The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-09-05
LUMBER TRADE

The current issue OF the Lumber
Export Bulletin. Of Washington, d, c..
reviewing the export lumber situation
throughout the world will say:
The sensational advance In prices Of
all American woods during the past
ninety days has been arrested and the
market Is now in state OF equili-
brium, with tendency toward soft
ening Of prices.
The production Of both hardwoods
and softwoods, which was scarcely
more than fifty percent of normal dur
ing the first half Of the year by raa-
son OF the labor shortage and unfav-
orable weather conditions, has been
improving steadily since late June and
Is now but little short OF normal The
domestic demand on the other hand
has receded somewhat as the result of
the untavorable effect OF high prices
upon the building and woodworking
industries.
While production during the next
thirty days will probably exceed the
demand, and prices will ease off. there
is no prospect of any radical decline
because the very high cost of produc-
ton marks limit beyond which prices
cannot recede for any length OF time.
II prices should recede below the cost
OF production, a sufficient number Of
mills will close down to bring produce
ton into proper relation with demand
at something near existing price lew
els
While the European need for lum-
| Der is practically unlimited, there
are numerous factors which prevent
the full conversion OF, this need into
an actual demand. The most inn
portant of these factors is the con =
. tinued fall in the exchange value OF
the pound, the franc. and the Ira
which increases the already high
prices Of our lumber to the British
| importer Is per cent, to the French
and Belgian importer. SIS per cent. and
to the Italian importer so per cent.
Another factor is the continued con-
gestion OF the European ports due
to strikes among the dock workers
and impaired railway facilities for in
land distribution. Another deterrent
! influence is the belief abroad that C..
| i. l. prices viii recede.
In consequence Of these conditions,
the export demand has slowed down
and prices have receded even more
than have domestic prices. Prices
| asked for wood goods from the north
of Europe are holding firm. and prac-
tically nothing Ia coming. forward
from the White Sea. district, which
before the war supplied the larger
part of Europe's needs. s'i%
The ocean freight situation, as was
anticipated. is showing signs OF I'M
provement, and it may he said that
b. balance has been established be-
tween the demand for. and the sup
ply OF. ocean space. A decrease of
about pound per standard in the
timbers rates from the Baltic to the
United Kingdom Is noted. and the
- - f.,xv% hns~ trrV
Atlantic ports to the United Kingdom
as established by the Transatlantic
conference are now upon the MIMI
mum basis instead Of the maximum
basis which prevailed until recently,
which means n reduction OF approx
mately SO Ia per cent.
1t is encouraging to note from the
recent issue Of Lloyd's register Of
ocean shipping thar the worlds sup
ply Of tonnage has been restored to
a point more than per cent in cx-
cess of the pre-war total. With the
large deliveries OF tonnage now be-
ing made in all the shipbutlding coun-
tries of the world, 1t seems probable
that the freight situation will con-
tinue to show a declining tendency;
but here again 1t cannot be hoped that
any radical decline In freights will
take place. on account OF the very
high costs OF operation, which mark
a limit
The chief obstacle to a sound and
substantial reduction in ocean rates
is the well nigh universal labor un-
rest which Is holding back produc-
ton the world over and preventing \
balanced freight movement. The
shortage In the production OF British
coal Ia the chief factor In maintaining
high ocean rates. because not only
does this effect the price OF coal and
the cost OF steamship operation, but
also because 1t limits severely the
cargo offering in Great Britain for
return movement
Senator Thomas, OF Colorado. pro-
poses legislation denying the right Of
federal. state or municipal employees