Part II.] Caccia : ’Development of Sal. 221 
Section 3. — The Rate of Interest. 
Laivs which govern the development of the rate of Interest : — 
1. The rate of interest yielded by a wood, the proportion existing between 
the yield and the capital invested, varies with the rotation. 
II. The rate of interest is very low during early youth ; it then rises rapidly ; 
reaches a maximum, the earlier, the quicker the growth in value. 
After culmination the rate of interest steadily falls as the rotation 
rises. 
The rate of interest of a forest under different rotations, like the total 
money value, depends on the quantity and on the value of the varying 
grades of produce yielded by a wood at different ages. Nevertheless it 
must be clearly understood that a very high rotation will invariably 
mean a low rate of interest, however much the value per unit may in- 
crease with age. 
