156 



CHAPTER VI. 



THE FINANCIAL RESULTS OF FORESTRY. 



THE subjects which will be treated in this chapter belong 

 to that part of scientific forestry which is called on the con- 

 tinent " Forest Statics " ; that is to say, the science which 

 weighs and considers the comparative merits of the different 

 methods of treatment to which forests may be subjected. The 

 financial results, or the rent-yielding power of an undertaking, 

 are expressed by the proportion which exists between the yield 

 and the capital which produces it. Hence, when several 

 methods of treatment lead to the realization of the otherwise 

 desired object, it should always be ascertained which of them 

 does so in the most profitable manner ; in other words, which 

 of them gives the highest rate of interest on the invested capital. 



In the present instance only the most necessary matters 

 will be given, namely the methods of calculating the financial 

 results of forestry, and their application to a few of the more 

 important questions. 



SECTION I. THE METHODS OF CALCULATING THE FINANCIAL 

 RESULTS OF FORESTRY. 



The financial results of forestry can be determined in one of 

 two ways : 



(1) by ascertaining the " profit," that is to say, the surplus 



of receipts over costs of production ; 



(2) by ascertaining the rate of interest yielded by the capital 



invested in forestry, here called the " forest per cent." 



Each of these two methods must be explained in detail. 



