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Oregon Exchanges last two years. While Norway and Sweden have cut some, obtaining from Russia the greater percentage of their wood, which they in turn manufactured into wood pulp, there are no ship bottoms to bring the wood to this country, therefore that market has been eliminated. The price in Russia on domestic chemical wood pulp is $256.70 per short ton.

The Federal Government, as a wartime measure, has placed paper on the "non-essential" list. This means that the manufacture of paper is not necessary to the carrying on of the war. This action, of course, does not look serious, but the consequences are liable to be much more serious than we now realize. With selective conscription in force, it means that men between the proscribed ages in paper mills and other non-essential lines, will be the first chosen for military and naval duty, or they may be transferred to essential industries.

It will mean that if there is insufficient coal to meet all needs, the non-essential industries must go without, or take a quantity below their actual requirements as may be allotted them, at an enormously increased cost. It will mean that transportation of essentials will be given preference over non-essentials, with the result that freight cars, both incoming and out going, will not be obtainable at all, or their availability will be greatly curtailed. It will mean further that the supply of sulphur, which is an important item in the manufacture of paper, may be interfered with.

The mills have also increased their help from 2-tour to 3-tour, employing three men where they formerly employed two. In addition to this, there have been wage advances, and some mills are now either shut down or running short-handed on account of strikes. Many men have enlisted, and this means a smaller output in that green help cannot possibly turn out the same volume as can the more experienced help. Consider these difficulties from the standpoint of the manufacturer, and you will readily understand the small chance of a reduction in price in view of the increased cost in practically all directions.

History does not suggest a lower general level of business and prices for several years. In our own civil war experience, stocks rose, and business boomed, starting in '61 and striking a high level in '64. Then there was some recession, but in a general way business was good and prices high until the panic of '73.

Our coast mills are in a more favorable condition than the Eastern mills, but they are shipping large quantities to Australia and South America.

The editor of the Peking Gazette was arrested recently for saying in his paper that the present Chinese cabinet is "selling out China" to the Japanese under the guise of negotiations for a loan of 100,000,000 yen. Chinese journalism is rapidly becoming modernized. 6