Financial Returns. All the benefits of which I have spoken are without doubt great assets to the local community, to the State, and to the nation as a whole. They are great contributions to the welfare of our country even though they cannot be measured in dollars and cents. This brings us then to the financial aspect of the National Forest movement. Even though the fundamental purpose of the National Forests was in no sense a financial one, it is interesting to look into the finances of this great forestry enterprise.

The total regular appropriation for salaries, general expenses, and improvements for the fiscal year 1918 is $5,712,275. For 1917 it was slightly less than this: $5,574,735. The receipts from the sale or rental of National Forest resources in the fiscal year 1917 reached $3,457,028.41. From these figures it will be seen that the expenditures exceed the receipts by between $2,000,000 and $3,000,000 a year, depending partly on the severity of the fire season and partly on the activity of the general lumber market. When we consider that this is really a newly established business scarcely twenty years old; that large expenditure have been made and must necessarily be made every year for equipment and improvements before the resources could even be used; and that an efficient organization had to be built up to handle the business, we must confess that the receipts are really a wonderful showing.

When the Forest Reserves were taken over by the Government it could not be expected that they would yield a revenue at the very outset, nor could it be expected that even in the long space of twenty-five years they could be made self-supporting. The reasons for this are many. They are located for the most part in rugged, inaccessible mountains. In the case of almost every Forest a great deal of money had to be expended for roads, trails, telephone lines, fences, bridges, ranger stations and other cabins, lookout structures, fire lines, and many other improvements before the resources could even be used. Many of the resources were practically locked up; there were no roads by which to get them out of the wilderness. During the fiscal year 1916 alone there were built 227 miles of roads, 1,975 miles of trails, 2,124 miles of telephone lines, 89 miles of fire lines, 81 lookout structures, 40 bridges, 222 miles of fences, 545 dwellings, barns, and other structures, and many other improvements. Up to date there have been constructed over 3,000 miles of roads, over 25,000 miles of trails, about 23,000 miles of telephone lines, 860 miles of firebreaks, about 360 forest fire lookout cabins and towers, and many other improvements. Their total value is estimated at $7,000,000. And these vast improvements are but a small percentage of the improvements which will be necessary to be able to put these Forests to their highest use.

Not only must enormous sums be spent for improvements. The huge sums which are spent for the protection of the great resources bring no tangible return in dollars and cents; yet the fire protection system prevents the destruction of millions of dollars' worth of timber every year. Then again, when government timber lands are cut over, only the mature trees are taken; the smaller trees, although they have a commercial value, are left on the ground to mature because they will have a still greater value in from forty to fifty years. This is merely foregoing a small present revenue for a larger future one. Also many National Forests have on them large areas of steep mountain slopes where not a stick of timber is allowed to be cut. These areas are maintained intact for watershed protection. In fact many of the Forests of southern California are maintained solely for this purpose. These Forests are covered almost entirely by a low bush-like growth called "chaparral," which has no value either as timber or as browse, but which has great value to preserve an equable stream flow for domestic use, irrigation, and water power.

But there are still other reasons why the cash receipts from the National Forests are not as large as they might be. In addition to the cash receipts the equivalent of a large revenue is foregone every year through the various forms of free use and the sale of timber to settlers at cost instead of at its actual cash value. During the fiscal year 1917 approximately $150,000 worth of timber was given to settlers free of cost. About 40,000 people were served under this policy. Also much timber is sold at cost to settlers for domestic use. In this way over 4,400 persons received many millions of feet of timber whose cost value was about $20,000, but whose sale value was much greater. The privilege of grazing a small number of stock free of charge is granted to settlers living on or near the Forests. The stock thus grazed amounts to about 125,000 animals every year. The Forests are also put to many special uses for which no charge is made although their administration involves some expense. Strict accounting should credit the fair value of such uses to the receipts from the National Forests, for it is in effect income which instead of being put into the treasury is made available for the benefit of the people.

From what has been said it will be seen that a large part of the benefits derived from the systematic administration of the National Forests cannot be measured in dollars and cents. These benefits are in effect privileges extended to the people who in return assist in the protection of the Forests from fire and thus more than repay the Government for what they receive. Even under the rather unfavorable revenue producing conditions mentioned above, it is interesting to note that in 1917 the receipts of thirty-two National Forests exceeded their total expenditures. On fifteen others the receipts exceeded the cost of protection and administration. In other words, one-third of the National Forests are practically self-supporting.

The New Eastern National Forests. The great success with which the National Forest policy was launched in the Western States was largely responsible for the inauguration of a similar policy in the Appalachian and White Mountains. The main purpose for which these forests are to be acquired is to preserve a steady stream flow for water-power navigation and domestic use, and to lessen the damage caused by floods and erosion. These forests are of vital influence in controlling the flow of the Merrimac, Connecticut, Androscoggin, Potomac, James, Santee, Savannah, Tennessee, and Monongahela rivers. Some years ago the Merrimac drove mills worth over $100,000,000, which employed over 80,000 people. Upon these, it is said, 350,000 were dependent for support. In the Carolinas and Georgia alone the cotton mills operated by water-power turn out an annual product valued at almost $100,000,000. In these mills 60,000 people are employed, upon whom 250,000 are dependent for support. These mills utilize 106,000 horsepower. The forests which control these waters are therefore of great pecuniary value.

The Act of March 1, 1911, commonly known as the Weeks Law, made the acquisition of forest lands in the Appalachian and White Mountains possible. Up to June 30, 1917, over 1,500,000 acres have been approved for purchase by the National Forest Reservation Commission. The Forest Service has been designated as the bureau to examine and value such lands as may be offered for purchase. The original appropriation was $2,000,000 per year for five and one-half years, beginning the last half of the fiscal year 1911. The Agricultural Appropriation Bill for the fiscal year 1913 made the appropriation for 1912 and subsequent years available until expended. A further appropriation of $3,000,000 was provided later for the same purpose, to be expended during the fiscal years 1917 and 1918. Under Section 2 of the same law coöperative fire protection with the States was provided for. This section of the law provided that the Forest Service should maintain a coöperative system of forest fire protection with those States which have a law providing for a system of fire protection for state and private forest lands upon the watersheds of navigable streams. In no case was the amount to be expended by the Forest Service to exceed the amount appropriated by the State for the same purpose in any given fiscal year. The original appropriation was $200,000 and subsequent appropriations have been for $100,000 annually. Twenty-one States are coöperating with the Forest Service in this way.

By the passage of the Weeks Bill, Congress has voiced the sentiment that the forest fire problem, even on private land, is not only no longer a private problem, is not even exclusively a state problem, but a joint problem and duty to be borne by the State and nation. Forest fires are now rightfully looked upon as a public enemy rather than a private menace. This is a big step in the right direction, and it is hoped that this same principle will be applied in the not too distant future to all other matters dealing with private timber lands. If the protection of these private timber lands is a public and not a private problem, then certainly their management for continuity is a public problem. A timber owner should not be allowed to cut his timber without the consent of the Government, and the Government should see to it that he leaves the young growth as a basis for a future crop or provides a new growth of timber by planting young trees.

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