Does static mesh mode work?

I’ve always dragged static meshes into the game world one mesh at a time, which can be very tedious when I’m trying to add a lot of small decorations to a scene. I think we’re supposed to be able to add meshes quickly using static mesh mode, where you should be able to just press S and click to add a static mesh where your mouse is. The problem is I’ve never been able to make it work. Pressing S just moves my camera backwards, and sometimes when I click while holding S, I get a static mesh where the camera was.

Have any of you been able to get static mesh mode to work? Am I doing something wrong?