74 A NATIONAL PLAN FOR AMERICAN FORESTRY 



pendent industrial values, as a permanent part of the Nation's na- 

 tural resource wealth. 



THE FINANCING OF CURRENT AND CAPITAL EXPENSES 



The expenditures needed to carry out the program outlined, whether 

 public or private, fall into two classes which suggest different methods 

 of financing. 



The first is current expenditures for carrying on everyday produc- 

 tive business such as costs of fire protection and of logging and milling. 



The second is capital investments such as the purchase of addi- 

 tional land, planting, and road construction for increasing the capital 

 assets. 



The logical way for private owners to meet current expenditures is 

 from current income from surplus, or from working capital borrowed 

 on short-time loans anticipating current income. 



For public agencies the logical way to meet current expenditures is 

 by appropriations from actual or expected Treasury income or if 

 necessary short-term borrowing. 



For capital investments for Federal and State forests, long-term 

 loans at a low rate of interest would afford the means for underwrit- 

 ing desirable projects beyond the immediate capacity of Treasury 

 income. 



Capital investments for private owners might be carried very ad- 

 vantageously under some such plan as that proposed for the enlarged 

 field of the Federal Farm Loan Board. 



THE MOST IMPORTANT LEGISLATION REQUIRED 



BY THE STATES 



The most important legislation required by the States to carry out 

 the national plan and programs recommended will include laws 



Establishing State forest organizations where they do not exist, 

 and strengthening those which are now handicapped by un- 

 certainty of civil-service tenure or by political interference. 



Establishing programs on a long-time basis both for the acquisi- 

 tion of lands as State forests and parks, and also wherever 

 desirable for the management and administration of both 

 existing and acquired lands. 



Clearing up the status of tax-reverted forest lands, or submarginal 

 agricultural lands suitable only for forests, accepting the in- 

 evitability of public ownership, providing for blocking into 

 State or local forests those suitable for public ownership, and 

 providing for their management and administration. 



Similar laws for other State forest lands now in uncertain status. 



Authorizing Federal acquisition by purchase or otherwise for 

 national forests where desirable or necessary and not already 

 provided. 



Providing for State- wide organizations for fire control. 



Strengthening existing regulatory forest fire laws by providing 

 reasonable safeguards for the legitimate use of fire, and with 

 provision for the punishment of carelessness, neglect, or arson. 



Providing for the necessary protection of forests against damage 

 from insects, diseases, acts of trespass and other injury, or 



