THE THEORY OF INTEREST

for farming purposes, and than $8820, its value forforestry purposes.

The three options may be contrasted as to distributionin time as follows:

Table 2

The Three Optional Income Streams

A

For farming

B

For forestry

C

For mining

1st yr.

$ 450

$ ooo

$2000

2nd yr.

450

000

1800

3rd yr.

450

300

1600

4th yr.

450

400

1400

5t.h yr.

450

500

1200

6th yr.

450

500

1000

7th yr.

450

500

800

8th yr.

450

500

600

9th yr.

450

500

400

10th yr.

450

500

200

11th yr.

450

500

000

etc.

etc.

etc.

Present Value .

$9000

$8820

$9110

The particular income stream selected will tend toleave its impress on the time shape of the total incomestream of the individual who owns it. For, as was seenin Chapter I, the total net, or final, income stream of anyindividual during any interval of time is simply the sumtotal of the items of income flowing during that intervalfrom all the articles of property belonging to him. Hence,if one selects the mining use for his land, whereby theincome stream gradually decreases, its tendency will beto produce a similarly decreasing trend in the total incomestream enjoyed by the individual. This tendency maybe counteracted, of course, by some opposing tendency,but will have full sway if the income from all other capitalthan the land remains the same in value and time shape.It is true that the direct income from the mine is not

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