Knapsack

“ The king asked Brother Merry what he would have, but the soldier durst not take anything. However, he managed by hints and cunning that the king should fill his knapsack with money, and with that he journeyed on. When he came out of the palace door, however, he found the saint standing there, who said—
"See what a man you are. Have I not forbidden you to take anything, and yet you have your knapsack filled with gold?" ”

“ The first thing I did was to buy a strong leathern knapsack, and inside of this I fastened my little machine, with a screw so arranged that it could be worked from the outside. Strapping this firmly to my shoulders, my wife gently turned the screw at the back until the upward tendency of the knapsack began to lift and sustain me. When I felt myself so gently supported and upheld that I seemed to weigh about thirty or forty pounds, I would set out for a walk. The knapsack did not raise me from the ground, but it gave me a very buoyant step. It was no labor at all to walk ”

“ Having concerted our plan we departed next morning by day break, armed with a good cudgel each, my companion being charged with the furniture of us both, crammed into a knapsack, which he carried; and our money sewed between the lining and wasteband of our breeches, except some loose silver for our immediate expence on the road. ”

“ I remember well the manner in which my own and one of my fellow-comrades' shares were hidden: there was a heap of pumpkins in the cellar, and in one of these we enclosed our money, cutting a piece out of it of sufficient size to admit the dollars, and after closing it up with the top of the original piece, (p. 074) mixing it again with the remainder of the heap. The company was then marched out into a field, and all our knapsacks and pockets were searched, but even the little money that some must have had before was missing. ”

“ We unstrapped our knapsacks, and sat down upon the grass, and basked in the sun a while. Then we essayed to cross the stepping-stones with the knapsacks in our hands; but, finding this something of an undertaking, we pitched them gently on the opposite bank.
But that bank was sloping, covered with short smooth grass, and treacherous, so that both those knapsacks rolled back, and plunged into the water and sank, sending up a succession of air-bubbles.
I am a truthful historian (between these two covers, at any rate) , and write nothing but the truth ”

“ Many of them are broke, and the others would soon tame down with a scraper behind them. Give them to me and let me put them to work. I’d have to have equipment, too. Your name on the back of my note would get it, and you wouldn’t actually have to put up a dollar. Then we’d make an inventory of what you put into the firm and what I put into it, and we’d divide the earnings in proportion. ”

“ Being able to buy food where it is grown, cuts down expenses to a very small amount comparatively. When I told them this, one of them acknowledged that he could see that they would have less expense, but that they would still have need of money. ‘You bind us to take all we earn in scrip or shares for our labor?’ one of them asked of me. ‘Certainly,’ I said, ‘that is the protection of the society.’ But I told them they could buy money with their scrip. ”

“ I have only twenty dozen left, and some one in this town is going to have them. You can put a basket full on your [Pg 133] counter, sir, and sell one or more to every lady visiting your store."
"What do they retail at?" he asked.
"Fifty cents each."
"What is the wholesale price?"
"Three dollars a dozen, but as I have only twenty dozen left, you can have them at two dollars and seventy-five cents per dozen."
"I'll give you fifty dollars spot cash for the lot," he said, after figuring a moment. ”

“ Then, allowing an average saving of five per cent. on goods purchased, you find that the store could have saved its stockholders one million, two hundred thousand dollars at the time of purchase, plus seven hundred and twenty thousand dollars in dividends, or one million, nine hundred and twenty thousand dollars in a single year. This shows you what one group of industrial workers, cooperating in the purchase of food alone, could save themselves. ”

“ Let us suppose it to be agreed that the capital of L800 shall receive the wages of one workman. At the end of each week every workman is to receive one pound as wages, and one pound is to be divided amongst the owners of the capital. After a few weeks the returns will begin to come in; and they will soon become nearly uniform. Accurate accounts should be kept of every expense and of all the sales; and at the end of each week the profit should be divided. ”

“ Ring up the revenues and make the dear people pay it in added purchase price!
The people have a few dollars stored away in savings accounts or stockings, and if they want a thing they will broach their hoardings. They have the money. We want it.
One of the surest and easiest ways to get it is to make them pay more for what they consider essentials to their subsistence, to the comforts and the pleasures of their lives. They have been buying some splendid monthly periodicals at twelve and a half cents to fifteen cents. If they want them, why not make ’em pay twenty or twenty-five cents? ”

“ The village money-changer keeps a pair of scales, or rather two pairs of scales, one for buying and one for selling, and having weighed the lump of silver in exchange for which cash are desired, hands over the equivalent number of hundreds, less a few cash by way of commission, to his victim. Pleasing complications are introduced into the pastime of money-changing by the fact that a nominal 100 cash does not as a matter of actual fact consist of 100, but varies from 98 to 33 according to the part of the empire in which you happen to be. ”

“ Do you not mean that it is the value you pay for the goods you give in exchange, plus your profit upon these goods?-I say the price we could afford to pay in cash is just the price we do pay cash, which is paid not to the knitter, but to the party in the south that we buy our goods from. Our goods cost us cash: that cash, thousands of pounds every year, would go into the hands of the knitters here; but in that case we would just give them that money, less the profit we have on the goods. ”

“ Do not mistake us in thinking that we are preaching the old sermon of the savings bank, which is, save your pennies and the dollars will take care of themselves, for our friend Grizzly Pete of Frozen Dog, Idaho, says: "Save your pennies, the dollars will be blown in by your heirs."
No man gets rich through mere saving, but it is the training the man gets in saving the pennies that gives him a good idea of values of things and shows him the importance of having a reserve.
If the boss is extravagant in little things, the employe multiplies the extravagance. ”

“ Until the depression years of the 1930s, merchants never fooled around with pennies. If the wholesale cost of an item was four cents, he would usually sell it for ten cents. Then he could sell the items at two for 15 cents and still make a good profit.
Well, Papa wanted to buy us kids some firecrackers but the war was on and they had gone from five cents a package up to ten cents a package. With six kids at home, that would put quite a strain on Papa's pocketbook. So while he was figuring how many to buy, my brother Joel began dickering with the clerk. ”

“ This large capital, which had so fructified as to produce more than twenty-five millions as interest, was an accumulation, penny by penny, shilling by shilling, and pound by pound, of the savings of that class of persons who, in every country, have the greatest difficulty in accumulating. Habitual efforts of self-denial, and a rigid determination to postpone temporary gratification to permanent good, could alone have enabled these accumulators to retain so much of what they had produced beyond the amount of what they consumed. ”

“ But one day, at the corner-shop, I saw a corkscrew in the glass show-case, lying on some pocket-combs and family dye-stuffs. I asked the price, to learn that it cost seventeen cents. The resolution of years gave way before the temptation. I bought the corkscrew, and from that moment my income has equalled my expenses. So you see, my sweet May-bud, just trembling on the edge of housekeeping, that true economy consists in buying the right thing at the right time,—if you only pay for it as you go. ”

“ When you have taken interest on the loan, the cost of food, the wages of Pauline La Chance, the hired girl, and all the other expenses, what will be left to pay for the work of Madame Giroux and Jean himself, not to mention a thousand little items, of no account in themselves but great in the aggregate. Oh, I know arithmetic, I assure you, as well as many other things. It is useful, at times, to be able to count. ”

“ With the bookselling proper was joined a stationery business, and perhaps on the whole it was a little harder to sell a newspaper or a quire of note, or a bottle of gum, than to take an order for a volume or part with one from the shelves; still, no mortal is above satisfaction in receiving cash payment, part whereof is calculable profit, and the very till soon began to be more than endurable in our friend’s eyes. ”

“ Great sacrifices: no reserve: creditors take everything; dividend fourpence in the pound, furniture of house and bank, Mrs. Hardie's portrait, and down to the coalscuttle. Bankrupt saves nothing but his honour, and—the six thousand pounds or so he has stitched into his old great-coat: hands his new one to the official assignees, like an honest man. ”

“ Instead of getting discounts that add to their profits, they are constantly suffering discounts of the other kind; and, too often, these, and the accumulating stock of unsaleable goods—the consequence of credit temptations in purchasing—reduce the fifteen per cent. you speak of down to ten, and even five per cent. A large business makes large store-expenses; and these eat away a serious amount of small profits on large sales. Better sell twenty thousand dollars' worth of goods at twenty per cent. profit, than eighty thousand at five per cent. ”

“ It is interesting as illustrative of the extreme frugality of the Chinese character to note that before laying out the sum of three cash—say the fourteenth part of a penny—upon a box, the purchaser may be seen counting the number of matches in the box, in order to assure himself that he is receiving full value for his money, and to enable him to discard any matches found without heads before finally concluding his bargain. ”

“ The inconvenience and loss arising from a deficiency of small money fall with greatest weight on the classes whose means are least; for the wealthier buyers can readily procure credit for their small purchases, until their bill amounts to one of the larger coins.
(178.) As money, when kept in a drawer, produces nothing, few people, in any situation of life, will keep, either in coin or in notes, more than is immediately necessary for their use ”

“ If we suppose the value of manufactories, dwellings, warehouses, and all kinds of establishments, necessary to answer all the exigencies of a stock of industry and commerce of 35,000,000, to have amounted then to 25,000,000, we must admit that the objects in the same manner necessary to a stock of 70,000,000, do likewise present us with a fourth clear saving of—25,000,000. ”

“ When the shopkeeper, on the strength of a prosperous year and favourable prospects, has yielded to his wife’s persuasions, and replaced the old furniture with new, at an outlay greater than his income covers—when, instead of the hoped-for increase, the next year brings a decrease in his returns—when he finds that his expenses are out-running his revenue ”

“ Every body felt poor and swindled. Every body who thought he had money in savings-banks woke up all at once to the realization that his money was nothing but a lot of old shells. Every body had his bags, his tills, and his money-boxes filled with shells, which he had taken in exchange for commodities which had cost him valuable time and labor. ”

“ As stated above, the basic purpose of the creation of the reserve is to burden the product with depreciation charge as a real part of the cost of production. If we are concerned with real and actual costs of production, by no stretch of the imagination can replacement cost—what it might cost to replace the asset at some more or less distant time—enter into the question. ”

“ Since the balances of the banks of a town with their out-of-town correspondents depend primarily upon the commercial and gift relations of their customers with the outside world, it is pertinent to inquire whether as a result of [Pg 29] a long continued excess of purchases from outsiders over sales to them and of gifts to over gifts from them, the cash resources of a community might not be completely exhausted, and if not, how such an outcome is prevented. ”

“ The things which money may represent are hard to measure because often intangible and indefinite. The money account may or may not reflect efficiency in performance. Have we not been grasping at the shadow of money at the expense of the substance, effect? Consider, if you please, the working of a bank, perhaps the corporate institution in whose efficiency the public has the greatest confidence. In a small country bank one man does all the work. Later he requires a clerk or a bookkeeper. ”

“ Tompkins was passive. A vendue was called, and three thousand dollars in cash realized. This succour came just in time, for it saved the merchant's credit, and met his pressing demands, until he could turn the paper given in part payment for his house, into money. From that time he began to feel his business resting less heavily upon his shoulders. Money came in about as fast as he needed it. ”