25 



NOTES TO TABLE i6. 



It depends entirely on the individual judgment of the forest 

 proprietor whether he is satisfied with annual interest of 2 per 

 cent, or 3 per cent, or 4 per cent., etc. 



Of course, for forestry as well as for any other business, the 

 rule holds good, that "high interest" on capital invested 

 "means bad security"— the quotation is from the Duke of 

 Wellington. 



From tree-growth, to judge from 100 years experience 

 abroad, it is impossible to obtain a constant return of more 

 than 3 per cent, compound interest. Trees do not grow quickly, 

 and if shorter rotations yielding seemingly higher returns were 

 generally attempted, the market would soon be flooded with 

 lumber of low grade, the output from young trees. 



To my individual judgment, an expected yield of 3 per cent, 

 appeals most, as such a yield can certainly be secured year af- 

 ter year. Therefore, I consider a tree of that age and that 

 diameter "mature" which yields in ajinual growth a return of 

 3 per cent, on its stumpage value. 



The diameters in breastheight at this "age of maturity" are 

 shown on the fo'Uowing taible. 



Where the logging and milling expenses are low, and 

 where the conditions of growth are poor, trees of smaller size 

 must be considered mature, than would be the case under re- 

 verse circumstances. 



Previous to the age of maturity the annual growth of a tree 

 amounts to more than 3 per cent, of its stumpage value. 



After the age of maturity the annual growth of a tree 

 amounts to less than 3 per cent, of its stumpage value. (Com- 

 pare table IT.) 



