218 
Indian Forest Records. 
[VoL. I. 
PART V. 
THE DEVELOPMENT OF THE MONEY VALUE OF SINGLE 
TREES AND WHOLE WOODS. 
Section 1. Pkeliminary Matters. 
In early youth the diameter of a tree is so small that it has practically 
no market value. But as soon as the tree reaches a certain diameter, it 
begins to acquire value : the price per imit of volume increases with 
every increase in diameter and, in addition, with ever}^ increase in 
volume the proportion of the more valuable timber {i.e., wood of larger 
dimensions) increases. The growth in value of a wood or of a tree 
thus depends both on the diameter increment and on the proportion 
of timber to small wood — questions which have already been dealt with. 
The ratio between the money yield of a crop and the capital invested 
gives the rate of interest, and the determination of this quantity, and of 
the current forest per cent, or Weiserj)rocent* enables the forester to 
adopt the highest possible rotation without the interest falling below a 
fixed minimum. 
The rate of interest obtained from a wood, like the total money value, 
depends on the dimensions (volume) and on the value of the varying 
grades of produce yielded by a wood^under different rotations. Never- 
theless the fact must be clearly recognised that, whatever may be the 
value of the higher grades of timber, a liigli rotation will ever be synony- 
mous with a low rate of interest — a fact which necessitates State 
management for the production of the largest sizes of timber. 
Finally, in a forest under intense management, thinnings have a de- 
cided effect on the growth of the money value of a crop : a question 
which may become of some importance in the management of future 
Sal forests. 
Section 2. The Money Value op a Crop or Tree. Money. Yield 
Tables. 
Laws which govern the development of the money value of trees and woods 
in general : — 
I. With the more valuable speeies of timber trees, as a general rule, the 
value per unit increases with the diameter, unless extraction becomes 
impossible beyond a certain size. 
* Sse Schlich’s Manual ol Forestry, Vol, 111, page 190. 
