38 ' JOURNAL OF FORESTRY 



as the valuable species are concerned. It is passing in the South and is 

 still with us in the Pacific Northwest. In the first named regions forestry 

 will yield little more than the current retiirn in future, though that 

 entirely justifies its practice where there are forests to work in. In 

 the latter regions it is becoming certain that the forest investment will 

 yield a favorable return in no other way except possibly in the case of a 

 few of the large properties which survive the small holdings, and do not 

 scruple to fulfill the predictions made some years ago by the Depart- 

 ment of Commerce^" regarding timber monoply. Of course even these 

 can make more by taking both the annual return and the returns from 

 increase in value. 



The idea of using our forest resources to produce continuous product 

 has gained little acceptance in America — ^none at all among the holders 

 of the bulk of our remaining standing timber. The forest is, however, 

 only nature's factory for the production of wood crops. Since nature 

 has been on the job in American forests long before the advent of the 

 white man with his civilization she has accumulated a large product in 

 the forest factory. Heretofore, we have depended solely on increases 

 in the value of this acctmiulated product for profits from the factory 

 which we have proceeded to wreck as soon as the product was taken. 

 But this is not the method we use with man-made factories. In these 

 we expect for the most part to make profits only by continued operation 

 and sale of the product. Taking the wrecking value of the factory gives 

 but a poor return of the capital put into it. Careful consideration of 

 the forest factory shows that the poHcy of taking the wrecking value 

 is there, also, poor business policy. It terminates the investment at a 

 large loss compared with the returns that can be secured by continuous 

 operation. Wrecking the forest, that is, destroying the tree growth 

 completely at the time of cutting means an immediate loss of nearly 

 $10 per acre wherever proper methods of cutting would have secured 

 natural regeneration practically free of charge. This loss is incurred 

 because replacement of the stand entirely by artificial means will cost 

 $10 per acre. Yet even after incurring this unnecessary expense the 

 forest investment will show a profit in regions of rapid growth if operated 

 under economic ownership. This proves conclusively that the wrecking 

 of the forest caused a wantom loss of the amount named. 



We must learn everywhere the lesson that, like other factories, the 

 forest factory will yield most when continued in operation. The public 



loSee Part I, Report on Standing Timber, 1913, by that Department. 



