A NATIONAL PLAN FOR AMERICAN FORESTRY 1127 



earnings of the capital, and providing means for gradual amortization. 

 These three factors require careful consideration. 



The total investment in privately owned forest lands and timber 

 has been calculated as of the year 1929 by the Forest Taxation Inquiry 

 of the United States Forest Service to be approximately $4,075,000,- 

 000. This is less than previous estimates of these values, which is 

 readily accounted for by the fact that in the past few years the pro- 

 gress of forest depletion has exceeded the rate at which capital values 

 have been "written up." 



FURTHER INVESTMENTS INVOLVED IN BUILDING UP 

 FOREST PROPERTIES 



As is shown in other sections of this report, in most regions of the 

 United States the forests have been largely depleted of growing stock; 

 in other words, the forest capital has been liquidated. On large areas 

 this process may have gone too far to permit restoration under private 

 management. This discussion refers chiefly to private forest enter- 

 prises on areas that still contain saw-timber or cordwood growing 

 stock or to recently cut-over areas closely associated with saw-timber 

 or cordwood areas. 



In most instances forest capital can be built up by establishing 

 conditions under which nature will provide the necessary increased 

 stocking through growth. The safest way to build up capital is 

 through utilizing income from products sold currently. The problem 

 of obtaining sufficient gross income to carry the property and main- 

 tain the owner while the growing stock is being built is simplified if 

 high-grade mature timber is present in considerable volume. Where 

 the growing stock is badly deteriorated but a market for low-grade 

 material exists, it may still be possible by skilled management to 

 obtain sufficient income from sales to meet expenses during the time 

 required to rehabilitate the growing stock. On numerous properties 

 money investments will be necessary to pay taxes and the costs of 

 administration and fire protection and permit the owners to forego 

 income from the forest while it is being rebuilt to a condition that will 

 permit continuous operation. This refers to properties occupied largely 

 by young stands too immature for immediate cuttings. 



Equally, as urgent as the situations described in the foregoing, if 

 not more so, are conditions found in regions where a temporary sur- 

 plus of mature timber still remains, specifically in the Pacific coast 

 and north Rocky Mountain regions. Here financial pressure and 

 other influences are leading to hasty and wasteful liquidation of the 

 forests. Credit at economical costs appears fundamental to any 

 program looking to the orderly marketing of the surplus of mature 

 timber under private management in a way to preserve the produc- 

 tivity of those forests on a sustained-yield basis. In any given case, 

 such credits should be extended for the full length of time necessary 

 to accomplish the purpose, with proper rates of amortization as well 

 as of interest. Financial support of this type should assist in dimin- 

 ishing the severity of destructive competition between those now 

 marketing this mature timber without regard to future productivity 

 of the forests and those endeavoring to develop permanent forest 

 enterprises. 



168342 33 vol. 2 6 



