1 170 RURAL ECONOMICS 



The writer examines the categories contained in Table II and points out 

 that none of them can escape the necessity of analysis in order to determine 

 the capitalisable income it is capable of yielding ; he arrives at the same 

 conclusions on considering the valuations according to the object they have 

 in view. The difficulties of economic analyses are of 3 kinds, according 

 to the amount of revenues which the real property can produce, the price 

 by which its value may be expressed in currency, and finally the time to 

 which these revenues and their valuations relate. 



From an examination of these difficulties and the method which va- 

 luation suggests for overcoming them, the writer concludes that the valua- 

 tion can only, quite conscientiously, draw up approximate judgments, and 

 the valuer can only indicate the maximum and minimum limits within which 

 are contained not only the value asked of him, but also all the values which 

 each of the persons called upon to give their opinion may attribute to the 

 real property in question. If he has to decide in favour of a single value, 

 the valuer will within these limits look for the normal average value, the 

 determination of which for one real property always gains by being the 

 result rather of an anal3rtic valuation than of a market valuation ; because, 

 while the market value is made up of 2 parts which each contribute their 

 personal tendencies to the exclusion of all others, the expert according to 

 the rules of valuation divests himself of his own personality in order to as- 

 sume a personality summing up the tendencies of the others. 



Examining next the other methods of valuation termed indirect, direct 

 empirical, statistical and mixed methods, the writer observes that they all 

 take their rise more or less remotely from economic analysis, and with regard 

 to the analytic method he draws the following conclusions : 



In view of the fact that the value of real property depends on the total 

 revenues obtained from it and the rate of interest at which they are capitalise- 

 ed, and that this value cannot be determined otherwise than b}- means 

 of these two factors, it is absolutely necessary, after reviewing all the cases 

 which occur in i^aluation, to conclude that each of these must be analysed 

 in order' to ascertain either the amount of the revenue or the rate of the ma- 

 terial and immaterial revenues which can be derived from each real property 

 and consequently the rate to be applied for capitalisation. As in these 

 determinations there may be differences of valuation, the estimate must 

 allow for extreme valuations; its conclusions must therefore usually be express- 

 ed within maxima and minima, between which the entire series of valuations 

 of different persons ma}' fluctuate, and it must, in order to reach these con- 

 clusions use the methods which the science of valuation shows to be sanction- 

 ed and accepted as accurate in practice. If the valuation is required to 

 give a single precise value, it must select the latter within the scale ly- 

 ing between the two extreme values, either taking into account the partic- 

 ular conditions and the purposes of this special problem, or by calling 

 to its aid all the subsidiary criteria which experience and practice may sug- 

 gest, in order to find the standard of valuation which the majorit}- of per- 

 sons would apply in this particular case and for this particular object. 

 In these cases the valuation must never be considered as containing an ab- 



