HERMAN H. CHAPMAN 71 



quality. But it will not pay the private owner to wait too 

 long, even with this three-fold source of increase. The 

 interest on his expenses, with no income to offset them, is 

 compounding at a rapid rate, and will soon offset the in- 

 creasing value of the crop. The practice indicated for such 

 owners is to cut the crop as soon as it has reached mer- 

 chantable size without waiting for the production of large 

 material. 



The principles of compound interest and discount, when 

 applied to forest finances, show exactly what one can ex- 

 pect from forestry as compared with other investments in 

 which the money would be tied up without returns for the 

 same length of time. This knowledge not only prevents 

 us from making wild statements about the profits to be 

 derived from growing trees, but emphasizes the need of 

 economy in all expenses. The best returns from white pine 

 plantations in New England are 5 to 6 per cent compound 

 interest, and in many localities with slow-growing kinds 

 and poor markets the returns would at present be as low 

 as 1 per cent or might not yield any margin over the taxes 

 and other expenses. 



XI. FOREST POLICY. 



The interest of the private owner of land in forestry 

 must remain largely one of financial profit, and the dangers 

 to which his investment is exposed, from fire, taxes and 

 unforeseen accidents, when combined with the extremely 

 long periods he must wait for his crop, will discourage many 

 owners, from lumbermen down, in attempting it. But as 

 it was hinted at in the introduction, these drawbacks do 

 not apply to forestry by states or the national government. 

 Here interests which affect the welfare of the whole com- 

 munity must be considered. Wherever it is conclusively 

 shown that public interests will suffer if the forests are left 

 in private hands there is sufficient reason for urging the 

 government to undertake the work of caring for such lands. 



