



l6 REPORT OF THE FOREST, FISH AND GAME COMMISSIONER. 



The expense of production, with modern mills and improved trans- 

 portation, is as high in 1907 as it was in 1896, viz.: $9 per 1,000 feet b. m. 

 Assuming that certain trees have turned out 25 per cent, of fas, 25 per cent, 

 saps, 25 per cent. C. 1 and 25 per cent. C. 2, the stumpage values of such 

 trees was per 1,000 feet b. m. 



In 1896 $5 00 



In 1907 22 00 



and has increased, consequently, at the rate of 30 per cent, (simple interest, 

 equalling 14 per cent, of compound interest) per annum. 



The increase in the value of many other forest products has been 

 similarly phenomenal ; and the question arises : Why is the owner of forests 

 unwise enough to reduce this stumpage as long as the rise continues to be 

 phenomenal, — in excess of any dividend derivable from other investments ? 

 The answer frequently lies in three words : 



Poverty ; 

 Impatience ; 

 Ignorance. 



The enormous increase of gold production during the last 20 yeasr 

 promises to continue and to become more phenomenal. The director of 

 the U. S. Mint reports (in 1904, p. 41) that the rise of wages does not act 

 as an automatic check to gold production, and that the tendency of the 

 expense of gold production continues to be downward. The effect of increas- 

 ing gold supplies on commodity prices, wages, land values, mortgages, 

 bonds, etc., is easily perceived: 



The owner of bonds and mortgages sinks to a lower level of revenue; 

 whilst the owner of forests and farms remains (at least) equally wealthy. 



The question will be asked naturally: Does it pay to strive towards 

 the establishment of an " ideal forest ' ' — towards the establishment of 

 an impossibility? 



European foresters are apt to answer the question by an emphatic 

 "Yes." 



The American forester might consider, before answering, four points: 



