A. R. Calhoun

“ From the land, with the aid of labor and capital, comes wealth, which in a broad way may be defined as something having an exchangeable value.
Before the appearance of money all wealth changed hands through barter. The wealth in the world to-day is immeasurably greater than all the money in it. The business of the world, particularly between nations, is still carried on through exchange, the balances being settled by money.
Money is a medium of exchange, and should not be confounded with wealth or capital; the latter is that form of wealth which is used with labor in all production. ”

“ BUSINESS METHODS NEEDED As farming is our principal business, it follows that those who conduct this vast and varied enterprise should be business men.
The farmer is a producer of goods, and so might be regarded as a manufacturer,—the original meaning of the word is one who makes things by hand. He is also a seller of his own products, and a purchaser of the products of others, so that, to some extent, he may also be regarded as a trader or merchant.
Enterprise and business skill are the requisites of the manufacturer and merchant. Can the farmer succeed without them? ”

“ Labor is human effort, in any form, used for the production of wealth. It is of two kinds—skilled and unskilled. The former may be wholly mental, the latter may be wholly manual.
The successful farmer must be a skilled laborer, no matter the amount of his manual work. The unskilled farmer can never succeed largely, no matter how hard he works.
Trained hands with trained brains are irresistible.
Too many farmers live in the ruts cut by their great-great- grandfathers. They still balance the corn in the sack with a stone.
Farming is the world's greatest industry. ”

“ It is all very well to teach children the sources of the family revenue and the way to secure it. It is right that they should be impressed with the dignity of labor and trained in the ways of earning money, but it is far more important that they should be taught how to spend money, so as to get the most good from it, once it is earned.
The boy or girl is in a safe way to learn self-control and build up character when he or she, with some nickels at command, can pass a candy or a fruit shop without being compelled to spend their cash assets. ”

“ Often there are not only no dividends, but a great conflagration, like that of San Francisco, may wipe out all the earnings, all the reserve and even the capital itself, leaving the company bankrupt and heavily in debt.
Great calamities cannot be foreseen. No actuary has yet appeared to forecast the acts of Providence, but on the whole our fire insurance companies are well managed and prosperous. ”

“ CHAPTER XXIII BONDS AS INVESTMENTS The best way in which savings can be invested is to use them in the extension of the business in which they were made.
The wage earner and the man on a salary cannot, of course, do this, but the farmer, the small tradesman, and the mechanic, who is his own employer, may be able to do so. And so, before looking for a field for investment outside, such men should look about them and consider how best the money may be used right on the ground. ”

“ LIABILITY In all matters rightly belonging to the business of a firm, any member has the right to act, and his acts will be held binding in law.
It is usual for partners active in a business to have each his separate duties, but even if these duties be designated in the articles of agreement, the outside business world is not supposed to know anything about the relative duties of the members of a firm as decided among themselves, so it is decided that each is empowered to act for his partners. ”

“ If you are a member of, or a pledged contributor to, a church, lodge, grange, or other society, you should regard the prompt payment of your dues as sacred as any other form of obligation.
The expenses of a properly conducted church are always considerable, even in small communities. It is a disgrace to the Christian organization that, after forcing down the pastor's compensation to the barest cost of life's necessities, then force him to run into debt if he and his family would live, or to be forced continually to remind the trustees that his salary is far in arrears. ”

“ Be as open handed and generous as you will with your loved ones, but when it comes to business, let the work be done in a strictly business way or not at all.
Many a good business has gone to ruin after the death of the owner and manager because he had kept his wife in blank ignorance of his affairs and the way in which he conducted them. ”

“ If there is money left over it is paid to the mortgagor, whose interests in the property are then at an end.
Many people, not familiar with business methods, are inclined to regard a mortgage as something of a disgrace, when, as a matter of fact it is a most usual and honorable means of raising money for the securing of a home or the conducting of a business.
Nearly all of the great railroads of the country have been built by the sale of the mortgage bonds, which are usually renewed when due, and are sought out as a safe and sane form of investment. ”

“ The better way for the farmer, the merchant, or the manufacturer, when he feels the years pressing heavily and that he can no longer attend properly to the old demands on him, is to shift by a properly drawn contract the business management of the enterprise to his children, or to those whom he wishes to place in charge. ”

“ Instead of running the risk of paying bills with money carried about on his person, the business man, and every man with ready money should follow his example, deposits his money in a convenient bank, for which he receives a proper voucher in the shape of a credit in a deposit book.
When he pays a bill, he draws a check for the amount, payable to the order of his creditor. This check, when endorsed by the receiver and paid by the bank, is in itself a receipt for the money. ”

“ BANKS AS LENDERS The bank not only receives money on deposit, but it loans money under certain conditions.
Many merchants, builders, contractors and others often find it necessary to borrow money in order to carry on their business successfully.
If a man's business reputation is good, and the banks keep well posted in such matters, he may secure a loan on his own note, though even in such cases the name of a good endorser is required.
If in addition to his note the borrower can offer security in the way of bonds of good character, or other reliable collateral, he can usually be accommodated. ”

“ The young man or the young woman, or any one else who places his little accumulations in a savings bank, has begun a form of investment that may, if persisted in, place him or her above want, even if it does not entitle either to a place on the lists of great capitalists.
CAPITALISTS The capitalist not only has money of his own to invest, but he may and very often does need more money properly to exploit the enterprises in which he is engaged. ”

“ A capitalist may establish a fund from which, on good security, the business men of the community may obtain loans, for which they get a higher interest than that which they undertake to pay to those whose money they are using.
Again a capitalist may undertake to loan to farmers, who have not the means to carry on the work, but who are anxious to make their lands more productive, through drainage and crop rotation. In this case the money loaned is secured by the usual bond and mortgage. ”

“ A deed is a form of contract, and in order to have its terms and statements binding on the maker, he must be twenty-one years of age, or over, and he must be of sound mind.
The grantee need not be twenty-one, nor of sound mind in order to make the terms of the deed binding on the grantor.
In some states, if the grantor be a married man, his wife must sign the deed with him. This should be seen to, for without the wife's signature the grantee will not have a clear title, for the woman could still claim an interest in the property equal to her dower right. ”

“ While a stream of clean, fresh paper of enormous value is going out to be spread all over the country, another stream of soiled, torn and altogether disreputable-looking paper is flowing back to the Treasury. ”

“ The Government, the state, and it may be the city or county, gives to the party providing the money what is known as bond or bonds, each of a fixed amount and bearing a fixed rate of interest, payable as a rule semi-annually.
PERSONAL PROPERTY There is no form of property so easy to assess for the purpose of taxation as real estate, that is the land and the buildings, for the last selling value of this property is a matter of public record, and then the assessors, who should be men of honesty and good judgment, are generally posted as to the value of the property under consideration. ”

“ Every civilized country has its own minted or printed money.
The usual mediums of circulation are gold, silver, nickel and copper, the latter alloyed more or less in the United States with nickel.
Government and bank bills, while having all the purchasing power of gold, are simply promises to pay in gold, or other coin of "redemption", the amounts they represent.
The money of one country cannot legally be made to pay a debt in another country, unless both parties to the payment agree to it. ”

“ A man making a will is called a testator.
A woman making a will is called a testatrix.
LIMITATIONS OF WILLS A man has a right to dispose of his property by will or gift as he chooses, but if he is married the law compels him to consider the rights of another.
The husband cannot, by will or otherwise, deprive his wife of her "right of dower" in his real estate and appurtenances.
Unless she chooses to accept, the wife need not accept other property that is bequeathed her in lieu of dower.
The wife's dower interest in her husband's estate is a life interest only. ”

“ It is all very well to spend available means in order to set a son or daughter up in business, but such sums, if there are other heirs, should be charged against the share of the probable donee, with interest, and a record made of the same.
Under no circumstances should old people, who, after raising a family and living honorable lives, have saved enough to own their home and secure an income for their declining years, deed or give this property to their children, or to any one else, in consideration of their having all their subsequent wants met. ”

“ For every dollar of its own sent out in the form of a bill by a national bank, the Government holds a dollar of the bank's collateral to guarantee the redemption of the note if the bank should fail.
National bank notes are received in all business transactions, because they are secured by the Government, yet there are cases in which even the Government will not receive them in payment of a claim, nor pay them out itself.
1. All import duties must be paid in gold. 2. The Government pays the interest on its own bonds in gold. ”

“ The insurance company invests and reinvests the premiums, and the total of these, it is estimated, will meet the expenses and the amount of the policy at the time of its calculated expiration.
AS AN INVESTMENT If the young man in question had the money, he would find it to his advantage to buy a paid up policy, that is one on which no further premiums would be required.
But, having the money for a paid up policy, could not the young man, without any expense for clerk hire or rent, invest it, and reinvest it with the interest, as long as he lived, and thus make by insuring himself? ”

“ There are many prosperous husbands to whom what has just been said will not apply, but if you should ask them the secret of their success they will not hesitate to tell you that when they married they took their wives into full partnership, business secrets and all.
CHILDREN AND BUSINESS When you send your children to school it is that the training there received may qualify them to fight the better the ceaseless life battle.
Of course, we should not regard all education from a business viewpoint. Money apart, learning is its own greatest reward. ”

“ Money loaned to such men, after being assured of their ability and integrity, is an advantage to the lender as it is to the user.
The lender's profit is assured if the enterprise does not fail, and the added capital not only insures against failure, but it may enable the manager to succeed beyond any expectations he could have if forced to carry on the work with only his own resources.
The capitalist may choose to buy land in the suburbs of a city and build thereon a house to be sold or rented. This should always be made to secure the money borrowed. ”

“ Remember the mortgage must always be regarded as security. The note represents the debt.
Often wholesalers take a note as part or even full payment for a bill of goods to a retailer.
If the wholesaler needs money, he endorses these notes and putting them in his bank draws against them, less the discount he has to pay for the accommodation.
As has been shown, an account may be transferred and sold, but a note is more convenient for that purpose.
AN ILLUSTRATION As with a check the maker of a note is known as a "drawer," the person in whose favor it is drawn is the "payee." ”

“ Your cash is quite safe while in bank."
But no matter how promising, do not invest your money in a business you know nothing about, even if it does carry with it a position and a salary.
Find a good honest lawyer, despite sneers to the contrary, we believe most men in the profession are of this character, and ask his advice, and pay for his help if papers are to be drawn.
Buying rentable real estate is usually a good investment, provided always that the price is reasonable, the title clear, and the chances of its advancement pretty certain. ”

“ If for any reason payment cannot be made at the time fixed, then the better way is to go, as soon as this is learned, to the bank or other holder of the note, and frankly explain the situation.
Bankers are not shylocks. They realize that good and responsible men are often disappointed in their collections, or in the payment of a sum on which they depended for the settlement of their account with the bank, and in such a case they are usually willing to grant an extension. ”