F.— ECONOMIC SCIENCE AND STATISTICS 139 



are required from the European planters. It must be remembered that 

 in Sumatra, the leading producer of Netherlands Indies, much British 

 and American capital is engaged. 



In consumption of tea the British Empire again leads, for the United 

 Kingdom and the Dominions consume respectively 430 + no = 540, 

 out of 860 million lb. consumed in 1933-34. But in consumption of 

 rubber the position is different. A foreign non-producing country, the 

 United States, consumes far more than the United Kingdom. 



9. Plantation Produce and Forestry. 



Plantation economy throws light on forest economy and vice versa. 

 In the United States crop restriction, which in its first form was pro- 

 nounced unconstitutional, is now being sought in indirect fashion by 

 measures for soil conservation ; and this involves afforestation, i.e. more 

 forest produce. But the time when the produce will mature is so far 

 ahead that no attention is being paid to the increase of timber which the 

 policy will cause. In any case there is a fear of scarcity rather than of 

 abundance ; and forests are desired not only for their yield, but for the 

 help which they give to the conservation of moisture and the like. ' And 

 thus do we by indirections find directions out.' 



In New Zealand there is conflict between two points of view. The 

 public authorities (the Central Government and the municipalities) are con- 

 cerned to conserve forests, protect water catchment areas and encourage 

 native species where these will grow to advantage. The other point of 

 view is represented by a commercial, and rather speculative, venture, 

 which under the title of ' Perpetual Forests, Ltd.,' has planted large areas 

 to a soft wood, Pinus insignis. It has financed itself by selling bonds not 

 only in Australia and New Zealand but in many countries of the East ; 

 such bonds entitle the buyer to a share in a unit of the forest. Some of 

 these plantations are now reaching maturity, and the problem has to be 

 faced of how their physical increase is to be turned into cash by ex- 

 ploitation of the maturing timber. Asiatic holders, no doubt, would be 

 glad to take the plot itself and build a bungalow on it, but the law against 

 immigration forbids them to put their bodies inside. 



Precious woods are at the other end of the scale. In Mysore State 

 sandalwood is a government monopoly, and here there is a kind of restric- 

 tion scheme which in principle resembles those for tea and rubber. 

 The recent industrial depression spoilt the European market for sandal- 

 wood oil. The Government, which owns the wood and converts it into 

 oil in its own factories, summoned the buyers and asked them how much 

 they would take at or near the old price ; and it has endeavoured to restrict 

 sales to this amount. The difficulty is the competition of Australia, 

 which produces more than twice the amount of Mysore and (in Mysore's 

 opinion) has a much inferior product, improperly admitted recently to 

 the British pharmacopoeia. The technical problem involved in sandal- 

 wood restriction is this, that only dead wood is cut for treatment. The 

 present restricted cutting leaves much dead wood in the forest, where 

 it is liable to theft or damage. If cut and stored in the depot, there would 



