HARDI7OODS /"- "S P E C lA L"

Better Than Ordinary

Rise in Building Operations lncreases Lumber Consumption

Washi.ngton, February 2O,-Lumber consumption for the first quarter of 1939 is estimated to be 2O per cent greater than the first quarter of 1938, by the Special Lumber Survey Committee in its quarterly report to the Department of Commerce just released. This will mean a gain in consumption of approximately 5.6 billion feet.

The entire volume for 1939 is expected to equal the figure of 1937, or 25.I billion feet. This is almoit four billion feet greater than the consumption of last year, the gain being predicated largely upon a substantial rise in building operations.

The Committee reports national lumber stocks at the mills on January 1, 1939 at approximately 8.4 billion feet, an industry decline ol 6.6 per cent in 1938. "Aggregate lumber stocks are reported as not excessive," says the Committee, "though in some regions the assortment of items and grades is not in satisfactory balance. Significant regional surpluses are noted in items and grades that ordinarily have been largely consumed by the railroads or absorbed in exDort trade."

The use of lumber in building, especially in small houses, was found as the principal support of the lumber industry the past year, but the Committee emphasized the loss in exports which in 1938 were the lowest in 4O years a.nd laid the blame to reciprocal trade agreements.

"Lumber exports which even in recent depression years were 10 per cent of the total lumber output, dropped in 1938 to less than a billion feet, the lowest in 40 years. Exports were in volume less than 5 per cent of the production. The general retardants to world trade have been accentuated, in American lumber and timber products, by the results so far of reciprocal trade agreements, which are generally regarded by the lumber trade as adverse. Notwithstanding the magnitude of its timber reserves and lumber manufacturing resources, and the superiority and diversity of its lumber and timber products available for export, the United States in the past ten years has dropped from first place in lumber world trade to fifth place' It is now exceeded by Canada, Finland, Russia and Sweden.

"The depressed condition of the railroads," qontinues the report, "has reduced lumber purchases by that industry to the low levels of 1932 and 1933, or about one-third of the volume of ten years ago. Nearly one-sixth of the lumber output formerly was consumed by the railroad5-nevl lg55 than six per cent."

Due to generally higher costs, the lumber price index which has bee.n'slowly rising since June 1938 is expected to show further general though moderate increases' The 1938 average price index was 90.4 com'pared with 99 in 1937 -

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Above: Fluted pilcrster ccrsings cnd ornqmental ccp-trim lorm c delightlul lrame lor this interior doorwcy is c privcte residence in Scrnta Moniccr. Jcrmbs, trim crnd door crre Sugcr Pine, enqmeled tinish.

Bighu Moulded ccsing-trim wcs used for the corridor door openings in cn crpcrrtment-hotel crt Los Angeles. The typiccrl unit here illustrcrted is oI Philippine Mchogcrny, stcrined dcrrk red.