244 THE NORMAL YIELD. 



2. The Financial Value of the Nnrmal Yield. 



The financial value of the normal yield is that which secures 

 interest on all capital invested in a forest exactly at the rate 

 of the general per cent, p, at which money can be obtained for 

 forestry, or at which money taken out of the forest can be 

 invested with equal security as in forestry. The financial 

 yield is realised as long as a financial equilibrium on the above 

 lines exists in the forest, that is to sa} r , when the forest 

 per cent, is equal to the general per cent. p. This occurs 

 under a rotation equal to that for which the expectation value 

 of the soil reaches its maximum. 



Example : 



Taking the data in the table at p. 202, and a rotation of 80 

 years : 



Soil expectation value for 80 units of area = shlgs. 



80x250 . . . . = 20,000 



Financial value of normal growing stock . = 68,360 



Total . . . = 88,360 



Financial Normal Y= 88,360 X '025 = 2209 shillings ; 

 or 27*61 shillings for each acre of forest. 





