132 VALUATION OF FOREST SOIL. 



a matter which introduces much uncertainty into the 

 calculation. 



(b) That the calculation is made with a suitable rate of in- 



terest. It has been shown above that this is a matter 

 beset by considerable difficulty. 



(c) That the rotation corresponding to the maximum expec- 



tation value of the soil can be adopted and retained 

 without thereby lowering the price of forest produce ; 

 in other words, that the market can readily absorb any 

 extra cuttings which may be necessary in order to 

 introduce a rotation lower than that hitherto followed. 

 Generally speaking, the expectation value of forest soil is not 

 a fixed quantity; it changes, not only in the ways indicated 

 above, but also with alterations in the price of forest produce 

 consequent on changes in the areas set aside for the produc- 

 tion of forest crops. 



SECTION II. THE COST VALUE OF FOREST SOIL. 



By the cost value of the soil is understood the sum of all 

 expenses incurred in acquiring the land and rendering it fit for 

 forest culture. These expenses consist of: 



(1) The price paid for the land. 



(2) The sum expended in rendering it fit for cultivation, 

 such as drainage or irrigation, levelling, fixation, etc. 



(8) The interest accumulated on the outlay mentioned under 

 (1) and (2) up to the date when the first forest crop is started. 



Example. An acre of land has been purchased for ^10 ; a 

 sum of 5 has been expended at once in breaking through an 

 impermeable substratum in strips 6 feet apart; a further sum 

 of 2 has been spent after the lapse of 3 years in breaking 

 up the intermediate strips ; the land was allowed to lie fallow 

 for another 2 years. The cost value of the land at the end 

 of 5 years, when it is planted, amounts, calculating with 

 2J%, to 



S. = (10+5)xl-025 5 + 2xl-025 2 = 19 1 5 



