138 ECONOMICS OF FORESTRY. 



employment of large fixed capital, the usual low 

 rate prevails which accompanies large capital in- 

 vestments, safely placed and avoiding the losses 

 incident to re-investment. 



The promptness and absolute assurance with 

 which the revenues may be expected, and also 

 the advantage of being able to anticipate revenue 

 when needed, have the same tendency. Finally, 

 the general tendency to lower interest rates, and 

 at the same time to higher prices for wood, 

 promise an advantage in the future (especially 

 in a country where, on account of extensive for- 

 est exploitation, prices are still comparatively 

 low) which will make investments in forest prop- 

 erty for continuous management show superior 

 advantage to most other forms of capital of large 

 size. 



This rise of prices, of which we gave an example 

 for the densely populated, industrial little state of 

 Saxony, comes out still more strikingly in the 

 larger, and more extensively managed Prussian for- 

 ests. Here the average price per cubic foot nearly 

 doubled in 1 the 35 years from 1830 to 1865, and 

 from 1850 to 1895 it rose nearly 50 per cent, namely 

 from 3 cents to 4^ cents per cubic foot, all together 

 an increase of i| per cent annually for a period of 

 65 years. 



In every case of the state forest administrations 

 of Germany, we observe steady increase in material 

 production, value production, expenditures, appre- 



