TIMBER PRODUCTION 45 
imported timber, paradoxical as it may sound, is placed 
upon our markets at under cost price. This is due to 
the fact that the imported timber is nearly all the pro- 
duce of virgin forests on which, of course, there is no 
accumulated debt representing compound interest on the 
cost of establishment and maintenance. The low price 
of foreign timber is thus largely maintained at the 
expense of the national capital of the exporting country. 
Now the major part of the expenses of establishment 
of a timber crop are paid in wages, so that most of what 
is gained by the low price we pay for imported wood 
we lose in home labour. It is therefore a matter for 
careful consideration whether it is not in the national 
interests to place an import duty of equivalent value on 
all timber which conditions of soil and climate admit of 
being produced at home. Iam fully aware of the con- 
troversial character of such suggestions, associated as 
they unfortunately are with certain political creeds, 
but those most competent to judge warn us that the 
virgin forests are rapidly becoming depleted. If, 
therefore, no steps be taken to encourage home pro- 
duction, we shall be faced in the near future with the 
necessity of paying a higher price for foreign timber 
than would at the present time show a profit on home 
produce, without the commensurate advantage of 
forests of our own to meet the growing demand, and 
to provide labour for our own countrymen. 
Apart from the foregoing fundamental adverse con- 
ditions, there are many internal and remediable factors, 
a reform in respect to which would materially affect 
the financial aspect. 
Understocking.—Probably one of the most adverse 
