RENTALS FROM UNDERPLANTING 253 



This equals a yearly payment on the 4 per cent, tables of 



= 45. 4d. per acre (full rental). 



This equals a rental for the land only of 



45. 4d. - 33. 2d.* 



= is. 2d. per acre (land rental). 

 * Equals 4 per cent, on the cost of planting. 



If this statement only were given, it would appear that 

 after paying 4 per cent, on the cost of planting, fencing, etc., an 

 additional land rental of is. 2d. would be earned, both for 

 the last 45 years of the Larch rotation, and also afterwards 

 for the next 45 years whilst the Silver Fir are growing 

 alone. 



This, however, is not, strictly speaking, correct, and it is 

 necessary to have regard to this matter, for otherwise a 

 forester might argue that though up to the end of the 

 Larch rotation the underplanting were advisable, yet the 

 Silver Fir should also be cut at this date, and the land 

 rental of is. 2d. sacrificed for some other crop which, when 

 planted on the vacant land, will return a greater land rental. 



The explanation of the above lies in the fact that the 

 land rental of is. 2d. is the average for the whole 90 years, 

 and most of this rental will be actually earned after the 

 Larch have been removed. 



Thus, to analyse the facts more closely : 



The exact financial position of the Silver Fir at the end 

 of the 45th year will be as follows : 



Value of timber . . 22 o o 

 Less, cost of planting, etc. 400 



Net credit sum . 18 o o 



This equals a full yearly rental on the 4 per cent, tables of 

 35. per acre. 



But the planting cost 4 an acre, and 4 per cent, paid on 

 this outlay equals 33. 2d., so that the land rental shown 

 will be 35. 33. 2d. 



This equals minus 2d. per annum for the first 45 years. 



