THE THEORY OF INTEREST

duced into the tables previously given for the three dif-ferent uses of land, we should find that the incomestreams from using the land for farming, forestry, andmining would differ according to the rate of interest.

Thus, let us suppose, as before in Chapter VI, §2, thatfor a rate of interest of 5 per cent the three optional in-come streams are:

Table 9

The Original Optional Income Streams of Farming, Forestry, and

Mining

Farming

Forestry

Mining

1st year .

$450

$000

$2000

2nd year .

450

000

1800

3rd year .

450

300

1600

4th year .

450

400

1400

5th year .

450

500

1200

6th year .

450

500

1000

7th year .

450

500

800

8th year .

450

500

600

9th year .

450

500

400

10th year .

450

500

200

Thereafter .

450

500

000

In our previous discussion, when we changed the rateof interest from the 5 per cent of the foregoing table to4 per cent, we supposed the items in the foregoingtable to remain unchanged. The only change we hadthen to deal with was the change in their present values.Now, however, we admit the possibility of a change inthe table items themselves. If the rate of interest fallsto 4 per cent, the product of forest, farm, and mine willbe more nearly equal to the value of the ultimate servicesto which they lead. The value of lumber will be morenearly equal to the value of the houses it makes, andthese to the value of the shelter they give; the value ofwheat from a farm will be nearer the value of the breadit will make; and the value of ore from a mine will be

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