The Cordova daily times., 1921-10-12
LUMBER DEMAND IMPROVING
 IN WEST
CRy Associated prcss)


 actual improvement in the demand 1 for lumber Is reported from states of the Twelfth federal reserve district John Perrin declared in report made public here today.
 Stiffening of prices in the upper grades of Douglas fir, stationary or declining prices for California redwood and white and sugar pine, and decidedly more hopeful feeling as 70 future busi- ness prospects also feature the lum. Der industry at this time, the report said.
 August production of 365 .233, 900 feet of lumber. according to reports from the four lumber associations in the district, was 26S9O,OOO feet great. CT than the July cut, an increase of S.1 per cent" the report said. "In the corresponding four weeks of August, 1920, the cut was reported to be 46S.- 491 900 feet.
 
 mill capacity in the Pacific northwest and 60 per cent in the Inland Empire is reported as being in operation, while logging operations are reported as 70 per cent of normal
 shipments and orders kept pace with the increased cut and were great. CT than in July. Orders are reported to require much sales effort but in creased from 63,416OOO feet in July to 331 ,316.000 feet in August or 25.7 per cent. Shipments made during the month totaled 336,941 900 feet com pared with 2S6,727 ,OOO feet in July, an increase of 17.5 per cent. Shipments of lumber by water to the Atlantic sea board have increased 5S6S per cert during the first six months of 1921 compared with the same period in 1920. Notwithstanding the tremendous increase in water movement, the total volume of business of the Pacific northwest mills in Atlantic coast mar kets is stated to he less than 1t was a year ago, indicating a heavy decline in rail shipments. The report of the Pa. cific lumber inspection bureau reveals gains in waterborne shipments to all destinations at nine cargo markets and losses in like number with a net loss of 13 per cent Shipments to Euro pean markets show a decline Of ap- proximately 52 per cent. to the Vest coast of South America Of Il per cent to Australia of 5S per cent. and to China of 12 per cent. Shipments to Japan. which is rebuilding six of her largest cities, showed an increase of 31 per cent All comparisons are of the first six months of 1921 with the first six months Of 1920.
 Little change appears in the log market Stocks are being reduced gradually and the tendency is to log as little as possible and to use up all available material It Is reported that mills owning stumpage are virtually the only ones cutting. commercial log gers preferring not to trade except on a camp run" basis Gall logs from to purchase on stumpage. or graded basis asserting that the lumber mar ket will not warrant buying in any other manner at this time.
 Building activity during August continued 10 increase, the number of permits issued being 331 per cent in excess of those granted during August 1920. and the valuation. notwithstand- ing the substantial decline in prices during the past year, 14.2 per cent greater. Work which had been dis continued in several parts of the dis trict due to wage controversies in the building trades was resumed during the month"
 Business failures during August, although practically the same in num- per- l5o, aS III July, were 35 per cent less in amount of liabilities involved They were G6 per cent greater in mum. Der than in August, 1920.
 The effect of this marketing of crops and the increasing activity in the retail and wholesale trades, in building activity, and in other busi- ness, are reflected in bank clearlngs, upon the financial situation of the dis. trict Is apparent from the report of the 66 reporting member banks locat- ed in the seven principal cities. These institutions during the four weeks end ing September ', reduced their redis. counts with this bank by $14,0OO.G0O Or 95 ner cent mt uitbe ndi,., .n in