The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-11-07
HOW MONEY WILL.
ACCUMULATE
Christ Rosenkide's Fund for Poor OF
keokuk VIII Assume Large
Proportions in Years
to Come.

when Christ Rosenkilde, dying in
the poor house, bequeathed his estate
of $1,000 to trust company Tor the
benefit of the poor of keoRuk, ne put
one provision in the VIII that VIII
make it in time one of the largest
funds in Iowa for any purpose said
a Keokuk man Of mathematical habits
today. He went on to elucidate:
1T is the provision that half the
interest on the trust fund Is to be
added to the principal every year ana
only half Of the interest expended Tor
the poor.
"As little drops of water accumu-
| late to make the mighty ocean, SO
do little accretions to an invested
principal make a big fortune, OF they
are made annually and are a dennlte
fraction of the interest.
"Take this $1,000 Of the bequest
of Christ Rosenkilde to the poor OF
! KeoKuk. Assuming five percent as
the income-and farm mortgages yield
that at least pretty steadlly-the
interest the first year will be only
/ $50 of which only $25 will be avail
able for the poor.
"But the principal viii be Increased
sc5 at the same time, and the second
wear the interest on the new prin-
cipaI will be S5125 of which half will
! 20 to the poor and S25.63 will pc
added to the principal, which VIII
then be s1,050.63, making the third
years interest $52,S5 and adding
s26.41 to the principal which has be-
come s1,077.04.
'"Fhe larger 1t gets the faster it
grows, for the larger the principal,
the greater is the half Of the interest
added each year..
ON the beginning, for the first five
wears. the accretion or the principal
s,ym is small, but when the principal
sum has grown to be 100000, the
yearly addition to the principal is
$50. 500. And so on, until the principal
gets so large that il is increasing SO
fast that the annual interest on It
is enough to keep in aHluence ali
the poor people in the world,
'"That will take too long time 10
worry about now, and the old man
nut a safety valve in his VIII at that'
This safety valve Is the provision
that in case OF emergency all the IN
terest may be spent on the poor and
none added to the principal.
"Otberwise there sure would come
IL time when the income for the poor
would be many million dollars, and
The trustee would be put to it to
find enough poor in Keokuk to give
it to.
"a little figuring IN arithmetical
progression shows that IN only nifty
wears. the trust fund, now $1,000, will
have grown to be $2,750, yielding
nearly $40 a year to the poor and
an equal amount to be added to the
principal. 1t does not increase many
dollars. at that, so early In its
growth. but after that 1t keeps swell
ing at a great rate, and the larger 1t
gets the more it grows every year
that last is what makes 1t get so
immensely big SO fast IN later years.
..Jt is not at all unlikely that that
trust fund will be intact and operat-
inc century hence-there are many
such funds in England much older
than that And in hundred years
that Christ Rosenkilde fund for the
moor will be assuaging lots OF want
and poverty in keokuk.
"The old man chose the one way
+o do the most good with his $1,000,
and by his ingenious will and be-
nrest he has made it go farther than
could be done in any other way.
Think of the time when that fund
will be a half million dollars, yield
ing $4,000 a year to the poor and in
creasjng itself $12,500 in one year
IN make it yield $500 more the next
wear TO the poor and increase it's own
fattening $500 more than the year
before.