Current Literature 51 



Chapter XII, "Future Value of Forest Products," gives a look 

 into the future at what may happen if population continues to in- 

 crease, prices rise, transportation facilities become better, wood 

 substitutes find a wider use, and other changes predicted by econ- 

 omists should happen. 



"Risks" (Chapter XIII) from wind, insects, fungi, fire, etc., 

 protective measures and their effect on the rate of interest which 

 should be earned are briefly discussed. 



Chapter XIV is a review of timber estimating and mapping. 

 An outline is submitted which calls for about all the information 

 necessary to determine stumpage values. 



The last chapter compares "Forest Values" with "Agricultural 

 Values." Soil expectation or capital value for each purpose is 

 the basis of comparison. 



In order to make the volume more readily usable, an appendix 

 has been added giving the formulae summarized, symbols used, 

 compound interest tables and a six-plate logarithmic table with 

 proportional parts. 



A number of points are brought up which might well have 

 received more detailed treatment ; for example, the author says : 



"The true 'economic' per cent, earned by an investment is the 

 rate paid on all capital invested for periods of one year or over, 

 regardless of ownership" (p. 113). If one assumes, as is recom- 

 mended in the United States Department of Agriculture Bulletin 

 11, p. 31, that an owner invests his own capital in land, initial 

 expenses, silvicultural operations, etc., but borrows money (at a 

 fixed rate) to pay annual expenses, the rate of interest earned by 

 his investment will be the relation existing between his capital 

 and his "net" income. This "net" income is the difference be- 

 tween gross receipts and the borrowed money with interest. One 

 could follow up this line of reasoning until the owner ( ?) bor- 

 rowed all but one cent of the capital necessary for forest pro- 

 duction. What would his investment then earn? The principle 

 involved is that of dividends to a shareholder and not profits to 

 a corporation. The "economic" per cent, indicates profits cor- 

 rectly. Dividends and profits should be distinguished because 

 sums returned on capital invested by owners is not earned solely 

 by this capital. 



On pages 117 to 119 are forms for "Forest Accounts." For 



