Periodical Literature 759 



Professor B. P. Kirkland discusses in 



Cost detail the elements of forest finance calcula- 



of tion with special reference to conditions and 



Growing values of the Pacific Northwest, more 



Timber especially the cost of growing timber to 



different forest owners, the object being 



to show that the required interest rate rules the possibilities of 



profit, or of engaging in forestry business. 



As regards land values, he claims that the optimism of the West 

 will insist on high land values. Leaving out the real farm lands 

 at $10 to $50 as unavailable, he gives values of $10, $5 and $2 for 

 three site qualities. Planting cost, he thinks can be kept down to 

 $5 per acre if advantage is taken of existing volunteer growth. 

 Cost of administration and protection, which Kellogg and Ziegler 

 in a similar discussion placed at 5 cents, the author raises to 20 

 cents as more reasonable. The matter of taxes is somewhat com- 

 plicated, as values of a growing crop change. For site I up to the 

 20th year the soil alone may be taxed at 1 per cent, or 10 cents an 

 acre, the next decade, owing to increased value of the crop, this is 

 doubled, the next decade trebled. From the 41st to 50th year a 

 volume of 20,000 feet b. m. at $3 and the land at $10 brings the tax 

 up to 70 cents per acre, and the following decade the value is 

 figured at $290, the annual tax at 1 per cent being $2.90. For 

 II site, two thirds, and for III site, one third of these values are 

 prescribed. 



Difference in ownership affects taxes ; public ownership, federal, 

 State, municipal, though not directly paying taxes, is charged in 

 lieu of taxes with 25 per cent of the gross income, after the prece- 

 dent of the National Forests handing over to the States this 

 amount. 



Interest charges vary even more widely than taxes. Without 

 argiiment, except that these are rates at which owners can borrow 

 or lend, the author proposes the following interest charges : 



Per cent 



Federal Government 3 



State " 4 



Municipalities 4 , 5 



Large Corporations 4.5-5 



Moderate-sized Corporations 6 



Small Corporations and Individuals 7 



