244 JOURNAL OF FORESTRY 



in the case of loans to wood-working industries. Loans should not he 

 made to more plants in one locality or in the nation than are needed to 

 supply the local or national markets. The rule here should be first 

 come, first served, unless some plants are unloadable through bad loca- 

 tion or construction and arrangement. 



In closing, the writer wishes to urge that the time was never more 

 favorable than now for the formation of such an institution. In the 

 next series of years the Federal Government will be paying ofif some 

 1 6 billions of low-interest-bearing bonds, thus rendering available to 

 lenders some five times the sum necessary to cover the legitimate bor- 

 rowing requirements of forest industry. No more opportune time 

 could be imagined than this for floating all bonds necessary. It should 

 also be again emphasized that the principle of decentralization must be 

 strictly adhered to. Complete freedom of action must be left to all 

 borrowers in order that freedom of initiative which has served so well 

 in the past may continue to do so in the future. No restrictions should 

 be placed on securing loans from other sources. 



The attempt of the Federal Government to dictate industrial methods 

 would be a sure bar to progress and hence intolerable. It has perfect 

 freedom to excel in management of its own forest holdings and is 

 under no necessity to interfere elsewhere. The argument for the pro- 

 posed financial institution may be closed with the positive declaration 

 that if the Federal Government does not by its aid in organization of 

 financial and other institutions bring order out of chaos in forest in- 

 dustry now, which it can do at insignificant expense, it will later have 

 to spend billions for reclamation of forest areas now being denuded of 

 forest growth, with no care to the future. 



