The Art of Money Getting, or The Golden Rules for Making Money
Page 5
by Phineas Taylor "P. T." Barnum
LET HOPE PREDOMINATE, BUT BE NOT TOO VISIONARY: Many persons are always kept poor, because they are too visionary. Every project looks to them like certain success, and therefore they keep changing from one business to another, always in hot water, always "under the harrow." The plan of "counting the chickens before they are hatched" is an error of ancient date, but it does not seem to improve by age.
DO NOT SCATTER YOUR POWERS:
Engage in one kind of business only, and stick to it faithfully until you succeed, or until your experience shows that you should abandon it. A constant hammering on one nail will generally drive it home at last, so that it can be clinched. When a man's undivided attention is centered on one object, his mind will constantly be suggesting improvements of value, which would escape him if his brain was occupied by a dozen different subjects at once. Many a fortune has slipped through a man's fingers because he was engaged in too many occupations at a time. There is good sense in the old caution against having too many irons in the fire at once.
BE SYSTEMATIC: Men should be systematic in their business. A person who does business by rule, having a time and place for everything, doing his work promptly, will accomplish twice as much and with half the trouble of him who does it carelessly and slipshod. By introducing system into all your transactions, doing one thing at a time, always meeting appointments with punctuality, you find leisure for pastime and recreation; whereas the man who only half does one thing, and then turns to something else, and half does that, will have his business at loose ends, and will never know when his day's work is done, for it never will be done. Of course, there is a limit to all these rules. We must try to preserve the happy medium, for there is such a thing as being too systematic. There are men and women, for instance, who put away things so carefully that they can never find them again. It is too much like the "red tape" formality at Washington, and Mr. Dickens' "Circumlocution Office,"--all theory and no result.
When the "Astor House" was first started in New York city, it was undoubtedly the best hotel in the country. The proprietors had learned a good deal in Europe regarding hotels, and the landlords were proud of the rigid system which pervaded every department of their great establishment. When twelve o'clock at night had arrived, and there were a number of guests around, one of the proprietors would say, "Touch that bell, John;" and in two minutes sixty servants, with a water-bucket in each hand, would present themselves in the hall. "This," said the landlord, addressing his guests, "is our fire-bell; it will show you we are quite safe here; we do everything systematically." This was before the Croton water was introduced into the city. But they sometimes carried their system too far. On one occasion, when the hotel was thronged with guests, one of the waiters was suddenly indisposed, and although there were fifty waiters in the hotel, the landlord thought he must have his full complement, or his "system" would be interfered with. Just before dinner-time, he rushed down stairs and said, "There must be another waiter, I am one waiter short, what can I do?" He happened to see "Boots," the Irishman. "Pat," said he, "wash your hands and face; take that white apron and come into the dining-room in five minutes." Presently Pat appeared as required, and the proprietor said: "Now Pat, you must stand behind these two chairs, and wait on the gentlemen who will occupy them; did you ever act as a waiter?"
"I know all about it, sure, but I never did it."
Like the Irish pilot, on one occasion when the captain, thinking he was considerably out of his course, asked, "Are you certain you understand what you are doing?"
Pat replied, "Sure and I knows every rock in the channel."
That moment, "bang" thumped the vessel against a rock.
"Ah! be-jabers, and that is one of 'em," continued the pilot. But to return to the dining-room. "Pat," said the landlord, "here we do everything systematically. You must first give the gentlemen each a plate of soup, and when they finish that, ask them what they will have next."
Pat replied, "Ah! an' I understand parfectly the vartues of shystem."
Very soon in came the guests. The plates of soup were placed before them. One of Pat's two gentlemen ate his soup; the other did not care for it. He said: "Waiter, take this plate away and bring me some fish." Pat looked at the untasted plate of soup, and remembering the instructions of the landlord in regard to "system," replied: "Not till ye have ate yer supe!"
Of course that was carrying "system" entirely too far.
READ THE NEWSPAPERS:
Always take a trustworthy newspaper, and thus keep thoroughly posted in regard to the transactions of the world. He who is without a newspaper is cut off from his species. In these days of telegraphs and steam, many important inventions and improvements in every branch of trade are being made, and he who don't consult the newspapers will soon find himself and his business left out in the cold.
BEWARE OF "OUTSIDE OPERATIONS":
We sometimes see men who have obtained fortunes, suddenly become 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 ENDORSE WITHOUT SECURITY:
I hold that no man ought ever to endorse 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 endorse 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 endorse 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 endorse 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 endorse 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.