Il6 FOREST VALUATION 



large scale as it is on the national forests, with resulting economy 

 in all measures of protection, technical administration and 

 improved efficiency which will increase future revenue. 



6. Private ventures are based on the assurance of an enter- 

 priser's gain or net profit above p per cent, which is a matter 

 of indifference in public enterprises. The necessary lowering 

 of the interest rate on long investments, the postponement of 

 results and the increasing importance of the governing rate of 

 interest as affecting the size of the indicated profits lessen the 

 individual's interest in forest production as a business venture, 

 and strengthen the reasons for state or national enterprise. 



After the forest capital has been destroyed, its restoration by 

 planting or seeding can be of interest to private owners only 

 for species, regions and sites which promise reasonably quick 

 returns and high values, such as are shown for white pine in New 

 England or Loblolly pine in Maryland. But before destructive 

 lumbering has made such restoration necessary, especially for 

 forests which show a succession of age classes, such as spruce in 

 the northeast, the private owner may often continue to operate 

 indefinitely, with profit, by removing only the more mature 

 timber. This difference is due to the fact that such a forest 

 produces income annually with which to cancel expenses. Under 

 such circumstances the specific balance sheet shows an annual 

 profit; there is no accumulation of unpaid interest, and by fore- 

 going the "profits" he might obtain at any time by withdrawing 

 the entire capital, the owner substitutes a permanent annual 

 income. 



In considering questions of public policy, no sound conclusions 

 can be reached if the financial questions involved are neglected. 

 The difficulties of inducing private owners to voluntarily enter 

 forest production as a definite business are evident. If this 

 course is made mandatory by legislation, as is seriously contem- 

 plated in some states, it must first be shown that the expenses 

 thus required are in reasonable relation to the income that can 

 be expected from forestry. Otherwise it would appear that the 

 state is attempting to shift onto private shoulders a responsibility 

 which it should publicly assume. 



