Daily Republican. [volume] ([Wilmington, Del.]) 1874-1890, 1883-07-27
I'll, Evil. Of Borrowtng.

along the business pathway of life lie
the wrecks of those who do not succeed.
When man starts in business he has
to compete with others who possess the
strength of their own, and the interest
he pays for his borrowed capital in
many instances would equal the profits
of trade and leave him nothing for his
labor and anxiety. The man who has
capital of his own saves at least the in
terest on that capital and even if he
should be so unfortunate as to realize
nothing on trade, he is at least no worse
off than when he commenced.
The business history of every year is
marked by numerous instances of reck.
less entertainments in enterprises that dc
not pay. Money is borrowed at almost
any rate of interest, in most cases toe
high and entirely at the option of tht
voracious bill-broker. 1t matters moi
how much the helpless victim of his
own folly pledges himself to pay he
only looks at the money he is getting
and not at what the lender will demand
from him in the future. His eXtrava
CANT dreams Of success blind him by
their glitter to all practical lessons
drawn from the experience of others
Once inside the vortex he is drawn Oh
by the necessities of his case until he is
found at last running about the streets
with care-worn brow offering his paper
at any price it will bring to raise tn"
means of staving Oft disaster little
longer. The following incident now
going the rounds of the press fully j.
illustrates the true nature of this prac-
tice Of borrowing
The late Peter Cooper offered TO dis
count merchants note for three years
at the rate of three per pent. a month,
the amount he was paying brokers for
six months accommodate. The mer
chant overjoyed at the prospect of such
strong backing and release from tinan-
cial anxiety for three years readily as
sented to the proposition.
every we'll" said Mr.. Cooper, jus,
sign this note for $4,000, payable in
three years, and give me your check foI
$500 and the transaction is complete. ,
"But where is the money for me"
asked the astoLished merchant.
"You do not get any," was the reply.
"Your interest for fhirty-six months
at three per cent per month amounts to
one hundred and eight per cent, or SO,
800 therefore, your check for $500 just
makes il even" II is strange that so
few borrowers look at the question III
this ight-indeed it seems as if the
great object was TO get money at any
price for present emergencies and to let
the future take care of itself. They dc
not seem to realize how interest eats uI
capital, notwithstanding the numerous
instances Of financial ruin and distress
brought before the eyes Of business
men The fact that once in a while Il
lucky move will float crazy craft oven
the breakers aud deposit it in smooth
waters, leads hope on despite the wrecks
that line the shore. only few men
succeed in life III this way, like the
strong swimmer that reaches shore
from IA sinking wreck, while hundreds
Of his fellows sink to rise no more. Inc
only true and strdi ght road TO success,
les through long years Of experience
and accommodating Of capital, and in a
thorough knowledge of detail and the
possession OF means TO apply that
knowledge to business. Without these
a man might as well expect TO win by
throwing dice with Il professional three
card monte man. II is "A dire luistOr-
tune for IA young man possessed of EN-
ergy, industry and application to place
upon his brow such Il crown of thOrnS
as is certain to he placed there by going
into business on borrowed capita
alone. Even if success is assured the
path OF it lies through field of care
and anxiety that will surely crush the
buoyamcy Of his spirits al Il render him
prematnrely Old, ard if as is probable,
he sinks under its weight, he is handi-
ear ped for the future of his life with
the Odium Of failure. These facts
should be wei. pondcred by men who
have il III Their minds TO enter upon Il
business career. If they have some
capital Of their Owl they may succeed
If they keep within proper bounds and
are rot led into the paths Of the hvr-
rover AT usurious rates of int est Ivy a
desire to become suddenly wealthy.