Will couldn’t dally any longer. Mary pressed his promise to invest half their savings in the market. Their account was twice what it was six months earlier, and it was growing by the week.
“All my friends flaunt their riches,” Mary said.
“I’ve already bought stock: some Ford, General Electric, and Standard Oil.”
“But you promised we’d spend half our savings.”
“Yes, it’s time, I suppose. But only if we pay down our debts, too.”
“Maybe we should borrow more. Everyone’s doing it. They say it’s smart to make your fortune on borrowed money.”
“You’re right there. A national mania. But it’s not good for the kids, spending other people’s money.”
“The kids?”
“A step away from stealing. It sets a bad example.”
“We’ve got mortgage debt.”
“That’s different. The collateral’s secure.”
Mary shrugged, and Will knew she wasn’t convinced.
“I’ll leave it to your good judgment,” Mary said, “but I think we should borrow, too. The market’s been climbing for over two years.”
* * *
“This surge may never end,” David Tate said. “It doesn’t have a peak. It just keeps rising.”
“David, have you known anything that went on forever? One of these days, the bubble’s bound to burst.”
Will turned his attention to the continuous ticking of the tape machine as it spewed its winners and losers, and there weren’t many losers these days.
David tore off a foot of paper and scanned the tape before throwing it down. “Well, it doesn’t look like it’s about to tank anytime soon. Will, I’ve got a tip for you.”
Everyone had tips these days, it seemed. “Yes?”
“A customer told me his cousin works for Nash Motors, down in Kenosha, and they’ve added a new assembly line. He figures their production will double.”
Will noted the glitter in David’s eye and the devious smile on his face.
“Can’t I sell you some Nash Motor stock? I hear they’re a mighty good car. Some say better than a Ford.”
“I’ll hear none of those salacious rumors.”
“They’re made right here in Wisconsin.”
Will turned toward the door. “I’ll not listen to such talk.”
“Hold on, Will. I’ve got other tips if you don’t like that one.”
“I’m ready to buy, but I don’t need tips. I know the companies with a future.”
“What do you have in mind?”
“I want Goodrich, Atlantic Refining, and Radio Corporation, and more of Ford and Standard Oil, too.”
“Not much risk there. Maybe not enough upside either. Why don’t you throw in a mining stock. If you hit it right, you can make lots of money.”
“I’ll stick with what I know, but don’t tell Mary you recommended mining.”
“If you’re going with such stalwart companies, why don’t you buy more then?”
“I can’t afford it. For every dollar in the market, I’m increasing my mortgage pay-down the same.”
“Go ahead and do that, but you don’t need more money. I’ll get you nine shares on credit for every one you buy. Why, you can get rich using other people’s money.”
“It’s not for me.”
“When your friends retire early, don’t say I didn’t offer.”
“I know, most the town’s in hock half way up the flagpole. A lot of that will go unpaid, I’m afraid. And unpaid debt’s just theft out the back door. It’s not the way I do business.” Will wrote a check. “You could be right, David, but taking unsecured debt seems reckless to me.”
Will walked to Ashley Springs Community Bank. This part he felt good about. He knew that George Tyler would be happy he was paying his loan down, even if it meant ravaging his savings account. But, at today’s rates, George could do better.
“Hello, George. I want to pay down my mortgages. I’ll take some savings to do it.”
“Now that’s a novel idea. I thought people only borrowed these days. You’d not believe how many of your friends have mortgaged to the hilt to fuel their gambling frenzy.” He threw his pen onto the desk. “I’m losing business every day because I refuse loans and they just go elsewhere.” He raised his hand to cover his eyes, as if he wanted to shut out the world. “Enough gloom. House, land, or business?”
“The business, George. The rate’s higher. Makes sense to pay it first, doesn’t it?”
“You’d be surprised at what I can get for that money now. A couple percent more than your mortgage. I could loan all the money I get my hands on, but there’s not much coming in these days. But then, we don’t pay the highest rate either.” He dug a ledger out of his desk drawer. “Iowa County Bank’s paying a full percent more than us. Beats all. Something’s not right. They don’t charge more on their loans.”
“In a few months I’ll have this paid off,” Will said. “Business is booming.”
“You may be the only guy in town who hasn’t lost his senses. I’m glad you’re doing well.”
Will didn’t mention the stock that he purchased earlier that day.