The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-10-04
NAVAL STORES
SITUATION IS
ENCOURAGING
The YEAR HAS BEEN ONE OF CON-
SERVATISM AND UPBUILDING
AND THE FUTURE, THEREFORE,
SHOULD BE SATISFACTORY.

The general outlook for the naval
stores industry is encouraging, ac-
cording to those in close touch with
the situation. Conditions are outlined
in the following special from Savan-
nah:
Following a year of liquidation in
the naval stores trade the past year
has been one of conservatism and up
building There was a material de-
crease in the volume Of business, and
the reduced supply resulted UP to the
time of the war in q, higher range of
prices for turpentine. Stocks of resins
continue moderately large, and prices
showed no material change.
The outbreak of the war in Europe
toward the end of July closed the
market and enshrouded the situation
in a fog of impenetrable gloom. The
closing of the markets was due to the
embargo on exports and the demorali-
zation in finance and exchange
Turpentine commenced a little under
forty cents, ruling for the first month
SEPTEMBER, about the same as the year
before But the market developed
strength before long, and from then on
the price ruled materially higher than
the year before. From the opening of
the new naval stores season in April
the price kept about ten cents higher
than the year before.
The strength was due naturally tI
evidences Of reduced production, the
result of the previous years depres-
sion and liquidation. That resins did
not improve correspondingly was a
consequence Of the larger stocks OF
rosins left over from the season be-
fore and the relatively larger supplies
coming from producers. The railing
off in rosin was proportionately much
smaller than in turpentine-
Receipts of both turpentine andsrosin
have decreased sharply recently, on
account of the closing CT the market
This has helped materially to make
the smaller showing of the years
movement. The decrease will doubt
less be made up subsequently.
WILL ENLARGE THE DEMAND.
The permanent effect of the war
can only be to decrease the supply
from other countries, and necessarily
therefore to enlarge the demand for
the American product. The American
crop shows no compensating increase
and consequently decidedly higher
prices should be the final result, Rea-
Iization of this condition should and
no doubt will serve to restrain holders
from forcing unnecessary sacrifice
during an intervening period of lin
tied demand. The stock Of turpenttne
in London is less than half what 1t
was a year ago, and it may be Pre-
sumed that stocks elsewhere compare
in approximately a similar manner
These conditions afford no encourage
ment to those who believe in lower
prices for naval stores.
During the year there has been some
discussion regarding proposed reforms
in the method Of trading in rosin.
It was alleged that the present system
was obsolete and in some respects dis
advantageous. When a buyer wants
rosin he has to oid on a factors whole
line, taking all the grades, although
he PROBABLY needs a very few grades
Therefore, in order to get what he
wants he has to take much that he has
no need for at the moment. It stands
20 reason that If he should buy just
the grades wanted he would be able
and willing to pay a little more. This
would be especially the case with the
small buyer, who cannot afford to
carry large amounts awaiting orders.
The reformed plan would enable the
buyer to purchase just the grades
wanted, as in the case with other
commodities, and which would be more
convenient to both buyer and seller.