THE FINANCIAL ROTATION. 



205 



extent, and if they are made so heavy, that they reduce the 

 value of the final return, they may even have the opposite 

 effect. 



Of the costs, the annual expenses do not affect the financial 

 rotation, unless they alter in amount with the rotation. 



The cost of formation affects the rental to a considerable 

 extent, but its effect upon the financial rotation is small. 



Taking all effects together, it may be said that the financial 

 rotation is low : 



(1) in the case of forests \vhere only firewood is saleable, 

 that is to say, where an increase in quality per unit 

 of volume ceases at a comparatively early age ; 



2-5 



83 



AGE 



Fig. 45. 



(2) if trees of small dimensions can be sold as timber, for 

 instance in mining districts, in hop-growing coun- 

 tries, etc. 



The financial rotation is high: 



(1) in localities with an unfavourable soil or climate, such 



as high exposed situations, where the trees take a 

 longer time to reach marketable dimensions ; 



(2) in thinly populated districts, where prices generally 



rule low for small dimensions, while large timber 

 can be exported to other better paying markets. 



c. Correction of the calculated Financial Rotation. 



The length of the financial rotation, as obtained by a first 

 calculation, is subject to correction, because it is based 



