20 TRANSACTIONS OF ROYAL SCOTTISH ARBORICULTURAL SOCIETY. 



of forestry operations is theoretically correct, I much prefer to 

 state the net annual rental which can reasonably be expected, 

 according to the method previously described. There are 

 several objections that can be raised against the former method : 

 it is somewhat ambiguous to those who are not accustomed 

 to actuarial calculations : for, if the rate of compound interest 

 is low, it is apt to cause an unduly favourable opinion to 

 be formed of the undertaking ; whilst the reverse is the 

 case if the rate of compound interest is high. Then again 

 for practical purposes, although the productive capacity of the 

 land may have been accurately gauged, it will nearly always 

 be necessary to refer to tables to ascertain the probable rate of 

 interest that will be yielded by any planting operations, for 

 whenever the value of the land or the initial expenditure varies 

 so does the rate of interest, although the growth of timber may 

 remain the same. 



But if the latter method, namely, that of showing the net 

 annual value, be pursued, any advocate for afforestation will be 

 able to furnish data which are more or less directly comparable 

 with existing net agricultural rents; though, before a strict 

 comparison can be made, a portion of the estimated annual 

 rental value of the land when planted must be deducted as 

 representing the yearly interest on the cost of planting and fencing. 

 Also, it should not be forgotten that a portion of any large area 

 of land, if afforested, must be devoted to roads and drives, and 

 there is always a certain amount of other unproductive land. 



I urge all who contemplate planting and obtaining advice 

 thereon, to insist upon being advised as to what annual rental 

 can be expected from the capital invested, and to ascertain also 

 what rate of compound interest has been assumed in making 

 the calculations. For, as will have been gathered from what 

 has already been said, the rate of compound interest assumed 

 will make an enormous difference in the estimated results which 

 are likely to accrue from planting operations : if a low rate is 

 taken a profit can often be shown, but seldom otherwise. 



Conscious of this, over-zealous experts and others who tender 

 advice, habitually adopt a low rate of interest, and it seems to 

 be their almost universal practice to take 2^ per cent, or at most 

 3 per cent. This is especially the case when they are advising 

 municipal and other corporate bodies. 



Now, I admit there was a time when the public were willing to 



