FUNDS AND THEIR USES CHAPTER I INTRODUCTORY AMONG the first ideas that one gets from early association is a notion of respect for the "property" of others; we soon come to know that there is a differProperty. ence between those things which we may call "our own" and those things which "belong" to another. Parental authority within the family first impresses the lesson; later, association with playmates enforces it. Any attempt to violate what are commonly recognized in the community as “rights of property" brings us to grief. The jealousy with which the child guards his right to use his own top, his own marbles, his own knickknacks, and the respect which he comes to have for things displayed in shop-windows or in the possession of his playmates, illustrates the force with which ideas of property are early impressed on the race. How property is acquired. No sooner, however, does the child come to know the use of things, or begin to long for objects that attract his notice, than he learns that the "consent" of some one must be obtained before they may be taken. From a parent, a sister, or a brother— members of the household-this consent may be had for the asking; within the family, acquisition takes the form of "gift." From others, however those not bound by ties of affection or mutual regard—a mere request is not sufficient. In front of a shop is a basket of apples. Their rich 66 No." color and fragrance suggest to the child in passing that he would like to have some of the fruit. He asks the shopkeeper-seeks to obtain an apple “by gift,” as he had been accustomed to doing at home. His request is refused. How is he to obtain the coveted fruit? The shopkeeper helps him out of the difficulty. "Have you a penny?" "If you will get me a penny I will let you have an apple." With this suggestion the boy has his first idea in finance. He runs to his father, obtains a penny " by gift," and, returning, "exchanges" it for an apple. He soon learns how the "consent" of shopkeepers may be won-a second method he has learned by which the property of others may be acquired. Exchange lies at the foundation of the world's industrial progress. The story of Crusoe serves well to illustrate the possibilities of life without it. Among a primitive people it takes centuries for them to acquire metals for weapons and the few rude implements which they possess. We have but to reflect on the many thousands of things about the modern household, each of which contributes a share to comfort or pleasure, to realize how incompetent man would be to provide for himself. How long, for example, would it require a man, working alone, to extract from nature a pound of iron? Having the metal in hand, how long must he labor to make a needle or a screw? Few of the common things in use to-day could be had at all; they are each the product of hands whose skill comes from years Exchange the chief method of experience and training, working with proof acquiring cesses and appliances that have been inherited property. from a society that has labored for centuries past-a cooperative society in which, without exchange, cooperation would have been impossible. In every instance, increased facilities of exchange have led to a wider range of social and industrial activity. To its development we owe the economies of division of labor, the benefits of the factory system, the larger return and more intelligent con trol, coming from differentiation and centralization of industries-in fact, every mile-stone of human progress has engraved upon it the significant emblem "Exchange." Out of exchange arises the necessity for "funds." In business parlance there is probably no word so big with Importance meaning as this one. "If I could get the necof funds in essary funds," says the blacksmith, "I would business. build a wagon shop." The grocer does not add to his stock of sugar when the price is low "for lack of funds." "We are in need of funds," says the building contractor to his partner-"we must have at least $1,000 more to pay our men." “Our funds are running low," says the miller's clerk; "we must realize on outstanding bills, or make some other arrangement to meet obligations maturing on the first of the month." It is out of just such situations and just such problems that the business of finance arises. "Funds" are the key to business under an economy of exchange-a necessary part of business equipment. What is business? Business is said to be a contest in which every one is striving for the same thing. This is not entirely true, yet one has but to look out on Broadway or any main thoroughfare of a great city to be impressed with the fact that some kind of contest is going on. Men are hurrying to and fro, pushing each other about, each trying to get somewhere, to do something one does not know what. But it is evident that each has something very definite in mind and that he is straining every nerve and muscle to accomplish a purpose. What is it that brings these millions into the street, takes them to the shops, causes some to stand behind counters, others to work and sweat before a furnace? Each seems to be working and striving in a different way, but if you ask the clerk or the foundryman, the day-laborer or the banker, what he is striving for, each will make the same answer. in business for my health," is a saying which expresses a deal of truth. Each one has certain wants and desires "I am not which he would satisfy. rials which will serve. On all sides are found the mateTo gain those things which will satisfy desire, in an orderly and peaceful way, is the aim of business. Under an industrial régime, based on exchange, the quest of business is for "profits." The success of a business enterprise is measured by its "profits "-i. e., the gains to proprietors made through it. Profits, however, are measured by the standard of increased or decreased ability to resolve one's property into funds. Necessity for law and order in business. A peaceful contest must have rules to govern it, for without rules there would be violence between parties. A number of marbles are placed within a ring: a line is drawn, behind which each player must stand for first throw; the one who lands his marble nearest center takes first shot. So the rules are laid down for the beginning of the game. After the contest is over each counts the marbles which he has driven out of the ring. Each player had put in two marbles as "counters." At the end, one had scored three; he is one marble ahead, while the other player had driven out but one-has lost a marble. There must be a rule for every possible situation and every point at issue, otherwise the game could not proceed. The one boy would not allow the other to take his marble (his property) unless he did it according to rules understood by both at the beginning. The same is true of football, baseball, lacrosse-every contest for points. Not only must the rules be known, but they must also be strictly observed. In case of a dispute as to what the rules are or how they should be applied, the parties may come to a subsequent agreement, or, failing in this, they may refer the point at issue to some one not in the game who knows the rules. He who does not play "fair" may have some of his points taken away, or, on continued offense, may be "ruled out of the game." Business is a contest in which the 66 counters are money. Business law is nothing more or less than the |