1636 A NATIONAL PLAN FOR AMERICAN FORESTRY 



in Federal ownership, for which demand can be expected to develop 

 within 20 years, the possibilities of financial return takes on an en- 

 tirely different aspect. 



The average annual cost, chargeable to current expenses, of the 

 first 10 years of the Federal part of the program is around $26,000,000. 

 There is no question, of course, of the Treasury's ability to meet such 

 a relatively small expenditure annually by appropriation from in- 

 come. By the end of 20 years, if the program is carried out as 

 planned, an annual gross yield of $160,000,000 worth of marketable 

 products or services might be possible. This is not a forecast of 

 expected returns, but is rather a measure of the value, in place, of the 

 timber and other products that should be available for utilization 

 annually under the management and with the facilities provided for. 



Just what part of this annual production can be converted into 

 fiscal receipts it is impossible to forecast 20 years in advance. The 

 studies of forest growth and of trends in requirements point con- 

 vincingly to a total production by the end of 20 years of less than our 

 needs, and it appears not unreasonable to anticipate a market for most, 

 if not all, of what can be produced on the national forests. 



The national forests of the future as balanced by the addition of 

 commercial forest areas to present areas, and as improved and made 

 marketable by the facilities and cultural operations planned, should 

 ultimately pay their way and more. 



STATE FORESTS 



For the State, as for the Federal Government, if it were possible to 

 determine the actual money value of forests in the conservation of 

 water, soil, wild life, and recreational resources, these services alone 

 would justify their investment. There are, in addition, many sources 

 of direct income from State and private forests, which contribute to 

 the public treasury to offset the drain of initiating their establishment 

 and development. 



As timber crops mature under adequate protection and proper 

 silvicultural management, a very considerable income may be expected 

 from the sale of timber products. The returns will vary according 

 to the character of the forest; certain areas of low productivity 

 required for watershed protection may return no income, whereas 

 other areas of high productivity may yield net returns of several 

 dollars per acre per year. After the initial period of their establish- 

 ment and development, State forests may be expected to return 

 many times the amount of their current carrying charges. 



OTHER SOURCES OF TREASURY INCOME 

 FROM NATIONAL FORESTS 



As a means of financing immediate expenditures, there are other 

 possible sources of Treasury income that should be considered. Upon 

 the principle that the chief beneficiaries of the management proposed 

 should bear a share of the cost roughly commensurate with the 

 special benefits enjoyed, one must take into account the industries 

 and communities that use water on a large scale, such as hydro- 

 electric power companies and municipal water users, as well as those 

 engaging in traffic on the navigable rivers and inland waterways. 



