poor. In many cases, this arises from intemperance, and often from gaming, and other bad habits. Frequently it occurs because a man has been engaged in “outside operations,” of some sort. When he gets rich in his legitimate business, he is told of a grand speculation where he can make a score of thousands. He is constantly flattered by his friends, who tell him that he is born lucky, that everything he touches turns into gold. Now if he forgets that his economical habits, his rectitude of conduct and a personal attention to a business which he understood, caused his success in life, he will listen to the siren voices. He says:
“I will put in twenty thousand dollars. I have been lucky, and my good luck will soon bring me back sixty thousand dollars.”
A few days elapse and it is discovered he must put in ten thousand dollars more: soon after he is told “it is all right,” but certain matters not foreseen, require an advance of twenty thousand dollars more, which will bring him a rich harvest; but before the time comes around to realize, the bubble bursts, he loses all he is possessed of, and then he learns what he ought to have known at the first, that however successful a man may be in his own business, if he turns from that and engages ill a business which he don’t understand, he is like Samson when shorn of his locks his strength has departed, and he becomes like other men.
If a man has plenty of money, he ought to invest something in everything that appears to promise success, and that will probably benefit mankind; but let the sums thus invested be moderate in amount, and never let a man foolishly jeopardize a fortune that he has earned in a legitimate way, by investing it in things in which he has had no experience.
DON’T INDORSE WITHOUT SECURITY
I hold that no man ought ever to indorse a note or become security, for any man, be it his father or brother, to a greater extent than he can afford to lose and care nothing about, without taking good security. Here is a man that is worth twenty thousand dollars; he is doing a thriving manufacturing or mercantile trade; you are retired and living on your money; he comes to you and says:
“You are aware that I am worth twenty thousand dollars, and don’t owe a dollar; if I had five thousand dollars in cash, I could purchase a particular lot of goods and double my money in a couple of months; will you indorse my note for that amount?”
You reflect that he is worth twenty thousand dollars, and you incur no risk by endorsing his note; you like to accommodate him, and you lend your name without taking the precaution of getting security. Shortly after, he shows you the note with your endorsement canceled, and tells you, probably truly, “that he made the profit that he expected by the operation,” you reflect that you have done a good action, and the thought makes you feel happy. By and by, the same thing occurs again and you do it again; you have already fixed the impression in your mind that it is perfectly safe to indorse his notes without security.
But the trouble is, this man is getting money too easily. He has only to take your note to the bank, get it discounted and take the cash. He gets money for the time being without effort; without inconvenience to himself. Now mark the result. He sees a chance for speculation outside of his business. A temporary investment of only $10,000 is required. It is sure to come back before a note at the bank would be due. He places a note for that amount before you. You sign it almost mechanically. Being firmly convinced that your friend is responsible and trustworthy; you indorse his notes as a “matter of course.”
Unfortunately the speculation does not come to a head quite so soon as was expected, and another $10,000 note must be discounted to take up the last one when due. Before this note matures the speculation has proved an utter failure and all the money is lost. Does the loser tell his friend, the endorser, that he has lost half of his fortune? Not at all. He don’t even mention that he has speculated at all. But he has got excited; the spirit of speculation has seized him; he sees others making large sums in this way (we seldom hear of the losers), and, like other speculators, he “looks for his money where he loses it.” He tries again. endorsing notes has become chronic with you, and at every loss he gets your signature for whatever amount he wants. Finally you discover your friend has lost all of his property and all of yours. You are overwhelmed with astonishment and grief, and you say “it is a hard thing; my friend here has ruined me,” but, you should add, “I have also ruined him.” If you had said in the first place, “I will accommodate you, but I never indorse without taking ample security,” he could not have gone beyond the length of his tether, and he would never have been tempted away from his legitimate business. It is a very dangerous thing, therefore, at any time, to let people get possession of money too easily; it tempts them to hazardous speculations, if nothing more. Solomon truly said “he that hateth suretiship is sure.”
So with the young man starting in business; let him understand the value of money by earning it. When he does understand its value, then grease the wheels a little in helping him to start business, but remember, men who get money with too great facility cannot usually succeed. You must get the first dollars by hard knocks, and at some sacrifice, in order to appreciate the value of those dollars.
ADVERTISE YOUR BUSINESS
We all depend, more or less, upon the public for our support. We all trade with the public—lawyers, doctors, shoemakers, artists, blacksmiths, showmen, opera stagers, railroad presidents, and college professors. Those who deal with the public must be careful that their goods are valuable; that they are genuine, and will give satisfaction. When you get an article which you know is going to please your customers, and that when they have tried it, they will feel they have got their money’s worth, then let the fact be known that you have got it. Be careful to advertise it in some shape or other because it is evident that if a man has ever so good an article for sale, and nobody knows it, it will bring him no return. In a country like this, where nearly everybody reads, and where newspapers are issued and circulated in editions of five thousand to two hundred thousand, it would be very unwise if this channel was not taken advantage of to reach the public in advertising. A newspaper goes into the family, and is read by wife and children, as well as the head of the home; hence hundreds and thousands of people may read your advertisement, while you are attending to your routine business. Many, perhaps, read it while you are asleep. The whole philosophy of life is, first “sow,” then “reap.” That is the way the farmer does; he plants his potatoes and corn, and sows his grain, and then goes about something else, and the time comes when he reaps. But he never reaps first and sows afterwards. This principle applies to all kinds of business, and to nothing more eminently than to advertising. If a man has a genuine article, there is no way in which he can reap more advantageously than by “sowing” to the public in this way. He must, of course, have a really good article, and one which will please his customers; anything spurious will not succeed permanently because the public is wiser than many imagine. Men and women are selfish, and we all prefer purchasing where we can get the most for our money and we try to find out where we can most surely do so.
You may advertise a spurious article, and induce many people to call and buy it once, but they will denounce you as an impostor and swindler, and your business will gradually die out and leave you poor. This is right. Few people can safely depend upon chance custom. You all need to have your customers return and purchase again. A man said to me, “I have tried advertising and did not succeed; yet I have a good article.”
I replied, “My friend, there may be exceptions to a general rule. But how do you advertise?”
“I put it in a weekly newspaper three times, and paid a dollar and a half for it.” I replied: “Sir, advertising is like learning—‘a little is a dangerous thing!’”
A French writer says that “The reader of a newspaper does not see the first mention of an ordinary advertisement; the second insertion he sees, but does not read; the third insertion he reads; the fourth insertion, he looks at the price; the fifth insertion, he speaks