CONDITIONS IN PARTICULAR INDUSTRIES. 313

on their part in dealing with the foreign broker. The result is that
the American lumber exported has brought and is bringing lower
prices than it should obtain in the markets of the world. The forests
of this country are not inexhaustible, and, inasmuch as their product
contributes to the development of foreign nations, it is contended
that it should command prices high enough to make an adequate
return to the United States for the consumption of its natural capital,
represented in its forest resources,
The conditions under which the export trade in American limber
has been conducted may be set forth briefly. As already pointed
out, Europe is the largest market, the principal importing nations
being the United Kingdom, Netherlands, Germany, and Belgium.
The bulk of the exports to Europe are confined to yellow pine and
hardwoods. The trade is handled chiefly through foreign brokers
whose headquarters are in London, Hamburg, Antwerp, and Rotterdam.
 These brokers usually have branches in this country, or connections
 with domestic brokerage houses through whom they buy.
These work in harmony with buying combinations such as the Syndicate
 of the Timber Importers of Belgium, the Association of Hamburg
 Importers, the South German Lumber Importers of Mannheim.
[n Europe American lumber meets competition with the pine, fir, and
spruce lumber manufactured in Norway, Sweden, and the Baltic
Provinces of Russia, with the spruce, hemlock, and other softwoods
in Austria-Hungary, Roumania, Bosnia, and the neighboring States,
in the various kinds of lumber from the still extensive forests either in
national or private ownership in France, Germany, and Italy, and
with lumber imported into Europe from sources other than the United
States. The only reason why American lumber is handled is because
the price at which it is sold is always cheaper than that at which a
satisfactory substitute can be obtained. There are available to the
European markets sources of lumber other than the United States,
which, more advantageously situated, as far as transportation is conserned,
 can furnish a supply of lumber adequate to all needs. The
owners of these natural resources, however, are not willing to sacrifice
any profits due to their advantageous situation by undertaking to
supply the whole market at the prices which the American manufacturers
 are willing to take for their lumber. They are satisfied to
supply only that part of the market demand in which they can most
advantageously-meet the prices of American lumber. The European
zonsumer gets the benefit of the relatively low prices of the American
product, while at the same time he is assured of a permanent future
supply, to become available when the American lumber prices are
forced up by the diminishing supply and increased costs of the
American lumbermen.