The Indian Forester January 1922

137) is equal to the value in the year " m of all costs of production less the value of all returns which the wood has yielded before the year " m ". Interest on the cost value of the soil has to be included in the account. [...] 8. Since the expectation and cost values of a normal series of age gradations depend upon the corresponding expectation and cost values of the soil and the growing' stock the elimination of all error in the formula for the cost value of the growing stock of a normal series of age gradations becomes of very real importance. [...] Quite apart from the possible error which may be introduced in the practical application of the general formula for the cost value of the growing stock of a normal series of age gradations the following conclusions may be drawn from the above facts :— (t) The cost of money or the value of p" adopted in financial calculations has a very great effect upon forest finance in that it affects the e [...] (3) In addition to the factors which actually endanger the existence of the whole or a part of the forest the security furnished by a forest is largely affected by the cheapness of money and the cost of acquistion of the land. [...] (4) The lower the cost of money and the cost of acquistion of the land the greater is the security funishd by a forest and the greater is the profit which it can yield t4 When these principles are applied to Government forests particularlsuch forests in India it can be shown that the financial prospects of such forestry are very favourable.