THE PACIFIC NORTHWEST 79 



It should be borne in mind that, although present land 

 value is made a charge, the "value of the land at the time of 

 harvest is not considered. This value is certain to increase 

 greatly in the long periods involved. Taxation charges will 

 be against it as well as against the timber. Indeed much 

 land is now held without any regard to possible second growth. 

 It should be assumed therefore that any profit in forest in- 

 vestment shown will be increased by, the sum obtainable fov 

 the land at the end of the same period. 



Cost per M of growing Cost per M of growing 

 Douglas flr resulting from Douglas fir resulting from 

 every $1 per acre origi- every 1 cent per acre of 

 nally invested. annual carrying charge. 



- At the end of At the end of 



50 60 70 80 50 60 70 80 



Years. Years. Years. Years. Years. Years. Years. Years. 



At 4% $.35 $.30 $.33 $.41 $.074 $.068 $.078 $.098 



At 5% 56 .53 .05 .88 .102 .101 .120 .172 



At 6% 90 .94 1.27 1.87 .142 .152 .208 .309 



Example 1 : With land worth $2.50 an acre at present, 

 and an estimated carrying charge of 3 cents a year for protec- 

 tion and 20 cents per taxes, what stumpage price for a 50- 

 year crop will pay 5 per cent compound interest ? 6 per cent ? 



5% 6% 



2VL.X.50 =$1.40 2%X .90=$2.25 



23 X.102= 2.35 23 X.142= 3.27 



Example 2 : With land worth $5 an acre at present, and 

 stumpage estimated to reach $7.00 in 60 years, what is the 

 maximum annual carrying charge per acre which can be paid 

 during this period and permit a 5 per cent return ? A 6 per 

 cent return ? 



5% 0% 



Gross return=$7.00 Gross return=$7.00 



5X.53 = 2.65 5X.94 = 4.70 



$4.35-=-, 101 =43c $2.30-^-.152=15c 



Example 3 : Assuming that stumpage will be worth $6.00 

 in 50 years, and that public enlightenment will keep the an- 



