THE AUSTRIAN METHOD. 319 



b. Merits of the Method. 



The method was the first, which hased the calculation of the 

 yield upon a knowledge of the increment and the growing 

 stock. It has the advantages over the previously described 

 methods, that — 



(1.) It teaches the proportion between the real and normal 

 growing stock and enables the owner to remove any 

 surplus or deficiency at his pleasure. 



(2.) It assures to the owner the utilisation of the full real 

 increment, whenever the normal growing stock is 

 present. 



(3.) It distinguishes in the yield between increment and 

 growing stock; in other words, between the removal 

 of genuine annual increment and that of surplus 

 capital. 



On the other hand, the method, as above described, has 

 serious drawbacks : — 



(1.) The calculation of the real and normal growing stock, 

 based upon the final mean annual increment, is not 

 correct and not even safe. As, however, both are 

 calculated in the same manner, and one is deducted 

 from the other, the error is, to a great extent, elimi- 

 nated. 



(2.) As the yield is determined by a formula, the method, if 

 applied rigidly, may lead to absurd results: for instance, 

 it may happen that a full increment takes place, that, 

 numerically, the real growing stock is equal to the normal 

 growing stock, and yet there may not be a single mature 

 wood in the forest tit to cut. 



If the method is applied judiciously, that is to say, if — 



(1.) the real growing stock is taken as that actually existing 

 in the forest, and the normal growing stock calculated 

 from a suitable yield table ; 



(2.) the yield, as calculated with the formula, is modified to 

 suit the special conditions of each forest ; 



