22(5 JOURNAL OF I'ORKSTRY 



different degrees of thoroughness with which this plan may be carried 

 into effect. The writer believes that the more thoroughly the idea is 

 carried out, the more satisfactory will be the results. 



The simplest way of carrying this idea into effect would require little 

 change, except in the system of accounting. The Government would 

 be considered an individual interested in several lines of business, 

 among them the growing of forests. The Government would be the 

 proprietor of this business, and on the proprietor's accounts of the 

 bureau, having the management of the forests in charge, would be 

 credited with all moneys appropriated to the work of the bureau. All 

 expenses which increased the capital assets of the forest would be 

 charged to capital accounts. At the same time these accounts would 

 be given credit for stumpage cut and depreciation on improvements. 

 The proprietor's account would be debited with the net income from 

 operating which was returned to the Government treasury and with 

 the total cost of such work as research and education, which bring in 

 no money income. The bureau would simply act as agent for the pro- 

 prietor in carrying out these last mentioned lines of work and charge 

 it with the total cost. In this manner the capital accounts would show 

 the capitalization of the forests on the basis of cost and the proprietor's 

 account would show the amount of the liability of the forests to the 

 Government. 



The advance is not very great, however, as long as the only record 

 of this liability is a matter of bookkeeping. Books are too easily 

 tampered with. Furthermore, books are not sufficiently before the 

 public eye to prevent the politicians, representing special interests, 

 from passing laws which would remove the evidence of the liability 

 without the public being the wiser. 



Therefore, the next step is to require all funds to meet capital ex- 

 penses to be raised by bond issues. An incorporated business can raise 

 funds to meet expenses charged to capital accounts in three ways only. 

 It can borrow, issue and sell more capital stock, or issue dividends in 

 the form of scrip. That is, it must issue some evidence of indebted- 

 ness in order to raise capital funds. For the Government to issue 

 either scrip dividends or capital stock would require a different organ- 

 ization than we now have. However, it is perfectly possible to issue 

 long term bonds to be retired when the timber is ready to cut. It would 

 be necessary to issue enough extra bonds to furnish funds to pay the 

 interest on the whole issue, for the forest can not pay dividends until 



