There were lots of hardwood forests left in the world after 1936 and there are lots left even today.But if you are producing too much regular cloths and chairs you can lower regular PM in atleast some factories.
Also the lack of hardwood is very fitting since it represents the severe deforestation that happend in that time.
OurWorldInData says that even today we have used up 2 billion hectares of the original 6 billion hectares of total forested area in the world (half lost before 1900 and half lost afterwards).
Deforestation and Forest Loss
Explore long-term changes in deforestation, and deforestation rates across the world today.
If you look at this graph you can also see that the deforestation before 1920 was quite small compared to what has happened afterwards. From 1840 to 1940 this graph has 500 million hectares of forest loss, half of that in the last 20 years.
So even if your victoria 3 world used 3 times more wood than historically, and you kept playing until 2020 you wouldn't run out of forest. If you used up trees at about 10 or 11 times the historical then you would have to worry about running out before 1936.
Also I'm not taking into account that some of the forests that were cleared historically were not cleared for timber (slash and burn to get new agricultural land). That would mean cutting timber for lumber could increase by an even larger amount.
That isn't to say that deforestation isn't a problem for things like biodiversity, species extinction and future timber needs, but there was next to no chance of the world running out of timber during the vicky timeframe. Small areas may be different, but those are exceptions (eg when Britain stopped importing much timber during WW1, the forests in the UK shrunk significantly in size).
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