100 BALANCE-SHERT OF A NORMAL KAURI FOREST. 
Here it is noticeable that if timber-prices continue to rise as they 
have been doing all these three values will rise together ; but if systematic 
Kauri-resin tapping develops to a great industry, as in Gascony, it is 
the items of £270 and £360 that will be chiefly benefited, bringing the 
value of present and future timber crops more on an equality. 
Discounted Present-day Value of Future Kauri Crops starting after 
a Transition Period of 100 Years. 
It remains to consider the case of a Kauri forest at its worst, when 
there is no present timber crop and no future timber crop till after the 
lapse of 100 years. Apart from all timber now on the ground, and 
apart from all timber crops maturing during the next 100 years, the 
present value of the normal Kauri forest discounted at 4 per cent. is 
£270 
50-5 
interest for 100 years). So that £5 7s., less the cost of ‘* interplanting ”’ 
Kauri standards, is the minimum public value of Kauri land with no 
Kauri at all on it at present. Turning to p. 131 one sees that the 
cost for full “‘ interplanting ’’ Kauri standards is about £2 per acre. So 
that, everything considered, Kauri land cannot be worth less than 
£3 7s. per acre to the Dominion as a public asset, supposing that at 
the present day there is not a Kauri tree, sapling, or seedling left on 
it. It might now be only Manuka scrub! 
On the other hand, the Puhipuhi Forest with its abundance of young 
Kauri (p. 67) represented the maximum value of a Kauri forest, one 
that could be worked straight-away as a normal forest. £270 per acre 
was its value after the mature timber had been worked off it. The 
Balance-sheet above represents medium conditions, such as prevail in 
ordinarily good Kauri forest to-day, where there is a _ transition 
period of 100 years before the forest can be got into the condition of 
a fully stocked normal forest, but enough young timber maturing during 
the 100 years to yield a profit equal to dairying on this class of soil. 
= £5 7s. (£50°5 being the amount of £1 at 4 per cent. compound 
EXPENDITURE AND EMPLOYMENT FIGURES DISCUSSED. 
It may be said that expenditure at the rate of 16s. 8d. per acre for 
the transition period, or £2 Is. 8d. afterwards, spent yearly on a 
Kauri forest would amount to an enormous figure at compound in- 
terest in 100 years. So would the cost of running a railway per’ mile. 
But in each case we look on the money-earning concern as a whole. 
Money goes into the machine at one part and comes out at another! 
The final permanent expenditure of £2 1s. 8d. per acre may be 
compared with some European figures for forest worked intensively, 
bearing in mind that European labour is about half the cost of New 
Zealand labour; but against this Kauri is about double the price and 
grows about twice as fast as European coniferous timbers, so that some- 
where about four times European figures would be justifiable in New 
Zealand. | 
European EXPENDITURES PER ACRE PER YEAR. 
Sihlwald (p. 79), a model Swiss forest, practically 
suburban i 
State of Baden, average for all Government forests 
State of Saxony 
State of Wiirtemberg ‘: 
Prussia, with much forest on poor sand, average for all 
Government forests 
a 
= Js 
So oscors 
CO bD Ho % 
bo Ow 1 > 
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