8 



COMPLETE YIELD TABLES FOR BRITISH WOODLANDS 



The cost of planting, including also fencing and 

 cutting out any rank growth of grass, etc., during the 

 first two or three years, has been taken at 5 per acre. 

 However, the cost of planting, etc., must always be 

 subject to great variation, and the above sum is instanced 

 merely as affording a basis upon which calculations may 

 be made. 



If the cost of planting is greater, then the equivalent 

 laud rentals can easily be approximately calculated by 

 deducting 3|- per cent, or 4 per cent, interest on such 

 additional cost. On the other hand, if the cost of 

 planting is less, then the land rentals, as stated, will be 

 increased by a sum representing 3^ per cent, or 4 per 

 cent, interest on any such sum by which the cost of 

 planting is lessened. However, it should be remem- 

 bered that in any such variations, no account has been 

 taken of the necessary sinking fund representing the 

 amount by which the initial outlay is varied. 



As regards the rates of interest, namely, 3 per 

 cent, or 4 per cent., at which the land rentals have been 

 calculated, it is, without a doubt, necessary to adopt 

 such rates of interest as would be reasonable in ordinary 

 practice. 



Of course, if a very low rate of interest, such as 2 or 

 2 per cent, be adopted, very much better results could 



be shown. But in this connection it is well to remember 

 that even the most wealthy of cities or municipal 

 corporations can only borrow money at about 3^ per 

 cent, interest, and this too is the rate of interest yielded 

 by most "trustee" stock; whereas private individuals, 

 however rich they may be and whatever security they 

 may offer, can practically never borrow money for any 

 length of time at less than 4 per cent, interest. 



Enthusiastic advocates for national afforestation 

 often base their advice upon the supposition that money 

 can be borrowed at 2 or 3 per cent, interest, even on 

 such a risky undertaking as afforestation ; but such a 

 supposition seems somewhat quaint when the premier 

 security of even the richest country in the world is 

 valued upon a basis which yields the investor well over 

 3 per cent, interest. 



Then, again, with reference to these "land rentals," 

 it is necessary to point out what an enormous difference 

 in capital value a rental of Is. per annum represents at 

 the end of a long rotation. 



Now, on a 50-year rotation, and at 4 per cent, 

 interest, a gain or loss of Is. per annum in a rental 

 represents a gain or loss at the end of the rotation of 

 about 7, 13s. ; and at the end of a rotation of 75 

 years the corresponding difference is nearly 23 ; and 



