112 CANADIAN FORESTRY ASSOCIATION 



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 years 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 3^ 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. 



In Norfolk County we will pay more than five dollars an acre for the 

 land, but it will have to have buildings on it that can be utilized; also scrub 

 oak, which is of value. I am speaking of the soil value alone at five dollars. 



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 planting 

 under certain conditions, 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 condi- 

 tions, can be imported for about three dollars per thousand. 



