262 JOURNAL OF FORESTRY 



the lumber industry has suffered but little from actual over-production 

 although greatly from potential over-production. There have been 

 cases where timber has been cut and wasted, but these instances are 

 isolated. The major portion of so-called waste is the direct consequence 

 of low-priced stumpage. It is an evil which cannot be alleviated except 

 by increasing the cost of lumber to the consumer but which will almost 

 automatically right itself with the inevitable future rise in prices. This 

 rise might perhaps be slightly less under governmental control and 

 this is the chief gain which could be expected for the public under 

 the plan. If the Government can obtain money at say 4 per cent while 

 the industry has to pay 6 per cent or 7 per cent, the cost of stumpage in 

 50 years will obviously be less if in Government hands. But the selling 

 price may well prove to be less than the cost even at 4 per cent interest. 

 It is conceivable and perhaps even probable that supply and demand 

 aided by competition of second-growth timber and perhaps of imports 

 and surely of substitutes will fix a future price which would result in 

 a loss for even the Government. 



It seems clear that the plan is immensely desirable for at least a 

 certain class of private owners. It would enable them to realize at 

 once on large speculative profits that they have already made (on paper) 

 through timber holding and would relieve them of the risk of future 

 loss. But it is not clear that the gains to the nation would offset the 

 expense. Since this plan does not touch the silvicultural essential of 

 increased production, its adoption is not favored. 



Substitute for Purchase 



It is coming to be more and more accepted in the United States as 

 well as in Europe, by lumbermen as well as foresters, that the growing 

 of saw timber is, on account of the long rotation involved, largely a 

 governmental function. One of the difficulties involved in a plan for 

 increasing the amount of forest land under Government ownership 

 upon any adequate scale is the heavy initial investment. This is par- 

 ticularly serious at the present time on account of the strain on the 

 nation's credit due to the floating of a series of war bonds. A system 

 of leasing can be devised which will be virtually equivalent to purchase 

 but with the financial burden distributed over long periods of years. 

 This is the object favored by this report. The details recommended 

 follow : 



