The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-11-10

supply at the principal lumber districts, and
thus appeal to their better Judgment as well
as their financial interest. and cause a vol
untary reduction from plans already made
for hauling logs during the approaching
Minter.
T~he:average annual receipts Of pine lum-
Der at the port of Chicago for the three years
last past exceeds LOCO. 000. 200 feet, and OF
this vast amount more than half is received
and paid for by lumber dealers who own no
saw mills. In other words, the yard inter-
est pays annually, in cash, on delivery here
TO mill owners who ave nc docks In hi
cago, the sum of 80. 600, 900 for lumber, and
an additional sum of 2 1000, 900 tor shingles,
lath and other lumber products The mills
that saw lumber for the Exchange" mar
ket, foreale afiosts depend wholly on yard
dealers 70 furnish funds to operate their
mills in summer, and repay advances re-
ceived nom commission firms during win
The course pursued by these miil-owners
during the present season OF 1874, would,
in almost any other branch OF trade, have
brought ruin to the parties who furnished
the working capital, and owing 20 their
large manufacture, have caused a declining
market during the entire season, and an
average depreciation of 10 per cent. in the
value. of stocks in pile.
IL. during 1875, an amount of lumber ex-
ceeding 900, 0O0, 900 feet is consigned TO this
lila hCl a plACNN IA 80 WIZ !" -
for common lumber at retail, and a proper
Tomato discount in the value of all stocks of
lumber here must DO the result, and 1876
will find the number of yard dealers re-
dueed one-half, as they must seek other
fields ofinvestment for their capital, as their
predecessors did in 1855.
the shrinkage of values by over prod1c-
ton, will, if continued, drive many yard
dealers from trade; but the same cause is
responsible for q greater evil, that bids fair
to reduce the number of mill owners also.
during 1876. Previous tn 1865, credits were
seldom asked on lumber at Wholesale, and
returns were expected inside 30 days for
yard sales. Now, an average Of more than
90 days time is given on yard business, il
any profit is realized. This is the natural
result of forcing sales on a market already
overstocked, and ore that mill owners are
wholly responsible for, and if continued,
yard dealers Will claim, and be
cargo lumber sold sfoat in Chicago.
SO great is the desire OF manufacturers at
Lake Huron ports to dispose of the present
surplus, that lumbermen with good credit
can to-day purchase any amount of cargo
lumber OF them, on ninety days credit, and
in some instances at four months, without
interest.
From present indications a change from
cash to credit for cargoes in this market is
expected hereafter, as; will the exception of
the Chicago lumber exchange sales, lumber
is usually sold on credit at wholesale. This
change effected, no combination of mill
owners will be required to supply will be
required to limit the supply hereafter.
For tee following good reasons all prudent
mill owners will reduce rather than increase
their business until the surplus lumber now
in market is much reduced:
1. That during the season of 1874 no profit
has bsen realized, and from excessive manu-
faCture the markets of the country are now
largely overstooked, with no prospect of a
permanent advance i'm prices.
q. That the inauguration of sales Of car
goes on credit by manufacturers during 1874
will, in case of excessive manufacture, very
soon become the custom of the market.
,. That a further ~shrinkage in the value
of lumber will cause the withdrawal OF
large amounts of capital now furnished by
yard dealers, a class that pay for and dis
tribute more than half the entire product
OF saw mills.
4. That all concede that a large amount Of
lumber forced on the market in 1874 must
cause a low range OF prices, and a reduction,
either great or small, will place the business
a better foundation.