in the Value of Land. 151 



About 6 per cent., I think, might be found to be the real 

 value of the rate of increment. To this add the rate received 

 from rents, and the total will be the interest obtained by the 

 aggregate of landholders in Victoria. 



More definite results can be obtained when we take more 

 confined areas. The most startling results are generally 

 adduced from land in Melbourne. The complete returns of 

 land sales in Melbourne proper I have not been able to 

 obtain, but the following results will give something like the 

 correct rates. In the case of the sites in the very heart of 

 the city, the calculation can best be effected by taking the 

 average value of the land sold in 1837 and comparing that 

 with the average value at present. The average price per 

 acre paid in 1837 was £70, the average value at present is 

 about £25,000 for the central portion. This seems an 

 enormous rate of increase, but it is not so in reality. 



70 R* 2 = 25,000 



Log. 70 + 42 log. R = log. 25,000 

 1-8450980 + 42 log. R = 4-3979400 

 42 log. R = 2-5528420 

 log. R = -060782 

 R = 1-152 

 Hence the rate per cent, is 15. 



But those who bought land here in 1837 obtained it under 

 exceptional circumstances. It was they themselves that 

 gave the land any value whatever. Take the case of those 

 who bought land in 1840. The average price was then £842 

 per acre. Its average price is now £25,000. Hence — 



842 R 39 = 25,000 

 39 log. R = log. 25,000 — log. 842 

 = 4-3979400 — 2-9253121 

 = 1-4726279 

 log. R = -037751 

 R = 1-0908 

 R — 1 = -0908 



Therefore the rate is 9 per cent, per annum. To this add the 

 rate received for rents, and about 13 or 14 per cent, is the 

 real rate received by the landholder. 



The proposition I should like to bring forward for your 

 consideration is this: — 



