132 ECONOMICS OF FORESTRY. 



into other channels — this ease of reducing the 

 fixed capital without appreciable loss is one of the 

 peculiarities of the forestry business, which some- 

 times may be of advantage, like a savings bank 

 account, but also brings with it the danger of un- 

 economic anticipation of the harvest, of disturbing 

 the systematic progress of a management for con- 

 tinuity, of returning to mere exploitation when there 

 is an urgent need of money. 



Hence, not only capital, but economic capacity 

 and character and moral strength are required to 

 maintain a systematic forest management and with- 

 stand the temptation to realize. Again the state, 

 communities, and corporations, who have an interest 

 in continuity, are most safely intrusted with a busi- 

 ness that can be so easily unbalanced. 



It is also evident that a profitable, well-regulated 

 forest management for annual returns as a business 

 by itself is only possible on a large acreage. This 

 will appear readily from the consideration that Ger- 

 man government forests net from $i to $4.50 per 

 acre per year (as against $24 for farm lands) ; 

 hence, to furnish ^1000 margin not less than 250 

 to 1000 acres are required, and to pay a competent 

 manager's salary alone, without interest and profit 

 on the business, requires at least 2500 acres, while, 

 to be sure, he would not be fully occupied with less 

 than 10,000 to 20,000 acres. And we must not for- 

 get that the results in these German forests are 

 obtained now after a century of systematic manage- 



