Montgomery County sentinel., 1883-09-14
Borrowing Capital.

The practice Of going into business
on borrowed capital and paying an enor-
nous rate of interest is one that has
caused more shipwrecks on the sea Of
commerce than any other single agency.
Under ordinary circumstances, a man
who seeks to contend with others for
success in trade must possess equal ad-
vantages, or he is very nearly sure to
get stranded. If man starts on bor-
rowed money and has to compete with
the strength Of capital, and conflict with
business sagacity equal to his own. there
are very few chances of his succeeding.
Nevertheless the business history Of ev-
cry year is marked by numerous instan-
ces of reckless embarkment in enter
prises of such character. Money is
gotten at any rate Of interest the vora-
cous bil-broker chooses to ask. Il
doesn't matter how much the hapless
victim of bis own folly pledges himself
to pay, He only looks at the money he
gets and not what the lender will de-
mand from him in the future His ex-
travagant dreams Of success blind him
by their glitter to all practical lessons
drawn from the experience of othors -
Once in the vortex. he is drawn on by
tho necessities Of his case until be Is
found at last running about the street
with care-worn brow, offering his paper
at any price it will bring to raise means
of staving off disaster little longer. An
incident, now going the rounds Of the
press, illustrates very aptlY the true na.
ture of this practice Of borrowing.
The late Peter Cooper once offered to
discount u merchants note for three
years at the rate (threo per cent
month"; which he was paying brokers for
six months accommodation. The mer-
chant was overjoyed and agreed.
Very we'll, " said Mr.. Cooper, 'just
sign this note for $4,000, payable in
three years, and give me your check
for $500, and tho transaction is COM
pete.'
"But where is the money for me 7"
asked the astonished merchant.
"You do not get any" was the reply.
"Your interest for thirty.six months at
three per cent month amounts TO 108
per cent, or S10,800, therefore your
check for $500 just makes us eyen.'
1t is singular fact that there aro 80
many business men who never realize
the simple fact how interest eats up cap-
ital, especially as instances of the ri
and distress wrought are,
ing brought before tho ~, - ana aox 'o"' ~
men. The fact that onts ,uone las, or
lucky move will float crazy,
tho breakers and deposit it in 'ahd the
waters loads hopo on despite the wrea
that liuc the shore. Only a few md
have ever succeeded in this way. Tho,
road to success lies in any business but
through long years ofcxperience and ac-
cumulation Of capital, in the thorough
knowledge of detail, and the possession
Of means to apply that knowledge
Without these the chances Of success are
fully as small as those Of tho man who
throws dice with professional three
card monte man II is d.rc misfortune
for young man possessed Of energy In
dustry and application TO place upon his
brow such crown Of thorus AZ is certain
TO be there by going into business on
borrowed money. Even in the rare in
stances Of success the way lies through
a path of care aud anxiety that win sure
ly crush the buoyaney Of his spirits and
render hi,o permanently old aud Il, ~
is more probable, be sinks beneath the
weight he carries, he is handicapp ed<for
life with the adiam Of failure These
facts should be well pondercd BY men
who have il ia mind 10 enter upon busi-
ness career, for prudence, caution and
foresight are qualities necessary TO con-
tiuued success, even where success Is
doubly important at the outstart, when
the future is problem yet to be learned.