THE STATE FORESTS OF SAXONY. 35 



which gives 5s. 5|d. as rent for the land, and i6s. ^^d. as 

 interest on growing stock capital. Thus the land capital is 

 to the growing stock capital as 1:3, which is the normal pro- 

 portions of these two for the Saxon State forests ; but it is to be 

 noticed that the proportions of these two forms of capital vary 

 very considerably in other parts of Germany, many circum- 

 stances having a modifying influence. Variation in length of 

 rotation and in the species has a very marked effect on the 

 proportions of the two component parts of forest capital, and in 

 a country such as Prussia, where Scots pine is grown on a long 

 rotation, the proportion of the growing stock capital to the land 

 or soil capital would probably very much exceed 3:1, although 

 no figures are available. This proportion is, however, a very 

 good guide for a conifer forest grown upon an economic 

 rotation. 



Although the interest, 2-19 ^/q, is low it must be taken into 

 consideration that the investment is exceedingly secure as long 

 as the management remains in the hands of capable men, as 

 there is every reason to suppose it will. Calamities of varying 

 nature have from time to time threatened the Saxon State 

 forests, but never has anything very serious befallen them. 

 Wind storms, which used to be the much feared danger, are no 

 longer regarded with such apprehension, owing to the methods 

 which have been adopted so successfully to mitigate their 

 effects. Large areas of pure conifer woods are, it is true, 

 favourable to pests, but, again, the thorough mixing of the age 

 classes within the forest has done much to prevent any pests 

 becoming very destructive. But it will be pointed out that if 

 three-quarters of the total capital, i.e., that portion which 

 represents the growing stock, were invested in an equally good 

 security at 3^ "',,, which would be quite possible at present, it 

 would bring in a greater annual return than is now being got 

 from the whole capital locked up in the forests. Surely, then, 

 it would appear wise, from a financial point of view alone, to 

 clear the woods and reinvest the money at 3^ "/o, because then, 

 even if the land fetched nothing when sold, the State would 

 stand to gain. Such a line of argument is sometimes pursued 

 by those whose object is to decry the financial aspect of forestry 

 under the most favourable conditions, such as we see it in 

 Saxony. The hypothesis upon which such an argument is 

 based is, however, quite false in that the selling value and the 



