FOREST VALUATION 



CHAPTER I 

 VALUES 



1. Wealth and Property. Wealth is defined as material 

 objects owned by human beings. Forest wealth consists of 

 forest land and its resources, principally trees, but including all 

 other materials such as forage and game. 



Property is the right represented by ownership, and not the 

 material object itself. The benefits derived from wealth make 

 its ownership desirable. The right to enjoy these benefits is 

 indicated by the term property. The satisfactions to be derived 

 from ownership of forest property, aside from the pleasures of 

 sport and recreation, take the form of money income from the 

 sale of forest products. 



2. The Standard of Value. Value is an expression of the 

 relative desirability of different forms of wealth or property in 

 terms of a common standard. The form of wealth accepted 

 as this standard is termed money, and is exchangeable for all 

 other kinds of wealth or property. The present standard in 

 this country is gold. The value of money itself can only be 

 measured by its purchasing power, which means its relative 

 desirability compared with other goods. Changes in the quan- 

 tity and rapidity of circulation of money cause its purchasing 

 power or value to fluctuate, and a decline in value of money 

 means higher prices for all other property. Prices in the im- 

 mediate past have risen. If continued, this tendency will be 

 a conservative factor in the valuation of forests; while in con- 

 trast, such property as long term bonds will tend to fall in value, 

 because it is redeemable in money. 



