920 JOURNAL OF FORESTRY 



75 years for the white pine, the status of the enterprise in 90 years 

 may be assumed as follows, provided stumpage prices have risen to 

 $30, i. e., at the rate of i>4 per cent annually: 



The purchase price of $2,250,000 has grown to $76,770,000 



The annual planting cost of $80,000 to 64,598,000 



The annual administration cost of $300,000 to 248,400,000 



Total expenditures with compound interest $389,768,000 



The annual incomes from the wooded portion to $63,682,000 



, The periodical incomes from thinnings to 119,500,000 



The 15 annual final harvests of $11,250,000 to 225,000,000 



$408,182,000 



In other words, in 90 years every penny of expenditure, with 4 

 per cent interest, will have been paid off and a property remains which 

 yields an annual income of $12,000,000. 



If the stumpage price had only advanced to $20 per thousand, 

 which is the present rate in Europe in ordinary times, so that the final 

 annual cuts were reduced to $7,500,000, the redemption of all expendi- 

 tures would only be deferred 8 years, and the property would then 

 be worth around $200,000,000, figured on its yield. 



Assuming that the enterprise is to be financed by bond issues as 

 funds are required and applying incomes to paying of interest charges, 

 it is shown that by the 75 years not very far from $100,000,000, or $100 

 per acre, will have had to be issued. With the 75th year, when the 

 final fellings begin, the income, which is now around $12,000,000, pays 

 not only the expense and interest on bonds but leaves around $7,600,000 

 for redemption of bonds, thus reducing the annual interest require- 

 ments, and in about 12 years the whole bond issue, interest and all, will 

 be wiped off the slate. 



If we rely upon annual appropriations, leaving out the interest 

 account, but applying incomes to reduction of expenses, by the 75th 

 year $24,000,000 will have been spent, which the incomes from harvest 

 will have returned in two or three years, leaving a property worth by 

 its income between $200,000,000 to $300,000,000. 



It is pointed out that 6 to 8 times more acreage than is now in State 

 holdings will eventually have to become State forest, and considering 

 the large financial obligation involved, cooperation of the Federal gov- 

 ernment with State governments in a comprehensive scheme of re- 

 forestation is suggested. 



State Forestry. Forest Leaves, August, 1917, pp. 54-58. 



