FIFTH NATIONAL CQNSBRVATION CONGRESS 347 



considerations and consequently at a sacrifice to the State itself. Nor is the 

 situation as acute on the one hand, or as easily remedied by such a course on 

 the other, as is sometimes alleged. No amount of effort to sell timber today 

 for actual manufacture, even if carried to disastrous lengths, would force the 

 market to take more than it needs. The only way to get great immediate revenue 

 would be to sell for speculative holding or to export large quantities to foreign 

 countries. But it is also reasonable to suppose that the natural course of events 

 will bring it into the market at an accelerating rate from now on, soon satisfying 

 the States with its promise of approaching complete reimbursement. It is absurd 

 to make calculations for a long term of years based upon the past rate. To 

 sum up, it is believed that any readjustment of the 35 per cent lieu receipts 

 should be of a general fiscal nature, and so far as timber sales are concerned 

 best served by having the latter under the wisest permanent policy from all 

 viewpoints. 



FOSTERING A LUMBER BUSINESS 



IT is natural that many operators who have cut out previous supplies, or are 

 newly engaging in the business, should turn to the national forests for 

 material. The system of purchase is attractive, for payments may be small 

 in advance of corresponding cuts and thus permit frequent turning of a small 

 capital. Compared with purchase of private timber, there are the advantages 

 of less requirement of capital or credit ; freedom from interest, tax and protection 

 charges ; and absence of fire risk upon the timber, which remains with the govern- 

 ment. These advantages compensate any additional expense of cutting under 

 forestry requirements, leaving transportation and stumpage costs the chief con- 

 sideration, consequently the price asked by the government may, from one point 

 of view, be said to regulate the demand. Nevertheless, since contract terms and 

 cutting requirements have financial weight, greater or less liberality in these 

 have the same effect as lower or higher stumpage prices. 



There are at present nearly 6,000 timber sales, big and Httle, on national 

 forests annually. Their cut is approximately half a billion feet a year. The 

 volume of sale business has greatly increased of late owing to greater effort by 

 the Forest Service to stimulate purchase, especially by granting a longer period 

 for removing the timber, and it will constantly increase without effort because 

 of the improvement of transportation facilities and the cutting off of private 

 holdings. The question is whether, aside from other considerations treated in 

 this report, the government should hasten the process, for the specific purpose 

 of establishing new operations, by reducing price or restrictions so as to make 

 its timber more attractive than the private timber that now competes. 



There are few more difficult problems than this in connection with the 

 entire subject at issue. In its consideration, theory is everywhere confronted 

 by indeterminate conditions of market, personal efficiency, and effect upon forest 

 industry and forest conservation as a whole. Theoretically it is well to afford 

 opportunity to all, also to remove restrictions from competition. On the other 

 hand it is sound theoretically, as well as practically, to stop short of stimulating 



