On the land which has been cleared for farming, or where no seed 

 trees of valuable species exist, replanting will have to be done to obtain 

 new growth of desirable speciea. 



In this discussion I wish to point out the possibility of reforesting, at 

 a profit, rather than to deal with the cultural methods of replanting. It 

 must be admitted, that it is quite possible to artificially reproduce forests, 

 this having long been done in many parts of the world. Nature acts much 

 the same in Canada as in other regions. 



Our problem is to demonstrate the possibility of doing this work at 

 a direct, financial profit although there may be arguments advanced to 

 show that this reclamation work should be done even at an initial loss. 



In considering reforesting as a financial investment, the subject can 

 be best discussed under the following topics : 



Rate of Interest. 



Cost of Land. 



Cost of Plant material. 



Cost of Planting. 



Cost of Management and Protection. 



Taxation. 



RATE OF INTEREST. All expenditures made in producing a crop of trees 

 must be charged against the crop. As a forest crop takes many vears to 

 mature, it is necessary to place the initial outlay at compound interest for 

 the period, and also to compound the recurring annual expenses. 



In considering the investments as being under state management the 

 rate of interest will be that at which it is possible for the Province of 

 Ontario to obtain money. At present this rate may be placed at 3i per 

 cent. 



COST OF LAND. The initial cost of the land must be placed at com- 

 pound interest for the period in which it takes to produce the crop. By the 

 initial cost is meant the soil value without buildings, and without inferior 

 growth or other values whch may encumber the land at the time of pur- 

 chase. At the end of the period the accumulated interest should be charged 

 against the crop, and not the initial cost of land as we still have the soil 

 value after the crop is harvested. 



Lands referred to in previous pages can be purchased at prices rang- 

 ing from two to five dollars per acre for soil value. 



COST OF PLANTS. Cost of plant material can be considered by taking 

 White Pine as an example. 



Two year old White Pine seedlings, which are suitable for some con- 

 ditions, can at present be imported from Germany and laid down at points 

 in Ontario for about one dollar per thousand. Three year old White Pine 

 transplants, which are stronger and necessary for certain conditions, can 

 be imported for about three dollars per thousand. 



It is quite possible to grow in our own nurseries two year old seedlings 

 for one dollar and fifty cents per thousand and three year old transplants 

 for three dollars and fifty cents per thousand. 



It will be preferable to use native grown plants in future work, and 

 the cost can be brought below the above figures. It fwould be a conservative 

 estimate to place the cost of plant material for tie average conditions at 

 five dollars per acre. 



COST OF PLANTING. Cost of planting depends upon quality of labour and 

 nature of soil to be planted. By specing the plaints about five feet apart 

 in lighty, sandy soil, it might be possible for two/men to plant an acre per 

 day. In rough conditions with uneven surf ace/ and considerable obstruc- 

 tion the labour ^might easily be trebled. For such soil as exists in the 

 waste areas previously described, five dollars per acre wuold be a safe figure 

 for labour in planting. 



COST OF MANAGEMENT AND PROTECTION. Cost of management and protec- 

 tion forms one of the large items to be charged against a forest crop. 



