FOREST TAXATION IN THE UNITED STATES 61 
The first step, then, in predicting the financial rotation under the 
property tax is to determine the indicating percent at different ages 
excluding the property tax from the annual expense. The next step 
is to find at what age this indicating percent equals the sum of inter- 
est and tax rate. 
The indicating percent may be approximated with sufficient accur- 
acy for this purpose by means of a formula suggested by Hiley 
(9, p. 159), as follows: 
(Varo Ya—be) 
(Yo+ Wear) 
are money yields at ages a and a+4, respectively, b is the interval in 
years between the ages at which successive yields are shown in the 
Pee ihe 
Bae: 
aes 
Oo 
ei) aie; 40 50 60 70 80 90 
AGE (YEARS) 
ce) 
FIGURE 1.—Curve of indicating percent for second-growth white pine on medium sites in New Hampshire. 
or basic data, refer to part 7, page 239. 
2 
a Im wich amd 1) 
wv 
Indicating percent= 
Oo 
INDICATING PERCENT 
iS 
yield table, e is the annual expense, and L is the land value. before 
cost of regeneration. The results obtained by this formula may be 
plotted with values for a as abscissa and the corresponding indicating 
percents as ordinates. The points representing the indicating 
percents at different ages may then be connected by a smoothed 
curve. ‘The point on this curve where the indicating percent becomes 
equal to the sum of interest and tax rate marks the age when cutting 
yields the greatest financial profit, or the financial rotation. 
For purposes of illustration an indicating percent curve is shown 
fig. (1) for second-growth white pine on medium sites in New Hamp- 
