Chapter Three
During the World War I, thrift came to "the predominant civil virtue." The thrift movement was popular due to the ideas of thrift that were prevalent in the 1800's but the ideas were accelerated. Organizations such as the YMCA and the NEA formed other thrift societies and committees to investigate and teach new ideologies of thrift and how it can be used for the benefit of society. Two issues that the new thrift movement tried to address were the astonishing prosperity of the new era and the suspicion and hostile reaction of the working class to the ideas of thrift. these new ideas were facing skepticism from many, even those who used to believe strongly in it. These issues had to be faced and resolved and were thus brought to light in thrift literature in the early 20th century. According to S.W. Straus, founder of the American Society for Thrift, noted that thrift was derived from the word thrive which means to do well. For not only is a financial virtue, but it is a moral virtue. However, many advocates of thrift were heckled for being stingy and selfish in some cases. The real key principle of thrift is self-control though as it may be mistaken for being "cheap." Thrift also was taken from a private practice to one of publicity. It was used for bonds and helped companies from dangers internally with workers. Once the U.S. entered WWI, advocates for thrift quickly tried their best to promote thrift in schools and in the nation to help fortify and prepare the economy. Two primary goals of wartime thrift were to conserve goods on the home front and the raising of funds for war efforts. These efforts were promoted by the Commercial Economy Board. Another organization instituted to promote thrift was that of Food Administration developed by President Woodrow Wilson. However, once the war was over, many Americans tossed their former thrifty habits and started to splurge. Therefore, thrift was taught in schools and school savings banks were instituted by companies such as the American Bankers Association. Thrift Education was supported by companies none other than the NEA. Finally, thrift was promoted in the 20th century similarly to the 19th but now it was promoted all over in places such as the home and schools in times of both war and peace.
Tuesday, March 29, 2011
Friday, March 11, 2011
Chapter 2 Summary
Chapter 2 Summary
The first modern savings bank was known as the "Savings and Friendly Society" established by Rev. Henry Duncan in 1810 in Ruthwell, Scotland. It was set up to teach citizens how to practice thrift with the money they did not waste on clothing and alcohol. The first U.S. mutual savings bank was the Provident Institute for Savings in Boston. Within a few years of its building, mutual savings banks popped up in major cities throughout the U.S. These banks served solely to protect deposits, make limited secure investments, and provide depositors with interest. What made these mutual was the benefit that depositors received from the banks. A goal of the banks was to show the poor how living a disciplined life would generate rewards such as these. by 1910, there were a total of 637 of these mutual savings banks (MSBs). The banks advertised through literature and campaigns to get their concept of thrift out there instead of regular advertising. Many felt that the use of campaigns and directly getting to the people would truly deliver to them the concept of thrift. George E Allan stated, "The gospel of thrift should be preached in the highways and byways until the last improvident soul is saved." Savings banks' struggle for advertising competition however led them to slowly direct their attention from the poor to the middle class. The stock market crash of 1929 set the MSBs on a whole new level. They were forced to compete now with commercial institution for business. Ultimately, these changes led to the downfall of the MSBs as Americans knew them in the early 1900's. Modern banks swallowed them up and the only thing left of mutual savings banks was a good memory.
The first modern savings bank was known as the "Savings and Friendly Society" established by Rev. Henry Duncan in 1810 in Ruthwell, Scotland. It was set up to teach citizens how to practice thrift with the money they did not waste on clothing and alcohol. The first U.S. mutual savings bank was the Provident Institute for Savings in Boston. Within a few years of its building, mutual savings banks popped up in major cities throughout the U.S. These banks served solely to protect deposits, make limited secure investments, and provide depositors with interest. What made these mutual was the benefit that depositors received from the banks. A goal of the banks was to show the poor how living a disciplined life would generate rewards such as these. by 1910, there were a total of 637 of these mutual savings banks (MSBs). The banks advertised through literature and campaigns to get their concept of thrift out there instead of regular advertising. Many felt that the use of campaigns and directly getting to the people would truly deliver to them the concept of thrift. George E Allan stated, "The gospel of thrift should be preached in the highways and byways until the last improvident soul is saved." Savings banks' struggle for advertising competition however led them to slowly direct their attention from the poor to the middle class. The stock market crash of 1929 set the MSBs on a whole new level. They were forced to compete now with commercial institution for business. Ultimately, these changes led to the downfall of the MSBs as Americans knew them in the early 1900's. Modern banks swallowed them up and the only thing left of mutual savings banks was a good memory.
Tuesday, March 8, 2011
Chapter 1 Summary
Chapter One
Benjamin Franklin was a thriving American in his day. Though he did not invent thrift, he brought the name to what it is regarded as today. Two of his most famous works, Poor Richard's Almanack and The Way to Wealth contained helpful teachings on thrift and every American lived by his principles. These principles were the cornerstone of society and represented the American Dream. Franklin's practices are even more helpful today then they were back then. Since many are sky-high in debt because of credit cards and money scams, people are turning to these somewhat ancient practices to help them get by in life. However, those times were still similar because credit and bankruptcies were around but they were a new topic for people living in the 1800's. His notions of spending less and saving more intrigued people and those who lived by these words saw major differences. To understand thrift, one must know what it is. Contrary to the popular belief that it is just being stingy, or self-denying, thrift is rather maximizing what is given to you. Franklin lived like and two years after he opened his own business, he was able to pay off all of his debts. He was able to retire in his early forties because of his significant wealth.What made Franklin so influential has to be that he grew up in a modest household where he was not given everything. His success came from working hard. From hard work comes trust from not only friends but also those in higher positions such as employers. According to Ben, time should never be wasted, leisure should be put to good use. Good fortune should be given to public service and used for the good of others. To Franklin, stewardship was important and in order to become wealthy, one must live a frugal lifestyle.
Benjamin Franklin was a thriving American in his day. Though he did not invent thrift, he brought the name to what it is regarded as today. Two of his most famous works, Poor Richard's Almanack and The Way to Wealth contained helpful teachings on thrift and every American lived by his principles. These principles were the cornerstone of society and represented the American Dream. Franklin's practices are even more helpful today then they were back then. Since many are sky-high in debt because of credit cards and money scams, people are turning to these somewhat ancient practices to help them get by in life. However, those times were still similar because credit and bankruptcies were around but they were a new topic for people living in the 1800's. His notions of spending less and saving more intrigued people and those who lived by these words saw major differences. To understand thrift, one must know what it is. Contrary to the popular belief that it is just being stingy, or self-denying, thrift is rather maximizing what is given to you. Franklin lived like and two years after he opened his own business, he was able to pay off all of his debts. He was able to retire in his early forties because of his significant wealth.What made Franklin so influential has to be that he grew up in a modest household where he was not given everything. His success came from working hard. From hard work comes trust from not only friends but also those in higher positions such as employers. According to Ben, time should never be wasted, leisure should be put to good use. Good fortune should be given to public service and used for the good of others. To Franklin, stewardship was important and in order to become wealthy, one must live a frugal lifestyle.
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