16 



FOREST FIHANCE 



FOURTH. If the ratio tquals }4, then the sacrifice 



P 

 V 



equal! (10p» — 1) 



4 



w 



U the ratio equals 1/10, then the sacrifice equals 



P 

 V 



(LOp" — 1) 



10 



Absolutely taken, the sacrifice greatly increases with the length of the 

 period of waiting. Relatively considered, the sacrifice does not increase nec- 

 essarily, 

 p equals 4% z equals 6% 



The figures in the last and third last columns give the rate of interest 

 produced in a forest protected at an annual expenditure of w% of its original 

 value, 

 y equals the rate of interest produced in the unprotected forest as long as 



all goes well. 

 8 " per cent, of revenue sacrificed for protection. 

 V " the original sale of the forest. 



n " number of years that elapse before the forest is cut. 

 X " rate at which the forest grows in value, if fires are barred, 

 p " rate of interest expected by the owner, 

 w " per cent, of the original value spent annually for protection, 

 z " rate of interest produced in the protected forest. 



PARAGRAPH VII.— CAPITAL AND MONEY. 



A. — Any object or thing having earning power is a capital. By "earning 

 power" is understood the power to furnish commodities coveted by man. 



B. — "Money" is not "capital"; it is merely the "legalized measure of values", 

 and hence frequently the measure of "capital". Different countries legal- 



