Formal bids are finally submitted, and the license is ordinarily granted to the bidder who gives the best assurances of developing the tract most thoroughly and promptly. The right to reject any and all bids is expressly reserved. In fixing the annual production there is taken into consideration, so far as possible, the amount of over-mature timber on the stand and the amount of the annual increment, with the object of rendering the investment a permanent one instead of merely permitting the operator to strip and abandon the area he holds. In preparing regulations under which the operator is required to work, first care is given to the future condition of the area, in order that the land after logging may be potentially as valuable as before, and no consideration of immediate profit is allowed to interfere. Nevertheless, the logger in the Philippines will find that in comparison with similar conditions elsewhere he will have few restrictions to contend with, and in practically no cases are these such as seriously to increase the cost of his operations. It is to permit such permanent use of the land that concessions are granted over such large areas, often consisting of a hundred square miles or even more. As local residents are given the right to cut what lumber and firewood they may need for their private use in the territory covered by exclusive licenses, this system is not open to objection, especially as there are more than sufficient forest areas to accommodate all applicants desiring exclusive licenses. The director of forestry has the right to reduce cutting areas if outputs do not come up to requirements, so that a dog-in-the-manger policy is rendered impossible. The local market takes about one hundred million feet per year. Only a few million feet are exported annually at present. A properly distributed cut of five hundred million feet per year would actually improve the forests.