FINANCIAL RIPENESS OF WOODS. 165 



5. Determination of the Financial Rotation. 



The financial rotation, or that which gives the best financial 

 results, may be determined in various ways, as : — 



(a.) The rotation which yields the highest expectation value 



of the soil, or the highest soil rental. 

 (b.) The rotation which gives the highest net return for the 



forest, allowing compound interest on all items, 

 (e.) The rotation which, taking a certain value of the soil, 



gives the largest profit or the highest mean annual 



forest per cent. 



G. Determination of the Financial Ripeness of a Wood. 



The financial ripeness of a wood, say m years old, is gauged 

 by means of the current annual forest per cent. As long as — 



c...,, _ (iVi-i^.»-g)xioo 



is greater than the general per cent, p, the wood is not ripe. 

 If '""'''"'''pf-= p, then the wood is just ripe. If ""'"''j)/ < p, then 

 the wood is past ripeness and, if left standing, a financial loss 

 is incurred. 



The above short notes will sutfice for the present. The 

 application of these principles will be found in the next part 

 of this volume. 



