The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-12-10
THE HABIT OF SAVING.

One upon a time there was
young man who started fairy story
just that way-"once upon time"
He changed the wording, though. to
read lone at time." and set $1,000
as the goal for his endeavors, with
the unit represented by silver dol
lar. He saved his dollars, which in
cubated from dimes, with the result
that he accumulated fortune now
reckoned as one of the greatest in
New York, says the Quincy H erald.
He started saving just because he
CHANGED one day to dwell upon the
simple phrase, "once upon time"
Along with material goods, he &C
Quired vast fund of knowledge
of economics and thrift, and one of
the legacies he beQueathed the world
was a foundation whose business 1t
Is to encourage people to save money.
The cardinal rule for saving as laid
down by this authority was to set
aside stipulated sum out of the
savers income to be put into the
savings fund whether school kept or
not, whether the family went hungry
or whether the stars fell. At least
10 percent. economists say. should be
set aside by the average salaried
man to be placed in the savings fund.
IOA yCaA " sSoA SAAo AoAA AAAA6>AS
be increased by judicious invest
ments.
The American Bankers association,
| through its savings bank section. has
| its experts each year survey the say
| ings field for new ideas. One of the
plans recommended in the 1915 cam
paign for more savings takes the rule
of the young man with the single pur-
pose--to pile up dollars one at a
time, one upon another-and evolves
a systematic campaign through a
term of years whereby the man who
! sets aside IS weekly can double his
income by middle life.
| Assumed, goes the illustration, that
a young man in his twenties Is earn
ing $40 a week, 5000 a year. In or
der to equal that income through 6
percent investments. he would need
a capital Of about $4,000. Let the
young man open a savings account
with bank that pays percent in
terest on savings. compounded semi
annually. In this account he should
deposit SIS every week. Whenever
his principal and interest equals OF
exceeds $1,000, his tip is to draw out
that sum and invest in q first mort
gage paying percent a year. pay
able semi-annually. The mortgage
interest should be deposited in the
savings bank. and the performance
repeated every time $1,000 accumu
lates.
In twenty-eight years the principa
will amount to $17,779.22. and the In
come from this sum invested IN gooC
Is percent mortgages will be upwards
of $40 a week. Five dollars week
deposited in bank at percent pei
annum compounded semi'annuallJ
will amount to $1,123.89 In four years
These estimates allow nothing fol
taxes and commissions, the question
of taxes being considered a liability
against the salary income and no
against the mortgage interest. Thu
question of commissions is eliminated
when the saver, through the exer
cising of little discretion and coca
sional conferences with his banker
seeks out his own investments To-
him self and makes certain that the!
are safe. In case the saver decide!
to accept lower rate Of interest thar
percent, he can add the difference
from his salary income without SUI
fering the slightest Inconvenience.
The following is given as the bes
way Of apportioning an income o
from 81, 200 to $1,000 4 year: Shelter
20 percent; food. 80 percent; cloth
ing, IL percent; operating. 13 per
cent; savings lat least), 10 percent
luxuries, 4 percent: Advancement,