Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1909-09-16
THE POWER OF INTEREST.
(From the Economist)


The subject OF money and its power Of
reproduction. Of It's natural increase
when planted in fertile soil. Ia one that
In always OF universal interest, yet one
that Is little understood. It Is of vital
Importance 10 the masses. yet they do
not, as a general thing. delve deer
enough into II to find it's true worth.
Every one r. Interested in the earning
and accumulation Of money; in most in-
stances the concern IL In direct propor'
ton with the accumulation. To thosa
who have already. by their industry and
foresight. tasted OF the sweets OF thrift
that feeling Of Independence and con-
tentment that can come only TO those
who have crossed the Observation-Disclosures
iine-little. II anything. need be said.
But to those who have not begun TO save.
or II they have, have done SO in an Ire
regular. desultory manner, I would. for
their own good. appeal
The gist OF Ben. I-rankin's philosophy
might be quoted as follows: "Be honest,
work hard. save some,' and is as apro-
pos at tho dawn Of 1850 as II was in 1776.
Now. the idea OF saving that most peo-
pie have and real systematic saving Is at
wide variance. To be saving is not TO be
niggardly. Saving money consists largely
In putting your expensive habits away
where you can't readily get at them.
You see saving does not mean that you
should deprive yourself OF all proper
pleasures, nor does II contemplate that
extreme that causes you TO be Stunned
ae mser.
After systematic saving Is started. then
the nutomaticailvw working interest be-
gins and with age wakes greater and
stronger until in time the interest far
exceeds the principal-the accumulate
goes steadily and surely on. Lot us take
! some concrete examples: A man buys a
| house and lot for say, 5000, and In tho
course Of twent" years sells II for G,ho
| In every community on earth you hem
people give such examples Of increase
in value of realty and regarding then
as marvellous
fact that few realize IS that IL this
same man had pvt his s. 900 into a say
inys bank It would have grown to moro
than 5000 In the same time
Recently. ut London auction, copy
OF tho first edition OF Shakespeare sold
for $1,000. II sold originally for about
IS, IN 1921 That's making big money. you
| say. Well Is ito II this same s. had been
invested at per cent. and compounded
|
amounted 10 over $4,000.
| One Of the most striking examples OF
the growth of interest is the results oh
tanned by the investment OF so 100 made
from the estate of, and according TO tho
will Of benjamin Franklin.
He wished to leave to the cities OF Bos
ton and Philadelphia a fund for NUM-
cipal Improvement for this purpose he
| oId
$500 20 each city for the purpose des'g
mated would be but mere bagatelle.
Franklin however was aware OF the
possibilities OF interest. 80 he stipulated
that for 100 years this sum should be IN
vested by trustees. At five per cent. In
that time II would amount to 2s55.OO1 A.
that time 10000 was to be expended
for municipal improvements and $500
renvested for like period at five per
cent; at tho end Of the second century
It would amount to 800. 3n5 900. after which
time he die not care 10 dictate further
rs to the management OF so large a
sum.
Here Is an actual demonstration Of the
growth OF interest. F'ranklin's original
80. 40 had produced nearly ~. COZ, 40 for
the benefciares.
| Interest runs on automatically when
| money is deposited In a good savings
bank 1t grows. Sundays and holidays.
as we'll as work-days. To realize the
full force. strength and reproductive
power Of interest you must be a regular
depositor.
Figure Your savings account as a la
hiltv upon which you must each day pay
a certain amount To the systematic saw
or the power OF interest early becomes
manifest.
The savings banks of the country paw
annually nearly Ho.0r)n0o in interest, and
to the wage Garner with savings ac-
count tho largest per cent. is paid
If you Law away the following sums
each week for. say. (, 10, 20 and 70 years.
the results would be as follows