EQUIVALENT ANNUAL RENTALS 249 



The full rentals given, representing interest on the cost 

 price of the land and upon the capital spent on planting and 

 establishing the crop, presume that planting, etc., cost 8 an 

 acre (the cost price of the land' is immaterial to the calcula- 

 tions if it be worth the same at the end of the rotation as at 

 the beginning). 



The rentals given for the land only, when planting costs 

 $ or 3, could also be approximately arrived at by deduct- 

 ing the yearly interest on the cost of planting from the full 

 rentals given. If the rotation be long, the difference from 

 the actual land rental is very small, but on a short rotation 

 of 50 years, the land rental would be (on the 4 per cent, 

 tables) about 8d. per acre too little if the planting cost 3, 

 and (say) 5d. if the planting cost 5 ; and about 3d. and 2d. 

 respectively on a 7O-year rotation. 



On the 3 per cent, tables these deficiencies are rather 

 greater. 



If, on the other hand, the cost of planting and establish- 

 ing the crops be greater than 8 per acre, the land rentals 

 obtained, after deducting interest on the cost of planting, 

 would be slightly too great. 



In the foregoing tables, it is presumed that only 3-year- 

 old trees are planted. Hence, when younger trees are 

 planted, as when planting, fencing, etc., costs only 3 per 

 acre, there will be a slight discrepancy, and the rentals, as 

 stated, will be slightly too high, unless the extra density of 

 the crops so planted makes good the advantage of the 

 i or 2 years' growth which the older plants possessed at the 

 time of planting. 



The same discrepancy presents itself when applying the 

 tables to naturally regenerated areas, but the error is slight, 

 in as much as thickly sown naturally regenerated areas will 

 often when 20 years old show nearly as good growth as a 

 plantation 20 years old made by planting 3-year-old trees. 



The error can, however, be eradicated by adding to the 

 cost of planting, fencing, etc., 2 or 3 years' interest on such 

 cost, and then considering the land rentals as referable to 

 this increased cost of planting. 



