FOREST PLAXTIXG IX THE LAKE STATES 57 
years, it would have to have a value of $15.79 a cord to earn 6 per 
cent on the investment. If the company were satisfied with 5 per 
cent, the stumpage value could be $9. IT. At $5.33 a cord, only a 
little more than the present price, the crop would produce 4 per 
cent. The higher cost of planting and the longer period needed to 
grow spruce require a decidedly higher future value than that of 
jack pine to make it an attractive investment. On the other hand, 
the special value of spruce for the manufacture of certain grades 
of paper might easily within 60 years create stumpage values as 
high as those mentioned. If this white spruce planting was made 
on land where the taxes were 40 cents instead of 10 cents an acre 
annually, the future stumpage value to earn 4 per cent would have 
to be $7.71 instead of $5.33. 
Similar calculations have been worked out for the planting of 
Norway and northern white pines on different soils at different 
costs of planting and rates of taxation, to show the future price 
per thousand which the timber would have to have to earn different 
rates of interest. Prices vary from the $10.49 necessary to earn 5 
per cent on Xorway pine planted at a cost of $6.50 an acre and 
yielding 20.000 board feet to the acre, to the $31.59 a thousand 
necessary to earn 6 per cent on a $10 planting cost and a 15.000 
board feet yield. Although it has been suggested that conservative 
future values of northern white and Xorway pine might be placed 
at $15 a thousand, $30 or more is well within the limits of possibility 
for timber of exceptional quality and availability. 
Two factors which might modify the calculations have not been 
included. They are the returns from thinnings made before the 
final crop is mature and the cost of cleanings or early cuttings to 
benefit the planted trees. These two operations will be carried out 
only in certain plantations, and often they woud tend to counter- 
balance one another. Moreover, little is blown about the variable 
returns and costs which might be involved. Therefore, it has 
seemed best not to attempt to include them in these general figures r 
although they should be considered in any specific planting 
ojDeration. 
The accelerating accumulation of compound interest over the long 
periods of years which are involved in timber growing is primarily 
responsible for the comparatively poor economic showing for the 
private owner who starts with bare land. To some classes of owners 
this will, however, be a matter of little importance. Small property 
owners, for instance, are setting out many small plantations every 
year, although they do not expect to harvest the crop themselves. 
The planting may be a matter of personal interest or an investment 
for the children or an improvement of the property and its value. 
The last two are sound economic motives, for there is no question 
but that a piece of property with a nice grove of young pine timber 
has a higher sale value than the same piece without the trees. On 
the other hand, the company that is using timber as a raw product 
for a manufacturing enterprise and has a supply for only a few 
years ahead can not be expected to invest heavily in planting a crop 
which can make satisfactory returns only when it is too late to 
prolong the life of the enterprise. 
