12 forest; finance 



B. — For a species: The possibility of price alterations in favor of or to 

 the detriment of a species locally prevailing (chestnut in Pisgah For- 

 est; spruce in the Adirondacks ; Cottonwood in Arkansas; remember 

 laws causing the price of wood-alcohol to drop from 67c to 39c 

 per gallon in 1907.) 

 C. — For a locality: The chances for improved access to a special market 

 by improved railroads, improved navigation (Panama canal), and 

 improved public roads; the chances for the opening of new local 

 markets, or for enlarged foreign markets. 

 Opinions relative to future developments necessarily differ in forestry 

 as well as in agriculture, railroading and industrial establishments. On ex- 

 change, such fluctuations and such diversity of opinion are particularly pro- 

 nounced. 



V. — The expenses in forestry are : 



A. — Ordinary or running expenses, viz., 



1. Outlay for logging and milling; 



2. Administrative expenses; 



3. Taxes; 



4. Protective expenses; 



6. Maintenance of boundaries and land marks; 



6. Natural or artificial reforestation (this expense equals, in Ger- 

 many, from 10% — 20% of the net stumpage values annually 

 disposed of); 



7. Forest pedagogy; 



8. Up-keep of investments, notably of the means of transportation 



(this expense equals, in Germany, from 5% to 15% of the net 



stumpage values annually disposed of). 

 Many of these ordinary running expenses must be considered, during the 

 installation period, as extraordinary investments. 

 B. — Extraordinary Investments. 



1. Soil and, usually, trees. 



2. Permanent means of transportation. 



3. Wood working establishments. 



4. Buildings, farms, pastures, ochards. 

 6. Surveys and working plans. 



6. Fire lanes. 



7. Fences for pastures, game, etc. 



8. Afiorestation. 



All over the world, but especially so in the United States, the capital now 

 invested in a forest is not that which promises to yield the highest rate of int- 

 erest for the next period of years. The principal investment requires addi- 

 tions here and reductions there. The time at which alterations should be 

 made depends upon local factors as well as upon personal opinion. 



The components of the final investment in conservative forestry are those 

 enumerated under B. — Naturally, there is no need for all of them to be at 

 hand in every case. The share which each component takes or should take 



