CHOICE OF ROTATION. 211 



irrespective of the rate of interest, he would choose the rotation 

 under which that income culminates, etc. 



There may be good reasons in all these cases for adopting 

 the one or other rotation. At the same time the proprietor 

 should know what financial sacrifice he brings for the realiza- 

 tion of his special object. Hence, the general procedure in 

 fixing the rotation may be described as follows : 



In the first place the financial rotation should be deter- 

 mined, as it alone gives a true expression of the economic 

 value of the management ; then it should be ascertained in 

 how far the objects of management demand a departure from 

 the financial rotation ; lastly, the financial loss involved in 

 such a departure should be determined, so that the proprietor 

 may have a clear conception of the payment which ha is called 

 upon to make in order to realize his special object. 



It need hardly be pointed out that the above procedure suits 

 all possible cases which may come under consideration. 



p 2 



