638 Forestry Quarterly. 



average increment is to be taken. (This after the precedent of 

 K. Heyer.) 



The sum of the stand values (or stock value) thus determined, 

 which gives the owner the possibility with a given rotation to 

 continuously reap the annual wood value increment upon which 

 the calculation is based would then form the loivest price at 

 which to buy or sell. To this may then be added the soil value, 

 also as present exchange value, either based on actual present 

 market value of farm soils of lowest valuation, or by capitalizing 

 the net yield of the forest determined in the above calculation 

 with varying interest until buyer and seller agree. The seller will 

 ask perhaps 50 to 100 times the net yield as capital value (i. e. 

 figure with 1-2%), the buyer probably will ofifer 25 to 50 times the 

 net yield (figuring at 2 to 4%). By using the proposed wood- 

 money tables the soil value is indirectly found by subtracting the 

 sum of the stock values as determined above from the capital 

 value of the net yield that can be secured, which difference gives 

 the soil value. 



The idea of introducing values for by-products is dismissed 

 as irrelevant. 



Ueber den Gcgensats zzvischen Tauschwert, Kostenzvert tmd Erzvar- 

 tungszvert. Zeitschrift fiir Forst-und Jagdwesen. August, 191 1. Pp. 

 637-643- 



According to a canvass of loan banks in 

 Loans Germany made some 9 years ago, the basis 



on for the loans varies with different banks : 



Forest only two base the "loan value" yield of 



Property. forests under sustained yield management 



upon the wood yield ; others base their loans 

 upon the value which has been ascertained for taxation purposes ; 

 some take into consideration the actual stumpage value, if a syste- 

 matic sustained yield management is possible ; some do not give 

 any loans for forest properties, and others again loan on the soil 

 value only. Small woodlots or stands, and woods not in connec- 

 tion with farm property are not objects for loan by any bank. 



Forestry Associations have discussed and recommended a more 

 uniform practice for negotiating loans on forest property without 

 coming to very definite conclusions as to the method of ascertain- 

 ing the loanable value. 



