Allvantages Aduettising system

(Continued from previous Page) preserved dwindling forest resources,

Between 1970 and 1980 hardwood lumber prices increased at an average annual rate of 1590. From 1980 to 1982 prices fell28v/o as the economy contracted. In December, 1982, hardwood prices, with the beginning of a housing recovery, turned uPward.

In the 1980s hardwood Prices will be influenced by supply considerations. As the most easily obtainable tropical hardwood is exploited, less accessible timber will be cut, causing production costs to increase.

It is expecied, according to Engler, that the highest cbst hardwood resources. such as those in the Amazon area, will remain virtually untapped until the 1990s. With the exPected growth rate in demand, hardwood lumber prices are projected to grow at a rate of about 390 in real terms during this decade. Citing a price of $302 per cubic meter in 1982, $332 in 1983, Engler projects $362 in '84, $395 in'85 and $600 in 1990.

And that's one economist's view of what lies ahead for hardwood'

Readers wishing additionol information can get a copy of the "Situation and Outlookfor Lumber," PrePared by Sheldon Engler, from Ken Preston, News Relations 3124, Bank of A merica, P. O. &ox 3 7000, Son Francisco, Ca. 94137-ed.