The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1889-05-04
THE REAL VALUE OF MONEY,

AhL 1sAah hbO II VI l.
Did you ever consider this subject?
There is some philosophy in the
hard-hearted answer which Boston
millionaire is said to have made to a
request from lady of that city, who
had appealed to him in behalf of
charity, Madam" said he, 'Iwould
be glad to help you, but l am utterly
unable to do it at this moment. Why
madam, | have to-day one million
and quarter of money In the banks,
and, believe me, this moment is not
yielding me one cent of interest"
I Money has both an intrinsic and
an earning value. If you have dol
lar In the morning, and at night find
1t has cost you just that dollar to get
through the day, you have only re-
celved its intrinsic value; but sup
pose that, by a judicious investment,
you find at night that you have been
able to pay your days expenses. and
still have dollar left from that in
vestment you realize something of
its earning value. If that investment
in the morning yielded you not only
the dollar back. but seven cents in
addition, and after paying the expen-
ses of the day you found that you
had the dollar left, the earning value
OF that one dollar was just seven
cents, no more, no less. And so in
the transactions of the year, if an in
vestment be made at the beginning,
and at the close, after deducting
every expense of any kind or nature,
including natural wear and tear, it be
ascertalned that the original amount
is unimpalred, the earning value of
that original investment may be sum-
med up in the amount used to pay
the above mentioned expenses. If
a surplus remain, then the invest
ment has increased in value; if de-
flcit exist, then the original invest
ment is impaired.
Taking these propositions as truths
then. 1t may be assumed with safety,
that the first objection ofimportance,
in any trade Or occupation. is to pre-
serve ones capital unimpaired. 1t is
very clear that, when ones capital
is exhausted, ones occupation is de-
stroyed. A second is to so manage
an investment as to establish, if pos
sible, surplus, as rear guard, if
you please, to the original capital.
The value OF this original capital will
thus be increased, and if there be a
demand for it, it is then possible to
spread out ones business, being ever
mindful that whatever amount is set
aside as working capital, the first
objection of success is in preserving
it intact.
Bearing these things in mind, it
will not be difficult in any enterprise
to determine whether prosperity or
the reverse has attended ones ener-
gies. This principle holds true
throughout every sphere of life's
work. Take, for instance, any one
of the various trades. Consider the
time and money expended in learn
ing trade, then one is only realiz-
ing the intrinsic value of money. But
suppose after years of constant prac-
tice and endeavor, the apprentice be-
comes a skilled artisan, and just be-
fore he starts out in his life's work,
he takes account Of the money it has
cost him and the time, reduced to a
money basis, he has spent in his ap-
premiership, and sets that down as
his capital, if he is then able to make
for himself comfortable living, and
in time is able to lay up for future
developement, heis re- enforcing very
substantially the capital which he
invested in his early training. He
is realizing the earning value of his
money. Otherwise he knows only
of and has exhausted its intrinsic
| value. The true value of money,
therefore, may be said to be meas
ured by the benefits which may arise
from judicious investment there
for a stated time, and without its i'm
pairment in any particular.
In this connection the 1Ame,1can
artisan, from whom we copy, rela-
tes an instance taken from an Eng
lish journal quoting from a chapter
in the life of one of the greatest met
allurgical and engineering kings of
this century, as follows: He made
it rule for many years to utilize his
profits in the extension of his works.
This" says this journal, sis the
secret of building up a works from
nothing, till the output, after twenty
five years, reached over $40, ooo,o 900
annually. Such are the colossal en-
terp~ises of William Baird & Co..
krupp, Stewarts, Crossley Bros.
and hundreds of others that will
occur to readers at onca "-.ScientlJfc
Ame11can.