The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-02-25
The General State Of Trade


While the tone of business through
out the country remains quiet and
com paratively inactive, there is an
unmistal5ably better feeling spreading
through industrial and commercial
circles, which are gradually finding
more stable ground under their feet.
There is still a large amount of nq-
uidation to be accomplished. which
viii entail considerable losses in
places; but taking the country as a
whole the economic and financial sit
uation is fundamentally sound, and
business men of all classes are find
ing 1t practical to judge with fair ac-
curacy the conditions under which
their business the coming year must
be conducted, and this feeling is be-
coming daily a more potent factor in
, stimulating trade. With the general
decline in living costs, labor general
ly is taking philosophically reductions
in wages, and production costs as a
whole are fairly keeping pace with the
lower prices of commodities, which in
their turn are stimulating the ultimate
demand. The process is as yet by no
means complete, but it may be said
with certainty that the develop ments
since the beginning of the year justify
the expectation that the year as
whole will be one of approximately
normal activity.
Actual developments in the lumber
situation have not been great but
there is at least a more hopeful sent
iment in the trade 1t is yet too early
in the season to look for any decided
increase in demand, but with building
weather in the north near, it is re-
garded as inevitable that this must
soon develop to an extent which will
enable the mills to operate more ac-
lively. In fact this improvement in
demand is actually taking place as
to southern pine to an: extent suffi-
cient to indicate that the market is
noticeably on the upward course, or
ders of late having been in excess of
production, and nearer to normal than
for several months. While perhaps
on the whole prices have tended fur
Their downward, a few items have
shown increased strength, and there
lis reason to believe that the bottom
has been reached in the general run
Of prices, which are more likely to
stiffen than otherwise with any ma
terial expansion of sales 4
The hardwood market continues dull
off yet not without definite indica-
tions of an early renewal of activity.
Among other things, it is reported
that quite a number of automobile
and furniture factories which have
been shut down or operating on short
time are resuming operation again,
while the building and yard trade are
preparing to renew their supplies of
hardwood, which are very low. Indeed
the extreme paucity of sales the last
two or three months, of itself indi-
Gates that a renewal of buying can
not be much longer delayed, and in the
mean time the fight on prices has
been fought apparently to a finish
vantage in the matter of lower oper-
ating costs an dthe state of stocks.
While a moderate amount of cy-
press has been moving regularly, de-
mand has been at a rather low ebb
so far this year. but the mills are
looking for a material expansion with
the opening of spring. Prices have
not had so far to drop as those of
other species, but in common with
them have been showing a gradual re-
duction, more especially in sympathy
with those of white pine. The larger
mills, however, feel that they have
come down to as low a point as is
consistent with cost OF production,
and that any change from now on
will be more in the nature of ad-
vances than charlottesville Lumber
Trade Journal.