Some of the planted woods are of great great interest, and prove that, given suitable soil and reasonable shelter, good timber can be grown at elevations much higher than is usually supposed, especially in inland districts. In the forest of Mar the larch was planted 100 years ago almost, if not quite, up to the 2000 feet contour, and makes good timber between 1200 feet and that altitude, though the growth is naturally slow. At Altanour Lodge in Gleney, an isolated group of spruce at 1600 feet elevation, planted about 80 years ago, contains trees 70 feet high. Plantations of Scots pine made at lower elevations within the last 40 years in the same forest were pointed out to us as disappointing, but a reference to Pennant's Tour* shows that near the same spot the trees being felled in his day were reputed to be the finest natural pines in Europe, both in respect to the size of the trees and the quality of the timber. He records that single trees had been sold out of this wood for six guineas, that they were from 80 to 90 feet high without a lateral branch, and 43 feet diameter at the butt. He adds that the wood was considered preferable to any brought from Norway. The neighbouring forest of Ballochbuie, which is entirely above the 1050 feet contour, though heavily cut 80 to 100 years ago, still contains some of the tallest and straightest pines in Scotland. We mention these facts to show that the possibilities in this direction cannot always be judged from small and recent plantations. At Caenlochan, in Forfarshire, a larch wood just 100 years old may be seen growing between 1500 and 1900 feet. The timber, though small for its age, has proved to be of excellent quality. At Ardverikie, on the slopes above Lochan na h-Earba (elevation 1142 feet), the late Sir John Ramsden's plantations of larch and spruce have attained a height of 48 to 55 feet in 40 years, with an average girth of 43 inches at 6 feet. Sir John's plantations in this forest and that of Benalder extend to 10,533 acres, all planted since 1875. His son during the war was offered £100,000 for the trees from 2000 acres on Loch Erichtside, all above 1140 feet, planted from 1875 to 1881. A plantation of 1120 acres made by the late Sir John Fowler in his forest at Braemore, near Ullapool, in 1865 to 1868, has made an excellent growth. 592 acres sold to the Government in 1917 for £52,500, were estimated to contain 1,050,000 cubic feet, not allowing for certain fellings made prior to the sale. Many of the deer forests on the west coast contain planting land of the first quality. Land of exactly the same character in the neighbouring plantations is growing superb crops of larch and Douglas. A plantation of Douglas fir made by the late Sir Kenneth Mackenzie at Flowerdale, Gairloch, shows at the age of 54 a quarter-girth volume over bark of 7490 cubic feet per acre, with an average height growth of 82 feet. These figures do not represent the maximum growth. The sample plot was placed at the top end of the glen lower down the average height of the trees is 95 to 100 feet. This is probably the finest Douglas plantation of its age in Europe. We refrain from generalising on so technical a question, * 1790 Edition, pages 124-5. † Measured by the Forestry Commission, Nov., 1921. but we are convinced that very large areas of good planting land may be found in the deer forests. By no other method can the productive value of the deer forests be increased in the same degree. In many cases the shelter afforded by woods should be of great value both for stock and for deer. The Government, in view of the experience of the war, has decided that the reserves of timber in the United Kingdom must be increased, and has adopted a scheme for planting 1,770,000 acres of new ground. By locating planting schemes in the deer forest area, the Forestry Commission might greatly increase the productiveness of what is now the poorest part of the United Kingdom, without displacing any existing producing agency. FOUR FUNDAMENTAL FACTORS. Before we give the conclusions to which the above considerations have led us, we must deal with four fundamental factors which have been present to our minds throughout our enquiry, though the part they are destined to play is, unfortunately, still a matter of speculation. 1. PRICES OF SHEEP, WOOL, AND TIMBER.-The diagrams (Appendix IV.) give, so far as we can ascertain them, the curves which sheep and wool prices have followed for the last 100 years. If these curves justify any conclusions, a fall in prices was only to be expected. The prices of sheep of all kinds, and of wool, rose steadily after the armistice, and more rapidly when the control of meat was removed in July 1920. Both Cheviot and Blackface wool rose in price after decontrol, but have much depreciated since July 1920. The recent abnormally high prices of sheep appear to have been attributable to (1) the increase in the demand for meat, due to a higher standard of living following a universal rise in wages; (2) the demand for Colonial mutton in U.S.A.; (3) the limitation of supplies from overseas by cost of transport, and until 1919 by scarcity of tonnage; and (4) the heavy death-rate on the hill farms. in the springs of 1917, 1918, and 1919, which has still to be made good. We leave out of account the question of inflated currency, which is common to all commodities. The present slump in the price of sheep has been aggravated by the abnormal drought in England and consequent shortage of winter keep, as well as by universal financial depression. It is anticipated that there will be some recovery when these causes cease to operate. The depreciation in the value of wool appears to be due to the following causes :-(1) The accumulation of stocks during the war in the hands of belligerent governments and neutral countries, and the uncertainty as to their disposal; (2) the high cost of manufacturing woollen goods, which has checked the demand for raw material, despite the fact that the stocks of manufactured goods are in general much below the pre-war level; (3) the present financial stringency, which had led to a hand-to-mouth trade and * Figures based on actual experience are given in Mr Sutherland's Memo, Appendix VII., page 56. to the withdrawal of large orders from abroad. These causes, which are the result of the war, are not expected to continue. As regards the future, the new duties projected in U.S.A. cause some apprehension. They will, if imposed, tend to restrict the market in that country, and if graded according to price will tend to depress the selling value. This specially affects the Blackface wool, for which the carpet industry in U.S.A. has hitherto afforded the principal outlet. The demand for Blackface wool for other purposes might be increased if quality were more considered than quantity in the breeding. As regards timber, a permanent return to pre-war prices appears improbable. The price of timber from the virgin forests-which still largely controls the world's price-depends almost wholly on the cost of conversion and transport. As these natural reserves become more remote and approach exhaustion, home-grown timber should be better able to hold its own in our markets. Meanwhile the high cost of labour, fencing, and building will undoubtedly deter many private owners from embarking on new plantations. 2. WINTERING.-The second underlying question we have to consider is that of wintering. This is the governing factor in highland sheep farming. The earlier west highland sheep farms were made by lowland farmers, and run in connection with their low country farms, to which they removed the hoggs and lean sheep in winter. Later, when sheep farming became a separate business, the custom of hiring wintering came into vogue. Many witnesses have complained of the present cost of wintering, and some have mentioned the difficulty they have found in obtaining it. The cost of wintering away young stock frequently amounts at present-day prices to double the rent. If high ground in the deer forests is to be stocked with sheep which have to be wintered elsewhere, this question must inevitably become more acute. The average cost of wintering Blackface and Cheviot sheep stocks in 1913 and 1920 was as follows: Gimmers, 5/- to 7/-. 1913-Hoggs, 8/- to 10/-. 1920 Hoggs, 15/- to 20/-. These charges do not appear out of proportion to the rise in wages or the cost of feeding stuffs. The present indications are that there will be a substantial fall in the price of wintering, owing to the increased area being laid down or left out in grass. Fifty years ago a great part of the area now under deer was grazed by sheep. It may be asked why the same difficulty was not felt then. The answer is, first, that the wedders which were then kept a year or two years longer absorbed most of the additional area, so that the number of hoggs wintered away was probably not much larger than it is now, and, second, that while the recent high prices prevailed, the stock of sheep maintained on arable farms greatly increased, many farmers finding it more profitable to keep their own sheep than to take in sheep from outside. This reluctance to let wintering could only be overcome by an increased payment. It must also be remembered that the number of farms that have to winter their hoggs and young sheep away has enormously increased in the last fifty years, and this has added very considerably to the cost of sheep farming. This is probably largely due to over stocking and the increase of bracken, and also to the increase in the head of deer and their inroads on the wintering. But if deer forests were run in conjunction with sheep farms, and the stock were shifted about, it would probably be possible to winter a greater number of hoggs and gimmers at home than is at present the case. These considerations, among others, have led us to confine our recommendations for the restocking of deer forests within limits which will not materially increase the demand for wintering. DETERIORATION OF HILL GRAZING.-There was general agreement among the witnesses examined on the point that few grazings will now carry so large a stock as they did eighty, or even fifty, years ago, the reason being that more has been taken out of the soil than has been returned to it, and the pasture is to that extent exhausted. The reduction in the head of cattle has probably contributed not a little to this result. How far does this consideration apply to deer forests? The stock of deer is, as a rule, light compared to that of sheep, and the weight of the carcases removed is lighter still. On the other hand, deer confine their attention to certain favourite grasses, and land which has long been under deer becomes rank and rough, though this can to a large extent be corrected by burning or by the introduction of cattle. Some of the forests, especially those on the west coast, have their full share of the bracken nuisance, which can only be checked at heavy cost. Altogether, we are inclined to think that the deterioration in deer forests is probably less than on fully stocked sheep farms, but it still has to be reckoned with, and it would not be safe to assume that the old stocks of sheep could still be carried. We have been much impressed by the large extent of old heather which needs burning in the various deer forests we have visited. Now that most of the deer forests carry a limited stock of sheep, it is more than ever desirable that the heather should be properly burned, and this would have the further advantage of lessening the tendency of the deer to seek food elsewhere. 1,387,098 acres, or about two-fifths of the total deer forest area, lie above the 1500 feet contour, and late snow makes burning impossible within the time-limit necessary for the protection of grouse nests. We are strongly of opinion that in forests where grouse are negligible the Sheriff should be empowered to sanction the burning of heather by the owner up to May 15th. 4. COST OF HOUSING AND EQUIPMENT.-The problem of the high cost of building has also to be faced. In many cases it will be necessary for the proprietor to provide a certain amount of equipment to enable his forest to be adapted for grazing purposes, such as fanks, dippers, and shepherds' houses. In most cases, it is believed, the old fanks could be put into a reasonable state of repair at a comparatively small cost. It is essential that efficient dippers should be provided, and we think that the Board of Agriculture for Scotland should give assistance in this matter. The most serious item of all will be the erection of shepherds' houses. As already pointed out, where the proprietor stocks the forest himself, it will often be possible for the stalker to look after the sheep, or to lodge a single shepherd in one of the stalker's houses. But this will not always apply, and certainly cannot be counted upon where the grazing of the forest is let to a third party. Therefore, the question of providing a house for the shepherd, where this is necessary, must be dealt with. The cost of erection of such a house will vary greatly with the position and the materials available, but a house containing three bedrooms, a living room, but no bathroom, can nowhere be built now for less than £1000. Reckoning 7 per cent. as a fair rate of interest to provide for interest on capital, maintenance and repairs, and rates, the annual charge to be met by the proprietor would work out at £75 per annum per house erected. Now, one shepherd can look after about 800 sheep. At 1/6 per head, the grazing rent for 800 sheep would be £60 per hirsel. From this it will be seen that the total rent received fails to meet the annual charge on the house by £15 a year, which thus would become a deficit to be borne annually by the landowner, in addition to the rates and taxes he would have to pay on the assessed grazing rent. To cover the charge on the house alone would necessitate a rent of 1/10 a sheep, without allowing anything for the grazing. In addition to the house, a byre for the shepherd's cows would also be required, for which no allowance has been made; nor have we made any allowance for fencing his potato ground and hay field. Therefore, where new buildings have to be provided, it is very doubtful if any farmer or grazier could afford to pay what would be an economic rent to the landowner. These figures would, of course, require revision if and when the cost of building fell. DEER FORESTS AND EMPLOYMENT. The normal amount of employment in deer forests of stalkers, gamekeepers, foresters, gillies, and roadmen, etc., excluding gardeners and domestic servants, is as follows: Number employed for whole year 881. 1178. It will be seen that the number of men employed permanently (excluding gardeners and domestic servants) works out at one man to 3895 acres. Reckoning that this area (at 5 acres to one sheep) would graze about 800 sheep, and that this number is appropriate to one shepherd, it is evident that there is very little difference between the permanent employment afforded by the deer forests and sheep farms. The number employed for part of the year is no doubt larger in deer forests, but the employment does not usually extend over more than two or three months, and against this must be set off the number of temporary men employed on sheep farms at the "handlings," i.e., at lambing and clipping times. FINANCIAL ASPECTS OF DEER FORESTS. We have been asked to report upon the extent to which local public revenue may be affected by the conversion of lands used as deer forests to productive uses-that is to say, how far any changes in the occupation of the lands may affect the rents returned to the |