FINANCE IN ESTATE FORESTRY. 35 



If there is an equal distribution of tliese species over a 

 given area, the average mean annual increment is slightly over 

 1X2 cubic feet (Q. G.). It is better to under, rather than over, 

 estimate when calculating any prospective return, and in order 

 to make allowance for every ordinary contingency it will be 

 safe to take an annual increment of only 80 cubic feet, which _ 

 is 28'5 per cent, less than the above-quoted average. On this 

 basis the product of an acre over a 60-year rotation would 

 be 4800 cubic feet; over a 50-year rotation it would be 4000 

 cubic feet. At an overhead price of is. per cubic foot the 

 60-year crop will be worth ;^240 and the 50-year crop ^200. 

 At an initial cost of ;£^(i per acre, and adding to it an annual 

 upkeep, rental, and tax contribution of 5s. per acre, both 

 accumulated at 5 per cent, compound interest, the actual total 

 cost on a 60-year rotation is ;^2oo, 8s., and on the 50-year 

 rotation ;^i2i, 2s. The margin for reduction in the selling 

 value of the crop of 60 years is ;^39, 12s., and in the crop of 

 50 years is £^1^, i8s. If the crop is disposed of at is. per 

 cubic foot, these margins represent a profit over and above 

 5 per cent, compound interest on the investment. Over so long 

 a period many unforeseen occurrences may arise to alter the 

 conditions as they appear at the present time, but any close 

 observer must appreciate that the demand for timber will be 

 maintained, that interest on money must fall, and that the cost 

 of both labour and material will be less as the upheaval of 

 war subsides. These factors are all in favour of the planter 

 who now enters upon a proper planting-plan and carries it out 

 perseveringly over a number of years. There would appear to 

 be no reason to look upon well-directed afforestation as an 

 unprofitable investment for the owners who desire, as the great 

 majority of them do, to maintain their properties in a creditable 

 and satisfactory condition for their heirs or successors. 



In planting, as in every other undertaking, mistakes should 

 be avoided. The tree once planted must have congenial 

 environment if it is to produce a return sufficient for the 

 establishment of it. Soil, climatic conditions, and species are 

 all elements underlying success or failure. While it is not the 

 object here to suggest any particular species or to make 

 recommendations with regard to the selection of soil for them, 

 it is urged that increased attention should be given to the 

 propagation of Norway and Sitka spruce and Douglas fir. 



