A NATIONAL PLAN FOR AMERICAN FORESTRY 1635 



the total expense in any one State may be divided among the many 

 units of State and local government, it becomes apparent that in many 

 instances current expenditures can be met from current treasury re- 

 sources with little difficulty. Federal aid financial and through the 

 establishment of national forests is expected to be greatest in those 

 States least able to finance their forestry program. 



FINANCING CURRENT EXPENDITURES 



As stated before the current expenditures involved in Federal, 

 State, and private operations will broadly include the annual disburse- 

 ments for protection, administration, cultural operations, surveys and 

 plans, forestry extension, and harvesting costs. Such disbursements 

 in private business practices are usually met either from current in- 

 come, from surplus in the event and to the extent that current income 

 is insufficient, or from working capital borrowed on short- time loans 

 anticipating current income. 



In the case of governmental agencies, these expenditures are usually 

 met from appropriations of funds against actual or expected treasury 

 income. Deficiencies in income and sums needed prior to realization 

 of income are met from treasury surplus or by short-term borrowings 

 on warrants or on treasury certificates. There is no reason to question 

 the soundness of this method of financing and thus no occasion to 

 suggest any departures. 



THE OFFSETS TO TREASURY DRAIN 



FEDERAL FORESTS 



The outlay required for the protection and management of the 

 national forests must for some years to come exceed the Treasury 

 income from this source. If it were possible, however, to express the 

 dollar value of forests in the form of conservation of water, soil, 

 recreational resources, forest ranges, and timber there would be no 

 such deficit. 



Of the 140 million acres of land in the national forests of the con- 

 tinental United States alone, 75 million acres are covered by commer- 

 cial forest growth and of these only 7 or 8 million acres are so situated 

 as to be available for immediate intensive management involving full 

 realization of timber values. Sixty-five million acres of national- 

 forest land are above timber line, or are covered with noncommercial 

 brush, scrub growth, and open lands. This area is essential for the 

 maintenance of water and other services and values and requires and 

 justifies the expenditure of money to protect, but it holds no immedi- 

 ate promise of financial returns sufficient to meet expenses. 



The commercial timber land area now inaccessible for use will grad- 

 ually come into intensive development as the demand for timber 

 increases, and in the meantime it must be given protection. All of 

 this means that the cost of managing the whole property will tem- 

 porarily exceed the immediate income from the relatively small area 

 that can produce high returns. The acquisition program set out here 

 provides for the addition of 90 billion feet board measure of com- 

 mercial timber in the next 10 years. With this addition, plus about 

 40 million acres of the 75 million acres of commercial timberland now 



