is need for 
the immediate construction of 1,500,000 new houses. 
