138 Forestry Quarterly 



tangible values and not on the fanciful interest rate and time 

 calculations of the expectancy method. The latter starts with 

 the idea of the empty acre and intermittent incomes; the author 

 considers that forest management can only be considered when a 

 forest is in existence, just as agriculture requires a farm, mining a 

 mine, and innkeeping an inn. With unforested soil one would 

 have to wait 40 or 50 years before forest management becomes 

 possible. Soil and stands in inseparable combination are the 

 means for producing annual wood increment and a forest industry, 

 hence forest valuation must proceed differently from stand 

 valuation. 



It might be supposed that the money value of the present annual 

 forest yield capitalized (the forest rent value) represented the 

 capital value of the forest, but the author rejects this method of 

 valuation as practically untenable because it requires the arbitrary 

 choice of an interest rate, when e.g. using 2 per cent the capital 

 value would be 50 times, using 4 per cent only 25 times the annual 

 rent. 



In a forest which can furnish a yield annually, the value of the 

 stands, i.e. the stock on hand, is by all odds the greatest asset; 

 hence an exchange or sale value is first to be ascertained for them. 



To do this the author develops a method he had elaborated in a 

 publication of 1888 and later writings, namely valuing all stands 

 by relating them to the stimipage value of the mature timber. 

 Maturity, according to the earlier arguments of the author not 

 here repeated, must not be determined by the arbitrary calcula- 

 tions of the soil rent theory, but it has arrived for a stand when the 

 value of the stumpage of that stand per acre is equal to the value 

 of the average per acre of actual stock of the forest. While, then, 

 for all old stands their stumpage value is the proper sale value, 

 for all younger stands practically applicable approximate values 

 can be secured by multiplying the average annual value increment 

 at maturity with the age of the stand. 



Individual judgment, such as must always be at work in valua- 

 tion, may modify these values for the younger stands, but they 

 furnish a good basis for such judgment, from the one-year stand 

 to the oldest. 



For any forest, then, on which forest management can be carried 

 on the present money value of the actual stock on hand can be 

 determined in a manner which will permit all valuators to come 

 nearly to the same result. 



The value of the total stock (st), which must permanently be 



