Periodical Literature 139 



on hand, to secure with any rotation (r) an annual money return 

 (Yf) can be also secured by multiplying this return by half the 



f 

 rotation {st= -^ ). 

 Z r 



For ascertaining the sale value of the soil (S) , an estimate alone 

 is necessary, and the author proposes that it be based on the value 

 of the most distant and poorest agricultural land in the locality, 

 unless special circimistances give it a higher value. 



The exchange or sale value of a forest, then, whose total annual 

 increment can be harvested in saleable material is simply St-\-S, 

 increased or decreased according to the subjective valuation of the 

 exchangers, but, of course, never below the money value of the 

 stock, which is the fixed capital. If desired, the interest at which 

 this capital works can be figured by the annual interest formula : 

 it means that at the present and so long as the values remain as 

 they are, this is the rate at which the business pays. The fact 

 that whoever 50 years ago invested in forest property, content 

 with 2 or 3 per cent, makes 6 to 8 per cent (in a particularly cited 

 case 15 per cent), is merely due to the change of values; in other 

 words, like all other things the value of forests changes. If, 

 however, the present value of stock on hand is figured with present 

 prices the interest relation, of coiirse, also changes most likely to 

 that which had existed previously and the same 2 or 3 per cent 

 seem to be the result. 



Pointing out that the soil rent theorists, finding that long rota- 

 tions furnish small to negative soil rents, try to meet the difficulty 

 by choosing low interest rates and reducing rotations to the 

 detriment of the national wealth, he recommends on the basis of 

 his method of calculation to manage the existing forests "with 

 possibly highest rotations in dense position till maturity and 

 under a natural regeneration system" — a questionable attitude, 

 not a necessary corollary to his finance calculation ! 



Zur Losung der Waldwertrechnungsfrage. Zeitschrift fur Forst- und Jagd- 

 wesen, May, 1915, pp. 279-90. 



Riebel points out that the usual soil and 



New Forest stand expectancy value determination, which 



Valuation starts out with the idea of an intermittent 



Formula return, is faulty when applied to a whole 



normal working block. While the usual 



method of calculation may fit the case in static inquiries, it does 



not fit for sales, exchanges, division of properties, damage suits 



