aa 



make it advantageous to grow such timber if the increased 

 cost of production and transport combined were not more 

 than covered by the higher realisations. The net revenue 

 might still be less than that realised for small material. 



Statements showing the gross receipts, hs entered ia the accounts of the Forest 

 Department, are too often made use of in India. How misleading these may prove 

 will bo seen from the following comparison between the true financial results of the 

 working of the Department for the year 1906-07 and the results as they appear when 

 the expenditure on timber works is treated as outlay on the forest and net as an 

 advance which is recorered when the produce is sold : — 



3. Relation of revenue to area.— For purposes of comparison 

 the revenue may be usefully stated, in the same way as the 

 production, with reference to the araa from which it is 

 derived. 



In the example given above, suppose the area to be 4,000 acres of mixed forest 

 yielding teak, and worked by the selection method. The revenue per acre is ^^ 

 or E2 : the net revenue per acre is *^^ = El. 



4,000 



Where the yield is realised periodically, the average 

 revenue during the whole length of the period must be cal > 

 culated in the same way as the average production ; indeed, 

 th.e one depends on the other. Where the period is long, 

 compound interest should be included. 



Thp aveiage annual revenue from the Indian forests for the 10 years 1S97-98 to- 

 1906-07 amounted to B3,12,32,2l4 ; the average area under control during that time 

 was 202,093 square miles. For France, a statement prepared in 1878 showed 

 the average revenue (net value of produce standing in the forest) to amount to 40 

 francs per hectare (2*47 acres) for the tvhole of the State forests. In the north of 

 Fianfe, the average annual levenue was as high as 89 francs ; while, in the south, 

 in the forests open to grazing and worked on a short rotation, it wai as low as 5 

 francs per hectare yearly. 



The average ai^nual revenue per acre derived from the Government forests of 

 India, including of course vast areas of unworked lands, amounts ttierefore to about 

 2'6 annas an acre as compared with a similar revenue of R7 or B8, and even in some 

 cases very much more, in European countries. The causes of the low revenue in 

 India are not far to seek, — the w£iat of demand for the produce, the ruined condition 

 of most of the forests, the bacfewJird condition of the country, and more perhaps 

 than any other cause, the want of good roads and means of transportiog produce from, 

 out-of-the-way places to the great centres of consumption. 



D 



