PARAGRAPHS ON THRIFT FRANK C. MORTIMER UNIVERSITY OF CALIFORNIA AT LOS ANGELES Paragraphs on Thrift Cop>Tight. 1916, by The Bankers Publishing Co. New York First Edition. April, 1916 Second Edition, March, 1917 Third Edition, November, 1920 PARAGRAPHS ON THRIFT BY FRANK C. MORTIMER Author of "The Investment of Trust Funds,' "The School Savings System," Etc. NEW YORK THE BANKERS PUBLISHING CO. 19 2 To My Son WENDELL 1 mm28 PARAGRAPHS ON THRIFT MERICANS are re- garded by some of the older nations as a "' people of extravagant habits. It has been said that articles which properly should be classed as luxuries are de- manded as necessaries; that the cloud of debt lowers over homes that should be bask- ing in the sunshine of finan- cial independence. Men of affairs who take note of what is going on about them are able to judge how far this is true, and to gauge the tendency to spend more than is earned, noting the encouragement which is held out for the man steadily employed to live beyond his income. ^ ^ Whatever basis there may be for such criticism in the present, an appeal to the his- tory of our country will show that no such reproach attached to our forebears. The success of the Ameri- can people has been brought about by the exercise of energy, thrift, level - headed management. through hardship and i, on the frontier and in a cities, that which has been gathered and saved has become the foundation of all our greatness as a nation. ^ ^ For a people as practical as we are, the indifference shown towards saving in small things is significant. It points to the fact that our prosperity, our boundless nat- ural resources and the count- less opportunities for making money have lulled us into a feeling of false security. The future seems so assured that it appears hardly worth while to stint ourselves in the present; but this is the gam- bler's attitude toward life, and education, drawing upon the wisdom of experience, should furnish the corrective. q ^ There is one element that makes for a rounded and suc- cessful life that is but imper- fectly realized. Voluntary self-control is so important a factor in the economic, the political and the moral life of the individual that no train- ing of the head or of the hand can be considered suc- cessful which fails to take it into account. Many a brilliant intellect has made shipwreck of life because of the lack of train- ing in this most essential ele- ment in character — thrift; while many a man of medi- ocre ability has made himself rich and influential largely because of his tendency to conserve his earnings. Thrift does not come at our beck and call, nor can it be slipped on or off* like an old coat. It is established by example rather than by theory; by practice rather than precept. Thrift, to become a fixed habit, must be practiced with regularity and be given an opportunity for exercise over an appreciable length of time. And unless it becomes fixed as a habit it is of compara- tively little value. Spas- modic saving, followed by spasmodic extravagance, makes for ruin as surely as habitual improvidence. q q Dreaming of past tri- umphs is not going to bring future success. 10 Great as is the value of thrift from the point of view of economics, yet its value is not limited wholly to that field. The training afforded by its practice calls for the exercise of qualities that are predominantly moral in character. Thrift means self- control. It means self- mastery. It means that we must learn to forego imme- diate pleasure for the sake of some more distant good. q ^ Thrift prompts to industry and encourages self-reliance. 11 The dollar that comes from eifort, physical or mental, the dollar that is stored up for timely use, is more precious and helpful to the owner than double the amount gained through gift, inheritance or speculation. Experience teaches that success in life depends not so much on the abihty to earn money as on the ability to save a portion of one's earnings. 12 One of the most glaring defects of our present educa- tional system, considered as a means of preparation for life's work, is the lack of any gen- eral and systematic training in the practice of thrift. q Idleness means degeneracy and decay. It is contrary to the lessons of nature, con- trary to the teachings of our fathers and contrary to the great scheme of civilization. 13 The possession of a bank account often acts as a power- ful and direct stimulus to in- dustry. Children who have watched their savings accu- mulate are in many instances spurred on to augment them through independent effort. Boys have been known to employ part of their spare time in little industrial out- of-doors enterprises that were not only remunerative but healthful and educative as School savings banks were instituted in France two gen- erations ago. The well- 14 known thrift of the French people has resulted, in part, from the early training of her school children in habits of frugality. Organized effort in behalf of thrift is perhaps more needed just now than at any previous stage of our history. What does it profit a man to be master of seven lan- guages or jack of half a dozen trades, if he lose all his sub- stance through extravagant habits that might have been checked or eliminated altogether ? IS The habitual spendthrift is a menace to the community and to the nation; the careful citizen, guided by a sense of the true value of property, is a safeguard to our institu- tions. Habits of extrava- gance tend to disrupt the family, the community, the nation. We should place in the hands of every teacher and pupil a new text-book, the keynote of which should be thrift. 16 Make thrift fashionable once more. Restore this nor- mal attribute of respectable independence to its rightful place in the esteem of our world of society as well as business. This science of thrift ought to be taught in every school, in every city and countryside. Money has an earning power, just as an individual has, only in a diiFerent way. 17 The practice of thrift deals not only with the present, but it affects very materially the social fabric of the future. It will affect in great measure the civilization and the moral fibre of the nation. It will assist those in moderate cir- cumstances to mend their fortunes and help to bring them to a realization of the dignity which springs from independence founded on the basis of a solvent estate. The man who has the most time to spare frequently makes the least improvement of it. 18 Frugality does not always hold sway in the home and in such cases the school must supplement the fireside. From this combination shall come prosperous, self-sustain- ing men and women. Now, as of old, fore- thought and frugality are the safest and best guides for human well-being. In drinking the health of others, you are injuring your own. 19 Educators should awaken the mind of the child to the important truths of thrift and show the inevitably evil con- sequences of improvidence and place a bulwark against future misfortune. These precepts would have a lasting and beneiicial effect on the career of the pupil, helping to develop useful citizenship. fl The only provision some people make for a rainy day is to acquire another's umbrella. 20 With a systematic teach- ing of thrift, we would find that the young men and women graduated from our schools would be, not depend- ent, but dependable men and women, who would be made into sterling citizens with full cognizance of the value of money and its earning power. Don't brag about where you stand— don't stand; go ahead. 21 The tendency to spend more than is earned is en- couraged on every side through tempting offers of credit. The man steadily employed is thus often in- duced to live beyond his income. The cultivation of thrift is not to be reckoned wholly in terms of economics. The steadiness, the industry, the sobriety, the respect for prop- erty, which are fostered among thrifty and frugal people, are political virtues that make for stability and permanence of government. 1886S This booh is DUE on the last date stamped below NOV 1 T '^-^ lOm-4,'28 B 000 017 802 '^mXf^^xi UNIVERSITY of CALIFOT^NI LOS ANGELES LIBRARY