The Washington herald., 1912-01-15
SPEND SURPLUS MONEY -
WHERE YOU ACQUIRE IT

Ono of the oldest economic principles
to find expression in books and appli-
cation among business men is TO spend
money where it is made. The principle
has been much commented upon in its
relation to local mercantile establish
ments, but much less has been said
regarding it in the wider meaning OF
the axiom Everybody is familiar with
the stock argument that people in max
ing purchases of the necessaries of life
and even the luxurieS i'll which they in
dulge should buy of the local mer-
chant, should patronize home industry,
and foster enterprise in the city or
community where one resides.
No logical refutation of the argument
can be made that when the merchant
has spent his money building fine
store, equipping it with facilities for
doing business, and filling it with a va
ried stock OF merchandise. he should
receive the trade OF the people by way
of recouping him for his outlay, and
encouraging him in maintaining his
business and charging it as time goes
forward. The Washington Herald has
urged this thoroughly practical view OF
business in season and out Of season
as the practice which should be follow
ed in the Capital City.
But this IS only one side of the prin-
ciplc that surplus money should be
spent where it IS acquired. Take the
retail merchant Is he not as much
bound by duty to patronize the local
wholesale merchant or the home manu-
facturer of the wares he sells as the
people of the city are to buy of him?
1t would be interesting in this connec-
ton to know TO what extent the retail
venders of Washington are buying
their stock of local wholesalers and
manufacturers, for in the application of
this economic question it Is the true
way to foster home enterprise, stimu-
late local industry, and build up the
city. The principle applies TO banks
in making loans by preference to local
people, and runs through the whole in
trioate web of industry and trade.
Money spent where it is made goes to
Gil the wheels OF business, remains
locally in circulation, and aids directly
in building up the city.
But this principle has still wider ap-
plication in the field of benevolence.
When individuals or families have
lived long in a city, have made their
money there, have surplus accumu-
lated through channels of trade or in
dustry, and seek TO bestow 4 part of il
on education or charity, the home in
stitutions should be first considered.
The principle which would deter a fam
lily in Washington, for example, in buy
ing their supplies IN New York, should
act as a check upon giving large sums
of money TO educational or charitable
institutions outside, when the local in
stitutions need it, and when the money
TO be given has been accumulated here.
The argument is just as strong in the
one case as the other, and as logically
binding
If it is good business policy for a
man TO buy a coat, or a woman a
gown, in the local stores, in prefer
ence to making the purchases else
where, ii is just as good policy for the
same man or woman to bestow their
surplus money upon university, hospital,
or orphanage in Washington in prefer
ence to doing the same thing to an in
siitution in another city.
Spending surplus money where you
acquire it is a principle of undoubted
wisdom, but it has a much wider ap-
plication in the affairs of men than is
usually given to il.