Wouldn't the compass in the handle always point down?

[T. Erdelyi]

Saw an old Colonial Scout fixed blade knife with a compass inlaid in the scale on one side, now this was an old knife from the 50's with an obviously nonstainless carbon steel blade.

Now being as the knife was obviously well loved and well used the compass was kinda nonfunctional, wouldn't the compass always point down?

 

[fulloflead]

...kinda nonfunctional...

KINDA nonfunctional? What, did it point South East?

I've had all variety of knife and keychain compasses lead me astray.
If they have a bubble floating around in there or too much friction...

Also, the tinier they are the less I think they work.