THE FINANCIAL ASPECT OF FORESTRY. 1 7 



4. The Financial Aspect of Forestry. 



By Fkkcival Trb-ntham Maw. 



Now that the subject of forestry and the advisability of more 

 extensive planting in Great Britain is being somewhat freely 

 discussed by politicians and others, a critical discussion on the 

 methods adopted for showing the financial results likely to 

 accrue from afforestation will be welcomed by some and act 

 possibly as a timely warning to others. 



I have no hesitation in saying that much of the advice offered 

 by enthusiasts in the cause of forestry can only lead, if followed, 

 to grave financial losses. While in many cases their estimates 

 as to the growth of timber, the amounts likely to be received 

 for thinnings, and the final crop, are quite likely to be realised, 

 yet their estimates of the ultimate profit which they anticipate 

 would appear in most cases to be made in ignorance of the 

 correct principles that should be applied in making actuarial 

 calculations. 



As I have previously pointed out,^ it is of no uncommon 

 occurrence for those seeking advice as to the possible profits 

 that may be derived from operations of afforestation to be 

 informed of the results achieved in continental forests. For 

 instance, an owner contemplating planting is told of some 

 existing forest where the average net annual receipts per acre 

 amount perhaps to 30s. or ^2. Then he is advised that the cost 

 of planting will be perhaps ;^8 an acre, and the land is now 

 valued at j£,\2 an acre, and that on this proposed investment of 

 ;;^2o an acre, he may thus hope to secure the same net profits. 

 An increased rental of say 25s. an acre with an additional 

 capital expenditure of only jP^Z\ Over 15 per cent, interest; 

 what more profitable undertaking can be embarked upon ! 



Fortunately, a remark of Mr Healy's showing his high 

 appreciation of the intelligence of the Upper House may also 

 be applied to the majority of British landowners, but I should 

 hesitate to make such a flattering statement concerning those 

 who offer advice such as has been instanced above. As well 

 might one compare an agricultural rent with a rent received 

 from a fully developed building estate. 



Not infrequently it is suggested that the value of the final 

 crop divided by the number of years in the rotation will represent 



1 Surveyor's Institution, Professional Notes, vol. xv. , part iv. 

 VOL. XXIII. PART I. B 



