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.
MANY men fail because they undertake a business without considering whether there is room for it; others because they do not thoroughly establish themselves in the place, making no effort to get a constituency; and yet others because they do not keep the goods that are in demand, or do not renew the stock sufficiently quick, or do not present their goods in an attractive way. Such causes of success or failure as are in the line of this work will now be considered. Here are the rules of an old merchant which he would take for his guidance were he to start anew in business:
THE MINIMUM BASIS.—Enumerate the entire number of heads of families in the town, village, ward, or neighborhood where you purpose to begin business. Figure out the number of such persons you will require as a minimum basis in order to get on—that is, how many persons or families, spending each on an average a certain amount per day or week at your place of business, you will require in order to make a living. Do not go blindly into your work, trusting to luck. Luck is always on the side of pluck and tact. Determine what per cent. of the people’s patronage is absolutely essential to your success. The first step is to ascertain if such per cent. is likely to come to you.
THE HOUSE TO HOUSE CANVASS.—Make a personal canvass from house to house. Do not trust the work to your friend, relative, or clerk. Nobody can help you so much as you can help yourself. Nobody has your interests so much at heart as you have. Tell people pleasantly that you are a new bidder for their patronage. Inform them what you propose to do. Make them to understand that no man shall undersell you, or give them in any way a better bargain. If possible, take a few samples of your choicest goods with you.
THE CHOICE LOCATION.—If you become popular, the people will come to you; but at first you must go to them. Your place need not be central or on a corner, but it must be where many people pass. Step out largely and conspicuously. You could make no greater mistake than to rent a shabby place on a back street. Have out all manner of signs, curious, newsy, and alluring. Do not think to sustain yourself by people’s sympathies. Men will trade most where they can do best.
THE MAXIMUM BASIS.—The maximum basis is the high-water mark. It is the number of persons or families that under the most favorable state of things can be your patrons. All you cannot expect. Kindred, religion, politics, friendships, and secret fraternities, will hold a portion of the community to the old traders. The sharpest rivalry will meet you. Also, you must consider what incursions are likely to be made by out-of-town dealers, and what prospect there is of others{23} setting up business in the place. But you should have an ideal trade toward which you steadily work. Declare daily to yourself, “my gross earnings shall be $—per day,” or “—— (so many) persons shall be my patrons.” When you fall below the mark, bestir yourself in many ways.
THE PERSONAL EQUATION.—Remember that you yourself in contact with your customers count for more than anything else. The weather of the face, the temperature of the hand, the color of the voice, will win customers where other means fail. Make your patrons feel that you are their friend. Inquire about members of their family. Be exceedingly polite. Recommend your goods. Mention anything of an especially attractive or meritorious nature you may have. Join the church, the regiment, the fire company, and the secret society. Become “all things to all men, if by any means you can sell to some.” Be everywhere in your place of business. Oversee the smallest details. Trust as little as possible to your clerks. The diamond of success is the master’s eye. Remember there is no fate. There are opportunities, purpose, grit, push, pluck, but no fate. If you fail, do not lay the blame upon circumstances, but upon yourself. Enthusiasm moves stones. You must carry your business in your brain. “A bank never gets to be very successful,” says a noted financier, “until it gets a president who takes it to bed with him.” There was an angel in Michael Angelo’s muddy stone, and there is a fortune in your humdrum store. Hard work and close thought are the hands that carve it out.
Nothing is so bad as consistency. There exists no more terrible person than the man who remarks: "Well, you may say what you like, but at any rate I have been consistent." This argument is generally advanced as the palliation for some notorious failure. And this is natural For the man who is consistent must be out of touch with reality. There is no consistency in the course of events, in history, in the weather, or in the mental attitude of one's fellow-men. The consistent man means that he intends to apply a single foot-rule to all the chances and changes of the universe.
This mental standpoint must of necessity be founded on error. To adopt it is to sacrifice judgment, to cast away experience, and to treat knowledge as of no account. The man who prides himself on his consistency means that facts are nothing compared to his superior sense of intellectual virtue. But to attack consistency is quite a different thing from elevating inconsistency to the rank of an ideal. The man who was proud of being inconsistent, not from necessity but from choice, would be as much of a fool as his opposite. Life, in a word, can never be lived by a theory.
The politicians are the most prominent victims of the doctrine of consistency. They practice an art which, above all others, depends for success on opportunism—on dealing adequately with the chances and changes of circumstances and personalities. And yet the politician more than anyone else has to consider how far he dare do the right thing to-day in view of what he said yesterday. The policy of a great nation is often diverted into wrong channels by the memories of old speeches, and statesmen fear men who mole in Hansard.
Again, I do not recommend inconsistency as a good thing in itself. If a politician believes in some great general economic policy such as Free Trade or Protection, he will only be justified in changing his mind under the irresistible pressure of a change of circumstance. He will be slow, and rightly, to change his standpoint until the evidence carries absolute conviction.
In business consistency of mental attitude is a terrible vice, for a simple and obvious reason. By an inevitable process like the swaying of the solstice the business world alternates between periods of boom and periods of depression. The wheel is always revolving, fast or slow, round the full cycle of over-or under-production. It is clear that a policy which is right in one stage of the process must necessarily be wrong in the other. What would happen to a man who said, "I am consistent. I always buy," or to one who replied, "No man can charge me with lack of principle. I invariably sell"? Their stories would soon be written in the Gazette.
This is the most obvious instance of the perils of consistency in the world of business. But, quite apart from this, nothing but fluidity of judgment can ever lead the man of affairs to success.
I once took the chairmanship of a bank which had passed into a state of torpor threatening final decay. There was not a living fibre in it, and my task was to try to galvanise the corpse. I sought here and there and in every direction for an opening, like a boxer feeling for a weak point in his opponent's guard. My fellow directors, who had served on the board for many years, were shrewd business men, but if the bank had not lost the capacity for either accepting or creating new situations it would not have been in a state of decay. The board met once a week, and the directors gathered together before the meeting at the luncheon-table. "What surprise proposal are you going to spring on us to-day?" they used to ask me. And the mere fact that the proposal was of the nature of a surprise was almost invariably the only criticism against it. I may have been wrong in surprising my colleagues by the various projects that I put forward, but in the propositions themselves I proved right.
The criticism was really based on the doctrine of consistency fatal to all business enterprise.
Suppose an amalgamation was contemplated one day I would be a buyer of another bank, and if by next week this plan had fallen through I would be strongly in favour of selling to a bigger bank. "But you are inconsistent," said my colleagues. My answer is that what the business needed was life and movement at all costs, and that buying or selling, consistency or inconsistency were neither here nor there.
The prominent capitalist is often open to this particular charge. On Wednesday, says the adversary, he was all for this great scheme; on Friday he has forgotten all about it and has another one. This is perfectly true—but then between Wednesday and Friday the weather has changed completely. Is the barometer fickle or inconsistent because it registers an alteration of weather?
Nevertheless, the men of affairs who follow facts to success rather than consistency to failure must expect to pay the penalty. Or at least, if they are to avoid the punishment for being right they must take enormous precautions.
The principle penalty is the prompt criticism that although the successful business man plays the game with vigour, nerve, and sinew, yet he plays it according to his own rules. The truth is that there is no other way in which to play the game. Fluidity of judgment, adversely described as fickleness and inconsistency, is the essence of success.
But the criticism is damaging. There are only two ways of combating it, the wrong one and the right one. The wrong method is that of hypocrisy—claiming a consistency which does not exist. The right one is to cultivate the art of pleasing, so that inconsistency may be forgiven. Friends may thus be retained though business policies vary. This is the highest art of financial diplomacy.
Those who by some misfortune of character or upbringing are incapable of this practice must make up their minds to face the abuse which their successful practice of inconsistency will entail. They will not, if they are wise, cultivate hypocrisy, not because the practice will damage them in the esteem of their colleagues and neighbours, for, on the contrary, it will enhance their repute, but because it will damage their own self-respect. They would know that they were right in following fact and fortune, and yet would be making a public admission that they were wrong.
Billionaire philanthropist and spiritual leader Aga Khan has died at the age of 88, his charity the Aga Khan Development Network has announced.
Prince Karim Aga Khan was the 49th hereditary imam of the Ismaili Muslims, who trace his lineage directly to the Prophet Muhammad.
He "passed away peacefully" in Lisbon, Portugal, surrounded by his family, his charity said in a statement on social media.
Born in Switzerland, he had British citizenship and lived in a chateau in France.
The King has been made aware of the death of the philanthropist, who was a friend of both himself and his mother, the late Queen Elizabeth II.It is understood that the King is deeply saddened at the loss of a personal friend of many years and is in touch with the family privately.
The Aga Khan's charities ran hundreds of hospitals, educational and cultural projects, largely in the developing world.
He enjoyed a lavish lifestyle, with a private island in the Bahamas, a super-yacht and a private jet.
The Aga Khan Development Network said it offered its "condolences to the family of His Highness and to the Ismaili community worldwide".
"We continue to work with our partners to improve the quality of life for individuals and communities across the world, as he wished, irrespective of their religious affiliations or origins," it added.
The Ismailis, a Muslim sect, have a worldwide population of about 15 million, including 500,000 in Pakistan. There are also large populations in India, Afghanistan and Africa.Prince Karim Aga Khan succeeded his grandfather as imam of the Ismaili Muslims in 1957 at the age of 20.
The prince had an estimated fortune of $1bn (£801m) in 2008, according to Forbes magazine. His inherited wealth was boosted by numerous business interests, including horse-breeding.
He became a leading owner and breeder of race horses in the UK, France and Ireland, breeding Shergar, once the most famous and most valuable racehorse in the world.
Shergar won the Derby at Epsom in 1981 by 10 lengths in the Aga Khan's emerald green racing silks with red epaulets but was kidnapped in Ireland two years later and never found.
Despite losing his beloved horse, he told the BBC in 2011 - on the 30th anniversary of Shergar's biggest triumph - that he did not contemplate deserting his Irish breeding operation.Of Shergar's triumph, he said: "It's a memory that can never, never go away.
"I've seen that film I don't know, tens or hundreds of times. I keep trying to analyse where this remarkable performance came from. Every time I see the film, I feel that I have learned something.
"If you're in racing, the Epsom Derby is one of the greats. It always has been, so to win a race of that quality in itself is an extraordinary privilege. To win it the way he won it was more than that.
"I had watched quite enough races to be able to determine what the jockey was feeling, how the horse was going at the time and when he came around Tattenham Corner, I couldn't believe my eyes, frankly.
"His victory up to this point in time was unique. Two things I found stunning - one was the ease with which that horse moved and second was the fact that during the finishing straight he just kept going away, going away, going away. That was really remarkable."
The Aga Khan went on to win the big race another four times with Shahrastani (1986), Kahyasi (1988), Sinndar (2000) and Harzand (2016).
Other notable successes included the 2008 Prix de l'Arc de Triomphe with the brilliant unbeaten filly Zarkava.
The prince was also the founder of the Aga Khan Foundation charity prince and gave his name to bodies including a university in Karachi, and the Aga Khan Program for Islamic Architecture at Harvard University and the Massachusetts Institute of Technology.
The Aga Khan Trust for Culture was key to the restoration of the Humayun's Tomb site in Delhi. There is an annual Aga Khan Award for Architecture.
And he founded the Nation Media Group, which has become the largest independent media organisation in east and central Africa.
Pakistan's Prime Minister Shehbaz Sharif paid tribute to the prince describing him as a "man of vision, faith, and generosity" and a "remarkable leader".
"Through his tireless efforts in poverty alleviation, healthcare, and gender equality, he championed the cause of the marginalized, leaving an indelible mark on countless lives," he said.
Activist and Nobel Prize laureate Malala Yousafzai said: "His legacy will continue to live on through the incredible work he led for education, health and development around the world."
UN Secretary-General Antonio Guterres described him as a "symbol of peace, tolerance and compassion in our troubled world".
Among all of you who read this book I am looking for the kings and queens. I am looking for the successful men and women of the future. No matter how old you may be, you yet have life before you. I am looking for the leading men and women, and I will find them with these four tests. I cannot fail; it is infallible.
Some men, intensely American, will say:
"Oh, we don't have any kings or queens in this country."
Did you ever observe that America is ruled by the least number of people of any nation known on earth? And that same small number will rule it when we add all the women, as we soon shall, to the voting population. America is ruled by a very few kings and queens. The reason why we are ruled by so few is because our people are generally intelligent. "Oh," you will ask, "do you mean the political boss rule?" Yes. That[Pg 12] is not a good word to use, because it is misleading. America is ruled by bosses, anyhow, and it will be so long as we are a free people. We do not approve of certain phases of boss rule, and so don't misunderstand me when I state that a very few persons govern the American people. In my home city, Philadelphia, for instance, nearly two millions of people are ruled by four or five men. It will always be so. Everything depends on whether those four or five men are fitted for the place of leaders or not. If they are wise men and good men, then that is the best kind of government. There is no doubt about it. If all the eighty or ninety millions of people in the United States were compelled to vote on every little thing that was done by the Government, you would be a long time getting around to any reform.
An intelligent farmer would build a house. Will he, as a farmer, go to work and cut out that lumber himself, plane it himself, shape it himself? Will he be the architect of the house, drive all the nails, put on the shingles, and build the chimney himself? If he is an intelligent man he will hire a carpenter, an architect, and a mason who understand their business, and tell them to oversee that work for him. In an intelligent country we[Pg 13] can hire men who understand statesmanship, law, social economics, who love justice. We hire them as skilled people to do what we are not able to do. Why should all the people be all the time meddling with something they don't understand? They employ people who do understand it, and consequently, in a free nation a few specially fitted people will ever be allowed to guide. They will be the people who know better than we know what to do under difficult or important circumstances.
You are ruled by a few people, and I am looking for these few people among my readers. There are some women in this country who now have more influence than any known statesman, and their names are hardly mentioned in the newspapers. I remember once, in the days of Queen Victoria, asking a college class, "Who rules England?" Of course, they said, "Queen Victoria." Did Queen Victoria rule England? During her nominal reign England was the freest land on the face of the earth, and America not half as free if you go to the extremes of comparison. She was only a figurehead, and she would not even express an opinion on the Boer War. It was all left to the statesmen, who had really been selected by the Parliament to rule. They were the real rulers.[Pg 14]
I am looking for the real kings, not the nominal ones, and I shall find the successful men and women of the future by the four tests mentioned in the old tradition of the Silver Crown. The first one is:
"Animals will follow them."
If a dog or cat tags your heels to-morrow remember what I am writing about it here. It is evidence of kingship or queenship. If you don't have a cat or dog or an ox or a horse to love you, then I pity you. I pity the animal the most, but you are also a subject of sympathy. Is there no lower animal that loves to hear your footstep, whines after your heels, or wags the tail or shakes the head at your door? Is there no cat that loves to see you come in when the house has been vacant? Is there no faithful dog that rises and barks with joy when he hears your key in the door? If you have none it is time you had one, because one of the important pathways to great success is along the line of what animal life can give to us of instruction and encouragement.
The time has come when a dog ought to be worth at least a thousand dollars. The time has come when a horse that now trots a mile in 2:05 or 2:06 ought to trot a mile in fifty-five seconds. That is scientifically possible. Now, where are[Pg 15] your deacons and your elders and your class leaders that you haven't a horse in your city that will trot a mile in fifty-five seconds?
"Oh," says some good, pious brother, "I don't pay any attention to trotting-horses! I am too religious to spend time over them."
Is that so? Who made the trotting-horse? Who used the most picturesque language on the face of the earth, in the Book of Job, to describe him? Did you ever own a trotting-horse? Did you ever see a beautiful animal so well fed, so well cared for, trembling on that line with his mane shaking, his eyes flashing, his nostrils distended, and all his being alert for the leap? And did you hear the shot and see him go? If you did and didn't love him, you ought to be turned out of the church.
The time has come when a horse may be as useful as a university.
At Yale University, one day, I heard a professor of science tell those boys that a horse has within its body so much galvanic or electric force continually generated by the activities of life, that if that electricity could be concentrated and held to a certain point, a horse could stand still and run a forty-horse power electric engine. He went further than that and said that a man has within his living body sufficient continually generated[Pg 16] electricity which, if it were brought to a point, might enable him to stand still and run a ten-horsepower electric engine. I went out of that class-room with a sense of triumph, thinking:
"There is going to be use, after all, for the loafers who stand on the corners and smoke!"
In Europe, some years ago, a sewing-machine was invented on which a lady put her bare feet, and her electric forces started the machine. This power does not yet run the machine strong enough to force the needle for real sewing. The only question is to get more of the electricity of that lady through the machine and secure the greater power. Then if a young man wants a valuable wife he must marry one "full of lightning."
The time is very near at hand when all the motive power of the world may be furnished by animal life. When they get one step further the greatest airships will go up and take with them a lap dog. The airship will require no coal, no oil, but just the electric force of that lap dog; and if they carry up enough to feed that dog he will furnish the power to run the motors. The great high seas of the air will be filled with machines run by lap dogs or the electricity of the aviator himself. It is not so far away as many of you[Pg 17] may suppose, and it is the greatly needed improvement of this time, not so much for the purpose of the war, as for peace.
The time has come when an old hen may become a great instructor of the world. I would rather send my child to an old hen than to any professor I ever saw in my life. That old biddy which scratches around your door, or who cackles beside your fence, or picks off your flowers, knows more of some things than any scientific professor on the face of the earth. I wish I knew what that old hen does. But there are some professors who pretend to have a wonderful intellect, who say:
"I graduated from Leipsic or from Oxford or Harvard, and I have no time to observe a hen."
No time to notice a hen? My friend, did you ever try to talk with her?
"No, I did not; she has no language."
Didn't you ever hear her call the chickens and see them come? Didn't you ever hear her scold the rooster, and see him go? Well, a hen does have a real language, and it is time you scientific professors understood what that old biddy says.
"Oh, but," says the professor, "I have no time to spend with a hen! They are around the place all the time, but I never take any special notice[Pg 18] of them. I am studying the greater things in the world."
"Won't you come into my study a minute, professor, and let me examine you? You have examined the boys long enough, now let me examine you.
"Bring all you know of science and all the scientific applications ever made, and all the instruments that are ever used, bring all that the world has ever discovered of chemistry. Come, and take in your hand a dove's egg, just the egg. Now, professor, will you tell the person who is reading this book where, in this egg, is now the beating heart of the future bird? Can you tell where it is?"
"Oh no, I cannot tell that. I can tell you the chemistry of the egg."
"No, I am not looking for that. I am looking for the design in the egg. I am looking for something more divinely mysterious than anything of chemistry. Now, professor, will you tell me where in that egg is the bony frame that next will appear?"
"No, I cannot tell you that."
"Where is the sheening bosom, and where the wings that shall welcome the sun in its coming?"
"No man can tell that," says the professor.[Pg 19]
The professor is quite right. It cannot yet be told. Yet, in that egg is the greatest scientific problem with which the world has ever grappled—the beginning of life and the God-given design. In that egg is the secret of life. Professor, tell me where this life begins. The professor says, "No man can answer questions like that."
Then, until we can answer, we must take off our hats every time we meet a setting hen. For that old biddy knows by instinct more about it than any one of us. She knows directly, through her instinctive nature from God, something about the beginnings of life that we cannot understand yet.
The last time I saw Dr. Oliver Wendell Holmes, the grand poet of Massachusetts, he asked me to go out in his back yard and see his chickens. He told me they would answer to their names. But it turned out that they were like our children, and would not show off before company. But I haven't any doubt those little chickens still with the hen did answer to their individual names when she alone called them. I am sure that great man understood the hen and chickens as fully as Darwin did the doves.
It was a wonderful thing for science that men like Holmes and Darwin could learn so much from[Pg 20] the hen. It reminds me of a current event in Doctor Holmes's own life, though the biographies do not seem to have taken notice of it. He and Mr. Longfellow were very intimate friends. They were ever joking each other like two boys, always at play whenever they met. One day, it is said, Doctor Holmes asked Mr. Longfellow to go down to Bridgewater, in Massachusetts, to a poultry show. He went; he was greatly interested in chickens.
Those two great poets went down to the poultry show, and as they walked up the middle passageway between the exhibits of hens and chickens they came to a large poster on which was a picture of a rooster. He had his wings spread and mouth open, making a speech to a lot of little chickens. It was such a unique picture that Mr. Longfellow called Doctor Holmes's attention to it, and said:
"There, you love chickens, you understand them. What do you suppose a rooster does say when he makes a speech to chickens like that?"
They went on, and Doctor Holmes was studying over it. Finally he turned around and said, "Go on, I will catch up with you." He went back to that poster, got up on a chair, took the tacks out of the top, turned in the advertisement at the[Pg 21] top, above the picture, and then took his pencil and drew a line from the bill of the rooster that was making that speech up to the top. There he wrote what he thought that rooster was saying to those chickens. They say that he did not make a single correction in it, of line or word. He then went after Mr. Longfellow and brought the great poet back to see the poster. He had written these words, in imitation of Longfellow's "Psalm of Life":
A great number of letters have reached me from young men who seem to think that the road to success is barred to them owing to defects in their education. To them I would send this message:
Never believe that success cannot come your way because you have not been educated in the orthodox and regular fashion.
The nineteenth century made a god of education, and its eminent men placed learning as the foremost influence in life.
I am bold enough to dissent, if by education is meant a course of study imposed from without. Indeed, such a course may be a hindrance rather than a help to a man entering on a business career. No young man on the verge of life ought to be in the least discouraged by the fact that he is not stamped with the hall mark of Oxford or Cambridge.
Possibly, indeed, he has escaped a grave danger; for if, in the impressionable period of youth, attention is given to one kind of knowledge, it may very likely be withdrawn from another. A life of sheltered study does not allow a boy to learn the hard facts of the world—and business is concerned with reality. The truth is that education is the fruit of temperament, not success the fruit of education. What a man draws into himself by his own natural volition is what counts, because it becomes a living part of himself. I will make one exception in my own case—the Shorter Catechism, which was acquired by compulsion and yet remains with me.
My own education was of a most rudimentary description. It will be difficult for the modern English mind to grasp the parish of Newcastle, New Brunswick, in the 'eighties—sparse patches of cultivation surrounded by the virgin forest and broken by the rush of an immense river. For half the year the land is in the iron grip of snow and frost, and the Miramichi is frozen right down to its estuary—so that "the rain is turned to a white dust, and the sea to a great green stone."
It was the seasons which decided my compulsory education. In the winter I attended school because it was warm inside, and in the summer I spent my time in the woods because it was warm outside.
Perhaps the most remarkable instance of what self-education can do is to be found in the achievements of Mr. J. L. Garvin. He received no formal education at all in the public school or university sense, and he began to work for his living at an early age. Yet, not only is he, perhaps, the most eminent of living journalists, but his knowledge of books is, if not more profound than that of any other man in England, certainly wider in range, for it is not limited to any country or language. By his own unaided efforts he has gained not only knowledge, but style and judgment. To listen to his talk on literature is not merely to yield oneself to the spell of the magician, but to feel that the critic has got his estimate of values right.
Reading, indeed, is the real source both of education and of style. Read what you like, not what somebody else tells you that you ought to like. That reading alone is valuable which becomes part of the reader's own mind and nature, and this can never be the case if the matter is not the result of self-selection, but forced on the student from outside.
Read anything and read everything—just as a man with a sound digestion and a good appetite eats largely and indifferently of all that is set before him. The process of selection and rejection, or, in other words, of taste, will come best and naturally to any man who has the right kind of brains in his head. Some books he will throw away; others he will read over and over again. My education owes much to Scott and Stevenson, stealthily removed from my father's library and read in the hayloft when I should have been in school.
As a partiality for the right kind of literature grows on a man he is unconsciously forming his mind and his taste and his style, and by a natural impulse and no forced growth the whole world of letters is his.
There are, of course, in addition, certain special branches of education needing teaching which are of particular value to the business life.
Foremost among these are mathematics and foreign languages. It is not suggested that a knowledge of the higher mathematics is essential to a successful career; none the less it is true that the type of mind which takes readily to mathematics is the kind which succeeds in the realm of industry and finance.
One of the things I regret is that my business career was shaped on a continent which speaks one single language for commercial purposes from the Arctic Circle to the Gulf of Mexico. Foreign languages are, therefore, a sealed book to me. But if a man can properly appraise the value of something he does not possess, I would place a knowledge of languages high in the list of acquirements making for success.
But when all is said and done, the real education is the market-place of the street. There the study of character enables the boy of judgment to develop an unholy proficiency in estimating the value of the currency of the realm.
Experiences teaches that no man ought to be downcast in setting out on the adventure of life by a lack of formal knowledge. The Lord Chancellor asked me the other day where I was going to educate one of my sons. When I replied that I had not thought about the matter, and did not care, he was unable to repress his horror.
And yet the real reasons for such indifference are deep rooted in my mind. A boy is master, and the only master, of his fortune. If he wants to succeed in literature, he will read the classics until he obtains by what he draws into himself that kind of instinct which enables him to distinguish between good work and bad, just as the expert with his eyes shut knows the difference between a good and a bad cigar. Neither may be able to give any reason, for the verdict bases on subconscious knowledge, but each will be right when he says, "Here I have written well," or "Here I have smoked badly."
The message, therefore, is one of encouragement to the young men of England who are determined to succeed in the affairs of the world, and yet have not been through the mill. The public schools turn out a type—the individual turns out himself. In the hour of action it is probable that the individual will defeat the type. Nothing is of advantage in style except reading for oneself. Nothing is of advantage in the art of learning to know a good cigar but the actual practice of smoking. Nothing is of advantage in business except going in young, liking the game, and buying one's experience.
In a word, man is the creator and not the sport of his fate. He can triumph over his upbringing and, what is more, over himself.
Some of the critics do not believe that the pinnacle of success stands only on the three pillars of Judgment, Industry, and Health. They point out that I have omitted one vital factor—Luck. So widespread is this belief, largely pagan in its origin, that mere fortune either makes or unmakes men, that it seems worth while to discuss and refute this dangerous delusion.
Of course, if the doctrine merely means that men are the victims of circumstances and surroundings, it is a truism. It is luckier to be born heir to a peerage and £100,000 than to be born in Whitechapel. Past and present Chancellors of the Exchequer have gone far in removing much of this discrepancy in fortune. Again, a disaster which destroys a single individual may alter the whole course of a survivor's career. But the devotees of the Goddess of Luck do not mean this at all. They hold that some men are born lucky and others unlucky, as though some Fortune presided at their birth; and that, irrespective of all merits, success goes to those on whom Fortune smiles and defeat to those on whom she frowns. Or at least luck is regarded as a kind of attribute of a man like a capacity for arithmetic or games.
This view is in essence the belief of the true gambler—not the man who backs his skill at cards, or his knowledge of racing against his rival—but who goes to the tables at Monte Carlo backing runs of good or ill luck. It has been defined as a belief in the imagined tendencies of chance to produce events continuously favourable or continuously unfavourable.
The whole conception is a nightmare of the mind, peculiarly unfavourable to success in business. The laws of games of chance are as inexorable as those of the universe. A skilful player will, in the long run, defeat a less skilful one; the bank at Monte Carlo will always beat the individual if he stays long enough. I presume that the bank there is managed honestly, although I neither know nor care whether it is. But this at least is certain—the cagnotte gains 3 per cent. on every spin. Mathematically, a man is bound to lose the capital he invests in every thirty throws when his luck is neither good nor bad. In the long run his luck will leave him with a balanced book—minus the cagnotte. My advice to any man would be, "Never play roulette at all; but if you must play, hold the cagnotte."
The Press, of course, often publishes stories of great fortunes made at Monte Carlo. The proprietors there understand publicity. Such statements bring them new patrons.
It is necessary to dwell on this gambling side of the question, because every man who believes in luck has a touch of the gambler in him, though he may never have played a stake. And from the point of view of real success in affairs the gambler is doomed in advance. It is a frame of mind which a man should discourage severely when he finds it within the citadel of his mind. It is a view which too frequently infects young men with more ambition than industry.
The view of Fortune as some shining goddess sweeping down from heaven and touching the lucky recipient with her pinions of gold dazzles the mind of youth. Men think that with a single stroke they will either be made rich for life or impoverished for ever.
The more usual view is less ambitious. It is the complaint that Fortune has never looked a man's way. Failure due to lack of industry is excused on the ground that the goddess has proved adverse. There is a third form of this mental disease. A young man spoke to me in Monte Carlo the other day, and said, "I could do anything if only I had the chance, but that chance never comes my way." On that same evening I saw the aspirant throwing away whatever chance he may have had at the tables.
A similar type of character is to be found in the young man who consistently refuses good offers or even small chances of work because they are not good enough for him. He expects that Luck will suddenly bestow on him a ready-made position or a gorgeous chance suitable to the high opinions he holds of his own capacities. After a time people tire of giving him any openings at all. In wooing the Goddess of Luck he has neglected the Goddess of Opportunity.
These men in middle age fall into a well-known class. They can be seen haunting the Temple, and explaining to their more industrious and successful associates that they would have been Lord Chancellor if a big brief had ever come their way. They develop that terrible disease known as "the genius of the untried." Their case is almost as pitiful or ludicrous as that of the man of very moderate abilities whom drink or some other vice has rendered quite incapable. There will still be found men to whisper to each other as he passes, "Ah, if Brown didn't drink, he might do anything."
Far different will be the mental standpoint of the man who really means to succeed. He will banish the idea of luck from his mind. He will accept every opportunity, however small it may appear, which seems to lead to the possibility of greater things. He will not wait on luck to open the portals to fortune. He will seize opportunity by the forelock and develop its chances by his industry. Here and there he may go wrong, where judgment or experience is lacking. But out of his very defeats he will learn to do better in the future, and in the maturity of his knowledge he will attain success. At least, he will not be found sitting down and whining that luck alone has been against him.
There remains a far more subtle argument in favour of the gambling temperament which believes in luck. It is that certain men possess a kind of sixth sense in the realm of speculative enterprise. These men, it is said, know by inherent instinct, divorced from reasoned knowledge, what enterprise will succeed or fail, or whether the market will rise or fall. They are the children of fortune.
The real diagnosis of these cases is a very different one from that put forward by the mystic apostles of the Golden Luck. Eminent men who are closely in touch with the great affairs of politics or business often act on what appears to be a mere instinct of this kind. But, in truth, they have absorbed, through a careful and continuous study of events both in the present and the past, so much knowledge, that their minds reach a conclusion automatically, just as the heart beats without any stimulus from the brain. Ask them for the reasons of their decision, and they become inarticulate or unintelligible in their replies. Their conscious mind cannot explain the long-hoarded experience of their subconscious self. When they prove right in their forecast, the world exclaims, "What luck!" Well, if luck of that kind is long enough continued it will be best ascribed to judgment.
The real "lucky" speculator is of a very different character. He makes a brilliant coup or so and then disappears in some overwhelming disaster. He is as quick in losing his fortune as he is in making it. Nothing except Judgment and Industry, backed by Health, will ensure real and permanent success. The rest is sheer superstition.
Two pictures may be put before the believer in luck as an element in success. The one is Monte Carlo—where the Goddess Fortune is chiefly worshipped—steeped in almost perpetual sunshine, piled in castellated masses against its hills, gaining the sense of the illimitable from the blue horizon of the Mediterranean—a shining land meant for clean exercise and repose. Yet there youth is only seen in its depravity, while old age flocks to the central gambling hell to excite or mortify its jaded appetites by playing a game it is bound to lose.
Here you may see in their decay the people who believe in luck, steeped in an atmosphere of smoke and excitement, while beauty of Nature or the pursuits of health call to them in vain. Three badly lighted tennis courts compete with thirty splendidly furnished casino rooms. But of means for obtaining the results of exercise without the exertion there is no end. The Salle des Bains offers to the fat and the jaded the hot bath, the electric massage, and all the mechanical instruments for restoring energy. Modern science and art combine to outdo the attractions of the baths of Imperial Rome.
In far different surroundings from these were born the careers of the living captains of modern industry and finance—Inchcape, Pirrie, Cowdray, Leverhulme, or McKenna. These men believed in industry, not in fortune, and in judgment rather than in chance. The youth of this generation will do well to be guided by their example, and follow their road to success. Not by the worship of the Goddess of Luck were the great fortunes established or the great reputations made.
It is natural and right for youth to hope, but if hope turns to a belief in luck, it becomes a poison to the mind. The youth of England has before it a splendid opportunity, but let it remember always that nothing but work and brains counts, and that a man can even work himself into brains. No goddess will open to any man the portals of the temple of success. Young men must advance boldly to the central shrine along the arduous but well-tried avenues of Judgment and Industry.
Many serious letters and a half-humorous criticism in Punch suggest that I am to be regarded as the apostle of a pure materialism. That is not so. I quite recognise the existence of other ambitions in the walks of Art, Religion, or Literature. But at the very outset I confined the scope of my advice to those who wish to triumph in practical affairs. I am talking to the young men who want to succeed in business and to build up a new nation. Criticism based on any other conception of my purpose is a spent shaft.
Money—the word has a magical sound. It conjures up before the vision some kind of enchanted paradise where to wish is to have—Aladdin's lamp brought down to earth.
Yet in reality money carries with it only two qualities of value: the character it creates in the making; the self-expression of the individuality in the use of it, when once it has been made. The art of making money implies all those qualities—resolution, concentration, economy, self-control—which make for success and happiness. The power of using it makes a man who has become the captain of his own soul in the process of its acquirement also the master of the circumstances which surround him. He can shape his immediate world to his own liking. Apart from these two faculties, character in acquirement, power in use, money has little value, and is just as likely to be a curse as a blessing. For this reason the money master will care little for leaving vast wealth to his descendants. He knows that they would be better men for going down stripped into the struggle, with no inheritance but that of brains and character. Wealth without either the wish, the brains, or the power to use it is too often the medium through which men pamper the flesh with good living, and the mind with inanity, until death, operating through the liver, hurries the fortunate youth into an early grave. The inheritance tax should have no terrors for the millionaire.
The value of money is, therefore, first in the striving for it and then in the use of it. The ambition itself is a fine one—but how is it to be achieved?
I would lay down certain definite rules for the guidance of the young man who, starting with small things, is determined to go on to great ones:—
1. The first key which opens the door of success is the trading instinct, the knowledge and sense of the real value of any article. Without it a man need not trouble to enter business at all, but if he possesses it even in a rudimentary form he can cultivate it in the early days when the mind is still plastic, until it develops beyond all recognition. When I was a boy I knew the value in exchange of every marble in my village, and this practice of valuing became a subconscious habit until, so long as I remained in business, I always had an intuitive perception of the real and not the face value of any article.
The young man who will walk through life developing the capacity for determining values, and then correcting his judgments by his information, is the man who will succeed in business.
2. But supposing that a young man has acquired this sense of values, he may yet ruin himself before he comes to the fruition of his talent if he will not practise economy. By economy I mean the economic conduct of his business. Examine your profit and loss account before you go out to conquer the financial world, and then go out for conquest—if the account justifies the enterprise. Too many men spend their time in laying down "pipe-lines" for future profits which may not arrive or only arrive for some newcomer who has taken over the business. There is nothing like sticking to one line of business until you have mastered it. A man who has learned how to conduct a single industry at a profit has conquered the obstacles which stand in the way of success in the larger world of enterprise.
3. Do not try to cut with too wide a swath. This last rule is the most important of all. Many promising young men have fallen into ruin from the neglect of this simple principle. It is so easy for premature ambition to launch men out into daring schemes for which they have neither the resources nor the experience. Acquire the knowledge of values, practise economy, and learn to read the minds of men, and your technique will then be perfected and ready for use on wider fields. The instinct for values, the habit of economy, the technique of business, are only three forms of the supreme quality of that judgment which is success.
For these reasons it is the first £10,000 which counts. There is the real struggle, the test of character, and the warranty of success. Youth and strength are given us to use in that first struggle, and a man must feel those early deals right down to the pit of his stomach if he is going to be a great man of business. They must shake the very fibre of his being as the conception of a great picture shakes an artist. But the first ten thousand made, he can advance with greater freedom and take affairs in his stride. He will have the confidence of experience, and can paint with a big brush because all the details of affairs are now familiar to his mentality. With this assured technique nothing will check the career. "Why," says the innkeeper in an adaptation from Bernard Shaw's sketch of Napoleon in Italy, "conquering countries is like folding a tablecloth. Once the first fold is made, the rest is easy. Conquer one, conquer all."
Such in effect is the career of the great captains of industry. Yet the man who attains, by the practice of these rules, a great fortune, may fail of real achievement and happiness. He may not be able to recognise that the qualities of the aspirant are not exactly the qualities of the man who has arrived. The sense of general responsibility must supersede the spirit of private adventure.
The stability of credit becomes the watchword of high finance. Thus the great money master will not believe that periods of depression are of necessity ruinous. It is true that no great profits will be made in such years of depression. But the lean years will not last for ever. Industry during the period of deflation goes through a process like that of an over-fat man taking a Turkish bath. The extravagances are eliminated, new invention and energy spring up to meet the call of necessity, and when the boom years come again it finds industry, like a highly trained athlete, ready to pour out the goods and pay the wages. Economic methods are nurtured by depression.
But when all has been said and done, the sceptic may still question us. Is the capacity to make money something to be desired and striven for, something worth having in the character, some proof of ability in the mind? The answer is "Yes."
Money which is striven for brings with it the real qualities in life. Here are the counters which mark character and brains. The money brain is, in the modern world, the supreme brain. Why? Because that which the greatest number of men strive for will produce the fiercest competition of intellect. Politics are for the few; they are a game, a fancy, or an inheritance. Leaving out the man of genius who flares out, perhaps, once or twice in a century, the amount of ability which enables a man to cut a very respectable figure in a Cabinet is extraordinarily low, compared with that demanded in the world of industry and finance. The politician will never believe this, but it is so.
The battles of the market-place are real duels, on which realities of life and death and fortune or poverty and even of fame depend. Here men fight with a precipice behind them, not a pension of £2,000 a year. The young men who go down into that press must win their spurs by no man's favour. But youth can triumph; it has the resolution when the mind is still plastic to gain that judgment which experience gives.
My advice to the young men of to-day is simply this: Money is nothing but the fruit of resolution and intellect applied to the affairs of the world. To an unshakable resolution fortune will oppose no bar.