PARAGRAPH IX. 



CLUMSINESS OF FOREST INVESTMENTS. 



Forest investments are clumsy, unwieldy, bulky, and difficult 

 to handle, for the following reasons: 



1. It is difficult to buy or sell forests. Quick minded specu- 

 lation is impossible. Valuation of forests is time-taking, expensive, 

 difficult. No two forests are alike; hence no valuation by analogs- 

 is possible. Forest stock companies, the shares of which might 

 be sold more readily, do not exist. 



2. Mortgages on forests offer little security, and can be obtain- 

 ed, consequently only at a high rate of interest. 



3. Division amongst heirs is difficult. 



4. It is difficult for the owner to prevent fraud by managers, 

 foresters, or rangers. 



5. An undeveloped forest yields an irregular revenue only. 

 The development of a forest consumes more time than does the 

 development of any other investment. 



6. Large areas are required (excepting wood-lots on farms). 

 The owner is forced to place much money on one card. 



