982 A NATIONAL PLAN FOR AMERICAN FORESTRY 



the forest owner to following his products through the preparation of 

 raw material properly graded for the use of the manufacturers. Under 

 these conditions the forest owner having no absolute demand for a 

 certain annual cut can keep his cuttings to a minimum during periods 

 of low prices and cut more heavily when demand is heavy. Close 

 attention to movement of stumpage prices on each tree size and 

 portion of the stand is one of the chief elements in obtaining the 

 maximum return from a forest property. 



PERFECTING STATISTICAL INFORMATION, ETC. 



It is generally recognized by economists and business authorities 

 that reliable current information on production, sales orders, in- 

 ventory, etc., in his industry is an absolute necessity to the modern 

 business manager. The Bureau of the Census and the Forest Service 

 have for many years collected national statistics at 1-year, 5-year, or 

 10-year intervals. It is hardly to be expected that such statistics 

 can be collected at Government expense more frequently than once a 

 year. For this reason several trade associations collect weekly 

 statistics in their territory. These are not always complete in any 

 given territory, and some territory is not covered. It is essential that 

 the system of collection be perfected and that a liason be arranged 

 between Government and trade-association work in order that com- 

 plete statistics may be available on a weekly basis, for the country as 

 a whole. By the cooperative application of modern statistical 

 methods relying on properly selected samples this work could be 

 perfected at little increase in expense. This is in the interest of 

 owners, managers, employees, consumers, and all other persons having 

 to do with forest industry or forest products. 



OTHER TRADE-ASSOCIATION ACTIVITIES 



Forest industries are as a general rule well organized into trade 

 associations. It appears that any steps toward better production 

 control or a better planned and less wasteful operation of the indus- 

 try must make important use of these associations. The frequent 

 collection of statistics has already been mentioned as one important 

 function of the trade association. Standardization, inspection of 

 products, and sales promotion have long been recognized as im- 

 portant trade-association fields of activity. The associations have 

 also encouraged better business ethics. Additional activities such 

 as regional sales or organization and establishment of production 

 quotas have not been studied sufficiently to warrant any conclusions. 

 Some of these cannot be engaged in without modification of existing 

 laws. It is in accord with American tradition that any such practices 

 should be on the basis of voluntary cooperation. 



ORGANIZATION OF FOREST CREDIT FACILITIES 



The organization of forest credit facilities is discussed in another 

 section of this report. It is believed that such organization properly 

 worked out under the supervision of the Federal Government can be of 

 considerable assistance in stabilizing the underlying finance of forest 

 ownership and relieving pressure for liquidation. The ultimate aim 

 of such organization should be to bring about a flow of credit capital 



