98 Forestry Quarterly. 



90tli year, so that if 4.25 to 4.5 per cent is the rate at which 

 loans are given, it pays better at those ages to cut, than to bor- 

 row. According to Lorey when the average d. b. h. is 7 inches 

 the vahie increment per cent is below the loan rate. 



He concludes that therefore, forests in intermittent management 

 (stands) are not fit for credit loans, except on their soil value. 



Discussing the position of forests under sustained yield mana- 

 gement, when a yearly income can be derived, he quotes Bernhardt 

 to the effect that the lowest limits for the possibility of such 

 management lies for coppice with 20 year rotation at 3 acres, for 

 timber forest with 60 year rotation at 15 to 20 acres, with 120 

 year rotation at 35 to 40 acres. 



The Prussian soil credit banks make, however, 125 to 250 acres 

 the lowest limit. In Prussia, 66% of the total forest area out- 

 side of state and crown forests is held in parcels over 250 acres 

 in extent, and in Bavaria only 32 per cent. Other banks are 

 satisfied with a limit of 40 acres ; others again require a proper 

 organization of executive and protective service which premises 

 an extent of probably 5,000 acres. 



If the yield is properly determined it furnishes undoubtedly 

 the best basis for loans. The valuation is based on local average 

 prices, and 10 to 15% is deducted to insure against fluctuation 

 of prices, damage from insects or fire, etc. ; with broadleaf forest 

 the deduction is only 4 to 8%, and in both cases less if good pro- 

 tection against fire is assured. The capitalization is usually 

 figured at 5%. 



Die Bclerhung von VValdungen. Forstwissenschaftliches Centralblatt. 

 November, 191 1. Pp. 565-576. 



In a case of damage for the destruction by 

 Damage fire of a small parcel of a larger stand, Heun 



Calcula-tion. points out that, in addition to the cost of 

 producing the lo-year old stand and the 

 capital value of the annual soil rent and administration costs, there 

 is also due the damage which comes from the necessity of even- 

 tually having to cut the parcel ten years younger than the rest of 

 the stand, which from managerial reasons would be required, 

 i. e., if the rotation was placed at 60 years, the whole stand would 

 be cut at that age and the parcel would be cut with the rest when 



