TENTH ANNUAL YEAR BOOK— PART X 629 



Every farmer should take an inventory of his property, both real and 

 personal, on a given day in each year; it matters not what day it is, just 

 so it is the same day in each year. On that day make a list of every- 

 thing you have, estimating the value as near market price as possible; 

 include in this all bills and notes owing to you, with any cash you may 

 have on hand and in the bank. Deduct from this all your debts and any 

 notes you are owing, and you have your net worth. If you do this every, 

 year on the same day it gives you a correct record of whether you are 

 making money or not, and how fast. An inventory is one of the most 

 important parts of any man's business records and is the connecting link 

 between the years of business as they come and go, and should be pre- 

 served as one of the important features of your business life. 



A little time spent each day or evening in recording small transactions 

 as they come along from day to day in books, which need not be ex- 

 pensive or elaborate, not only shows to the man his standing with the 

 world, but makes it possible for him to ascertain at any time just how 

 he stands financially. If he is making money he will know what por- 

 tion of his work is giving him the most profit, and thereby be able to 

 enlarge that part of his labors which will increase his profits most 

 from year to year. If he is losing money he will be aware of the fact 

 before he is compelled to liquidate his debts by a foreclosure upon what 

 property he owns, and he will be informed of his true financial situation 

 before any of his creditors. You know self-preservation is the first law 

 of nature, and to be forewarned is to be forearmed, and, being first in- 

 formed, he will be able to so carry on his business and cut out that por- 

 tion which is losing him money that it will In time tide him over and 

 bring him to success, or, perhaps, the absence of some system of know- 

 ing the condition of his business would have been the means of bringing 

 on failure and final disaster. One of the secrets of the wonderful success 

 of some of the large corporations is the minute system and the methods 

 they use in making estimates of the probable loss or gain of some par- 

 ticular part of their business. You know it is a recorded fact that 

 Philip D. Armour in the heigh th of his career testified on the witness 

 stand that all the profit he made on a beef was the hide, yet this small 

 profit made Philip D. Armour one of the leading men in the packing 

 business in which he was engaged, and a millionaire several times over, 

 and this was all brought about by the inaugurating of a system by which 

 Armour & Co. are able to ascertain and know at all times the cost of 

 their goods, what they are required to charge in order to make a profit, 

 and the financial condition of their business. 



Another important feature for the farmer is the subject of a safe place 

 to keep his valuable papers. If you have not a good, substantial safe in 

 your home, go to your banker and rent a safety deposit box in his vault. 

 If he has no safety deposit boxes, go to the hardware store and pur- 

 chase a small tin box, which will cost you 75 cents; place your name on 

 it and ask the banker to place it in his vault for safe keeping, which he 

 will be very glad to do. Place all of your papers, such as deeds, in- 

 surance policies, abstracts, tax receipts and everything of value in this 

 box; then you will know just where to look if you want some paper 



