151 



compound interest the money is already reinvested at the end of the 

 year, with no temptation to spend it or expense and delay in placing it. 



Gaged by direct comparison, then, an outlay of $2.00 per acre an- 

 nually, or a total of $30.00 for one acre, will return a net income of $32.00 

 per acre annually after an initial period of 15 years has elapsed, or 

 $480.00 on one acre. Spread over the period of waiting, this means a 

 return of the original cost, plus $30.00, or an income of $1.00 per year 

 for each dollar invested, which is $30.00 per acre annually over and 

 above cost of the crop. After the fourth or fifth year, at most, no 

 further expense is required nor is any labor of crop production involved. 



Money can be borrowed on farm property at 6 per cent. Land at 

 $250.00 per acre must produce a net income of $15.00 clear of expenses 

 to justify this value. 



If compound interest at (i per cent for 15 years is required, the land, 

 bare of trees, at the year of planting is worth for a crop of catalpa posts 

 $261.55 per acre as follows : 



Taxes per acre at $1.84 for 15 years, compounded....? 42.83 

 Initial costs, $30.00 for 15 years 71.89 



Total costs 114.72 



Net income every 15 years $365.28 



Discounted as a recurring crop or rental this gives the above land a 

 value of $261.55. The rental at 6 per cent on this value is, per acre, 

 $15.69 annually. 



Catalpa when grown in this manner as a crop on rich agricultural 

 soils yields over twice the cubic volume per year that can be expected 

 on true forest soils of average quality. Early maturity into post sizes 

 and a high per cent of utilization in spite of the small sizes of the trees, 

 due to using the material in the round, give 66 per cent merchantable. 

 No account has been taken of the other 33 per cent of wood or stakes, 

 which will serve to defray any protection costs. The wood, even as 

 fuel, should be worth $3.00 per cord, and serve to reduce the coal con- 

 sumption or to supply kindling. The yield of this material, 830 cubic 

 feet, is equivalent to 10.6 cords per acre, which at $1.00 per cord stump- 

 age gives $10.60 or 70 cents per acre annually. 



After such a plantation or system of post-production becomes estab- 

 lished, the property, or land with growing timber, increases rapidly in 

 value and becomes worth much more than $261.55. If a plantation of 

 15 acres is established by planting 1 acre per year, or one of an acre in 



