16 ABDaESS. 



sumption of the former, without passing, as in the other case, 

 through the intermediate stage of bank bills, which are easily 

 kept account of, that entire accuracy of accounts, to show the 

 exact product or result of the year's or quarter's operations, is 

 rendered extremely difficult. 



Here again, you will likely say, what difference does it make ? 

 Why not let expenses and income all go right in together, and 

 if there is anything left at the end of the year, call it profit ? 

 Simply because, while income and expense should bear a certain 

 relation to each other, they are two separate and distinct things, 

 and should be kept so, to the end that the amount of each may 

 be always ascertainable. For instance, if the two are jumbled 

 up together, and no record kept of either, who can tell if a possi- 

 ble deficiency, is due to the diminutiveness of one, or extrava- 

 gance in the other. I submit that as often, at least, as once in 

 each year, every business man should, by careful inventory and 

 estimate of value, ascertain the exact result of the year's opera- 

 tions. The value of the business and the feasibility of continuing 

 it, depend entirely upon the amount of income arising from it, 

 and this can not be determined, unless expenses are kept by 

 themselves and entirely separate. I may be wrong when I say 

 that perhaps not one in ten among^farmers, ever takes a regular 

 account of stock, w^iile nine out of ten merchants and manufac- 

 turers, do it annually as a matter of course. I may at any rate, 

 safely assert that it is as uncommon in the one class as it is com- 

 mon in the other. Now why is this ? Is there necessity existing 

 in one case and not in the other ? Is it not as important for the 

 farmer as for the manufacturer, to know if he is making or losing 

 money ? 



The manufacturer not only makes it his constant study to know 

 the cost of his various products, but, at least once in each year, 

 verifies his estimates of cost, by ascertaining actual results. He is 

 thus enabled to control his losses, and make his gains larger, by 

 reducing or increasing his business, in this or that direction, accord- 

 ing as he may find this or that article among his products, more 

 or less profitable. Is there any earthly reason why the farmer 

 should not follow this example ? Yet I am much mistaken if he 

 does to any great extent. The manufacturer, when he sends 

 his cloth to market, knows within a fraction of a cent per yard, 

 what it has cost him ; he thus knoAvs at just what price he can 

 afford to sell it. The farmer goes with a load of hay, apples, 

 potatoes or wood, and, possibly^ guesses they cost about so much 

 — prohahly he neither knows, thinks, or cares anything about it. 



