The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1864-10-05
Poor Richards Reasons for
Buying United States secu-

The other day we heard riehne;ph-
Dor say he had rather have railroad stocks
than the U. s. stocks, for thew paid bipb.
er interest. Just then Poor Ricb.rdl
came up, and said that he lust bouobt
some Of Uncle Sans three wears notasa
paying seven and tLree-tenths Der cent
interest. My rich friend exclaimed, 'sYoulf
1 thought you had no money to buy xithgg
eyes" said Richard" had a little laid
up, for you know it is we'll to have some
thing laid up against wet day, and T
have kept little of my earnings BY me. ~
Now Poor Richard is known to all the
country round to be very prudent and )
industrious, and withal, wise man for
Richard never learned anything he didn't
know how to make use Of, and his wis.,
dom and prudence had become proverb. &
So, when he took out his savings and
bought the notes, more than one was sur
prised, and it was no wonder rich Mr..
Smith asked why. So Poor Richard, in Z
a very quiet humble vay-sor he never
assumed anything ST suppose,
Mr.. Smith, you know great deal better
than do with money, and how to invest;
for never had much, and all got had
to work hard for. But I have looked
round good deal upon my neighbors,
and seen what they did with their money
and [ will tell you some things 1 saw and
what | thought of it. One very rich
man was always dealing in money, and he
made great deal, but was never satisfied
without high interest. So he lent most
of his money to some people who he
thought were very rich, at very high
rate; and he often told how much he got,
| till one day the people he lent to went to
smash. He got back about ten cents
on dollar Of his money. i know an
other old gentleman, who had some bank
stock and he went to the bank and got
ten per cent. dividend. The President
and everybody said it was the best stock
in the country-paid ten per cent. But
what did the old man do but sell his stock
the next day Why? why? said every
body Because, it pays too much dividend.
And in six months the bank went to
smash. Now, that know to be fact.
Well, Mr.. Smith. you say railroad stocks
are best, because they pay high dividends2
g Can you tell how long they will pay
: them? like railroads. helped to
t build one, and go in for useful things.
+ But tell you what l know about them.
One third of the railroads don't pay any
: dividend, and two-thirds (and some of
t. them cracked up too, do not pay as much
v as governm ent stocks. Now that brings
y me to the government securities, and l
will tell you why / prefer them. / take
; it you will admit, Mr.. Smith, that in the
d long run the investment which is best
q should have these qualities irst, ii
= = should be peafectly secure: secondly,
. that h. income should be uniform and
D. permanent-net up one year and down
S, the next; and thirdly, that it should be
marketable, SO when your wet day comes
se; and you want your money, you can get i
back. And think those notes or bonds
have got these qualities more than any
other kind Of personal property youe al
name. Try it.
First, then, have been looking into
: that book You call the Census Statistics
l used to think it wasn't worth much; bui
since l begau to study it, tell you,
e' found out great many things very use.
- !. full for me to know, | found ont, BY
T. looking at the crops, and ihe factories and
h. shipping, &C., that we Ct don't mean the
es Rebel States) are making a thousand mil
lie you see that (since the increase of deb
nd ism t half that we are growing rich in
~, -, stead of poorer. as John Bull and ths
-, croakers would have US think. Their
a, the debt will be paid, anyhow, no matter
nd how long the war is. Besides, did yet
n ever hear of Government that broke be
,w fore the people did !? Look into your BIZ
y. histories, Mr.. Smith, and you will find tn
y. people break before the Governments
b Well, then, call that stock perfectly So
he cure.
er Secondly, you want the income uni
ar form and permanent. Well, want yo'
on Q to take up a list of banks, railroads
W mines, insurance companies-anythin
he you choose-and tell me (honor bright
,er new y how many have paid uniform in
sst come for ten or twenty years. Not on
sst in hundred, Mr.. Smith, and you kno'
he it.
oer .n "Now here is the government will pa
y. M you without varying title. Now lik
ne, something that gives me my income ever
be. year
in Thirdly you want something which
NJ: marketable any day in the year. Now,
M M'er you will ask any bank President, he viii
11s tell you that Government stocks are tn
.th only kind of property that is always sale
IN able, because they will sell anywhere il
est the world.
nd "Now, Mr.. Smith, this is why put m,
- little savings in Government stocks,
nd confess, toe, that wanted to help tha
aid dear old country, which is my nome an,
ply my country" "I confess" said Mi
of J Jmith, 'sI hadn't thought of all this
lth There is good deal of sense in what yo
say, and will GO so far as to put two o
three thousand dollars in United State
stocks 1t can do no harm" ltg
We3eft Mr.. Smith going towards ii
. bank, and poor Richard returning hom,
with that calm and placid air which ind
Gated the serenity Of his disposition an