The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1864-09-01
Poor Richards Reasons for buying Uni
ted States Securities

The other day we heard asrich neigh
Dor say he had rather hare railread stocks
than the u S. stocks, for they paid high
er interest. Just then Poor Richard
came up, and said that he just bought
some of Uncle Sans three years notes,
paying seven and three-tenths per cent.
interest. My rich friend exclaimed,
"Tou I thought you had no money to
buy with" "Yes," said Richard, 81 had
little laid up, for you know it is well to
have something laid up against wet day,
and l have kept littel of my earnings
by me-" Now Poor Richard is known to
all the country round to be very pru-
dent and Industrious, and withal, wise
man; for Richard never learned anything
he didn't know how to make use of, and
his wisdom and prudence had become a
proverb. So, when he took out his saw
ings and bought the notes, more than one
was surprised, and it was no wonder rich
Mr.. Smith asked why. So Poor Rich
ard, in a very quiet humble way-for he
never assumed anything-replied, 81
suppose, Mr.. Smith, you know great
deal better than | do what to do with
money, and how to invest; for [ never
had much, and all l got l had to work
hard for. But [ have looked round a
good deal upon my neighbors, and seen
what they did with their money and |
will tell you some things [ saw and what
| thought of it. One very rich man was
always dealing in money, and he made a
great deal, but was never satisfied with
out 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 cot back about ten cents on dollar
of his money. | knew another old gen
tleman, 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 everybody. Be
cause, it pays too much dieidcad And
in six months the bank went to smash
Now, that l know to be fact Well,
Mr. Smith, you say railroad stocks are
best, because they pay high dividends! !!
Can you tell how long they Will pay
them? 1 like railroads. | helped to
build one, and l 90 in for useful things.
But [ tell you what know about them.
One-third of the railroads don't pay any
dividend, and two thirds, (and some Of
them cracked up, too,) do not pay as
much as Government stocks. Now that
brings me to the Government securities,
and | will tell you why | prefer them
| take it you will admit, MIR. Smith, that
in the long run the investment which is
best should have these qualities: First,
it should be perfectly secure: secondly,
that the income should be am!torm and
pern,anent-not up one year and down
the next; and thirdly, that it should be
marketable, so when your wet day comes,
and you want your money, you can get it
back. And | think these notes or bonds
have got these qualities more than any
other kind of personal property you can
name. Try it.
"First, then, 1 have been looking into
that great book you call the Census Stat
istics. | used to think it wasn't worth
much; but since began to study it, |
tell you, | found out a good many things
very useful for me to know. | found
out, by looking at the crops, and the fac
tories and shipping, &c, that we { | don't
mean the Rebel States) are making
thousand millions of dollars year more
than we spend. So you see that (since
the increase of debt isn't half that we
are growing rich instead of poorer, as
John Bull and the croakers would have
us think. Then the debt will be paid,
anyhow, no matter how long the war is.
Besides, did you ever hear of a Govern
ment that broke before the people did?
Look into your big histories, Mr.. Smith,
and you will find the people brake before
the Governments. Well, then, | call
that stock perfectly secure.
SECONDLY, you want the income ami
form, and permanent. Well, | want you
to tako up list of banks, railroads,
mines, insurance companies-anything
you choose-and tell me (honor bright,
now y how many have paid uniform in
come for ten or twenty years. Not one
in hundred, Mr.. Smith, and you know
it.
"Now here is the Government will pay
you without varying title. Now | like
that gives me my income eve
ry year.
"Thirdly, you want something which
is marketable any day in the year Now,
if you will ask any bank President, he
will tell you that Government stocks are
the only Kind Of property that as al,cays
salaJte, because they will sell anyschere
IN the acorLd.
"Now, Mr.. Smith, this is why I put
my little savings in Government stocks.
| confess, too, that | wanted to help that
dear old country, which is. my home and
mn country" 81 confess" said Mr..