Timber is the term for the harvested tree, so I will proceed assuming you are asking about paper versus lumber, the finished wood product that is in a square or rectangle and can be used for construction, furniture, etc. In this case, the answer to your question is lumber.
An estimated range of 35-42% of trees that are cut down are intended for paper, 9% of this coming from old growth trees, which are irreplaceable. In the U.S., the trees harvested are mostly softwood forests like pine in the South and Western parts of the country.
53% of timber in the U.S. goes to lumber. The great majority of this, all but 3%, goes to the construction industry. (http://science.howstuffworks.com/timber2.htm)
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