FINANCIAL ASPECTS OF AFFORESTATION 219 



plicated area as a woodland block of 500 to 1000 acres in 

 extent, measurements must, of course, be confined to 

 small areas, and unless the correct figures are available 

 for a long period of time, these measurements are the 

 only methods by which the productive capacity of the 

 soil, or what is technically known as the 'locality,' can be 

 roughly ascertained. But the most elaborate yield tables 

 cannot indicate the actual nett profits from a large area, 

 which must either be done from figures extending over a 

 long period of years, or by an estimate of all the probable 

 cost and expenditure until the woodland is in full bear- 

 ing. After the latter condition has been attained, an 

 excess of annual income over expenditure may be 

 regarded as interest on the capital sum which has been 

 invested in creating the woodland, or producing a normal 

 crop of timber on the ground. 



In making such an estimate the items of expenditure 

 are many, those of income few. Expenditure might be 

 divided into initial and annual, but until a normal stock, 

 consisting of a regular series of age classes, has been pro- 

 duced, it is simpler and probably more correct from a 

 practical point of view to regard all expenditure as capital 

 invested, similarly as money spent in developing a com- 

 pany, or enlarging a factory, is invested capital, the 

 interest on which is represented by the annual profits. 



These items of expenditure may be summarised as 

 follows : — (1) Land purchased, or converted from tillage 

 or pasture to forest; (2) preliminary expenditure on 

 buildings, roads, fences, bridges, arterial drainage, etc.; 

 (3) cost of plants and planting a definite area annually 

 for the period of the full rotation ; (4) expenses of 

 supervision, care taking, tending, etc., throughout the full 

 rotation, and which come under the head of general 

 maintenance at a later period. 



Under the first head an expenditure of from £2 to £6 



