14 
BULLETIN 1430, U. S. DEPARTMENT OF AGRICULTURE 
An initial investment of $12.50, at a rate of interest of 6.5 per cent 
compounded annually, will amount to $157.96 at the end of 40 years. 
Consequently the owner of water rights would be justified in going 
to an outlay of this amount per acre for the purchase and plant- 
ing of lands with the expectation that the sale of the products from 
this land would return the initial investment and would cover the 
interest on this outlay at a rate of 6.5 per cent per annum 
compounded. 
There are areas of denuded lands on which restocking to trees 
could be expected, at least in part, from seed scattered by near-by old 
pines. There are other lands which would require planting, either 
because it would be necessary to check erosion at once or because 
there are no near-by seed trees. (PI. 10.) 
An average present figure for planting short-leaf pine in this sec- 
tion, including the growing of 2-year-old stock, would be about $8 
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10 
IS94 
1904 
1914 
1924 
1934 
944 
1954 
1964 
.^__„ Increase in the value of second growth white pme in New England -G'/z% during past 
25 years. 
__ Increase in the value of second growth Yellow pine in southern Piedmont _ 57o during past 30 yeans. 
„ — — „ Prospective increase in the value of second growth yellow pine during succeeding 40 years at 
rate of 4% first decade. ifo second decade, Z%. third decade, 1/4% fourth decade. 
Fig. 4. — Rate of increase in value of second-growth pine timber in New England 
and southern Piedmont region 
per acre. Many and in fact most lands requiring planting for their 
protection have recently been in cultivation. On such lands it would 
be possible without difficulty, by means of a large bull-tongue plow 
or shovel plow with coulter attached, to lay off rows within which 
planting could be done. This would cheapen the cost of outsetting. 
At a cost of $8 per acre for planting there would remain of the 
$12.50 only $4.50 an acre to be applied to the initial cost of the 
land. It would be necessary that the remaining expense of pur- 
chasing the land be charged as an element of cost in maintaining 
the utility value of the reservoir. The fund of $353,650, given above 
as representing the present value of the additional utility of the 
reservoir at the end of 40 years, can be drawn upon for the balance 
of the money necessary to complete the purchase of the land and to 
protect it from fire. 
