EQUIVALENT ANNUAL RENTAL 251 



Finally, it may not be out of place to summarise the 

 great advantages which this method of finding the yearly 

 rentals possesses over any of the other methods which are 

 sometimes adopted for expressing the financial results of 

 afforestation. 



Advantages of the Annual Rental Principle : 



(1) Data are given which are directly comparable with 



existing agricultural rents, if from the full rental 

 a sum be deducted as representing interest on the 

 cost of planting. 



(2) The yearly rental shown on any given interest tables 



is practically the same (unless the rotations are 

 very short) whatever the cost of planting may be ; 

 and of course it is immaterial what the value of 

 the land may be. 



(3) No other method presents the case in such an easily 



understood manner. 



(4) If the rental is stated, any person can easily (without 



reference tables) satisfy himself as to the advisability 

 of the undertaking in various cases where the value 

 of the land may differ : e.g., a rental of 8s. per acre 

 can perhaps be anticipated by planting Weymouth 

 Pine ; then, if the cost of the land and of planting 

 were 8, a yearly interest of 5 per cent. l would be 

 obtained. But if the land and planting cost 16, 

 a yearly interest of only 2^ per cent. 1 would be 

 obtained, and so on. 



(5) The yearly interest receivable is presumed to be re- 



invested at the same rate of interest as is reckoned 

 on any monies received for thinnings, or spent to 

 defray annual outgoings ; whereas if the final result 

 be expressed as yielding a certain rate of compound 

 interest, the rate at which the yearly income is 

 deemed to be re-invested will vary with the rate of 

 compound interest yielded. 



1 Each yearly rental being re-invested at 3^ per cent, or 4 per cent., 

 according to the discount tables upon which the net credit sum is 

 discounted. 



