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

one upon time there was
young man who started fairy story
just that way-'once upon a time"
He changed the wording, though, to
read "one at a time" and set 81 900
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 Herald
He started saving just because he
CHANGED one day to dwell upon the
simple phrase. "once upon a time"
Along with material goods, he &C
CURED vast fund of knowledge
Of economics and thrift, and one of
the legacies he beQueathed the world
was foundation whose business 1t
The cardinal rule for saving as laid
down by this authority was to set
aside a 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.
From year to year this fund might
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
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 d week, 5000 year. In or
der to equal that income through
percent investments. he would need
capital Of about $1,000. Let the
young man open savings account
with bank that pays 4 percent In
terest on savings. compounded semi
annually. In this account he should
deposit S. every week. Whenever
his principal and interest equals OF
exceeds $1,000. his tip Is to draw GU
that sum and invest in first mort
gage paying 6 percent year. pay
able semiannually. The mortgage
interest should be deposited in thu
savings bank. and the performance
repeated every time $1,000 accumu
1ates.
In twenty-eight years the principa
will amount to S17,779.22, and the In
come from this sum invested in goo
6 percent mortgages will be upward
Of $40 a week. Five dollars weel
deposited in bank at percent pc
annum compounded semi-annuall
will amount to s1.123.S9 in four years
These estimates allow nothing 70
taxes and commissions, the question
Of taxes being considered a liabilit
against the salary income and nc
against the mortgage interest. TIL
question of commissions is eliminate
when the saver, through the excl
cising of little discretion and occi
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 tina
4 percent, he can add the differenc
from his salary income without SUI
fering the slightest inconvenience.
The following Is given as the bes
way of apportioning an income G
from $1,000 to $1,000 4 year: Shelter
% percent; food. 80 percent: cloth
Ing, IA percent; operating. 13 pei
cent; savings lat least). 10 percent
lluxuries, 4 percent; Advancement,