Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1909-12-21
4stiseellaneous Rsaaius.
FINANCE AND MONEY MAKING.
Most Important Secret Of Wealth ls
Persistent Saving.

Most Important Secret Of Wealth Is
Persistent Saving.
Although every schoolboy is aware
how quickly compound interest
mounts up, this very thing remains
one of the most battling features Of A.
nance. Even shrewd business men
are often blind to this feature Of the
case. The following anecdote force
fully illustrates the point:
1t is related that once while Peter
Cooper was talking about project
with an acquaintance, the latter said
he would have to borrow money for
six months, paying at the rate Of
three per cent a month.
"Why do you borrow for so short
q timer" Mr.. Cooper asked.
Because the brokers will not nego-
tiate bills for longer"
"well, II you WISH" said Mr.. Coop
er, "I will discount your note at that
rate for three years,
"Are you in earnest?" asked the
would-be borrower.
Certainly I am. I will discount
your note for ten thousand dollars for
three years at that rate. Will you do
it?"
"of course / WILL" said the mer.
chant.
"Very WELL" said Mr.. Cooper. "Just
sign a note for ten thousand dollars,
payable in three years, and give me
your check for eight hundred dollars,
and the transaction will be complete"
But where is the money for me?
asked the automobile merchant
"You don't get any money" was
the reply. "Your interest for thirty
six months at three per cent month
amounts to one hundred and eight
per cent, or ten thousand eight hun
dred dollars. Therefore, your check
for eight hundred dollars just makes
US even."
The force of this practical illustra-
ton of the folly of paying such an ex-
orbitant price for the use OF money
was such that the merchant deter
mined never to borrow at such ruin
Gus rates. and he frequently used to
say that nothing could have 20 fully
convinced him as this rather humor'
Gus proposal Of Mr.. Cooper.
The average young American, while
earning much more than his brother
in Europe, is much more careless
about his expenses-to such an extent
in fact, that the financial balance At
the end Of the year would be found
almost invariably In favor Of Al
phonse, Fritz. or Salvatore, Your
European learns early in life to esti-
mate his wealth In terms Of income.
rather than cash balance; in terms OF
interest, rather than principal, The
question, How much are you worth ?"
gets q reply something like this; u
am worth three thousand francs, or
marks, or lire, O year." In America
we answer the question by saying: ~
am worth. twenty thousand dollars"
or twenty millions, as the case may
be. We have not got the useful habit
of thinking In terms Of revenue. SO
true is this, that the average young
American has the vaguest sort OF
ideas, If he has any at all, about the
of an income. He goes
In, year after year, spending all that
he earns, showing about as much wis
dom in financial affairs as a farmer
who every year would consume all his
seed instead Of placing it aside for.
next years planting. Yet, an income
is easily within reach Of practically
every intelligent American by the
time that he reaches the age Of forty.
This income will vary, naturally.
according to taste, environment, and
other circumstances. Many people
will regard ap income Of, say, FIVE
dollars, as cheap and insig-
pifcant. Yet this ameqnt is positive
assurance AGAINST being a burden to
friends of relatives. It is a positive
assurance Of honorable Independence:
No map with an income Of FIVE han=
dred dollars will be forged to go with
faltering steps and voice from office
to office seeking for q JOB when he is
SO old that no ope wants him:
FIVE hundred dollars. and a cot
tage, means ease and comfort in a
THOUSAND charming villages Of the
United States, not for one person only,
bHt for two, OF even three:
And all this can be with a eapittaal
of oRly ten thousand dollars invested
at five per cent When you have say
ed thousand dollars-it is easy to get,
If you trY-ypu will have an income
Of fifty dollars a year for the rest Of
your life.
What dees this mean? It meansi
I've suits of clothes q year. fNe
man needs more:)
Or your rent for month or twoi
Or free gas the year rounds
Or a free theater ticket once a
week.
Or exemption from taxesi
Or free chicken for your Sunday din
ner
The list, Of course, could be eon-
tinued Indefinitely, Every man can
make his own list, You may even
take pleasure In rejecting that once
year q kind friend will come up to
you and say: Here is fifty dollars,
brother; take 1t and forget that gave
1t to YOU"
Thinking In terms Of my income"
quickly becomes habit; and, gener-
ally speaking, 1t Is habit worth cul-
tivating. A lot Of "the boys" take you
out for a good time, and when you
reach home you have ten dollars less
in your pocket than when you started
out. Now, you may think that you
are out merely ten, dollars, and that
is all there is to it. Nay, nay! The
annual interest on that ten dollars is
fifty cents. You have taxed yourself
for life at the rate of fifty cents year
and it's tax you will never never
dodge. Fifty cents year. as you say,
is too Insignificant to consider Bui