The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1913-12-16
plies, and list every articles in the
house with price separately.
How The Plan Works

house with price separately
How The Plan Works
Now all this will prove interest
ing and help US to make money. We
are going to do this every January
LIST, and the up-keep and care of
these little items are going to figure
in our profit and loss account. When
we see that the long list of accumu-
lated tools and equipment, we will
say l did not know we bought so
much and it will tend to make us
more careful in our purchases next
year.
If we should be unfortunate enough
to have a fire, perhaps we will have
ready list to turn over to the adj
juster, at any rate, it will be fresh
in our minds. So we can safely claim
a careful inventory, will be money
maker and saver, and furthermore
we now have opened a full set of
books which needs but a few new
headings or pages to enter up all
the years transactions. On January
End, every one of us who does not
carry a checking account at con-
venient bank, should go and open an
account and secure check book.
Building Up Credit
It's right here where we will be-
gin to build up our credit. am very
confident of this, as thirty years ex-
perience in front and behind the bank
counter has taught me this.
Some of us will say, we have no
money to open the account with.
Well, borrow it of the bank and open
an account that way. Suppose you
are feeding hogs and cattle, or in
tend to sell house when spring work
opens, or will get a clean check at the
end of the month, or are holding grain
for higher prices. Explain to your
banker your plans, that you want to
pay every cent you pay out during
the year by check, and deposit every
cent that comes off the farm in his
bank to be checked out from time to
time, and will need an accommodation
until returns begin to come In, and
he will grant you line of credit.
Always pay or renew promptly when
due, and in year or two our line
of credit will far exceed our needs.
Never over-draw your account, it
may not hurt the bank, but it does
hurt you. Here is where we build
up credit. Borrow occasionally and
pay promptly. Pay all bills, no mat
ter how small, by check.
Now we will suppose you are con-
Quoting 100 acres. A conservative
estimate of the gross value of crops
for any given year would be $4,000,
perhaps one-half of this is fed up on
the farm, and perhaps some of us
are fortunate enough to feed it all
up, but in some way or another, the
total sales of stock and grain will
amount to that much Perhaps we
will buy and sell stock, that may in
crease the volume of our business
several hundred dollars Perhaps we
are renting and one-third of these
receipts may not go through our
hands, but direct to land owners. The
amount, however, is all we receive
and all goes into the bank and out by
check, and at the end of each month
| the bank returns our checks, each one
being a receipt for some bill paid,
and somehow in our community, we
become known as a methodical far
mer, who pays bills promptly and al
ways by check and every time we
pull out our check book to write out
| check, it looks as if we might have
plenty of balance left in the bank
and our merchant friends get quite
anxious for our trade, which we will
take advantage of, not by buying
more, but by buying cheaper.
End of First Month
At the end of the first month we
are now ready to do little work on
our books. We will open several new
accounts, the first will show all the
bills and notes we are owing under
the title Amounts Due Others" Sec
ond, will show "Bills and Notes due
US under Amounts Due U.s." Third,
Farm Expense" which will include
all general expenses such as vetern-
larry bills, repair on buildings and
machinery, ETC., insurance and taxes,
telephone, labor, machine oils, etc.
Fourth, Household Expense, includ-
ing payments for all food and cloth
ing: Fifth, Improvement account
which includes new buildings, fences,
windmill and all permanent improve
ments which go towards developing