398 SECTIONAL TRANSACTIONS.— K*. 



Mr. T. A. McElhanney and Mr. R. D. Craig. — The Canadian Forest 

 Industries. 



1. Historic Place of the Forest in National Life. 



Since the earliest days of the French regime the products of the forest have 

 furnished a natural and abundant source of industrial prosperity in Canada. Oldest 

 of all is the fur trade, which continues to yield pelts to the value of nearly $20,000,000 

 a year. 



The square timber export trade flourished during the first three quarters of the 

 nineteenth century, and was followed by the sawn lumber industry that reached its 

 crest in 1911, since which time the growth of the present enormous pulp and paper 

 industry has been the outstanding feature. 



2. Relative Economic Im.'portance of Forests among Natural Resources. 



In value of production the forest industries rank second only to agriculture, have 

 nearly twice the value of the mines, and almost ten times the value of the fisheries. 

 The total forest resources hold a key position in respect to the national trade balance. 

 In 1927 the value of the forest products exported was $280,000,000 with imports of 

 only $36,000,000, leaving a favourable trade balance of $244,000,000. This figure 

 considerably exceeds the total favourable national trade balance for that year, which 

 was approximately $221,000,000. 



3. Extent and Nature of Forest Resources. 



Canada's forest industries have grown up as a result of an abundance of accessible 

 timber. There is in Canada about 1,150,000 square miles of land better suited to 

 prodvicing wood crops than food crops. Of this area some 310,000 square miles now 

 carries accessible timber of merchantable size, while on 555,000 square miles there 

 are young growing stands within reach of existing transportation facilities. The 

 remaining 285,000 square miles is at present commercially inaccessible. Though the 

 original forest wealth of the country has been depleted by fixe and exploitation, there 

 is estimated to be approximately 225,000 miUion cubic feet of timber of merchantable 

 size, 80 per cent, of which is of softwood or coniferous species. The softwoods, such 

 as pine, spruce and fir, extend from the Atlantic to the Pacific, but the best hardwoods, 

 such as birch, maple, oak, &c., are found in southern Ontario, Quebec and the Maritime 

 Provinces. In the eastern provinces white pine is perhaps the most valuable softwood, 

 while in British Columbia Douglas fir, red cedar, hemlock and Sitka spruce are the 

 principal woods. Various species of spruce and fir extend across the continent and, 

 though used extensively for lumber, are the most important pulpwood species. 



4. Current Forest Depletion and Relative Accretion. 



There are to-day in Canada close to 7,000 industrial plants wherein wood or 

 paper is the primarj' basic material used. To supply this domestic market, together 

 with the heavy export demand, about 1,200,000 acres are cut over annually with a 

 total yield now approaching three billion cubic feet, and as yet there is little information 

 regarding the natural increment which is accruing in the forests, but a national 

 inventory of the forest resources is being organised which, it is hoped, will reveal the 

 relation between increment and depletion as well as the extent of the resources. 



5. Forest Products Utilisation in Canada. 



The manufacturing industries dependent on the forests fall into two main groups, 

 the lumber industry, which includes the manufacture of sawn lumber, lath and 

 shingles, and the pulp and paper industry. As measured by the net value of products 

 and wages and salaries distributed, the pulp and paper industry is the most important 

 manufacturing industry in Canada, and the lumber industry ranks second. In 

 addition to these industries the production of poles, piKng, fuelwood, mine timber, 

 fencing material and pulpwood and logs for export is an important factor in forest 

 production. The further manufacture of lumber in planing mills, sash and door 

 factories, furniture, cooperage, box and implement manufacturing plants, practically 



