Whglt About t949 ?

The yeor iust possed hos seen o tremendous growth in Rolph L. Smith's fqcilities. To improve service for you, soles representotives hove been estoblished in moior cities.

ln the New Yeor, Rolph L. Smith promises you thot 1949 will bring new improvements in its mony services, with continued exponsion of its mills ond plonls-to supply you even more tgp quolity West Coost Woods ond lumber products.

PONDEROSA PINE . SUGAR PINE

INCENSE CEDAR . DOUGLAS & WHITE FIR

Mouldings . Furniture Dimension . Glued-Up Stock

Industriol Shook . Venetion Blind Stock o Furniture Ports

'I/IANUFACTURERS AND EXPORTERS

Ponderosq Pine

Sugor Pine

Incense Cedor

Douglos Fir ond White

Sowmills:

Those men who are planning to retire and stop doing useful things, seeking a life free from responsibilities and duties, would do well to remember what Diogenes said when it was suggested he rest because he was old. He said: "If I were running in the stadium, ought I to slacken my pace when approaching the goal? Ought f not rath*er ,.1l",*o" more speed?"

Trouble rvith religion, it has never had enough business in it. Trouble with business, it has never had enough religion in it. Trouble with education, it has never had enough business or religion in it. Trouble with the world, the running of it has been turned over to so many men who are lacking in both and religion.

The lumber industry looks back upon 1948 with a great deal of satisfaction and appreciation. And very properly so. It was the most prosperous year this industry has ever known. It was the longest period of sustained high prices and good profits in our history. If 1949 will turn out as well as did 1948, this industry will truly be in pcsition to celebrate NEXT Thanksgiving.

This is true of "tt a.p"ri*.1l,r'", the industry, the dealer, the wholesaler, and the manufacturer, and pertains to all districts and all species. This prosperity has followed every root and branch of lumber and its associated industries. Likewise to all followers of and workers in the industry. All have nto"n.tid.* ,,

High prices for lumber have brought high .,vages for workers, high prices for logs and timber, high costs for everything that goes into lumber manufacture and distribution, and, generally speaking, excellent profits for all concerned'

The greatest change that the high tide of the last two or three years has brought to the lumber industry, is in the economic and financial position of the lumber manufacturer. This means the substantial, permanent operators of sawmills, and does not necessarily apply to the comeand-go-quickly type of small and poorly financed mills that have followed the high l"_T,,O.t tide like locusts'

It is not talking out of school or telling private seci'ets to state that always in the past the great majority of lumber manufacturers have had continuous financial problems. Always they were in debt, always they had bonds and other forms of indebtedness hanging round their necks. When hard times came, when lumber got cheap, when it could only be manufactured at a financial loss, the mills had to keep running. They could not help themselves. They must have income to finance their debts, to help them meet their payments, and so in good times and bad -they ran. The sacrifice of timber had to be accepted, because they needed money.

One o,f the most important parts of the lumber industry was the financial department. Banks and bonding concerns by the score made a special business of mill and timber financing. Fortwo generations the financing and refinancing of mills andtimber was a major industry throughout this land. And the yoke of debt played a most important part in the lumber drama, just as it does in the lives of individuals who are similarly oppressed. Mills seldom closed. They couldn't. Their bonds and other debts kept them running. And lumber often suffered from this alone' ,F * ::3

Today, for the first time in two generations, the substantial sawmill operations of the entire nation are free from that old and deadly bondage. So today, for the first time, these mills are in position to protect themselves and their timber holdings should the occasion arise. Today, for the first time, they could shut dorvn if it seemed wise to do so, and if circumstances suggested.

For the last five *orrt; "l ,no, there was a continual, if very slight, slackening in the demand for lumber in general. It has been accompanied bya modest reduction in lumber prices. There has been no sharp break of any sort in the lumber market anywhere. All lumber still brings excellent prices. But the seller's market that had prevailed for a year or more has come to an end, and for the first time the mills seek business. A terrific amount of lumbel production contributed to the situation just named. 1948 will be one of the biggest lumber production years in all history.

There are many *no aJ.r"]., "na r am inclined to agree very strongly with this opinion, that a certain amount of softening of lumber prices may be helpful rather than hurtful. A general and modest decline may save the serious trouble that inflation always brings. Certainly it would seem that nobody has been hurt as yet by the softening of the automatic lumber demand. The balloon that fills too fast and too much is in danger of explosion. I think