The Oskaloosa herald., 1911-12-21

| ing away of mOney-taking it out OF
circulation, but moments reflection
| will cause them to realize that it Is
Ian art-a wonderful attribute, that
but few possess. No doubt many be.
lieve that only three cents year for
the use of one dollar is placed at COM
pound interest for a number of years,
| the result is astounding. Money say.
ed is like the crops-it is working
for it's owner while he sleeps. But
the mere accumulation is like an I'M.
titled field 1t. remains the same and
does not benefit anyone. t~ts 1T .
i An article in the Pictorial Review
! for September by Lewis Edwin Thesis
on Investments for Small Incomes
gives. some statistics that should lead
everyone who reads it to start saw
ings account. He says in part:
Accumulation Not Saving.
"Paradoxical though it may seem,
money saved up does not necessarily
constitute savings. Money saved up
is merely money accumulated. Saw
ings consist of accumulations invest
ed, for the essence of savings, con-
trary to the principle that has been
drummed into us all of our lives, is
that you both have your cake and eat
it. You have the principal and you
eat the interest. Your invested $1,000
remains $1,000 year after year. and
yet year after year you have some
thing from it to spend. Money that
is merely accumulated and not invest
ed does not bring in any interest, and
hence you have no income to spend
With uninvested funds you can get
nothing except by parting with your
funds. To secure anything you must
give up what you have laid away
Hence such accumulations are not
savings at all; for savings constitute
that which is the owners to have
and to hold Therefore accumula'
ton is only the first half of the pro-
cess of saving. The other half is in
vestment; and like a good wife, it is
the better half.
"Self-evident though these facts ap'
pear there are many persons who new
er realize the force of them. What
money they save up, therefore, they
keep in hand; and soyou frequently
read of the loss of large sums OF
money kept about the house. Per
haps thieves break through and steal
perhaps the treasure is laid up in an
old shoe, which, in a moment OF for
getfulness, is sold to junk man; pos
sibly the store is kept during the
warm weather in a stove, and thought
lessly burned up in the first fall fire
Even as. L write, the newspapers tell
of woman who hid her savings UNI
der a carpet, whence the money was
stolen by a boarder. Practically al
ways in such cases the lost money
like the stolen hoard of Silas Mariner
represents the accumulations of life
time; and the losers, like Rachel
weeping for her children, cannot be
comforted because their accumula
tions are not.
Hoardines Forfeit Increase.
Furthermore, through this very eff
fort to protect accumulations by
boarding them, the owner forfeitS the
natural increase that should come to
him. For, as poor Richard said
Money has the power to beget money
and it's offspring to beget more One
old couple that | know of scrimped
and saved for decades, boarding every
penny they could lay aside. When
the man died, his wife, in motal ter
ror of robbers, at last took the money
to the savings bank. And as is usual
in such cases because the money has
been denied opportunity to grow
the acumulations that were supposed
to be large, were really small. Her
total hoard amounts to only $1,000
Had this money been put out at inter
est it would have been doubled or
tripled that sum.
How Money "Grows."
THE power of increase possessed
by money put out at compound inter
est is astonishing. Perhaps it Is ig'
norance of this fact that leads SO
many persons to hoard their money
Three or four cents may seem like
such an insignificant return for a
years use of a dollar, that they pre-
fer to keep the dollar in hand. Such
persons forget that the longer their
money is at interest, the faster it
grows. One dollar put out at 4 per
cent, simple compound interest
amounts to only $1.04 at the end of
one year; but in ten years instead OF
amounting to $1.40, it has grown to
$1.48. In fifteen years 1t will be
$3.50, and in twenty years IT will
more than double itself. amounting
to $2.19. In twenty-five years 1t will
have grown to $3.50; in thirty years
to 1924, and in thirty.fve years to
1894. And II the dollar is left to
grow for forty years it will amount to
$3.50. Thus although at per cent
compound interest 1t takes dollar
eighteen years to double, 1t triples in
less than twenty-nine years, and quad.
lruples in little more than thirty-ive
years. a.. a. =. .a ;
AT s per cent the growth is much
faster. Under this rate 81 becomes
S1.62 in ten years; $z.07 in fifteen
years; $2.65 in twenty years: 1898
in twenty-five years, $4.32 in thirty
thirt,, e,ta uaara .nd