134 Forestry Quarterly. 



price. Other factors, of course, enter, but their effect is gener- 

 ally to lower the rotation. 



Statistical data are given in the form of plotted diagrams, hav- 

 ing for arguments price and middle diameter of stems. The 

 prices are the averages obtained at public auctions during the 

 past three years. 



Stammhols-Mittelpreise im Grosshersogtutn Hessen. Silva, August 

 19, 1910. Pp. 257-261. 



Sooner or later our rough and ready method 



Forest of determining forest values will give way 



Finance to more refined ones, but it is needful to 



Problems. escape the finesse which the soil rent theory 



has introduced. 



In a discussion on a literary war between two authorities on 

 forest taxation. Dr. Schiffel in his usual sane manner points out 

 that the first need is to come to an agreement as to "what in the 

 forestry business is fixed capital and what current capital?" 



He shows that there is a difference in this respect between an 

 intermittent and an annual management. In the intermittent 

 business the soil alone is fixed capital, while the value of the 

 growing stand is at every age the interest accumulating produc- 

 tion fund, the current or working capital which is returned every 

 r years. For this condition the well-known soil rent formula is 

 theoretically correct. Practically it is useless, because the diffi- 

 culty in estimating future yields and costs, and long-time interest 

 rates is too problematical. 



In the annual management, however, the annual income is not 

 a return of the current capital and soil interest, but it includes 

 the interest on the wood capital, which in this case, essentially 

 different from the intermittent management, is like the soil fixed 

 capital, at work in producing income. It is a forest rent, includ- 

 ing the soil rent and the rent on the growing stock. 



From this consideration it follows that the intermittent man- 

 agement is not a forest management but a soil management in 

 which a forest rent does not result. 



Only in the annual sustained yield management is there a for- 

 est rent developed — a real forest management. The annual returns 

 pay the interest of the forest capital, which includes soil capital 



