The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-07-16
WAYS TO GET WEALTH.
HOW TO Make $1,000 WITH A
CAPITAL OF $500.

~~SSt7
How to make S., 900 with $500 capital IS
what good many people would like to
know. How to make two blades of grass
grow where one grew is a great question.
The man who does this is in a fair way to-
ward making S., ZOO with $500 ''canny
Scott" who has the reputation of being
shrewd and successful in financial affairs
has gone a good ways toward solving the
problem. He was asked by a MORNING
NEWS reporter day or two ago what was
the secret Of his success and what he had
found the best paying business.
"Loaning money to impecunious news
paper men and others, was the pointed
reply. 1T is the best paying business l
know Of, he added, land have tried a
good many"
| you must have had varied business
experience them" remarked the newspaper
man.
Yes, rather 1t is hardly worth talking
about though. | came to Savannah the
| year Of the big storm, in 1891. | was on
my way to Florida to engage in orange
! growing. While looking around Savannah
l thought | saw in it good place to make
| money and meeting with some friends who
CAAAASNN
remain. AS soon as | got settled
my first concern was how to put my spare
| capital to the best possible use. 70 be a
| banker had ways been the ambition of nay
life. My capital of $500 did not enable me
to engage in the banking business just then.
| What could do with 5000 Not much you
say, but time was something. For
| the employment of capital III dis
| counting small notes, there seemed to be
| ample scope in Savannah. The demand for
ready money exceeds the supply the world
| over, and as consequence the capitalist
can always make business, and almost al
| ways on mis- own terms | soon found that
there was a number of small firms who
were compelled either to draw on their GUS
| toners at sixty or ninety days or restrict
| their business In many instances these
firms kept so small cash balance
at their bankers that they had in
1 sufficient if any facilities for discount.
! Many of them found were "honest but
| poor, " and in need of ready money to carry
| on their business. The handspring of their
trade was a rapid turnover of both stock
and money. Here, then, was my oppor-
| tunity, and set to work to improve it by
using my capital in dScounting small
notes of 800 or $3.50 at thirty aud sixty
days, putting as many eggs into as many
baskets as possible, and thus minimizing my
risks. In nearly every instance had either
| collateral as security or an indorser."
How about the rate OF discountP'
well, if a firm can turn over it's capital
every month at profit of 20 per cent on its
sales, or a gross profit of 240 per cent. per
annum, surely the difference between this
discount its bills is the balance
of profit that it can make by the transac-
| ton. In loaning money to needy mer-
| chants, enabled them to pay any accounts
| they might owe to wholesale houses, or TO
pay cash if they desired, for which they
| doubtless received trade discount of per
cent. or per cent, and so enhanced their
| reputation, and so enlarged and consoli-
| dated their credit. One merchant that |
know of had an opportunity of buying, at
! low price, job lot Of goods for cash. He
| fully expected to make, and did afterTard
! make, an extra profit OF % per cent. on the
transaction. To enable him to do this,
money must be had Surely it was worth
| D per cent. per month.
'In addition to trade bills large num-
Der of individual notes, with safe private
acceptors, are frequently offered for dis
count. Young men of fixed income, who
| have to meet nsta!lments on loan associa-
| ton and other stocks, or who wish to 90 off
| on a holiday, often need temporary assis-
lance, for which they are willing to paw
| literally, sometimes as high as 10 per cent.
per month.
"Such bills with or without ono or two
names as indorsers, entail little or no risk.
did not despse the dav Of small things,
and in every instance where collateral was
| offered | embraced the opportunity TO make
| n dollar. | recOllect an instance where
| druggist came to me and said that he had
| chance to buy at auction case of morphine
slightly damaged by water He had no
money and wanted to borrow 800, offer
osc s,r{ft !, g l., - IL.
| 1t was further arranged that NV
discount on the loan should be one half the
net profit on the transaction. The druggist
| took away my check for 800, leaving MS
note therefor at 80 days and also the bill of
| sale. The morphine was purchased and
| shipped to New York, where it was re-
assorted and tested. On its return it was
sold as clean stock for 5000 Ny discount
| III the transaction was therefore $50, or at
the rate of 800 per cent per anumn. | had
no trouble and no expense. My time was
not taken up, and the result proved that |
had 10 risk. had simply utilized my OPP
| portuntieS to employ money that was
| otherwise idle Hundreds of opportunities
| like this are all the time offered. At length
| my credit becoming established with the
| banks, | was enabled to enlarge my field of
| operations 10y discJunting with them a
number of notes for which had 10 ready
money. While the banks charged me per
| cent for the discounts, ] made at least 20
| and frequently 30 per cent, all of which |
considered clear gain"
But you have said nothing about your
losses
"On no bills that l have dis
counted during the past five years
have | had a bad bt. All have been paid
in full, and the figures of my books show
that the average of my profits was fully
| per cent. per month or s. per cent Der