Periodical Literature. 99 



our valuations overburden our young stands, our raw material, 

 not only by charging against them the cost of their first produc- 

 tion but interest and rent values and expectancy values, to deter- 

 mine the capital on which we demand interest. Only the oldest 

 stands have a real sale value and can be realized on (Y), besides 

 thinnings and accidental yields (T), against these alone should 

 be charged all the costs (C) when the unsound compound in- 

 terest calculation disappears, and the equation which inquires into 

 the result of our management becomes simply a forest rent form- 



> 



ula; (s-\-ns) .op=Y-\-T — C. No prolongations and discounts 



< 



and expectations but the real, practical actual forest management 

 is represented in this simple formula, which tells how far the 

 management brings more or less than the interest on soil capital 

 and stock value. And, if the manager wants to secure more than 

 the usual interest rate (p) on his capital value, namely a profit, he 

 may simply introduce this amount to be deducted on the right 

 hand side of the formula. 



What means do we have to postpone the time when the right 

 side of the formula becomes smaller than the left? The prin- 

 cipal means is to reduce the wood capital and thereby reduce the 

 interest charge. This involves silvicultural operations and, in 

 the first place, thinnings and improvement cuttings (where un- 

 salable; girdling), by which stock is reduced but volume incre- 

 ment increased. A few simple prescriptions for thinning prac- 

 tice are given in which the author inveighs against the very se- 

 vere opening up which for a short time leads to greatly increased 

 increment but at the expense of wood quality. 



Against the other means of making the equation favorable *. e. 

 increasing the apparent income by reducing the interest rate, the 

 author protests as illogical. Especially the proposition of vary- 

 ing interest rates for different time periods (originally proposed 

 by Baur) he points out as lacking entirely a tangible basis or 

 justification, indeed he characterizes this proposition as one of the 

 most remarkable aberrations. Everywhere else he who saves, 

 does so in the expectation to be paid for his frugality later on, 

 yet this proposition requires that when he could get 3%, and 

 instead of taking it he leaves and capitalizes some of the incre- 

 ment, say until the capital has increased by 50 per cent., he is 



