426 MINNESOTA STATE HORTICULTURAL SOCIETY. 



HOW TO OBTAIN THE NECESSARY FUNDS. 



The state will be entirely justified in securing the moneys neces- 

 sary for the acquisition and the reforestation of land by public 

 loans. Even part of the interest (certainly 2 per cent) due on such 

 loans may be secured by loans. The increase of the loans, to be 

 made annually, will go hand in hand with the growth and the exten- 

 sion of the forests. 



The loans, backed by valuable assets, viz., the forests, will be ob- 

 tainable at a comparatively low rate of interest. From the eightieth 

 year on the net revenue from the forest is likely to yield sufficient 

 interest on the entire investment. 



From the sixtieth year on mature timber may be obtained from the 

 best localities, yielding then (after Pinchot and Graves) 13,400 feetB. 

 M. per acre. Inasmuch as the expense for acquisition and refores- 

 tation, administration and taxes is not made from loans, the forests 

 will form the "Savings Box of the Commonwealth." 



ADVANTAGE OF THE STATE FOREST SYSTEM THUS SECURED 



The advantages of such a system of forestry are manifold. 



First. All the sums spent for planting are money spent for com- 

 mon labor. The value of the plants, too, is nothing but money spent 

 for gatheringseeds, preparing nurseries, sowing seeds, weeding seed 

 beds, etc., etc., — consequently nothing but money distributed 

 amongst the laboring people. 



Second. The common laborer engaged in forest planting finds 

 w^ork at the season at which labor is not required in agriculture, 

 building, etc. 



Third. The harvesting and the manufacturing of wood and lum- 

 ber will be a source of revenue to a large population after another 

 two generations, such revenue being derived from lands otherwise 

 barren. 



Fourth. The public loans above mentioned will offer a good 

 chance for safe investments. History proves that investments in 

 forestry are safer than any other. 



Fifth. The fishing and hunting interests of the state will be 

 greatly benefited by the forests systematically protected and used. 



Sixth. The example given by the state will act as a stimulus rela- 

 tive to conservative use of forest resources by the wood owners. 



Seventh. The counties will obtain taxes from the land otherwise 

 barren. Personally, I am strongly in favor of the state paying 

 taxes on state forests to the counties and 'towns where such forests 

 are situated. Of course these taxes should be taxes on the value of 

 the soil only, \ ust as in case of agriculture, and not taxes on soil plus 

 crop. As an immature crop it has practically no market value, as 

 revenue cannot be derived from it immediately. 



For this reason I have included taxes on the land amongst the 

 expenses in the calculations at the head of this letter. 



POSSIBILITIES OF THE SPECULATION. 



As regards the possibility of higher returns than those figured 

 out to begin with, they may be expected with certainty. 



