X. Industries actually connected with the Forest not affected by the indicated measure.

The industries immediately connected with the forest produce concern a large fraction of the population of this page 28 colony; for that reason, and likewise because those people supply the market with an article of absolute necessity, a special consideration must be given to the effects which the above-mentioned measures may have on their welfare.

If the information given be correct, only a very small minority of the saw-millers have been successful in their trade. Such a result might be ascribed to the following cause:—

Having before them a large field of operation—that is to say, a quantity of growing timber apparently inexhaustible, and which they can now get at a nominal price—saw-millers have thought of taking advantage of actual circumstances for increasing their business, and therefore had to strain their means in the expenditure of a more extensive enterprise. Then, they had to contend with all commercial eventualities—competition, high price of labor, etc.

In Europe, where large forest business is carried out, the saw-miller attends only to his own special industry. He saws logs brought to the mill by the forest contractor, and his trade does not extend beyond that.

The forest contractor applies his attention to all the various produce which can be obtained from the forest; and, if the market is dull for firewood or timber for building purposes, bark or wood for cabinet-work, coopers'-work, etc., etc., may at the same time reach high prices, which will make up for the other depressed articles.

Commerce and industry, as a rule, ought not to be managed as a single mixed-up business. Many of the saw- page 24 millers here will feel and understand that, and would prefer having then mills well supplied, by a forest contractor than to rest on their present depressed business, which depression cannot be ended unless a better system of working the forests be adopted.

The New Zealand Forests represent an immense wealth, and, to be turned to profit, these forests must be worked within certain limits and regulations. They must be worked principally in view of exports to Europe, where a ready market is sure to be found for most of their produce.

At all events, the above-indicated measures could not affect the interests of the saw-millers, who at present are doing neither good for themselves nor good to the Treasury, and are only performing a work of destruction in the forest for the sole benefit of the market, when otherwise the same supply to the market could be as well afforded by the working of the forest under a proper system of conservation. Any increase of price on the growing timber would not affect the commercial parties concerned in the matter; they would have only to increase their selling price, the only difficulty being in the actual disproportion between the supply and the demand. The requirements in wood and other forest produce of the European markets (so little known here beyond the English market) would soon fill up the deficiency on the side of the demand.