12S VALUATION OF FOREST SOIL. 



It follows, that strong thinnings, made at an early age, can 

 consideral)ly increase the expectation value of the soil. At 

 the same time it must not be overlooked, that the small 

 material obtained from early thinnings is not always sale- 

 able at remunerative rates; moreover, such thinnings may 

 disastrously affect the later returns, especially' the final yield, 

 so that the advantage, gained in the first instance, may be 

 more than counterbalanced by loss later on. 



Early receipts from minor produce affect the expectation 

 value in the same way as those from thinnings ; hence they 

 are of great financial importance, as long as they do not 

 unduly aft'ect later returns. 



d. The Time when Uie Cosh of Production have lo be Incurred. 



This affects the expectation value in a manner the reverse 

 of that produced by early thinnings and incomes from minor 

 produce. Expenses, incurred during the early part of the 

 rotation, affect the expectation value unfavourably ; hence it is 

 important to keep the cost of formation as low as possible. 



Example. — The present value of the cost of formation 

 amounting to 60 shillings, to be incurred at once and again 

 every 100 years, is = 



1^025100 _ 1 =^^^ shillmgs. 



If the cost amounted to 120 shillings each time, the present 

 value would be = 



120 X l'025i^J^ ,0-, i-ir 

 1-02510" - 1 "" shillmgs. 



Thus it Diay happen, that the expectation value is higher 

 under the system of natural regeneration than under the clear 

 cutting system with planting, provided that natural regenera- 

 tion is easy ; if it involves loss of time, it may be more profit- 

 able to regenerate artificially, so as to prevent the lengthening 

 of the rotation. 



