,502 JOURNAL OF rOREf.TRV 



calculation of the years necessary to produce the crop. The rate of 

 interest should not be such as to make the bond worth more than par 

 but it should, if possible, be high enough so that whoever set out an 

 acre, if he was a poor man and needed the money, would be able to 

 dispose of the bond around par. Of course it would doubtless be im- 

 practicable to give such bonds unless at least 10, 25, or perhaps 50 acres 

 or even more were set out in one plot as the plots would have to be 

 inspected. 



The bond the Government would give could be just the same as any 

 other Government bonds ; the bonds would not be secured or limited 

 by any specific pledge of the real estate on which the trees were set 

 out. Government bonds do not need any such additional security. If 

 the Government so desired it could make the interest on the bonds 

 payable currentlv, as annuallv or semi-annually ; it would then in that 

 case be currently advancing funds which it would recoup itself for, 

 along with the interest on those funds, when the forest crop was cut. 

 However, if the bonds were made payable as to both principal and 

 interest only on the date of the maturity of the bond, then to the extent 

 such bonds were issued the Government would not have to raise any 

 funds, as the money would be available from the proceeds of the forest 

 crop cut before the bonds became due. The bonds would probably 

 change ownership before maturity the same as any other Government 

 bonds, and would be presented for payment on date of maturity by the 

 then owners the same as any other bonds. 



Let us assume that 10,000 different plantations were made varying 

 in size from 20 acres to 1,000 acres. The Government would have a 

 mortgage on all those plantations. Some of them might be destroyed 

 by insects or by fire or otherwise. But just as fire, accident, or life 

 insurance rates are determined unon the various percentages of the 

 insured penole living to different ages and the risk of loss by fire or 

 accident or death is spread over society accordingly, so here the Gov- 

 ernment having an interest in so large a number of scattered properties 

 with scattered risks Avould nevertheless have the funds arising from 

 the proceeds of the crops that were successful to meet the payment of 

 the bonds issued for the planting of all the plots both those that were 

 successful and those that might be destroyed. 



If the plantations were numerous there would be some that it would 

 be economical to destrov before the trees were mature, as in the case 



