Balance of Production and Consumption Restorcd in the Lumber Industry

Washington, D. C.; August 11.-For the first time in its four years of existence the Special Lumber Survey Committee does not recommend a reduction of lumber stocks. The Committee's quarterly report to the Department of Commerce for the third quarter of 1935 finds that a reasonable balance of production and consumption of lumber has been substantially restored.

Lumber consumption for the first half of 1935 is estimated at 8,0O2,000,000 as against 7,884,000,000 in the first half of 1934. Production in the first half of 1935 was 2 per cent higher than in the corr,esponding period of. L934 in the operating mills, but total produ,ction is indicated to be about 18 per,cent less. This falling off is largely due to the closing of many small mills which were operating a year ago. Ifowever, the belief is expressed that total production for the year will be about the same as last year.

Pri,ces of lumber have been comparatively stable, with a 2-point increase in the June price index. Southern pine prices averaged ff23.23 in June, which was 15.5 per cent less than the average in June, 1934, and,1O.6 per cent higher than in February, which was the low for the year. West coast prices advanced from $15.30 in February to $18.25 in June, due partly to the effect of the persistent labor difficulties in that region, which have reduced output. Ponderosa pine prices were in June about 6 per cent higher than in February, but 6 per cent less than in June, 1934.

The Committee notes that residential .construction, including reported modernization and repair projects was 74 per cent higher the first half of 1935 than it was in that petiod of.1934, as measured in floor space. Similarly measured, residential building in June was the highest for any month since O'ctober, 1931.

Lumber imports during the half year were the heaviest for any such period since 1933 and exports were 13 per cent higher this half of the year than in the first six months oI 1934. Douglas fir imports were particularly large in May and June because of the strikes in the Douglas fir region. So far this year there have been no lumber imports from Russia. The volume of orders recorded at the July midwest furniture show was the largest sin'ce 1929, pointing to substantially increased buying of hardwoods during the rest of the year.

July reports indicate slight stock in,creases, but total stocks July 1, 1935, are estimated at 750,000,000 feet less than on January 1.