. Loyal citizenship. e is not tlnift — that is waste of opportunity, andwaste is the opposite of thrift. Thrift means wisespending as well as wise saving. Thrift and capital. We usually think of thrift asa purely private virtue, hut it is of the utmost impor-tance to the community. We have already seen howcapital can he created or increased only hy saving is done hy companies that set asidepart of their revenue to replace worn-out capital andto extend their husiness. However, a very targe partof tlie increase in capital must come from indiriduatsavings out of individual incomes, he
. Loyal citizenship. e is not tlnift — that is waste of opportunity, andwaste is the opposite of thrift. Thrift means wisespending as well as wise saving. Thrift and capital. We usually think of thrift asa purely private virtue, hut it is of the utmost impor-tance to the community. We have already seen howcapital can he created or increased only hy saving is done hy companies that set asidepart of their revenue to replace worn-out capital andto extend their husiness. However, a very targe partof tlie increase in capital must come from indiriduatsavings out of individual incomes, hecause conunandover most things that are produced passes (juicklyinto individual hands in the form of interest, profit,and wages. Without new capital tiie prospiril\ ofthe comnmnity cannot increase. Thrift and the rainy day. We have seen thatevery one siiould work, hearing his j)arl in produc-tion, hut work alone will not certainly keep one fromsome day becoming a charge upon the coinnuniity. 33 34 Loyal Citizenship. Fig. 19. Two pages from the actual bank account of a thriftycarpenter. Five entries of interest, computed at 4 per cent, areshown as follows: $, $, $, $, $ Note thatthere were three withdrawals of small sums during a period whenthere were no deposits. Perhaps the carpenter was out of workthen and had to fall back on his savings account. After six years,the balance of this account was about $3000 — the reward of per-sistent saving. Saving for future needs seems a dreary performanceto most young people. Full of health and vigor, theyfind it hard to realize that there will ever be a timewhen they cannot earn a living. Yet accident, ill-ness, old age, and death visit every family. Unem-ployment, whatever its cause, may stop any onesearnings. For these reasons thrifty persons seek tolay by something for a rainy day. Savings banks : interest. It is chiefly through ourmany savings banks that the opportunity to secure Celling Capilal: Thrift 35
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