254 FINANCIAL ASPECT OF AFFORESTATION 



But during the next 45 years (i.e., after the Larch are 

 removed), the financial position of the Silver Fir will be as 

 follows : 



Credit from sale of timber (as already stated) .^196 8 o 

 Less, annual outgoings, 2s. for 45 years . . 1220 



^184 6 o 

 Less, debit capital in the growing timber at the 



45th year 22 o o 



^162 6 o 



This equals a yearly payment on the 4 per cent, 

 tables of : 



&**3 = 2 6s. icd. 



121 



Now, 4 per cent, on the debit capital of 22 equals 

 175. /d. So that the rental for land only, equals 



i, 6s. lod. - 175. 7d. 



= 9s. 3d. per acre 



land rental earned during the last 45 years. 



Thus, it will readily be seen that, in the above case it 

 would have been absolute folly to have felled the Silver Fir 

 along with the Larch. 



It will be observed that the Silver Fir, when used as an 

 undercrop, will have paid 4 per cent, on the outlay, and in 

 addition will have returned an average land rental of is. 2d. 

 for the 90 years. This is equal to an additional capital 

 value of 48. Now, this compares very favourably with the 

 results of a crop grown by itself at the same expense when 

 the land rental returned is nil, interest on the cost of 

 planting alone being earned. 



The rental thus shown for Silver Fir, when used for 

 underplanting, would of course be correspondingly better on 

 the 3j or 3 per cent, tables. 



With reference to the foregoing two methods of showing 

 the financial position of underplanting, it is really necessary 

 to make the two valuations as shown, whenever the two crops 

 be not felled simultaneously. For, as already explained, the 

 former is misleading without the latter ; and the latter will 



