312 Forestry Quarterly. 



Nevertheless, we must act as if the future were ours, and as 

 if the use of wood is assured forever, for which the vast amount 

 of its present consumption and other arguments give warrant; 

 although the extensive growing of anything but general purpose 

 woods is to be carefully considered. 



A few reflections regarding wood prices will perhaps help to 

 clear the situation as to future values. Prices are local, continen- 

 tal, and international or world prices. Eventually, there is for 

 every material of limited supply, as wood must ultimately be, 

 a price level which only distance to market can vary. In the 

 end, also, prices of manufactured or produced goods must at least 

 equal minimum cost of production. At the present time, while 

 there are still large supplies of wood available, the free gift of 

 nature on which no cost of production needs to be charged, 

 prices in this country at least remain below the cost of production, 

 and even in Germany they remain below a fair business charge, 

 because of the competition of these free supplies. The cost of 

 production in the German State Forests at present is at most 

 about $4.75 per M feet, not including interest on the capital 

 involved, and with a reasonable allowance of such interest 

 charges, around $7.00 per M feet. 



On over 10,000,000 acres of State Forests, the production of 

 stout wood (over 3 inch) was, in 191 o, 73 cubic feet per acre, of 

 which 65 per cent, or 48 cubic feet was log material which may 

 be translated into around 400 feet B. M. The total expense per 

 acre was $2.45 which if the whole is charged against log material 

 makes the cost of production i M board feet cut in the woods 

 around $6, from which deducting wood choppers' wages of 

 $1-25 leaves the cost of stumpage $4.75, while the average price 

 per M feet in the woods cut — i.e., of logs, was $16.65. 



With us. due to difference in labor prices, this cost of produc- 

 tion may be doubled and rounded off upwards to $10 per M. 

 When, therefore, stumpage values have reached the $10 mark 

 with us we may feel assured that the business begins to pay, 

 hardly before. 



Is there any likelihood of this value to be reached? Here 

 again we can only argue from past history and from the know- 

 ledge that timber supplies are limited. In Prussia, during the last 

 80 years — and no shorter periods need be considered — wood prices 



