A NATIONAL PLAN FOB AMERICAN FORESTRY 111 



such a way that a continuous supply of timber is assured for each 

 dependent community; that is, under the principle of sustained yield 

 by comparatively small economic ^ units. In ^this way unhealthy 

 "boom" development can be avoided, periodic overproduction of 

 lumber and other forest products can be prevented, all of the indirect 

 benefits from the forests can be retained and increased, and our forests 

 can take their place permanently as one of the basic natural resources 

 upon which regional and national prosperity is founded. 



FORESTRY AND PUBLIC FINANCE 



The preceding discussion has shown that forestry serves the public 

 interest in many ways, There would be little question as to the 

 desirability of maintaining productive forests if they did not cost 

 anything. But it is obvious that large expenditures will be required if 

 pur forests are to be protected and made fully productive. Hence it 

 is natural that the questions arise : Will forestry pay? Can individual 

 forest owners or the public afford forestry? Will not the cost, a large 

 portion of which must be borne by the public, involve too heavy a 

 strain on public treasuries and on individual taxpayers? 



It can be admitted at the outset that forestry will not always, 

 under all circumstances, show a cash profit to the owner, whether he 

 be an individual or the public. There are large areas of forest land 

 upon which forestry will not be profitable, unless in the remote 

 future, particularly from the standpoint of the individual owner. 

 This will be true of much of the less accessible land and land of rela- 

 tively low productive capacity. It may also be true of the better 

 land where the forest is so badly wrecked that a costly process of 

 rehabilitation and a long period of waiting will be necessary before 

 appreciable returns can be realized. Even for private owners, how- 

 ever, the opportunities for profitable forestry are much better than is 

 commonly supposed. This is discussed in the section of this report 

 entitled " Status and Opportunities of Private Forestry." 



PUBLIC GETS RETURNS NOT AVAILABLE TO INDIVIDUALS 



From the public standpoint, the prospect of direct financial profit 

 from forestry does not have the same importance as with private 

 owners. 



Owners of forest land can obtain income from sale of wood and other 

 tree products, grazing privileges, and recreational and occupancy 

 privileges. Usually these are the only salable products as far as the 

 private owner is concerned. If the landowner is also an operating 

 lumberman, the profit he may make in the manufacture and sale of 

 lumber is an operating profit, not a land-owning profit. He could 

 make the same profit if he bought stumpage from another rather than 

 from himself. Operating profit should not be confused with profits 

 from landownership, though the two are commonly combined in one 

 individual or corporation. 



No matter whether land is in public or private ownership, the public 

 receives indirect financial returns and other benefits that are not avail- 

 able to individual owners. Within suitable limits, therefore, the 

 public is justified in spending money, both on public forests and to 

 promote forestry on private lands, even where no direct return can be 

 foreseen. 



