5)58 lOURXAL OF FORKSTRV 



If the disappearance of the lumber industry had been followed 

 as a rule by other economic development to use the land left vacant, 

 the idle labor could have been absorbed in the new industries. The 

 truth is, however, that passing of lumbering in given regions has not 

 opened the way in most cases for other development, but has resulted 

 even in the transfer of many industries dependent on the forest re- 

 sources to other regions. 



It is certainly a novel theory that "higher prices for the products 

 of the forest, resulting from the increasing scarcity of the raw ma' 

 terial, have made possible the payment of higher wages." It is con- 

 trary to the assertions of the industry, very vehement at times, that 

 the high prices of forest products are due to the high cost of labor 

 and equipment rather than to scarcity of raw materials, and that prices 

 can be lowered only if wages come down. Just now the normal rela- 

 tion between demand and production has been upset, and the excessive 

 demand for lumber, making prices much higher than would be justi- 

 fied by scarcity of raw material alone, enables the manufacturer to 

 reap unusually large profits. He may not only be able, therefore, 

 to share his profits to some extent by paying higher wages to his 

 employees, but because of the relative scarcity of labor may have to 

 do so. These conditions are for the most part temporary, and the 

 situation has nothing in common with that of a shrinkage of employ- 

 ment coupled with a normal labor supply. Under such conditions the 

 wage of labor would naturally fall instead of rising. 



We are personally convinced that the growing scarcity of raw ma- 

 terial, if the products are not to reach prohibitive prices, must result 

 to the disadvantage of the labor engaged in the industry. No ex- 

 haustion of a basic natural resource has ever yet benefited labor in the 

 long run. It is conceivable, on the other hand, that with cheap raw 

 material and increasing prices for the product, the share of labor may 

 be larger than before, instead of smaller. 



9. "Idleness of some of the cut-over timbcrlands is the temporary 

 result to be expected of clearing the forests from lands upon whicH 

 maintenance of permanent forest growth would be poor public econ- 

 omy, because involving relatively wasteful use of the soil." 



Temporary idleness of cut-over lands which within a short time 

 will be absorbed by agriculture or other use may be economically justi- 

 fiable. Idleness, even temporary, and protracted idleness of potential 

 agricultural land which might produce another timber crop before 



