FINANCIAL ASPECTS OF AFFORESTATION 227 



with the size of the area, especially as regards higher 

 supervision or administrative charges. The cost of a 

 forester competent to manage 500 acres of woods would 

 probably be almost, if not quite as great as that of a man 

 required for 1000 acres. The value of thinnings on the 

 smaller area with better soil would, on the other hand, be 

 higher, both by reason of the greater yield per acre, and 

 the better demand. 



As regards the nett returns given in official statistics 

 of continental forests, it is invariably the case that they 

 do not take into account interest on the capital invested 

 in them. Their ancient origin, of course, prevents any cal- 

 culation of this kind being made, but it is practically certain 

 that if the true figures could be ascertained, the nett yields 

 of 10s. to 20s. per acre given in Table viii. would be con- 

 siderably reduced. This is a point which has been usually 

 ignored in quoting the high returns from forests abroad, 

 but it must enter seriously into calculations of profits on 

 newly formed areas. The rate of interest charged on all 

 capital expenditure in the estimates is 3 per cent., as this 

 interest can be obtained from investments in any Govern- 

 ment stocks at present market prices, and with the very 

 best security money cannot be obtained for less on loan. 

 After deducting a sum from the annual yield which would 

 represent 3 per cent, on the capital cost value, therefore, 

 it is seen that the nett profits on the specimen areas given 

 are practically 7s. in the case of No. i., and 6d. in the 

 case of No. iii., per acre per annum respectively. No. ii. 

 shows a nett loss of 10s. 6d. per acre, unless a value of 

 9d. per foot is placed upon the timber, or the calculated 

 costs bear interest at the rate of 2h per cent, only, in 

 which cases no loss is incurred. 



The above estimates may be taken for what they are 

 worth, but if they are approximately near the mark they 

 suggest that timber cannot be profitably grown at present 



