Perth Amboy evening news., 1923-05-12
What Business Is and The
Reason For 1t

just how or why.
What Business Is and The
Reason For 1t
No man, alone and unaided, could
produce even a fractional part of
the many articles which he demands
for his own comfort and that OF his
family.
In this great country and through
out the entire world, countless men
and women are daily called 10 work
upon the thousands ard thousands
of necessities and luxuries which
modern life demands.
Thus the great machinery of mod
ern business has grown up; that
these things can be made, dis
tributed. and sold 10 the millions Of
users.
Once you fully understand how
modern industry came into being
and how it operates, you will more
clearly see the importance of the
part you are playing in the great
game of living; you will better rea-
lie your duty to your fellowmen;
and thus men will be IN a better
frame of mind to make more Of their
present opportunities.
In order that you may grasp the
| GuDJCNI AAAAhAL LIN toGAAgb ~ -
here presenting a brief outline of
some of the elements of modern in
dustry:
Business activity. therefore, con-
sists of production, the gathering of
raw materials from their various
sources and converting them into
articles fer the Use of mankind; and
the distribution Of the finished pro-
ducts to other consumers.
Money-What It Is and What
1t Docs
Because money is a necessity in
! every transaction in business, let US
right az the start get a clear under
standing of what 1t really Is.
Money is a medium of exchange
which is readily accented in return
for work or for the products OF work
because it can be readily exchanged
in turn. for other mems work or Tor
the products of their labor.
Money is valuable only because oil
its buying AMI earning power.
Money possesses its buying ana
earning power, because IN the hanus
Of its owner, il is both q receipt -or
aeryics rendered n nEnkind r a
demand on mankind for an equal
amount of service to be rendered
ony time the owner cares TO ask 1oi
it.
Money of itself, al far as the
worlds activities are concerned IL
valueless until this buying or earn
ing mower is put into force through
purchase or investment.
NVEsTNENT-PUTTING NONE
To WORK
Money is always a receipt for worl
already done. 1t is also a note call
ing for its equivalent in work ant
payable upon demand.
It's entire value rests upon VIVA
It represents-work.
II is. In a sense, work in matsrial
formi Therefore it Is subject to tins
same conditions which AFFECT worn
which is actually rendered by humar
beings.
the same as a human ear. As long az
money is idle, as in the case OF ar
idle man, a certain amount OF human
activity is being withheld from the
world and the money is earning
nothing.
When. however, money is employ
ed. as in the case of the employed
man, a certain amount OF human &C
tivity in the form Of production is
again contributed TO the world. and
the none earns its just wages. The
wages of employed money is known
SIS interest.
The Elements of Production
The student Of business tells Us
that production is the combined re-
suit of the following three elements:
l. Land.
2. Labor.
3. Capital.
L.bor is work or human activity
Land is the earth with all OF It's
agricultural possibilities, its timber
Its ores, its minerals, and othei
products of its mountains. plains
and oceans.
Capital. TO the ordinary man, al
ways means money.
In reality, capital Is not the none
Itself. but consists rather of VIVA
invested money will buy In the forT
of raw materials, machinery ano
buildings in which business is done
In this discussion. however. fol
the sake OF ~clearness. We will adhes
to the popular meaning of the wort
capital and define 1t asa sur
plus or accumulation of money
Knowing that money a al earn
Ing W as we'll as a buying power
1t is very easy to see that n MAJ
who has become the possessor o.
a surplus accumulation Of money
has gained an increased earnins
power-through the added earning
power of his surplus money.