st net $92.10 at the
end of his 50 years in order to make 6 per cent.

So far no complaint can be made. But if the land is to produce a
second crop it cannot be left to take care of itself, as it might
were it being held for speculative purposes only. It must be protected
from fire and trespass. And since the interest and principal invested
will amount to so much for so long a period and be totally lost in
case of destruction, the protection must be adequate, practically
amounting to insurance. The annual cost will vary greatly according
to locality, class of timber, and the enforcement of fire laws,
but will be from 1 cent at the minimum to 15 cents at the maximum
in bad seasons. If all cost of protection and administration is
placed at only 5 cents annually, for the sake of illustration,
this represents another investment constantly increasing and
compounding, which, at the end of 50 years at 6 per cent, will
amount to $14.51 an acre. Consequently, adding that to his original
investment which will have become $92.10, he must net $106.61 to
make his 6 per cent.

HOW TAXES ENTER THE PROBLEM

Let us now consider the influence of taxation. We have assumed the
land to be valuable for forest growing only, and in calling his
investment $5 an acre included some cost of insuring reforestation.
Place this at $2 and leave a land value of $3, to be fully taxed
at 30 mills for both state and county purposes, which is perhaps
a fair average. This represents the third form of his investment,
or 9 cents an acre invested annually and left unavailable for 50
years, and will amount at the end of that time, at 6 per cent, to
$26.13. He has now to clear $132.74 an acre, besides being always
in danger of total or partial loss from fire, _and during all this
time has to have the money, made in some other way, to meet all the
annual payments._ But no injustice appears, for he has been taxed
on an equal basis with other producers. If his acre yields 20,000
feet (the maximum to expect), worth $7 a thousand, he has made his
6 per cent, the community has gained a resource, and everyone is
satisfied. His land has been taxed fairly and as he now has a crop
to sell he can afford to pay a tax on it also. If it is taxed at 3
per cent, or $4.20 an acre, county and state will altogether have
received from him the same tax revenue they collect from other forms
of property and industry of like value and profit, and received
also the other benefits o