8 TRANSACTIONS OF ROYAL SCOTTISH ARBORICULTURAL SOCIETY. 



Let US now see how this will work out financially. 



The Government will have lent the sum of p/^4000 



In 40 years this will have accumulated, with 



compound interest at 2^ per cent., to . . ^'10,740 



I would then propose that the owner should repay this sum 

 in twenty yearly instalments, with interest at the same rate, the 

 timber being assumed to be now in such a state that it should 

 yield profits, which should meet the annual instalments. 



To repay _;2£" 1 0,7 40 in 20 years, with interest at 



2?, per cent, requires an annual instalment of ;£^9^ 



I think it should be in the option of the owner to pay off the 

 balance of the loan at any time, but I do not consider it likely 

 that this will be done. My idea is that the instalments should 

 be met by sales of thinnings, and the above amount represents 

 some 13s. 9d. per acre annually for 20 years, and should easily 

 be met without damaging, and probably to the advantage of, 

 the ultimate crop. 



We have, however, to contemplate the possibility of the 

 owner failing to make punctual repayment, and I would suggest 

 that in this event the Government should be entitled to take 

 the whole of the timber without further ado, repaying to the 

 owner for that timber only such actual sum as he may have at 

 that date paid towards the extinguishing of the loan. In this 

 case, however, it would be necessary that they should take the 

 land also on which the crop stands, so as to give them full 

 liberty to deal with the crop to the best advantage, and should 

 pay for it by a lump sum equivalent to the rent per annum for 

 40 years capitalised at 2^ per cent. In the above instance, this 

 would be as follows : — 



1000 acres at is. 6d. per annum .... _;£^75 



;^ 7 5 per annum for 40 years, at 2 i- per cent. . ;!^5055 



on payment of which sum the land would become Government 

 property. 



Let us now see, if we can, how the financial aspect of the 

 proposition would work out, say, at the end of 80 years. 



We must here assume again arbitrary figures, but good forest 

 land at the end of 80 years should carry a crop of Scots pine 

 of about 4000 cubic feet per acre. 



This, at 6d. per cubic foot, = ^100 per acre. 



