The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-02-26
Lumber Prices Here Will Not
Decline, Says Louis Hesselden
In Review Of Market Conditions
Reductions Announced In Northwest win Have No Effect Here, He
says-Thinks Prices May Even Go q Little Higher
For An Indefinite Period

Immediate pro-wnr period were sub
stnntiaiIy lower than lumber prices
had been for eight years before. The
wears sos and 1907 were generally
prosperous years pnd are the prices.
probably. that can be more uiriy used
a. a busis of comparison.
III IN necessary. too. Tor any clear
consideration Of lumner prices % re-
member that under normal conditions
building costs adtnnsr nborN : pct
cent Il year. due 20 Decreasing and re-
cedinE sources OF supply. IN the face
OF this established fact, prices tended
10 go down from 1907 to 1914 and this
stead, drop resulted In tho nanlrv
conditions In the lumber trade ~
1914 Locally conditions m the trnue
were worse than the country normal.
Competition between dealers was out
OF reason and competition between
contractors was wen worse. This lat
ter condition is illustrated by the num-
bor Of contractors who lott town %
these days. Leaving their bondsmen ! .
cool their heels on the unpaid pills.
These conditions continued with little
change until the United States entered
the war. in 1917 There followed the
ban on building. The ban n me
governments price hNink policy bore
particularly on lumber minuincturera'
The policy tended 60 cut tn D mini
mum all industrial activity not direct
~ necessary 20 war making. The re-
suit was to establish q price on lunir
Der on n basis that stopped profitable
operation IN "a majority Of United
States lumber mills. The result, OF
course. was to A. lumber production
and this artraily WINS reduced more
than onc-half during tho period ~ the
war, The result agpin. was q totally
depleted market.
Lumber shot Tn.
at the close OF the war. since lum d.
ber prices had not been determined
by tho normal forces ~ demand and
competition. and when thr artificial
restrictions were removed, lumber
/ sought It's natural price level. with rc.
iatlon TO other commodities. and found
IL in the increases which Immediately
followed the armistice. nisregurding
the o%xtrnvnEunt advances IN prices Of
special items, such uH flooring, latf
etc. due TO temporary excessive short
nges. and considering only average adj
anCcs In the entire lumber list. it Del
evident that tho recent lumber prize
movement has been nothing more
thuu numbers effort to assume its nor
NAL price relation 90 other commudi'
ties.
For thc FIRST five or Six months ~
ter tho urWiatlcc. q period OF compar-
utlvr industrial Inactivity. Ncrv ittlt
change was evident iu the market IN
tine spring and summer OF last vcni
general building activity was resumed
~ almost the entire country lum.
her buyers jumped into the market
with % volume of orders FAR beyond
the capacity Of The bills. Stocks that
were already scarce bcCHmc scurccr
ttcms in greatest demand vanished
from the market altogether. Pricol
ON some special items went Wild while
tho entire lumber list ad Fanccd Ger
tain buyers, apparently in i'm operative
need OF material. were willing to pay
"a premium above quoted prices FOR
I deliveries Of certain items. This con.
ditiun varies as to localities and de-
mnnd and In some sections has ere
utcd "a Bidders market The result
"a unhenrd Of disurrangcmcut o
prices ns be'w,cu localities and grade
81 lumber
"Thc car shortage aUd. the cmhurE'
placed on shipments from d lurinN
northwest probably explains tlr ar
iiclc ben Tuesdays Herald Tine de
tiiuc therein fprccusted viii prove ID
De only local in It's effect Do Will have
mo- relation tu general market con
diuons Boa the lumber trade. More
over this statement showed that price
CO.. these markets had reverted TO IN.
. january level whereas local dealer
have bought mo- goods at the Ianunr'
market prices. but 90 December prices
"Thc public is familiar with the De-
bor situation in that 1t is dihncult q
obtain and generally less efficient
"it Is asserted that there is stun
shortage OF million homes bon tia
United States. with % proportional
|shortuEe iu Industrial % bushes
construction. This Will create "a large
demand Tor labor and material uu.
the demand will increase for som
time 90 come. 40 Ions as that dnUun.
continues We ron see no relief frot
the high price situation