TheEmpireofBusiness 10802622

PU B LIS HE RS
’
N OT E
v ral f th h ap t
Se e o f th i b k fi rst app ar
e c e rs o s oo e ed
in various f orm s in s ve ral p riodi al s to hi h a ke e c w c c n ow l
e d g m e n ts ar e du e
I
Fr o m T HE N O RTH A ME R IC A N R ( E EWVI
Th e A . B . C . o f Mo n ey an d T h e B ug aboo o f T r u s ts
F r o m TH E F O R U M
Wh a t W o u l d I Do W i th th e T ar i fi i f I
‘
We re C z ar $
F ro m T HE N E W Y OR K EV EN N I G P OST
S te e l M an uf actu r e i n th e Un i te d S tates
F ro m T HE N E W Y OR K T R IB U NE
H ow to W i n F o r tu n e
F ro m T HE I RON AG E
Ir on an d S te e l at Ho m e an d A bro ad
F ro m T HE N E W Y O R K J O RNAL U
T h e T h re e -L e gg e d S to o l
From T HE Y O TH S
U
’
C O MP AN N IO
T h r i ft as a D u ty
F rom T HE CO NTE M ORAR Y P R E EW VI o f Br it i

a n
T h e C o s to f Li v i n g i n B r i tai n C o m par e d w i th th e Un i te d S ta te s
Fro m T HE N I NETEENTH CENT R Y U of Br it ia n
Th e M an c h e s te r S ch oo l an d T o d ay
-
F ro m MA C MILLAN ’
S MA G A $ I NE
T h e N atur al Oi l an d Gas We l l s of We s te r n P e n n s yl v a n i a
C O N T EN T S
T HE R OAD To B USINESS S UCCESS

A Tal k to Young Me n
Le ss on s d r aw n f m ro a l on g bu i s n e ss c ar e e r .
T HE A B C. . . OF M ONE Y
B t —th
ar e r i ct xc g f c d iti e d re e h an e o om m o es Th e
d u y p i f
.
ds se s o f m Co m th tw
'
nee an on e ar s o n o e o
t d d —g d iv H y t d
.
s an ar s ol an d s l er OW th e m on e s an
f ct c it f ti
.
d d ar af e s th e re d o a na on .
T HE C MM N I N ERES
O O L AB UR AND C A P I AL T T OF O T
Em p y lo p y it p er t an d em lo e n e r de en de n Th e ad
v tg utu t u t p y p
.
an a e s of m al r s Th e em lo er Wh o h el s
t ug duc ti c ti d ci l
.
h is k w or m en h ro h e a on re re a o n an so a
up i ft p i f
,
l ,
h el s h m se l .
T HRI F T As A DU T Y
Th e D uti e s of R i ch Me n
T h ri ft an
vi d c f civi i ti S vi g e f en e o l za on a n on e o th e
ig t uti citi ip ccu u ti f

.
h h es d es of z e n sh Th e a m la on o a
c p t c e duty cqui t f v t l th
.
om e en a ; th e a re m e n o as w ea
vi tu but g t p ibi ity

n ot a r e a re a re s on s l .
H ow T W o F O UNE IN RT
dv
Th e tg f a ly t t anC g uc ti a es o an e ar s ar olle e e d a on
c y bu i ucc by
.
not ne e s s ar to s n e ss s e ss Po o r o s th
ucc fu f bu i bi ity
. e
s e ss d M l m en of to - ay en o s ne s s a l
u O c g iti
.
s re f re o n on .
W EAL H AND I U SES

T TS
P v ty o i c tiv
er g t c i v t Su p u
an n en e to re a a h e em en r l s
t y b ti i p
.
w e al h all o w s m e re l an ela o ra on of th s m le
if W t h p c i d ti
e
d
nee s of l d e e al h el s on so l a on an
ch p p ducti
.
ea ens ro on .
CO NTENTS
T HE B UGABOO OF T RUS T S
tWh a ut is bi tia Tr d s d $ Co m na on s th er of th e
u t t t i c p ucti uc p ic
e or ay .
Tr s s h a n r e as e rod on an d r e d e r es .
A A MERICAN T RADE R ELA IONS

N G Lo - T
t ti g
Co n c
r as ci n t thf e om m er al m e h ods th tw
cu ti T p t t i p y t
o e o
o n r es he ar th e ar ff la in r ad e Pr o
t i U it tt f t
. s .
te c ti v e ar ff in th e n d S a es ; r ad e in
it i c p i ut
e re e
Br a n , a om ar s o n o f r e s l s .
B USINESS
ui B g
s n e ss is api y l ar ige w o r d an d i n i ts r m ar m e an n
cv g t
s
th h ol e e of
’
o e rs e w r an m an s ff o r s Th e s am e
p i cip f t ift gy c c t ti b i
e .
r n le s o hr ener on en ra o n an d ra n s
ucc b c bu i f ici
, ,
w in s e ss in an y r an h of s n e ss ro m m ed
g d
ne
d to ry oo s .
S EEL M ANU F AC URE

T H U NI ED S A ES
T IN T E T T T
S o m e r e as o n s w it t t bc h y th e Un e d S a es h as e om e th
g t t t cu ty
e
re a e s d s e e l-p o u c in g o n r i n th e w o rl d Co m
c t t i uf ctu f
.
p ar ati v e os s of r aw m a e r al an d m an a re o
t i t i cu ty
s e el n hb s o n r an d a r o ad .
T H C OS
E L I ING
T OF B RI AIN V IN T
c p
As om it U it
ar e d wSt t c t f h th e n d a es Th e os s
c iti if g A ic W
e . o
th e ne e ss es of l e i n E n l an d an d m er a hy
ic j y uxu i t t i
.
th e Am er an c an e n o l r es ha ar e de n e d th e
gi
En l sh m an .
O IL AND G W ELLS AS
A t it y
sh o r hdi c v y f
s or of th s o er O i l an d g as Th e
t d ivi g p duct
e o .
m h od of r n w e ll s an d th e u se o f th e ro
f tu c pit p ibi iti

e .
r
Th e or n e s w o n o n a s m al l a al Th e oss l es
futu
.
iof ts u s e i n th e re .
T H T HREE L EGGED S
E L T OO
Sc h em
f h k t ipl li c Th e al
’
e ld o t e w or s w or r e an e
b u c pit d bu i bi ity c y
.
f o la a al an s n e ss a l ar e n e e ss ar
p duc ucc fu y E c d p d t h
o r,
to ll a h e en en on t e
th —c bi i vi cib
ro e s e ss .
o e rs om ned, n n le .
CONTENTS
RAILR OADS P AS T AND P RESEN T
i ig
R a l r o ad v ti ni yt p d
i n th e se en es ; ra ls , s s e m s, s ee s,
i
s al ar e st d Ri ig
an d futu m e ho s a l r o ad n in th e re
i p ibi iti
. .
Th e nee ds d i of th e ra l r o ad m an an h s re s on s l es .
I RON AND S EEL H ME AND A BROAD

T AT O
iti
Co n d i t U it
on s of tt th e ro n r ade i n th e n e d S a e s an d
b dc p
a ro a futu t
om t ar e d . Th e re o f h e se m e al s .
T HE M ANCHES T ER S CHOOL AND T O - D AY
Th e B r iti sh te n ti o n th at c ti
ea p ci yh na is al l
qu ifi but g b c i uty
con on S e
al e d fo r on e e n e r al r an h Of nd s r d is
cu ds se an d c b tt
om a e d .
W HA T W OULD I DO WIT H T HE T ARI FF IF I

W ERE C $ AR $
Th e ad v t g f t xi g
an a e o a n th e i p t d l uxu i vi y
m or e r es h ea l
an d r e d uci g n th e tax o n r aw m t i d c iti
a e r al s an ne e ss es
t i ki g x p f c c t d i pp i d
.
A fe w s r n e am le s o o rr e an m sa l e
tar fif s.
T h e Ro ad to Bu s i n e s s Su c ce ss
A Tal l$ to Young Me n
Le sso n s d raw nf mro a l on g bu i
s n e ss c ar e e r .
T HE R OA D TO B U S IN ESS SU C C ESS
A T A LK T O YO U N G MEN
T is we ll that young m e n should b e gin at th e
beginning and occupy th e most subordinat e
positions Many of th e l e ading busin e ss m e n of
.
’
Pittsburg h ad a se rious re sponsibility thrust upon

th e m at th e v e ry thre shold o f th e ir care e r Th e y $
.
we re introduc e d to th e broom and sp e nt th e first ,
hours of th e ir busin e ss live s sw e e ping o ut th e offic e .
I notic e w e have j an itors and janitre ss e s n ow in offic e s ,
and o ur young m e n unfortunat e ly miss that salutary

branch o f a busin e ss e ducation But if by chanc e .
th e profe ssional swe e p e r is abs e nt any morning th e
bo y w h o has th e ge nius o f th e future partn e r in him
will n ot h e sitat e to try his hand at th e broom T h e .
o th e r day a fond fashionabl e moth e r in Michigan

aske d a young man wh e th e r h e had e ve r s e e n a young
lady sw e e p in a room so grandly as h e r Priscilla He .
said no h e n e ve r had and th e moth e r was gratifi e d

, ,
b e yond m e asure but th e n said h e aft e r a pause

, , ,
What I should like to se e h e r do is swe e p o ut a room .

”
It do e s n o t hurt th e n e we st com e r to swe e p out th e

Offi ce if n e c e ssary I w as o n e of those sw e e p e rs m y
.
se lf and w h o do you suppos e we re my fe llow sw e e p e rs $

,
Fro m an a d d r e s s to S tu d t of th C u yC ci al Co ll e g
itt bu g Ju
en s e rr om m er e ,
P s r ,
ne 2 3
,
1 88 5
4 THE EMPIRE OF BUSINESS
David Mc Cargo now sup e rinte nd e nt of th e Alle ghany
,
Valle y Railroad ; Rob e rt Pitcairn Sup e rint e nde nt of ,
th e P e nnsylvania Railroad and Mr More land City , .

,
Attorn e y We all took turns two e ach morning did

.
,
th e sw e e ping ; and now I r e m e mb e r Davi e was s o proud
o f his cl e an whit e shirt bosom that h e us e d to S pr e ad
ove r it an Old Silk bandana handke rchi e f which h e

i
ke pt for th e purpose and w e oth e r boys thought h e

,
was putting o n airs So h e was Non e o f us had a

. .
silk handke rchie f .
Assuming that you have all Obtain e d e mploym e nt

an d ar e fairly start e d my advic e to you is aim high $ ”
, .
I w ould not give a fig for th e young man who do e s not

alre ady se e himse lf th e partn e r o r th e he ad of an im
portant firm Do not re st cont e nt for a mom e nt in
.
your thoughts as h e ad cl e rk or fore man or ge n e ral , ,
manage r in any conc e rn no matt e r how e xt e n ,
sive Say e ach to yourse lf My plac e is at th e .

$
top . B e ki n g i n your dr e am s Make your v o w .
that you will re ach that position with untar ,
n i sh e d re putation and mak e no oth e r v ow to

,
distract your att e ntion e xc e pt th e ve ry comm e nd,
able o n e that wh e n you ar e a m e mb e r o f th e firm or

b e fore that if you have b e e n promot e d tw o o r thre e
,
tim e s you will form anoth e r partn e rship w ith th e

,
love lie st o f h e r se x a partn e rship to Which our n e w

—
partn e rship act has no application T h e liability .
th e re is n e ve r limit e d .
T HE ROAD To BUSINESS SUCCESS 5
Le t m e indicat e two o r thre e conditions e sse ntial

to succ e ss Do not be afraid that I am going to
.
moraliz e o r inflict a homily upon you I sp e ak upon

, .
th e subj e ct only from th e vi e w o f a man of th e world .
d e si rous of aiding you to b e com e succ e ssful busin e ss

m en . You all know that th e re is no ge nuin e p raise ,
worthy succ e ss in life if you are n ot hon e st truthful

‘
, ,
fair d e aling I assum e you are and will re main all

-
.
th e s e and alsot
,
hat y ou ar e d e t e rm in e d to live pure ,
re sp e ctabl e liv e s fre e from p e rn icious or e quivocal

,
as sociations with on e se x o r th e oth e r Th e re is no .
cre ditabl e future f or yo u e ls e Oth e r w ise your l e arn

.
ing and your advantage s n ot only go for naught but ,
s e rv e to acc e ntuat e your fa i lure and your disgrac e .
I hope you will not take it amiss if I warn yo u against

thre e of th e grave st dange rs which will b e se t you in
your upward path .
T h e first and most s e ductive and th e d e stroye r o f ,
most young m e n is th e drinking o f liquor I am n o

, .
t e mp e ranc e l e ctur e r in disguis e but a man w h o knows

,
and t e lls you what obse rvation has prov e d to him ;

and I say to you that you are more lik e ly to fail in
your care e r from acquiring th e ha bit o f drinking liquor
than from any o r all th e oth e r t e mptations like ly to
, ,
assail you Yo u may yi e ld to almost any oth e r te mp

.
tati on and re form — may brac e up and if n ot re cove r ,
lost ground at l e ast re main in th e rac e and s e cure and

,
maintain a re sp e ctabl e position But from th e insan e .

thirst for liquor e scap e is almost impossible I have .
know n but f e w e xc e ptions to this rul e First the n .

, ,
you must not drink liquor to e xc e ss B e tt e r if you .
—
do not touch it at all much b e tt e r ; but if this be too
hard a rul e for you th e n take your stand firmly h e re
Re solve n e ve r to touch it e xc e pt at m e als A glass .
at dinn e r w ill not hind e r your advanc e in life o r low e r

your ton e ; but I implore you hold it inconsist e nt with
th e d ignity and s e lf re sp e ct o f g e ntl e m e n with w hat
-
,
is d ue from yours e lve s to yourse lve s b e ing th e m e n ,
you are and e sp e cially th e m e you ar e d e t e rmin e d

,
n
to b e com e to drink a glass of liquor at a bar

,
.
B e far too much of th e g e ntl e man e v e r to e nt e r a bar
room You do not pursu e your care e rs in safe ty unl e ss

.
you stand firmly upon this ground Adh e re to it and .
you have e scap e d dange r from th e d e adlie st o f your

fo e s .
Th n e xt gre at e st dang r to a young busin e ss man

e e
in this community I b e li e ve to b that of sp e culation e .
Wh e n I w as a t e l graph op e rator he re w e had no

e
Exchange s in th e City but th e m e n o r firms w h o

,
spe culat e d upon th e East e rn Exchange s w e re n e c e s

s aril y kno w n to th e op e rators The y could be count e d
.
on th e finge rs of o e hand The s e m e n we re not o ur

n .
citiz e ns of first re put e : th e y w e re re gard e d w ith sus

p i c i o n I.hav e liv e d to s e e all of th e s e sp e culators
irr e parably ruin e d m e n bankrupt in mon e y and bank
,
rupt in characte r Th e re is scarc e ly an instanc e o f

.
THE ROAD TO BUSINESS SUCCESS 7
a man who has mad e a fortun e by sp e culation and

ke pt it Gam e st e rs d ie poor and th e re is c e rtainly
. ,
not an instanc e of a sp e culator w h o has liv e d a life

cre ditable to hims e lf or advantage ous to th e c om m u
,
mity . T h e man who grasps th e morning pap e r to s e e
firs t h o w his sp e culative ve nture s upon th e Exchange s

ar e lik e ly to r e sult un fi ts hims e lf for th e calm consid e r
,
ation and prop e r solution o f busin e ss probl e ms w ith ,

'
which h e h as to d e al lat e r in th e day and saps th e ,
so urc e s o f that p e rsist e nt and conc e ntrat e d e n e rgy

upon which d e p e nd th e p e rman e nt succ e ss and oft e n ,
th e v e ry safe ty o f his main busin e ss

,
.
T h e sp e culator and th e busin e ss man tre ad d iv e r g
ing lin e s Th e form e r d e p e nds upon th e sudd e n turn

.
o f fort un e s wh e e l ; h e is a millionnair e to day a bank

’
-
,
rupt to morrow But th e man of busin e ss knows

-
.
that only by ye ars o f patie nt unre mitting att e ntion,
to a ff a i rs can h e e arn his r e ward which is th e re sult , ,
not Of chanc e but of w e ll d e vis e d m e ans for th e at

,
-
tai n m e n t o f e nds During all th ese ye ars his is th e

.
ch e e ring thought that by no possibility can h e b e ne fit

himse lf w ithout carrying prosp e rity to oth e rs T h e .
sp e culator on th e oth e r hand had b e tt e r n e v e r hav e

li ve d so far as th e good o f oth e rs or th e good o f th e c o m
mun ity is conce rn e d Hundre ds of young m e n w e re
.
t e mpt e d in this city n ot long Sinc e to gambl e in O il ,
an d many w e re ruin e d ; all w e r e injur e d wh e th e r th e y
lost or w on You may be nay you are c e rtain to be

.
, ,
similarly t e mpt e d ; but wh e n so t e mpt e d I hop e you
w ill r e m e mb e r this advic e Say to th e t e mpt e r w h o
.
asks yo u to risk your small savings that if e ve r you

,
d e cid e to sp e culat e you ar e d e t e rmin e d to go to a

re gular and we ll conduct e d hous e wh e re th e y Ch e at
-
fair You can ge t fair play and about an e qual chanc e

.
upon th e re d and black in such a plac e ; upon th e Ex

change you have n e ith e r Yo u might as we ll try
.
your luck with th e thre e — card mont e man Th e re is

-
.
anoth e r point involve d in sp e culation Nothing is .
more e sse ntial to young busin e ss m e n than untar

n i sh e d cr e dit cr e dit b e gott e n o f confid e nc e in th e ir
,
prud e nc e principl e s and stability of charact e r We ll

, .
,
b e lie ve m e nothing kills cre di t soon e r in any Bank

,
Board than th e knowl e dge that e ith e r firms o r m e n

e ngag e in sp e culation It matt e rs not a whit w h e th e r
.
gains or losse s be th e t e mporary r e sult o f th e se op e r

ati o n s
. Th e m om e n t a man is know n to sp e culat e ,
his cre dit is impaire d and soon th e re aft e r it is gon e

, .
How can a man be cre dit e d w hose re sourc e s may be

sw e pt aw ay in on e hour by a panic among gam e st e rs $
Who can t e ll h ow h e stands among th e m e xc e pt that
$
this is c e rtain : h e has give n du e notic e that h e may

stand to los e all so that thos e who cre dit him ha ve
,
‘
th e ms e lve s to blame Re solve to be busin e ss m e n but

.
,
sp e culators n e ve r .
T h e third and last dange r against which I shall warn
you i s o n e which h as wre cke d many a fair craft which

THE ROAD TO BUSINESS SUCCESS 9
start e d we ll and gave promis e of a prosp e rous v o v age .
—
It i s th e p e rilous habit o f indorsing all th e more
dange rous inasmuch as it assails o n e ge n e rally in th e
,
garb of frie ndship It app e als to your ge n e rous in

.
s ti n c ts and you say How can I re fus e to le nd my

, ,
nam e only to assist a frie nd $ It is b e caus e th e re

,
”
is so much that is tru e and comm e ndabl e in that vi e w

that th e practic e is s o dange rous Le t m e e nd e avor .
to put you upon safe honourabl e grounds in re gard to

it I would s ay to you to mak e it a rule n ow n eve r
.
.
i n do e : but this is to o much lik e n e v e r ta st e win e o r

rs ,
n e ve r smoke o r any oth e r of th e n e ve rs

,
Th e y $
.
”
ge n e rally re sult in e xc e ptions Yo u will as busin e ss .
m e n now and th e n prob a bly b e com e s e curity for

fri e nds Now h e re is th e lin e at which re gard for
.
,
th e succ e ss o f fri e nds should c e as e and r e gard f or your
o w n honour b e gins .
If you ow e anything all your capital and al l your

,
e ffe cts ar e a sol e mn trust in your hands to be h e ld in
Violat e for th e se curity of those w h o have truste d you .
Nothing can be don e by yo u with honour which j e o p

ard i ze s th e s e first claims upon yo u Wh e n a man in .
d e bt indorse s for anoth e r it is n o t his own cre dit o r

,
his ow n capital h e risks it is that o f his ow n cre ditors

, .
He violat e s a trust Mark you th e n n e ve r indors e

.
,
until yo u hav e cash m e ans n o t re quire d f o r your ow n

d e bts and n e ve r indors e b e yond those m e ans
,
.
B e fore you indorse at all consid e r indorse m e nts ,

as gifts an d ask yourse lve s whe the r you wish to mak e
,
th e gift to your fri e nd and wh e th e r th e m on e y i s
re ally yours to give and n ot a trust for your cre ditors .
Yo u ar e n ot safe g e ntl e m e n unl e ss y o u stand firm ly

, ,
upon this as th e only groun d which an hon e st busin e ss

man can occupy .
I b e se e ch you avoid liquor sp e culation and in ,
d o r se m e n t Do n ot fail in e ith e r for liquor and

.
,
sp e culation are th e Scylla and Charybdis o f th e yo un g

man s busin e ss se a and indorse m e nt his rock ah e ad
’
,
.
Assuming yo u ar e safe in re gard to th e s e your grave st

dange rs th e que stion now is how to ris e from th e
,
subordinat e position w e have imagin e d you in through ,
th e succ e ssiv e grad e s to th e position f or which you
ar e , in my O pinion and I trust in your ow n e v i, , , ,
d e n tl y i nt e nd e d I can give you th e s e cre t It li e s

. .
mainly in this Inst e ad o f th e que stion What must

.
,
I do for my e mploy e r substitut e What can I do

$ ”
$ $ ”
Faithful and conscie ntious discharge o f th e dutie s as

sign e d you is all ve ry w e ll but th e ve rdict in such ,
cas e s ge n e rally is that you p e rform your pre s e nt

;
dutie s so we ll that you had b e tt e r continu e p e rform

'
ing th e m Now young ge ntle m e n this w ill not do

.
, , .
It will not do f or th e coming partn e rs Th e re must .
be som e thing b e yond this We m ake Cl e rk s Book . . ,
ke e p e rs Tre asure rs Bank Te ll e rs o f this class an d

, , ,
the re th e y re main to th e e n d o f th e Chapt e r Th e .
rising m an must do so m e thing e xc e ptional an d be ,

THE ROAD TO BUSINESS SUCCESS I I
yo nd th e range his sp e cial d e partme nt HE MUS T

of .
AT T RAC T A T T EN T I ON A Shipping cle rk h e may d o

.
,
s o by discov e ring in an invoic e an e rror with which h e
has nothing to do and which has e scap e d th e att e n

,
tion of th e prop e r party If a we ighing cle rk h e may

.
,
save f or th e firm by doubting th e adjustm e nt of th e

S cale s an d havin g the m corre ct e d e ve n if this be th e ,
provinc e o f th e mast e r m e chanic If a m e ss e nge r .
bo y e ve n h e can lay th e s e e d o f promotion by going

,
b e yond th e l e tt e r o f his instructions in ord e r to s e cure

th e d e sir e d r e ply The re is no s e rvic e so low and
.
S imple n e ithe r any so high in which th e young man

, ,
o f ability and w illing disposition cannot r e adily and
almost daily prove hims e lf capable o f gre at e r trust

and use fuln e ss and what is e qually important Show
, , ,
his invincible d e t e rmination to rise Som e day in .

,
your ow n d e partm e nt you will be dire ct e d to do o r

,
say som e thing which you know will prove di sad v an

tage ou s to th e in t e re st o f th e firm H e re is your .
chanc e Stand up like a man and say so §§ Y it

. .
boldly an d give your re asons and thus prove to yo ur

, ,
e m ploy e r that whil e his thoughts hav e b e e n e ngage d

,
.
upon oth e r matt e rs you have b e e n studying during

,
hours wh e n p e rhaps h e thought you asle e p h ow to ,
advanc e his int e re sts Yo u may be right or youmay

.
be wrong but in e ithe r cas e you hav e gain e d th e fir st

,
condition of succ e ss Yo u have attract e d att e ntion

. .
Yo ur e mploy e r h as found that h e has n o t a m e re

12 THE E M PIRE OF BUSINESS
hire ling in his Se rvic e but a man ; not o n e who is con
,
t e nt to give so many hours of w ork for so many dollars

in re turn but o n e who d e vot e s his spare hours and
,
constant thoughts to th e busin e ss Such an e mploye .
must p e rforc e be thought of and thought of kindly ,
and we ll It w ill not be long b e fore his advic e is

.
ask e d in his sp e cial branch a d if th e advic e giv e n be

,
n
sound it will soon be ask e d and take n upon que stions

,
o f broad e r b e ari ng This m e ans partn e rship ; if not

.
w ith pr e s e nt e mploy e r s th e n with oth e rs Your foot .

,
in such a case is upon th e ladd e r ; th e amo un t o f

,
climbing don e d e p e nds e ntire ly upon yours e lf .
On e fals e axiom you w ill oft e n h e ar which I wish to ,
guard you against : Ob e y ord e rs if yo u bre ak

own e rs . Don t you do it This i s no rule for yo u
’
.
to follow Alw ays bre ak ord e rs to save own e rs

. .
Th e re n e ve r w as a gre at charact e r who did not som e

tim e s smash th e routin e re gulations and make n e w
on e s for hims e lf T h e rule is only suitabl e for such
.
as hav e no aspirations and you hav e not forgott e n ,
that yo u ar e d e stin e d to be ow n e rs and to m ake ord e rs

and bre ak ord e rs Do not h e sitat e to do it wh e n e ve r
.
you ar e sure th e int e re sts of your e mploye r will be

th e re by promot e d and w h e n you ar e so sure o f th e
re sult that y o u are willing to tak e th e re sponsibility .
Yo u will n e v e r be a partn e r unl e ss you kn ow th e

busin e ss of your d e partm e nt far b e tt e r than th e own e rs
possibly can Wh e n call e d to account for your in
:
.
T HE ROAD To BUSINESS SUCCESS 1
3
d e p e nd e nt action S how him th e re sult o f y our ge nius

, ,
and t e ll him that you kn e w that it would be so ; Show

him h o w mistak e n th e ord e rs w e re Boss your boss .
just as soon as you can ; try it o n e arly Th e re is .
nothing h e will like so we ll if h e i s th e right kind o f

boss ; if h e i s not h e i s not th e man for you to re main
,
w ith — l e av e him wh e n e v e r you can e ve n at a pre s e nt

,
sacrific e and find o n e capabl e o f disc e rning ge nius

, .
Our yo ung partn e rs in th e Carne gi e firm hav e w on th e ir

spurs by Showing that w e did n o t know half as we ll
w hat was want e d as th e y did Som e o f th e m have
.
act e d upon occasion with m e as if th e y own e d th e firm

and I was but som e airy Ne w York e r pre suming to
advise upon what I kn e w ve ry littl e about We ll .
,
th e y are not int e rfe re d with much n ow Th e y we re .
th e tru e boss e s — th e v e ry m e n w e w e re looking f o r .
The re is o n e sure mark of th e coming partn e r th e ,
future m illionnaire ; h is re ve nu e s always e xc e e d h is e x

e n d i tu r es H e b e gins to sav e e arly almost as soon
p .
,
as h e b e gins to e arn No matt e r how little it may be

.
possibl e to sav e save that littl e Inve st it s e cure ly

, .
,
not n e c e ssarily in bonds but in anything which you

,
hav e good re ason to b e li e ve will be profitabl e but n o ,
gambling w ith it re m e mb e r A rare chanc e w ill soon

,
.
pre se nt its e lf for inve stm e nt Th e littl e you have

.
save d will prove th e basis for an amount o f cre dit

utt e rly surprising to yo u Capitalists trust th e saving
.
young man Fo r e v e ry hundre d dollars you can pro

.
1 4 THE EMPIRE OF BUSINESS
'
duce as th e re sult o f hard w on savings Midas in -

, ,
se arch o f a partn e r will l e nd or c re d it a thousan d ;

,
f or e v e ry th ousand fifty thousand

,
It is n ot capital .
tha t your s e nio rs re q uire it i s th e man w h o h as prove d

,
that h e h as th e busin e ss habits which cre at e capit al ,
an d to cre at e i t i n th e b e st of all p ossibl e wa y s as far ,
—
as s e lf disciplin e is conc e rn e d is b y adjust ing h i s
, ,
habit s to his m e ans Ge ntle m e n it i s th e first hun

.
,
dre d dollars sav e d w hich t e lls B e gin at o nc e to lay

.
up some thing Th e bee pre domin at e s in th e future

.
millionn aire .
Of course th e re ar e b e tt e r high e r aim s than saving

, .
AS an e n d th e acquisition o f w e alth is ignobl e in th e

,
e xtr e m e ; I assum e that you sav e and long for w e alth
on ly as a m e ans o f e nabling you th e b e tt e r to do some

good in your day and ge n e ration Make a not e o f .
this e ss e ntial rul e : Exp e nditure always within income .
Yo u may grow impati e nt o r b e com e discourage d ,
whe n ye ar by ye ar you float on in subordinat e posi

tions Th e re is n o doubt that it is b e co ming hard e r
.
and hard e r as busin e ss grav itat e s m ore and m ore to

imme nse conc e rns f or a young man w ithout c apital
,
to ge t a start for himse lf and in this city e sp e cially

, ,
wh e re large capital is e ss e ntial it is unusually d iffi cul t

, .
Still l e t m e t e ll you f or your e ncourage m e nt that

, ,
the re is no country in th e world wh e re abl e an d e n ,
e rg e ti c y oun g m e n can s o re adily ris e as this n or an y ,
city wh e re th e re is more room at th e top It h as .

THE ROAD TO BUSINESS SUCCESS 1 5
be e n i m possibl e to
m t th d mand f capabl fi t ee e e or e, rs
class b okk p rs ( mark th adj cti s ) th sup ply h

o ee e e e ve e as
n eve r b e e n e qual to th e d e man d Young m e n give all .
kin ds of re aso n s why in th e i r c as e s failure w as cl e arly at

tributabl e to e xce p tio n al circum st an c e s wh i ch re n d e r
succe ss i mp ossible So m e n e ve r h ad a chan c e ac
.
,
c ording to th e i r ow n st ory Thi s i s sim ply n on se n se . .
No yo un g m an e v e r li v e d w h o h ad n ot a ch an c e an d ,
a Spl e n did ch an ce too i f h e e V e r w as e mploy e d at all

, , .
He is assay e d in th e m in d of h i s i mm e d i at e sup e ri or ,
fro m th e day h e b e gin s work an d aft e r a tim e i f h e , , ,
has m e rit h e i s assaye d in th e coun cil cham be r of

,
th e fi rm . Hi s ability hon e sty h abits a ss oc i at i on s

, , , ,
t e mp e r dispo sition all th e se ar e we igh e d an d an alyse d

, , .
T h e young m an w h o n e v e r h ad a ch an ce i s th e sam e
young m an w h o h as be e n canvass e d ove r an d ove r

again by h i s s up e ri o rs an d f o un d d e st itut e of n e c e s
,
v
sary q ualifi cation s or i s de e me d un worthy of cl oser

,
re lati o n s w i th th e fi rm Owin g to some obj e ctionable ,
ac t habit or associati on of wh i c h h e th ought h i s

, , ,
e m ploy e rs ignorant .
Anoth e r class of young m e n attribut e the ir failure

to e mploy e rs having r e lations or favourit e s who m th e y
advanc e d unfairly Th e y also insist that the ir e m

.
p yl o e r s dislik e d bright e r int e llig nc e s tha n th e ir o w n e ,
and we re dispose d to discourage aspiri n g ge n ius an d ,
d e lighte d in k e e ping young m e n down Th e re i s .
n ot hin g in this On th e contrary th e re is n o one

.
,
suffe ri g so much for lack of th e right man in th e
n
right plac e nor so anxious to find him as th e own e r

,
.
Th e re is not a firm in Pittsburg to d ay w hich is n o t

in th e constant s e arch for busin e ss ability and e ve ry ,
o n e o f th e m will t e ll y o u that th e r e i s no articl e in
th e mark e t at all tim e s s o S carc e The re is alw ays

.
a boom in brains cultivat e that crop for if you grow

, ,
any amount of that commodity h e re i s your b e st ,
marke t and you cannot ove rstock it and th e more ,
brains you have to se ll th e high e r pric e y ou can e xact

, .
Th e y are not quit e so sure a crop as wild oats which ,
n e ve r fail to produc e a bountiful harve st but the y ,
have th e advantage ove r th e se in alw ays finding a

marke t D O n o t h e sitat e to e ngage in any l e gitimat e
.
busin e ss for th e re i s n o busin e ss in Am e rica I do not

, ,
care w hat which will not yi e ld a fair profit if it re

,
c e iv e t h e unre mitting e xclusiv e att e ntion and all th e

, ,
capital o f capabl e and industrious m e n Eve ry busi .
—
n e ss will have l tS s e ason o f de pre ssion ye ars always
‘
come during which th e manufacture rs and m e r

—
chants of th e city ar e s e ve re ly tri e d ye ars wh e n
mills must be run not for profit but at a loss that
, , ,
th e organization and m e n may be k e pt tog e th e r and
e mploy e d and th e conc e rn may k e e p its products in

,
th e mark e t But on th e O
. th e r hand e ve ry l e gitimat e
,
busin e ss producing or d e aling in an articl e which man

re quire s is bound in tim e to be fairly profi tabl e if ,
p ro p e rl y c o n du ct e d .
THE ROAD TO BUSINESS SUCCESS I 7
And h e re is th e prim e condition o f succ e ss th e ,
gre at se cre t : conc e ntrat e your e n e rgy thought and , ,
capital e xclusiv e ly upon th e busin e ss in which yo u

ar e e ngage d . Having b e gun in on e lin e re solv e to ,
fight it o ut o n that lin e to l e ad in it ; adopt e ve ry i m

,
prove ment have th e b e st machin e ry and know th e

, ,
most about it .
T h e conc e rns which fail are thos e which hav e scat
te r e d th e ir capital w hich m e a
, ns that th e y have scat
te r e d th e ir brains also Th e y hav e inv e stm e nts in this
.
,
o r that ,
o r th e oth e r h e re th e re and e v e rywh e re
, , .
$
Don t put all your e ggs in o e baske t is all wrong
’
n .
I t e ll you put all your e ggs in o n e baske t and th e n ,
watch that baske t . Look round you and take notic e ;

m e n who do that do not O ft e n fail It is e asy to watch .
and carry th e o ne baske t It is trying to carry too

.
m any baske ts that bre aks most e ggs in this country .
He w h o carri e s thre e baske ts must put o ne on h i s h e ad ,
which is apt to tumbl e and trip him up On e fault of .
th e Am e rican busin e ss man is lack o f conc e ntration .
T o summari z e what I hav e said : Aim for th e high
e st ; n e v e r e nt e r a bar room ; do not touch liquor

-
or ,
if at all only at m e als ; n e ve r sp e culat e ; n e v e r indorse

b e yond your surplus cash fund ; make th e fi rm s i h ’
te r e st yours ; bre ak ord e rs always to sav e own e rs ;
conc e ntrat e ; put all your e ggs in o n e baske t and ,
watch that baske t ; e xp e nditure always within re ve nu e ;

l astly be not impati e nt for as Em e rson s ays
$
, , , n o on e ,
THE E M PIRE OF BUSIN ESS
c an che at you but of ultimat e succ e ss but yourse lv e s .
I congratulat e poor young m e n upon b e ing born

to t h at a n ci e nt and honourabl e d e gre e wh i ch r e nd e rs
it n e c e ssary that the y should d e v ot e th e m se lve s to

hard work A b aske tful o f bond s i s th e h e avie st
.
baske t a youn g m an e ve r h ad to carry He ge ne rall y .
ge ts to stagge ring unde r it We have in th is Cit y .
cre ditabl e i n st anc e s of s uc h y oung m e n w h o h av e ,
p re sse d t o th e fron t rank of our b e st an d m o st use ful

, .
citi ze n s Th e se de se rve gre at cre dit But th e v a st

. .
majorit y of th e son s of ric h m e n are un able to re sist

th e t e m pt at ions to w hich w e alth subj e cts t h e m and ,
Si n k to unwo rt hy liv e s I would alm ost as soon l e ave

.
a young m an a curse as b urd e n him with th e almighty

,
dollar It is not from th is class you have rivalry

.
to fe ar T h e partn e r s sons will not troubl e you m uch

’
. ,
but lo ok out t h at so m e boys poore r much poo re r than,
o u rse l ve s wh ose a re n t s a not af f ord to giv e th em

y p , c n
th e a dvant age s o f a cours e in th i s instit ut e advan tag e s ,
which sh ould give you a d e c id e d l e ad in th e rac e

look out th at such boys do n ot chall e nge you at th e
po st an d pass yo u at th e gran d st an d Look out fo r .
th e boy w h o h as to plu n ge i n t o work di re ct fro m th e
common s ch ool an d who b e gins by swe e pi ng out th e

o ffic e He is th e probable d ark ho rse tha t you had
.
be tt e r watch .
The A B C of Mo n e y
B ar t —
er th i ct xch g c
e d re e an e of om m od iti es Th e
u f y C p i
.
n e e ds an d se s o m on e om ar so n of th e tw o
t —g iv H y t
.
s an d ar d s o l d an d S l er ow th e m on e s an d
ct c it f ti
.
d ar d aff e s th e re d o a na on .
T HE A B C OF MO N EY
SU P P O SE e ve ry has spoke n to or writt e n
on e w ho
f or th e public has wish e d at tim e s that e ve r ybody
would drop e ve rything and just list e n to him for a f e w

minut e s I fe e l so this mor n ing for I b e li e v e that a
.
,
grave injury thre at e ns th e p e ople and th e progre ss o f

o u r country simply b e caus e th e mass e s — th e farm e rs
—
and th e w age e arn e rs do n o t und e rstand th e que s
-
tion of mon e y I wish th e re fore to e xplain mon e y

.
$ ”
in so simpl e a way that all can und e rstand it .
P e rhaps som e o n e in th e vast audi e nc e which I have

im agin e d I am about to hold sp e llbound cri e s ou t :
$ —
Wh o are y ou a gold bug a millionnaire an iron-
, ,
baron a b e n e ficiary
,
o f h
t e M c K i l e y Bill $ B e fore n
b e ginning my addre ss l e t m e th e re fore re ply to that

,
imaginary ge ntl e man that I have not s e e n a thousand

dollars in gold for many a y e ar So far as th e Mc Ki n .
l e y Bill is conc e rn e d I am p e rhaps th e o n e man in th e

,
Unit e d State s who has th e b e st right to complain

unde r it for it has cut and slash e d th e duti e s upon
,
iron and st e e l re ducing th e m 0 5 and 30 pe r c e nt ;

,
2 ,
2 ,
.
an d if it will r e co m m e nd m e to my suppos e d int e r
Fr m T h N th A m i
o e or R i Ju 89
e r c an ev ew ,
ne ,
1 1 .
2I
r u pte r , I inform him that I d o n o t gre atly dis
be g to
approve of the s e re ductions that as an Am e rican manu ,
facture r I int e nd to struggl e still against th e fore igne r

for th e home marke t e ve n with th e lowe r duti e s fixe d
,
upon o ur product by that bill and that I am not in ,
favour of prot e ction b e yond th e point n e c e ssary to allow

Ame ricans to re tain th e ir o w n marke t i n a fair cont e st
with th e fore ign e r .
It do e s not matt e r who th e man is n or w hat ,
h e do e s —be h e w ork e r in th e min e factory o r

, , ,
fi e ld farm e r laboure r m e rchant manufacture r or

, , , , ,
—
millionnaire h e is d e e ply int e re st e d in und e rstan ding
,
this qu e stion o f mon e y and in having th e right policy

,
adopt e d in re gard to it The re fore I ask all to h e ar .
what I have to s ay b e caus e w hat is good for o n e

,
w ork e r must be good for all and w hat in jure s o n e ,
must injure all poor or rich , .
T o ge t at th e ro o t o f th e subj e ct you must know

_
, ,
first why mon e y e xists ; s e condly what mon e y re all y

, ,
is Le t m e try to t e ll yo u taking a n e w district of our

.
,
o w n mod e rn country to illustrat e h ow mon e y co me s f ‘ ”

.
In tim e s past w he n th e p e opl e o n l y till e d th e soil and

, ,
comme rc e and manufacture s had not d e ve lop e d m e n ,
had f e w wants and S O th e y got along without mon e y

,
by e xchanging th e articl e s the mse lve s wh e n the y

n e e de d some thing which the y had n ot T h e farm e r .
who want e d a pair o f Shoe s gave so many bush e ls o f

corn f or th e m and his wi fe bought h e r sun bonn e t by
,
-
THE A B C OF MONE Y 3
g iv i n g s o m any bush e ls o f potato e s ; thus all sal e s and

purchase s we re m ad e by e xchanging article s by —
bart e r .
As po pulation gre w an d wants e xt e nd e d this plan ,
b e came ve ry inconv e ni e nt On e man in th e district

.
the n st arte d a ge n e ral store an d ke p t o n hand a gre at

m any o f th e things which we re most want e d and took ,
f or th e s e any O f th e articl e s which th e farm e r had to
give in e xchange This w as a gre at st e p in advanc e

.
,
f or th e farm e r w h o want e d half a doz e n diffe re nt things
whe n h e we nt to th e village had th e n n o longe r to

se arch for half a doz e n di ffe re n t p e opl e who want e d
o n e or mor e o f th e things h e had to o ffe r in e xchang e .
He could n o w go dire ctly to o n e man th e store ke e p e r

, ,
an d f o r any o f his agricultural products h e could g e t

$
m ost o f th e article s h e d e sire d It did not matt e r to

.
th e s tore k e e p e r wh e th e r h e gav e th e farm e r te a o r
c off e e blanke ts or a hayrake ; nor did it matt e r what

,
articl e s h e took fro m th e farm e r wh e a t o r corn or

,
po tato e s so h e could s e nd th e m away to th e city an d

,
g e t oth e r articl e s f o r th e m which h e want e d . T h e
farm e r could e ve n pay th e wage s o f h i s hire d m e n by

giving the m ord e rs for article s upon th e st ore NO .
dollars app e ar h e re ye t yo u se e ; all is still bart e r

,
e xchange of articl e s ; ve ry inconve nie nt an d ve ry

c o stly,
b e caus e th e agricultural articl e s give n in e x
c h an ge had to be haul e d about and w e r e always chang
in g th e ir v alu e .
day th e stor e ke e p e r would be willing to take
On e ,
s ay a bush e l of w h e at for s o many pounds o f sugar ;

,
but upon th e n e xt V isit of th e farm e r it might be im

possibl e for him to do so He might re quire more
.
Wh e at f o r th e sam e amount of sugar But if th e .
marke t for wh e at had ris e n and n o t falle n y ou may be ,
sure th e store ke e p e r didn t take l e ss wh eat as promptly

’
as h e re quire d more Just th e sam e with any o f th e

.
article s which th e farm e r had to Offe r Th e s e w e nt.
up and dow n in value ; S O did th e te a and th e coff e e ,
and th e sugar and th e clothing and th e boots and th e

,
Shoe s w hich th e store ke e pe r had f or e xchange .
N OW it is n e e dle ss to re mark that in all th e s e d e al

,
ings th e Store ke e p e r had th e advantage o f th e farm e r ‘
He kn e w th e mark e ts and th e ir ups and downs long

b e fore th e farm e r did and h e kn e w th e signs o f th e
,
time s b e tt e r than th e farm e r o r any o f his custom e rs

could T h e cut e store ke e p e r had th e insid e track all
.
th e tim e Just h e re I w ish you to note particularly

.
that th e store k e e p e r like d to take o n e articl e from th e

farm e r b e tt e r than anoth e r ; that articl e b e ing always
th e o n e for which th e stor e k e e p e r had th e b e st c u s
to m e r s — some thing that was most in d e mand In .
Virginia that article came to be tobacco ; ove r a gre at

—
portion o f o ur country it was wh e at whe nc e com e s
,
‘
th e saying As good as wh e at It was take n e v e ry

”
, .
wh e re b e cause i t could be most e asily dispose d o f for

anything e lse d e sire d A curious illustration ab out
.
T HE A B C OF MONEY 2 5
wh e at I find in th e life of my frie nd Judge M e llon o f , ,
Pittsburg w h o has writt e n On e o f th e b e st biographi e s

,
in th e world b e cause it is don e so naturally Whe n .
th e Judge s fathe r bought his farm n e ar Pittsburg h e

’
agre e d to pay not in dollars but in sacks of w h e at

,
$
,
” $ ”
—so many sacks e ve ry ye ar This w as not so ve ry .
long ago .
What w e n o w call mon e y w as n ot much us e d th e n

in th e We st or South but you se e that in its abse nc e
,
e xp e ri e nc e had driv e n th e p e opl e to s e l e ct som e o n e
articl e to u se for e xchanging oth e r article s and that ,
this was wh e at in P e nnsyl vania and tobacc o in Vir

ginia This was don e n o t through any l e gislation
.
, ,
but Simply b e cause e xp e ri e nc e had prove d th e n e c e s

si ty for making th e o n e thing s e rv e as mon e y which $ ”
had prove d itse lf b e st as a basis in paying for a farm

o r f o r e ff e cting any e xchange of things ; and furth e r , ,
dif fe re nt articl e s we re found b e st f o r th e purpose in

d iffe re nt r e gions Wh e at w as as good as wh e at $ ”
.
f o r using as mon e y ind e p e nd e nt of any l aw T h e

$ ’
, .
p e ople had vot e d for w h e at and mad e it th e ir mon e y $ ”
and b e cause tobacco w as th e principal crop in Vir

gin ia th e p e opl e th e re found it th e b e st for using as
,
$
mon e y in that Stat e
”
.
Ple as e obse rve that in all case s human socie ty

choose s f or that basis article w e call mon e y that
-
$ ”
which fluctuat e s l e ast in pric e is th e most ge n e rally ,
use d or d e sire d is in th e gre at e st most ge n e ral and

, , ,
6 T HE EMPIRE OF BUSINESS
most constantd e mand and has valu e in its e lf Mon e y
, .
$
i s only a w ord m e aning th e articl e us e d as th e basis
article for e xchanging all oth e r articl e s An articl . e
is n ot first mad e valuabl e by law and th e n e l e ct e d to

be mon e y
$
T h e articl e first prov e s its e lf valuabl e
.
’
and b e st suit e d f or th e purpos e and so b e com e s o f ,
—
its e lf and in its e lf th e basis articl e mon e y It e le cts -
.
its e lf Whe at and tobacco we re just as cl e arly m on e y

.
$ ”
wh en use d as th e basis article as gold and silve r are

-
$
mon e y n ow ”
.
We take o n e st e p furth e r Th e country be com e s .
more and m ore populous th e wants of th e p e ople more ,
and more nume rous Th e us e o f bulky products like

.
wh e at and tobacco Change abl e in valu e liable to d e cay

, , ,
and o f diff e re nt grad e s is soon found trouble som e and

,
un suit e d for th e growing busin e ss o f e xchange of arti

cl e s and th e y ar e the re fore unfit to be longe r use d as
,
$
mon e y You s e e at onc e that w e could n ot ge t
.
along to day with grain as mon e y

-
Th e n m e tals .
’
prove d th e ir sup e riority The se do n ot d e cay d o n o t

.
,
change in value so rapidly and th e y sh are with wh e at ,
and tob acco th e o n e e sse ntial quality o f also having

value in th e ms e lve s f or oth e r purpos e s than f or th e
m e re basis o f e xchange P e ople want th e m for pe r
.
sonal adorn m e nt or in manufacture s and th e arts

for a thousand us e s ; and it i s this ve ry fact that make s
th e m suitabl e f or u se as m on e y Just try to c o unt .
’
h ow many purpos e s gold i s n e e d e d f or b e caus e it i s ,

T HE A B 0 OF M ONE Y 2 7
b e st suit e d f or th ose purpos e s It m e e ts us e ve ry .
whe re We cannot e ve n ge t m arrie d without th e

.
ring of gold .
Now b e cause m e tals have a value in th e op e n mar

,
ke t b e in g d e sire d for oth e r us e s than for th e o n e u se as

,
mon e y an d b e caus e th e supply of th e se is limit e d

,
and cannot be incre ase d as e asily as that of wh e at o r

$
tobacco the se m e tals ar e le ss liable to fluctuat e in

,
value than an y article pre vi ously use d as mon e y $

.
”
This is of vital importanc e f or th e o n e e sse ntial quality

,
that is n e e de d in th e article which w e use as a basis f or

e xchanging all oth e r articl e s is fi i ty o f valu e Th e
x .
rac e has instinctive ly always sought for th e on e article

in th e world which most r e s e mbl e s th e North Star
among th e othe r stars in th e h e ave ns and use d it as ,
$
—
mon e y th e articl e that change s l e ast in value as ,
th e North Star is th e star which chang e s its position
le ast in th e he ave ns ; and W hat th e North Star is among

stars th e article p e ople e l e ct as mon e y is among $ ”
articl e s All oth e r articl e s r e volve around it as all

.
,
oth e r stars re volv e aro und th e North Star .
We have proc e e d e d so far that w e hav e n ow dropp e d

al l p e rishable articl e s and e l e ct e d m e tals as our
$
mon e y o r rath e r m e tals have prove d th e m
”
, ,
se lve s b e tt e r than anything e lse f o r th e stand

ar d o f valu e mon e y But anoth e r gre at st e p
,
$
.
had to be take n Wh e n I was in China I r e .

,
c e i v e d as C hange Shavings and chips cut Off a

bar of S ilve r A n d w e igh e d b e for e my e y e s in th e scal e s
o f th e m e rchant for th e Chin e se hav e no coine d $ ”

,
mon e y In Siam cowri e s are us e d pre tty littl e

.
— ”
sh e lls which th e native s u se as ornam e nts Tw e lve .
o f th e s e r e pr e s e nt a c e nt in valu e But you can we ll .
s e e h o w impossibl e it was f or m e to pr e v e nt th e Chin e s e
d e al e r from giving m e l e ss than th e amount o f Silve r

to w hich I was e ntitl e d or th e Siam d e al e r from giving
,
m e poor sh e lls o f th e valu e o f which I kn e w nothing

,
.
Civiliz e d nations soon fe lt th e n e c e ssity o f having th e ir

gove rnm e nts take c e rtain quantiti e s o f th e m e tals and
stamp upon th e m th e e vide nc e of th e ir w e ight purity , ,
and re al valu e Thus cam e th e coinage o f m e tals

. .
$
e —
into mon y a gre at advanc e P e opl e th e n kn e w
”
. .
at sight th e xact valu e o f e ach pi e c e and could no

e ,
longe r be ch e at e d no we ighing o r t e sting b e ing n e c e s

,
sary Not e that th e gove rnme nt stamp did n o t add

.
any valu e to th e coin Th e gove rnme nt did n ot at

.
t e mpt to make mon e y Out o f nothin g ; it only told

$ ”
th e p e opl e th e mark e t valu e o f th e m e tal in e ach coin ,
—
just hat t e m e tal th e raw mat e rial could be sold
w h —
for as m e tal and not as mon e y $
.
But e ve n aft e r this much swindling occurre d Rogu e s .
cut th e e dge s and th e n b e at th e coins o ut s o that many ,
o f th e s e b e cam e v e ry light A cl e ve r Fre nchman i n

. .
ve nt e d th e milling of th e e dge s o f th e coins wh e re by

$ ”
,
this robb e ry was stopp e d and civiliz e d n ations had at

,
last th e co inage which still re m ains with u s th e most pe r ,

‘
THE A B C OF M ONEY 2 9
f e c t e ve r
known b e caus e it is of high valu e in itse lf and
,
change s l e ast An id e ally p e rfe ct articl e for use as

.
-
$
mon e y is o n e that n e v e r change s This is e ss e ntial
.
—
f or th e prot e ction o f th e work e rs th e farm e rs m e ,
c h an i c s and all who labour ; for nothin g t e nds to m ak e

,
e v e ry e xchang e of articl e s a sp e culation so much as
$
mon e y w hich change s in value and in th e gam e o f
”
,
Spe culation th e mass e s o f th e p e ople are always sure

to be b e at e n by th e f e w w h o de al in mon e y and know
most about it .
Nothing plac e s th e farm e r th e wage e arn e r and

,
-
,
all thos e n ot clos e ly conn e ct e d with financial affairs

at so gre at a disadvantage in disposing o f th e ir labour
o r products as change abl e mon e y All such are
$
.
e xactly in th e position occupi e d by th e farm e r trading
with th e store ke e p e r as b e fore d e scrib e d You all .
know that fish will not ris e to th e fly in calm w e ath e r .
It is wh e n th e wind blow s and th e surfac e i s rufli e d

that th e poor victim mistak e s th e lure for a ge nuin e
fly S O it is w ith th e busin e ss aff airs o f th e world
. .
In stormy tim e s wh e n pric e s ar e going up and down

, ,
w h e n th e valu e of th e articl e us e d as mon e y is dancing
—
about up to day and down to morrow and th e
- — -
wat e rs ar e troubl e d th e cl e ve r sp e culator catch e s th e

,
fish and fills his baske t with th e Victims H e nc e th e .
f ar m e r and th e m e chanic and all p e opl e having

,
crops to se ll or re c e iving salari e s o r wage s are ,
those most d e e ply int e re st e d in s e curing and main

i
taining fi ity o f value in th e article the y have to

x
take as mon e y
$
.
Wh e n th e use o f m e tals as mon e y cam e it was found ,
that more than two m e tals we re n e c e ssary to m e e t all

re quire m e nts It would not be w ise to make a gold
.
coin for any smalle r sum than a doll ar for th e coin ,
w ould be too small ; and w e could not u s e a S ilv e r coin
for more than o e dollar b e caus e th e coin would be

n ,
too large So w e had to u se a l e ss valuabl e m tal

. e
for small sums and w e took Silve r but it w as soon found

,
that w e could not u se silv e r for l e ss than te n c e nt coins -

,
a dim e b e ing as small a coin as can be us e d in Silve r ;

and w e w e re comp e lle d to choos e som e thing e ls e f o r
small e r coins We had to take a m e tal l e ss valuable
.
than Silve r and w e took a mixture o f nicke l and cop

,
p e r to mak e fi v e c e nt pi e c e s ; but e v e n th e n w e found

-
that nicke l was too valuable to make on e and two

c e nt pie c e s and so w e had to take copp e r alon e for
,
—
th e se th e e ffort in re gard to e ve ry coin b e ing to put
~
m e tal in it as n e arly as possibl e to th e full amoun t o f

what th e gove r nm e nt stamp said th e coin was orth w .
Thus f o r o n e c e nt in copp e r w e tri e d to put in a c e nt s ’
worth o f copp e r ; in th e nicke l w e tri e d to put in ”
som e thing like fi v e c e nts worth of nicke l and copp e r ;

’
but b e cause copp e r and nicke l Change in value from

day to day e ve n more than Silv e r it is impossible to
, ,
g e t in e ach coin t h e e xact amount of valu e If w e put .
in what was on e day th e e xact valu e and copp e r an d ,

T HE A B C OF MONEY 3t
nicke l ros e in th e marke t as m e tals coins would be ,
m e lt e d down by th e d e ale rs in the s e m e tals and a

profit mad e b y the m and w e should have no coin l e ft
, .
The re fore w e have to l e ave a margin and always put

a little le ss m e tal in th e s e coins than would s e ll f o r th e
full amo unt th e y re pre s e nt H e nc e all this small .
coinage is calle d in th e history O f mon e y tok e n

mone y . It is a toke n that it will bring S O much
$
in gold Anybody who h ol d s tw e ty nicke ls must

.
'
n
”
be abl e to ge t as good as o n e gold dollar for th e m in

o rd e r that th e s e may safe ly s e rv e th e ir purpos e as
mon e y Nations ge n e rally fix a limit to th e u se o f

.
$
toke n mon e y and make it le gal t e nd e r to a small
,
”
amount For instance in Britain no o n e can make

.
,
anoth e r take toke n mon e y for more than te n dollars

$ ”
and all Silve r coins the re ar e classe d as toke n mon e y $

.
I cannot take you any more st e ps forward in th e

d e ve lopme nt O f mon e y b e caus e in th e coin d mill e d
,
e -
me tals w e have th e last st e p o f all ; but I have som e

thin gs ye t to t e ll you about it .
Although o n e would think that in coin e d m e tal pie c e s

w e had r e ach e d p e rfe ction and that with th e s e th e
,
masse s of th e p e opl e could n o t be ch e at e d out of what

is so e ss e ntial to th e ir we ll b e ing hon e st mon e y
-
, ,
y e t o n e way was found

,
to d e fraud th e p e opl e e v e n
whe n such coin was us e d Th e coins have some time s .
b e e n d e base d by ne e dy gove rnm e nts aft e r e xhaust

”
ing wars or p e stile nc e wh e n countri e s w e re re ally too

,
poor o r to o We ak to re c o ve r from th e ir misfortune s .
A coin is calle d a d e bas e d coin wh e n it do e s not

$
posse ss m e tal e nough to bring in th e op e n marke t th e

s um stamp e d upon th e coin by th e gove rnm e nt .
Th e re is nothing n e w about this practic e w hich always ,
che ats th e masse s It is ve ry v e ry Old Five hundre d

.
,
.
and se ve nty four ye ars b e fore Christ th e Gre e ks d e

-
base d th e ir coinage Th e Roman e mp e rors d e base d

.
the irs oft e n wh e n in d e sp e rat e straits England d e .
base d h e rs in th e y e ar 30 T h e Scotch coin was

I ,
0 .
onc e so d e base d that o n e dollar was worth only tw e lve

c e nts Th e Irish th e Fre nch Ge rman and Spanish
.
, , ,
gove rnm e nts have all tri e d d ebas e d coin wh e n th e y

could wring no more taxe s dire ctly out o f th e ir p e opl e ,
and had the re fore to ge t m ore mon e y from th e m in

dire ctly It was always th e last re sort to d e base
.
$ ”
th e coinage .Th e se instanc e s happ e n e d long ago .
Nations of th e first rank in our day do not fall so l o w .
I must pause to make on e e xc e ption to this stat e m e nt .
—
I bow my h e ad in sham e as I writ e i t th e re public o f
th e Unit e d Stat e s Eve ry on e o f its Silve r dollars is a
.
$
d e base d coin . Wh e n a gove rnm e nt issue s d e
’ $
bas e d coin it take s l e ave of all that e xp e ri e nce has

,
”
prove d to be sound in re gard to mon e y Sound financ e .
re quire s th e gove rnm e nt only to c e rtify to th e re al

valu e posse sse d by e ach coin issue d from its mints ,
s o that th e p e opl e may not be ch e at e d Ev e ry tim e .
th e gov e rnm e nt stamps th e words On e Dollar upon

$ ”
T HE A B C OF MONEY 33
37 1 4
1 grains
-
of silv e r it sta m ps,
a l i e ; disgrac e ful ,
but alas $ too tru e for th e silve r in it is worth to day

, ,
-
n o t a doll ar but only s e v e nty e ight c e nts

,
-
.
Anoth e r d e lusion about mone y has o ft e n l e d n a

tions into troubl e th e ide a that a gove rnme nt could
g
$
make mon e y simply by stamping c e rtain words
”
upon pi e c e s Of pap e r just as any of you can make

,
$
mon e y by writin g a not e promising to pay o n e h un

”
dre d dollars on d e mand B ut you know that wh e n

y o u do th a t you ar e not
,
making mon ey but mak
,
ing a de bt so is any gove rnm e nt that issu e s its

promise to pay And th e re is this about both th e in
.
dividual and th e gove rnm e nt w h o tak e to issuing

such not e s upon a large scal e : th e y s e ldo m pay th e m .
Th e Fr e n ch did this during th e ir R e volution and m ore ,
re c e ntly th e Confe d e rat e Stat e s mad e mon e y at a ”
gre at pac e and issue d bonds which are now scarc e ly

,
worth th e pap e r th e y are print e d upon Eve ry e x .
i m n t of this kind h as prov e d that th e r e can be n o

p e r e
m one y made whe re th e re is n ot value b e hin d it

$ ”
.
Our ow n country iss ue d bonds and th e p e opl e o f oth e r

,
nations bought the m for forty c e nts upon th e dollar ,
although th e y bore and paid int e re st at 6 pe r c e nt in .
go ld ,
s o gr e at was th e f e ar that e v e n t h e bonds o f this
coun try would not prove an e xc e ption to th e usual
fat e of such se curiti e s issue d during trying tim e s .
Only b e cause th e gove rnm e nt k e pt strict faith and

p aid th e int e re st and principal o f th e se bonds in gold ,
and n e ve r in silve r o r in any d e pre ciat e d c urre ncy h as ,
th e valu e o f its bonds advanc e d and th e cre dit o f th e ,
Unit e d Stat e s b e com e th e high e st in th e world e x ,
c e e d i n g that e v e n o f Gr e at Britain The re h as n e ve r .
b e e n a b e tt e r illustration o f th e truth that in d e aling

w ith mon e y as in e v e rything e ls e hon e sty i s th e
$ ’ $
, ,
b e st policy . Our gove rnm e nt also issu e d som e not e s

H
known as gre e nbacks But th e wise m e n who did

.
this took care to provid e a fund of o n e hundre d millions

o f dollars in gold to r e d e e m th e m s o that any man ,
havi ng a gre e nb ack can march to th e Tre asury and

re c e ive f or it o n e dollar in gold .
But I am now to t e ll yo u anoth e r quality which this

basis articl e of m e tal has prove d its e lf to poss e ss which
-
,
y o u will find it v e ry di fficult to b e li e v e T h e whol e .
world has such confid e nc e in its fi x ity of value that

th e re has b e e n built upon it as upon a sure f oun d a
,
tion a towe r o f cre dit so high so vast that all th e

,
$ ”
, ,
Silve r and gold in th e Unit e d Stat e s and all th e gre e n ,
backs and not e s issue d by th e gove rnm e nt only pe r ,
form 8 pe r c e nt of th e e xchange s of th e country GO

. .
into any bank trust company mill factory store

, , , , ,
or plac e o f busin e ss and you will find that f or e ve ry

,
o n e hundr e d thousand dollars o f busin e ss transact e d ,
only about e ight thousand dollars o f mon e y is $ ”
use d and this only f or p e tty purchase s and paym e nts

, .
Nin e ty two pe r c e nt o f th e busin e ss is don e with littl e

-
.
f —
bits o pap e r ch e qu e s drafts Upon this basis also
, .
re sts all th e gov e rn m e nt bonds all Stat e county and , , ,
city bonds and th e thousands of millions o f bonds

,
th e sal e o f which h as e nabl e d our gre at railway s y s
t e ms to be built an d also th e thousands o f millions

,
o f th e e arnings o f th e mass e s d e posit e d in savings
banks Which have b e e n l e nt by th e s e banks to various

, ,
partie s and which must be re turn e d in good mon e y

,
$ ”
o r th e poor d e pos itor s savings will be partially o r

’
wholly lost .
T h e busin e ss an d e xchang e s of th e country th e re ,
fore ar e not don e n ow with mon e y with th e ar

,
— ”
ti c l e its e lf .Just as in form e r days th e articl e s th e m

s e lv e s c e ase d to be e xchange d and a m e tal calle d ,
$
mon e y w as us e d to e ff e ct th e e xchange s so to d ay
”
,
—
th e m e tal its e lf th e —
mon e y is no longe r us e d Th e
$
.
che qu e o r draft of th e buy e r of articl e s upon a store

o f gold d e p o sit e d in a bank —a littl e bit Of pap e r
’
— is
all that passe s b e twe e n th e buy e r and th e s e lle r Why is .
this bit o f pap e r take n by th e s e ll e r or th e o n e to whom

th e re is a d e bt du e $ B e cause th e tak e r is confide nt
that if h e re ally n e e d e d th e articl e its e lf that it calls
— —
f or th e gold h e could g e t it He i s confid e nt also
.
that h e will not n e e d th e articl e its e lf and why $ B e ,
caus e f or what h e wish e s to buy th e s e ll e r o r any man

whom h e owe s will take his ch e qu e a similar littl e bit ,
o f pap e r ,
in st e ad o f gold its e lf ; and the n most vital ,
o f all ,
e v e ry o n e is confid e nt that th e basis articl e -
cann ot change in valu e For r e m e mb e r it w ould be

.
-
almost as bad if it ros e in valu e as if it fe ll st e adin e ss °
o f valu e b e ing o n e e ss e ntial quality in m on e y f or ”
th e mass e s o f th e p e opl e .
Whe n th e re fore p e opl e clam our f o r more mon e y

, ,
to be put in circulation —that i s for more o f th e ar , ,
ti c l e which w e u se to e ff e ct an e xchang e o f articl e s ,
you se e that more mon e y is not so much what 13 ‘ ”
n e e d e d Nobody who has had w h e at or tobacco or

.
any articl e to s e ll has e ve r found any trouble for want

of mon e y in th e hands o f th e buye r to e ff e ct th e
”
e xchang e We had a v e ry s e ve re financial disturb

.
anc e in this country only thre e months ago Mon e y .

,
it was said could not be had for busin e ss purpose s ;

,
but it was n ot th e m e tal its e lf that w as lacking but ,
cre dit confid e nc e f o r upon that as you have s e e n

,
”
, , ,
all busin ess is don e e xc e pt small purchase s and pay

me nts which can scarc e ly be call e d busin e ss at all $ ”
.
T o day th e busin e ss man cannot walk th e stre e t with

-
o ut b e ing approach e d by p e opl e b e gging him to tak e
this cre dit at v e ry low rat e s o f int e re st : at 2 pe r

$ ”
c e nt per annum mon e y ( cre dit ) can be had day

.
$ ”
by day The re has b e e n no consid e rabl e diffe re nc e

.
in th e amount o f mon e y in e xist e nc e during th e $ ”
nin e ty days Th e re w as about as much mon e y in

.
th e c ou n tr y in January as th e re is i n March It was

'
n o t th e want of mon e y th e n that caus e d th e troubl e , , .
T h e foundation had b e e n shak e n upon which stood
th e nin e ty two thous and of e v e ry o n e hundre d thou

- '
T HE A B C OF MONE Y 37
sand dollars of busin e ss T h e m e tal itse lf and not e s

.
$
,
—
re al m on e y as w e have se e n only apply to th e
e ight thousand dollars H e re com e s th e grave st o f
.
all dange rs in tamp e ring with th e basis You Shake .
dire ctly th e foundation upon which re sts 9 pe r c e nt 2 .
o f all th e busin e ss e xchange s o f th e country — co n ,
fi d e n c e cre d it —
and indire ctly th e trifling 8 p e r c e nt
, , .
as we ll which i s transact e d by th e e xchange o f th e m e tal

itse lf o r by gove rnm e nt not e s ; for th e standard ar
tiol e i s th e foundation f o r e ve ry e xchange both th e ,
n in e ty two thousand and th e e ight thousand dollars

-
.
So you se e if that be und e rmin e d th e vast structure

, , , ,
comprising all busin e ss built upon it must tott e r

, , .
I have fin ish e d t e lling you about mon e y We $

.
”
come now to apply th e facts to th e pre s e nt situation ,
and h e re w e e nt e r at onc e upon th e silve r qu e stion ;

and I am sure you ar e all att e ntion for it is th e most ,
pre ssing o f all que stions n ow b e fore you Yo u se e .

‘
that th e rac e in its progre ss has us e d various articl e s

, ,
as mon e y and discard e d th e m wh e n b e tt e r articl e s

’
$ ”
,
we re found and that it has finally re ach e d coin e d

,
pie c e s of valuabl e m e tal as th e most p e rfe ct articl e .
Only tw o m e tals are us e d among civiliz e d nations as

th e standard m e tal — gold in some countri e s Silv e r ,
in othe rs No country can have tw o standards

. .
C e nturi e s ago silve r was adopt e d as th e standard in

China India and Japan and more re c e ntly in th e
, , ,
South Ame rican re publics ; and it still is th e standard

in the s e countrie s Wh e n adopt e d it w as a wise choic e ;
.
silve r had n e arly doubl e its pre s e nt valu e and was ,
th e n st e ady and it answe re d all th e n e e ds o f a rural

,
p e ople .
T h e principal nations o f Europ e and o ur o w n coun
try b e ing furth e r advanc e d and having much gre at e r

,
busin e ss transactions found th e n e c e ssity for using as a

,
standard a more valuabl e m e tal than Silve r and gold ,
was adopt e d ; but as Silve r was us e d as mo n e y in many

parts O f th e world as th e standard and us e d in th e s e ,
gold basis countri e s for small change it was ad

-
$
,
”
visabl e for th e s e nations to agre e upon th e value in

gold which would be accord e d to silve r and this was ,
fixe d at fift e e n and o n e half ounc e s of silv e r to o n e o f

-
gold Ple as e not e that this was th e n as n e arly as

.
possibl e th e marke t value of silve r as a m e tal c o m

pare d w ith gold as a me tal Th e nations did n o t at
.
t e mpt to give t o Silve r any fictitious valu e but ,
only its o w n inhe re nt value And more than this .

, ,
e ach of th e s e nations agre e d wh e n th e agre e ,
m e nt cam e to an e n d to re d e e m all th e Silve r

,
coin it had issu e d in gold at th e value fixe d Ev e ry .
thing we nt we ll und e r this arrange m e nt for a long tim e .
T h e more advanc e d nations w e re upon a gold basis ,
th e l e ss advanc e d nations upon a silv e r basis and ,
both we re e qually we ll s e rv e d .
What th e n has rais e d this s i lve r ques ti on which

, ,
v
e e rybody is discussing $ Just this fact : that while
THE A B C OF MONEY 39
th e suppl y and th e re fore th e value o f gold re main e d

, ,
about th e sam e gre at d e posits o f silve r we re di sc o v

,
e re d wond e rful improve m e nts mad e in mining ma

,
chin e ry and still more wonde rful in th e machin e ry

,
f o r re fining silv e r o r e ; and as mor e and mor e S il v e r was
produced at l e ss cost its valu e naturally fe ll more and

,
more ; o n e ounc e of it worth $ 33 in 8 7 b e ing w orth

,
1 . 1 2 ,
to d ay only It has falle n as l o w as 9 3 c e nts .
It has danc e d up and do w n ; it has lost fi ity of value x .
To all countri e s upon a silv e r basis th e re hav e com e

confusion and disast e r in cons e qu e nc e T h e que stion .
in India with its tw o hundre d and e ighty fi e millions

,
-
v
o f p e opl e is most s e rious ; and you se e h ow o ur South

,
Am e rican r e publics are troubl e d from this fall in th e
valu e of the ir basis article by which all oth e r article s

-
,
ar e m e asure d Eve n th e Europ e an nations w hich

.
are upon a gold basis ar e troubl e d by this Silve r $
que stion for und e r th e agre e m e nt to rate fift e e n

,
and a half ounc e s of Silv e r as w orth an ounc e o f gold

some of th e se nations have had e normous amounts of
Silve r thrust upon th e m Most of the m saw w hat .
was coming many y e ars ago and c e as e d to incre ase ,
th e ir Silve r : some dispos e d o f a gre at de al of what th e y

had and plac e d th e ms e lve s strictly upon th e gold
,
basis ; but th e re ar e still in Europ e an countri e s e l e ve n

hundre d millions of dollars o f Silve r l e gal t e nde r coins -
,
not counting th e amount of toke n Silve r m on e y $ ”
use d for sm all change It is not safe to say that l e ss

.
'
4 o T HE EMPIRE OF BUSINESS
than twe nty fi ve ounc e s of it would be found e qual to
-
o n e ounc e of gold if put in th e mark e t inst e ad o f th e ,
—
fi f te e n and a half ounc e basis upon which th e s e c o un
- - -
tri e s have obtaine d it .
All Europ e an countri e s have b e e n and are still , ,
trying hard to e scap e from Silve r In 8 78 thos e com . 1
prising th e Latin Union which fixe d th e pric e of sil ,
ver — Franc e B e lgium Italy Switz e rland and Gre e c e

— n ally close d the ir mints to le gal te nde r Silve r
, , , , , ,
-
. i .
Norway Swe d e n and D e nmark in 8 73 and 8 75 ran

,
1 1
out from und e r th e silve r avalanch e and now stand ,
firmly upon a gold basis Holland also in 8 7 5 took .

,
1 ,
its stand practically upon gold Austria Hun gary .

-
has not coin e d Silve r Sinc e 8 79 e xc e pt a small amount 1 ,
of Le vant Silv e r thal e rs for a sp e cial trad e purpose ”

.
Eve n half civiliz e d Russia took th e alarm and ran

-
,
as fast as S h e could o ut o f th e S ilv e r dang e r for in 8 76 ,

1
sh e S hut h e r mi nts to th e furth e r coinag e o f th e dan
g e r o u s m e tal e xc e pt such small amount

, a s China
w ish e d to tak e promptly from h e r S O you s e e that .
all those countri e s that have tri e d silve r and found

o u t th e e vils w hich it produc e s and its dange rs hav e , ,
b e e n and ar e now using e ve ry m e ans to rid th e ms e lv e s

, ,
o f it For thirt e e n ye ars it has b e e n cast o u t o f th e ir

.
mints for during this long p e riod no full l e gal —

,
t e nd e r
Silve r coins have b e e n issue d in Europ e Only o ur .
re public among n ations is boldly plunging d e e p e r

, ,
and d e e pe r into th e dange rs of S ilve r coinage Wh e n .

w e have had th e e xp e ri e nc e of old e r nations as to its

op e rations w e m ay and I think sure ly will wish
, , , ,
like th e m to re trac e o ur st e ps whe n it is too lat e So

,
.
,
o u s e e th e r e is troubl e wh e r e v e r th e re is silv e r What

y
.
,
to d o with th e ir S ilv e r which has fall e n s o low in valu e

, ,
is a S e rious probl e m in all the s e countrie s It hangs.
like a dark cloud ove r th e ir future .
So much has silve r fall e n in all parts of th e world

and disturb e d e ve rything that s e v e ral confe re nc e s
,
have b e e n call e d by th e nations in re c e nt y e ars to ,
which th e Unit e d Stat e s h as s e nt d e l e gat e s T h e ob

.
o f th e s e was to s e e wh e th e r th e chi e f co m m e rcial

j e c t
nations could not agre e again upon a n e w gold value

for silv e r But th e conclusion has always b e e n that
.
it was to o dange rous to att e mpt to fix a n e w value f or

silve r until it could be more cle arly s e e n what th e
future was to Show about its supply and value f o r ,
p e rhaps it might fall so l ow that twe nty fi v e o r thirty

-
ounce s of it w ould not be worth more than an ounc e

of gold ; no o n e can t e ll . A S our country has alre ady
gon e so far into th e dange r as to have four hundre d

and e ighty tw o millions o f dollars in d e pre ciat e d silve r
-
,
w e had to confe r with o u r n e ighbours in misfortun e ,
and app e ar as cre ditors hav e to app e ar at m e e tings

he ld to try to support th e bad busin e ss of a failing
d e btor .
P e rhaps yo u are asking yours e lve s why wh e n I ,
spoke of all th e Europ e an countri e s in re lation to sil «

v e r, I did n ot stat e th e amount of Silve r h e ld in re
se rve by our principal rival Gre at Britain List e n
, .
o n e mom e nt and the n ponde r ove r th e re ply N ot

, .
on e dol l ar . Franc e has no l e ss than S ix hundre d and

fifty millions o f dollars in silve r in h e r bank ; but e ve ry
dollar o f Britain s re se rv e s is in th e o n e st e ady un
’
—
change abl e basis article gold Wise o l d bird th e
-
.
,
d e ar mothe r land sits upon h e r p e rch whistling away

-
,
o ut of all dang e r from this silv e r troubl e S h e has.
made London th e financial c e ntre o f th e world If any .
thing be bought o r sold i nfore ign lands a draft upon ,
London is d e mand e d ; b e caus e e ve ryon e knows that ,
come w hat may it w ill be paid in th e b e st articl e

, ,
—
which canno t fall in value gold No draft upon .
Paris or Vie nna or Ne w York f or wis e m e n Why $ .
B e caus e th e nations re pre se nt e d by th e se citi e s have

b e com e involve d in gre at possibl e loss e s by th e ir huge
pile s of silve r , and may att e mpt by l e gislation to mak e
drafts payabl e in that m e tal which fluctuat e s so in
,
value .
I wish th e p e opl e o f th e Unit e d Stat e s would watch

B ritain car e fully S h .e i s k e e pin g h e r ow n counse l ;
sh e is tr e ating th e silv e r load e d nations with cool polit e
-
n e ss in th e confe re nc e s w hich Sh e graci ously conde

,
s c e nds to att e nd only b e caus e India ov e r which sh e
rul e s is unfortunat e ly upon a Silve r basis ; if it we re

,
not f or that sh e would probably polit e ly d e clin e

,
.
Wh e n th e y talk about fixing a gold valu e upon silve r ,

sh e says that sh e re ally do e s not know what Sh e will

d e cid e upon in th e matt e r What sh e is p raying f or
.
is that th e Unite d Stat e s w ill continue to go d e e p e r

and d e e p e r into Silve r until re tre at is impossibl e and ,
S h e w ill k e e p h e r o l d policy which has m ad e h e r su

,
pre me in fi nanc e He r only possibl e rival is n o t to be

.
found in Europ e but h e re in th e Unit e d Stat e s What

, .
a grand thing for Britain if o u r country could be brought

—
down to a Silve r basis fo rc e d to re l i nquish th e on e
standard which can alon e give a natio n front rank in
th e financial world Silve r for th e re public Gold f or ,
th e m onarchy : this is what gr e at Britain is hoping
may com e to pass and what e ve ry Am e rican should

,
re solve n e ve r S hall Gove rnm e nts may pass what

.
laws the y pl e as e about Silve r : th e world h e e ds th e m

not Eve ry busin e ss transaction b e twe e n nations
.
contin ue s to be bas e d on gold e xclusive ly nothing —

—
but gold and will SO continu e Britain knows this .
and acts accordingly .
I think I he ar you ask indignantly : How cam e

o ur count ry to h av e thr e e hundr e d and tw e lv e millions
o f S ilve r dollars in its vaults like Franc e inst e ad of

, ,
having its re s e rve s in th e sure gold lik e o ur rival , ,
Britain wh e n like Britain w e have gold as our basis $

, , ,
That is a que stion e ve ry farme r and e ve ry toile r S hould

ask and de mand an answe r to fro m his re pre s e nta
, ,
tive in Congre ss Th e re ason is e asily giv e n H e re

. .
is th e history Silve r as w e hav e s e e n had falle n in

.
, ,
value and was like ly to fall still more Europ e an
,
.
nations w e re load e d dow n with many hun dr e ds o f

millions O f dollars and all anxious to g e t rid o f it ;
,
o w n e rs o f silve r and of silve r min e s we re alarm e d ;

w hat was to be don e to prop th e falling m tale $ E i v
d e n tl y th e gov e rnm e nt w as th e only pow e r which could
und e rtake th e task ; and towards that e n d all th e in

fl ue n c e and r e sourc s of th e silve r pow e r w e r e b e nt
e
alas $ with e min e nt succ e ss ; for th e masse s o f th e pe o

p l e w e r e r e pr e s e nt e d as in favour of silv e r If tru e .
,
th e y we re going with th e sp e culators against th e ir o w n

int e re sts in th e most dire ct w ay possibl e
,
.
Th e first act which aim e d to giv e by l e gislation a
value to silve r was pass e d in 8 78 It re quire d o ur1 .
gove rnm e nt to buy at l e ast tw o million ounc e s o f silve r

e v e ry month whil e all oth e r gov e rnm e nts had stopp e d
,
coining it b e caus e it had b e com e dange rously e rratic

,
in valu e T h e silve r m e n insist e d that th e s e pur

.
chas e s would rais e its valu e ; but we re th e y right $ No .
It did not advanc e in pric e What w as to be don e

.
th e n $ Ah $ said th e s e silv e r tongu e d sp e cula

$ ”
-
tors th e troubl e is th e gove rnm e nt h as n o t gon e

, ,
far e nough ; only incre as e th e amount l e t th e gov

e rn m e n t buy four and a half million ounc e s p e r month
o f o u r silv e r inst e ad o f two million p e r m onth and this ,
w ill tak e all that th e country s min e s yi e ld and mor e

’
too and so silve r must advanc e in valu e

, Th e y w e re
.
’
right in stating that four and a half m illions pe r month

THE A B C OF M ON EY 45
ar e m or than th total yi ld
e e Unit e d Stat e s sile of th e
v e r min e s ; and th e n e ight to te n millions o f S ilv e r ar e
tak e n and use d e ve ry y e ar for othe r purpos e s than

coining into mon e y l e aving n o t more than s ay four
$
,
”
, ,
millions pe r month for coinage Many p e opl e w e re .
p e rsuad e d that if th e gove rnm e nt bought so much Sil

v e r p e r month th e valu e o f silv e r must advanc e Th e .
pric e did advanc e b e caus e many o f th e s e mistake n

,
p e opl e bought it upon sp e culation b e fore th e bill

.
pass e d Silv e r ros from 9 to

. e 6 — almost to its o l d 1 2 1
rat e in gold .
But what has b e e n th e re sult sinc e th e passage of

th e n e w bill $ T h e answ e r is found in th e quotation
for Silve r to day It is back from

-
. to 9 7 and h e re ,
w e ar e again So inst e ad o f b e ing fre e from th e silve r

.
,
trouble as Britain is and w e Should have b e e n the se

, ,
m e n hav e succ e e d e d in un loading upon th e gov e rn
m e nt alre ady thre e hundre d and nin e ty millions o f

dollars o f th e ir Silve r and w e are ge tting almost as badly
,
o ff as Franc e ; but with this diff e re nc e : Franc e and
othe r nations prud e ntly stopp e d adding to th e ir bur

d e ns o f silve r thirt e e n y e ars ago while o ur gove rn ,
m e nt is adding to its store four and o n e half millions -
o f ounc e s e v e ry month costing a littl e more than that ,
amount o f dollars T h e Unit e d Stat e s is trying to

.
ignore th e change d position of Silve r and to mak e it ,
e qual to gold against th e judgm e nt o f all oth e r fi r st

,
class nations To succ e e d w e Shall have to buy not

.
,
4 6 T HE EM P IRE OF B USINES S
only what our ow n m ine s produc e but a gre at d e al o f

’
w hat all oth e r min e s produc e throughout th e w orld ,
th e total yi e ld of S ilv e r b e ing e nough to mak e o n e hun
dre d and Sixty e ight millions of our Silve r dollars e ve ry

-
ye ar ; and the n w e must in addition be pre pare d to

, ,
buy th e e le ve n hundre d millions of dollars worth with ’
w hich Europ e an gov e rnm e nts ar e n o w load e d down ,
and which th e y ar e anxious to s e ll .
So far from th e gove rn m e nt purchase s of Silve r hav

ing rais e d its valu e th e gov e rnm e nt could not to day
,
-
s e ll th e thre e hundre d and thirt e e n millions of dollars ’
w orth in its vaults w ithout losing som e millions upon
th e pric e it has paid th e S ilv e r o w n e rs for it

-
Yo u .
w ill scarc e ly b e li e v e that th e accounts o f th e tr e asury
state that th e gov e rnm e nt has mad e S O far sixty , ,
Se ve n millions of profit upon its silve r purchase s This .
is Claime d b e caus e for th e amount o f Silve r put in a

dollar it has paid only about e ighty c e nts All this .
profit is fictitious Yo u s e e th e nation has b e e n

”
.
,
l e d into v e ry foolish purchas e s of silve r Four and a .
half millions of your e arnings ar e tak e n through taxe s

e v e ry month
.
not f or th e constitutional purpose s o f
,
gove rnm e nt but in an e ff ort to bolst e r a m e tal by

,
payin g pric e s for it far high e r than it oth e rwise would

command Your gove rnme nt is be in g u se d as a tool
.
,
to e nrich th e own e rs o f silve r and silve r min e s This .
is bad ind e e d but hardly worth m e ntioning compare d

,
with th e dange r of panic and disast e r it brings wi th

it through th e probable banishm e nt of th e st e ady gold

basis and th e introduction of th e u n ste ad y basis of silve r .
Th e re public had th e disgrac e of sla v e ry and abol ,
i sh e d it Until this y e ar it was disgrac e d in th e e ye s

.
o f th e w orld b e caus e it had no law which s e cur e d to
othe rs th an its o w n citiz e ns th e right to th e ir lit e rary

productions That disgrac e has pass e d aw ay also ;
.
but th e re has come upon it th e disgrac e o f de bas e d $
coinage T h e gr e at r e public issu e s dishon e st coin

.
”
,
and it is th e only nation in th e world which do e s so ,
e xc e pt M e xico which still coins a little silve r But

,
.
w hil e th e disgrac e is upon us th e financial e vils o f ,

de
base d coinage ar e y e t to com e ; for although th e go v

”
,
e rn m e t issu e s d e bas e d coin it agr e e s to r e c e iv e it as

n ,
worth a dollar in paym e nt of duti e s and taxe s and ,
make s it l e gal t e nd e r and so it pass e s from hand to

,
hand for th e pre s e nt as worth dollars In this w ay .
th e gov e rnm e nt has b e e n abl e s o far to pr e v e nt its d e
pre ciation How long it can continu e issuing four

.
and a half millions mor of th e s e not e s or coins e ve ry

e
month and ke e p th e m e qual to gold nobo d y can t e ll .
But o n e thing is cle ar : ultimat e ly th e load mu st be

com e to o he avy and unl e ss Silve r ris e s in value or
, , ,
e nough i s put into th e d ollars to r e pr e s e nt th e ir valu e
in gold or th e purchas e of Silve r by th e gove rnm e nt

,
is stoppe d w e must soon e r o r lat e r fall from th e gold

,
basis to th e condition of th e Arge ntin e and othe r Sout h

Ame rican re publics .
4 8 T HE EMPIRE OF BUSINESS
This is how the se s ilve r dollars will act which have
n o t m e tal e nough to s e ll for dollars wh e n th e world
b e gins to lose confid e nc e in th e ability o f th e gove rn

m e nt issuing the m to pay gold f o r th e m wh e n aske d .
Suppose a num b e r o f you had d e cid e d to carry a huge

log from th e woods and you all got und e r and b e nd
, , ,
ing your n e cks took its we ight upon your should e rs

, ,
and th e n som e doubt e d wh e th e r you re ally could

stagge r o n und e r th e load ; and suppose two or thre e of
you aft e r casting timid glanc e s at e ach othe r con
, ,
clud e d you had b e tt e r g e t from und e r : what would be

th e re sult $ T h e lack of confid e nc e would probably
re sult in killing those who we re foolish e nough to r e

main It is j ust so with this de licat e que stion of th e
.
me asure of value s A f e w sp e culators or gold bugs

.
-
”
will re solve that com e w hat may th e y will make

, ,
the mse lve s safe and ge t from und e r .
Eve n in th e mind o f th e most r e ckl e ss th e re will be

som e doubt w h e the r th e Unit e d Stat e s alon e can tak e
th e load of th e worl d upon its should e rs and carry it ,
whe n all th e oth e r nations toge th e r a e afrai d to try

’
it and w he n no nation in th e history of th e w orld has

,
e v e r succ e e d e d in giving p e rman e nt valu e as a stand

,
ard for mon e y to a m e tal that did not in itse lf posse ss

,
that value Mark this : that our gove rnme nt has only
.
succ e e de d so far in doing this with its silve r dollars

b e cause it has issue d only a limit e d quantity and has ,
—
b e e n able to r e de e m th e m i n gol d just as you could
take a pi e c e of pap e r and writ e on It This is good f o r

o n e dollar and I promis e to pay it
,
That would be .
your fiat mon e y T h e qu e stion is How long could

$
.
,
y o u g e t p e opl e to tak e th e s e S lips for dollars $ H ow
soon would som e suspicious man sugge st that you we re

issui ng to o many $ And th e n th e s e Slips would lose
re putation ; p e opl e would b e gin to doubt wh e the r you
.
could re ally pay all th e dollars promise d if call e d upon ;

and from that mome nt you could issue n o more Just .
s o w ith gov e rnm e nts : all can k e e p th e ir small change
a float although it may not contain m e tal e qual to its

,
fac e valu e ; and it is a poor gove rnm e nt which cannot

go a littl e furth e r and ge t th e world to take som e thing
from it in th e shap e o f mon e y which is only par ”
ti al l y so But th e n re m e mb e r any gov e rnm e nt will soon

.
, ,
e xhaust its cr e dit if it continu e s to issu e as mon e y ”
anything but what has intrinsic valu e as m e tal all th e

world ov e r Eve ry nation has had e ve ntually to r e
.
coin its de bas e d coin or re pudiat e its obligations

”
,
and go through th e p e rils and disgrac e of loss of cre dit

and position In many instanc e s th e d e bas e d coin
.
”
n e ve r was re d e e m e d th e poor p e opl e who h e ld it b e in g

,
comp e lle d to stand th e loss .
The re is howe ve r o n e valuable fe ature o f th e pre se nt

, ,
silv e r law which if not change d may stop th e issue ,
Of many more d e base d Silve r dollars It re quire s .

’3
that two millions of th e four and a half millions of

ou nc e s o f S ilv e r purchas e d e ach month S hall be coin e d
into mon e y for o n e y e ar Afte r that only such .
,
amounts are tObe coine d as ar e found n e c e ssary to

re d e e m th e Silve r not e s issu e d AS p e opl e pre fe r th e
.
not e s to th e silve r little o r no coinage o f silve r dollars

,
will be n e c e ssary and o nly silve r not e s will be issue d

, .
Whe n th e gove rn me nt c e ase s to coin Silve r dollars it ,
will stand forth in i ts tru e charact e r b e fore th e pe o

p l e — that o f a hug e sp e culator in silv er o r rath e r , , ,
as th e tool of silv e r sp e culators piling up in its vaults ,
e v e ry month four and a half millions o f ounc e s n ot ,
in th e form of mon e y but in bars Sure ly this can

$
,
.
not fail to awake n th e p e opl e to th e tru e stat e o f affairs ,
and cause th e m to d e mand that th e re ckl e ss sp e cula

tion Shall c e ase .
It is in e ve ry re sp e ct much l e ss dange rous how e ve r , ,
to ke e p th e Silve r purchase d in bullion than to coin it

in d e base d dollars b e caus e it re nd e rs it e asie r at
,
”
some future day to b e gin th e coinage of hon e st Silve r

—
dollars that is , coins containing th e amount of silve r
m e tal that co mmands a dollar as m e tal ; inst e ad of 37 1
grains o f Silv e r 4 50 or 4 6 0 o r more or l e ss Should be

, , , ,
use d This is just about th e amoun t th e gove rnm e nt

.
ge ts for e ach dollar NO possibl e act of le gislation

.
that I know of ould produc e such lasting b e n e fit to

w
th e mass e s of th e p e opl e of this country But b e yond .
mat e rial b e n e fit som e thing much high e r is involve d

th e honour o f th e r e public Th e stamp o f its gov e rn
.
m e nt should c e rtify only that which is tru e .

THE A B C OF MONEY 5 1
I do n o t suppos e that the re are many m e n in th e

Unit e d State s e xc e pt own e rs o f silve r who would
, ,
vote that S ilve r take th e plac e of gold as th e standard

o f valu e . If th e p e ople und e rstood that th e qu e stion
w as wh e th e r th e o n e m e tal o r th e oth e r — silve r or
—
gold Sh ould be e l e ct e d as th e standard th e vote would
,
be alm ost unanimous for gold its sup e riority is s o

,
~
m anife st Ye t such is sure ly th e issu e although th e

.
,
advocat e s of silve r disclaim any int e ntion to disturb

th e gold standard saying t h e y only d e sire to e l e vat e
,
silve r and give it th e position which gold has as mon e y .
But you might as we ll try to have two hors e s come in

$
first in a rac e or to hav e two b e st of anything You
” ”
.
might as we ll argu e for two national flags in o e coun n
try Just as sure lyas th e citiz e n has to e l e ct th e ban

.
n e r und e r which h e stands or falls , S O sur e ly must h e
e l e ct gold or silv e r for his financial standard Th e .
standard article cannot be mad e to share its thron e

w ith anything e ls e any more than th e stars and
,
-
strip e s can be ma d e to S hare its sove re ignty w ith any

othe r flag in its o w n country ; for th e re is this law about
$
mon e y : th e worst drive s th e b e st from th e fi e ld
”
.
T h e re ason for this is v e ry cl e ar

.
Suppose you ge t in change a fi v e dollar gold pi e c e

-
and fi v e dollars in silve r and th e re is som e doubt

,
whe th e r an act of Congre ss will re ally prove e ff e ctiv e

in ke e ping silve r e qual to gold in valu e fore ve r : nin e ty
nin e p e opl e out of a hundre d m av think that th e law
5 2 T HE EMP IRE OF BUSINESS
will give thi s p e rman e nt value to silve r which th e ,
article itse lf do e s not poss e ss ; but o n e man in a bun

dre d may have doubts upon th e subj e ct I think th e .
more a man kno w s about mon e y th e more doubts $
h e w ill hav e ; an d although y o u may hav e no doubts

, ,
still th e fact that I have doubts for instanc e will l e ad , ,
you to say : We ll h e may be right ; it is possible I

,
may be w rong I gu e ss I w ill give Smith this silve r

.
for my groc e rie s to morrow and give th e old lady this

-
,
be autiful bright gold e n pi e c e to put by ; it n e e ds no

—
acts of Congre ss all th e acts of Congre ss in th e world
cannot l e ss e n its valu e ; th e m e tal in it is worth fi v e
d ollars any w h e re in th e world ind e p e nd e nt o f th e gov ,
e rn m e t stamp ; th e s e fi v e pi e c e s of S ilv e r ar e worth

n
only thre e dollars and s e ve nty fi v e c e nts as m e tal -

.
—
Ye s I shall l e t Smith hav e th e silv e r gol d i s good
,
”
e n o ugh f
or me .
And you may be sure Smith unloads th e silve r as

soo n as h e can upon Jon e s And many p e ople w ill .
b e lie ve and act S O and th e gold in th e country w ill

,
disapp e ar from busin e ss and silve r alon e will be s e e n

,
and circulat e e ve ry man that ge ts it g v m g it to anoth e r i
as soon as h e can and so ke e ping it in active circula

,
tion ; and e ve ry man that ge ts a bit of gold holding

it and thus ke e ping it o ut o f circulation So in ste ad
, .
o f having mor e mon e y if w e go in for trying by l aw to

,
forc e an artificial valu e upon Silve r in ord e r to u se it

as mone y w e Shall re ally soon have l e ss mon e y in cir
,
c ul ation T h e s e ve n h undre d millions of gold which

.
is now in circulation and which is th e basis o f e ve ry

,
thing will sp e e dily vanish th e vast structure of cre dit

, ,
built upon it be shak e n and th e mass e s of th e p e ople ,
comp e lle d to r e c e ive S ilv e r dollars worth only s e ve nty

e ight c ents inst e ad of b e ing as now r e d e e mabl e in
, , ,
gold and always worth o e hundre d c e nts Fo r re n .

,
m e mb e r as I have told you 9 pe r c e nt of all op e ra

, ,
2 .
tions cond uct e d by mon e y d e p e nds upon p e opl e

$ ”
havin g absolut e confid e nc e in th e mon e y b e ing o f $ ”
unchange able valu e .
Issue o n e hundre d dollars of d e base d Coin more

th an all m e n ar e sure can be ke pt of unchange abl e
v alu e with gold
— panic and financial re volution ar e
upon you More mon e y you se e which could only
.
$
,
”
,
be us e d in 8 pe r c e nt of o ur small e st financial trans

.
actions can e asily be so issue d as to ove rw h e lm all th e

,
important busin e ss of th e country by shaking con

fi de n ce ,
upon w hich 9 pe r c e nt re sts To be al w ays
2 . .
fre e from dange r is to issue only such mon e y as in ”
its e lf has all th e value c e rtifi e d by th e stamp upon it .
So j e alously do e s Britain our only rival adh e re to , ,
this that sh e is sp e nding two millions of dollars just

now to re coin gold coins w hich have lost a f e w c e nts
Of th e ir value by we ar He r gove rnm e nt stamp must
.
always t e ll th e truth T h e re public should not be l e ss

.
j e alous o f its honor .
As yo u hav e s e e n th e silv e r m e n we r e disappoint e d

,
-
at th e failure o f acts o f Congre ss to advanc e th e valu e
o f th e ir silv e r Twic e th e gov e rnm e nt has b e e n i n
.
d uc e d to do as th e y aske d und e r assuranc e s that com

,
p l i an c e would sur e ly g e t th e coun try o u t O f i ts da n g e r

o u s position as th e o w n e r of S il ve r ; twic e it has b e e n
d e c e iv e d Yo u would think th e Silve r own e rs would

.
-
now admit th e ir e rror and h e lp th e gove rnme nt to ge t

back to safe ground with as littl e loss as possibl e Far .
from it ; inst e a d o f this th e y have take n th e bold e st

s t e p o f all and urge d upon Congre ss what you have
,
—
he ard a gre at d e al about th e fre e coinage o f silve r .
”
Now what do e s that m e an $ It m e ans that our go v

,
e rn m e n t is to be comp e ll e d by law to op e n its m i nts
and take all th e silve r with which Europ e an gove rn

m e nts ar e load e d down and part o f all th e silve r m in e d
,
in th e world and give for e ve ry s e ve nty e ight c e nts

,
-
’
worth of it o n e o f th e se coins which yo u are comp e lle d

,
to tak e as a full dollar for your labour or products It

'
m e ans that th e Europ e an m e rchant w ill s e nd silv e r

ove r h e re ge t it coin e d at our mints or ge t a Silve r
,
dollar not e for it and th e n buy a full dollar s worth

,
’
o f your wh e at o r corn o r anything h e wants

,
for th e,
silve r h e could ge t only s e ve nty e ight c e nts for in-
Europ e o r anywh e re e ls e in th e world Europ e is .
doing this e ve ry day just now w ith India th e Arge n ,
tin e Re public and othe r countri e s upon a silv e r basis

,
.
T h e British m e rchant buys w h e at in India upon th e
d e pre ciat e d silve r basis take s i t to Europ e and s e lls it

, ,
upon th e gold basis He has thus to pay so littl e for

.
Indian wh e at that it has b e com e a dange rous com

p e titor to our o w n in Europ e which it could not be
,
e xc e pt that by th e fall in silv e r th e Indian farm e r g e ts
so littl e valu e for his products .
It is o nly a f e w months Sinc e th e n e w Silv e r Bill was

passe d re quiring th e gove rnm e nt to more than doubl e
its purchase s and alre ady e ight millions of dollars of
,
silve r more than w e have e xporte d has b e e n s e nt into

—
this country from abroad som e thin g un known for
fift e e n y e ars for w e hav e alw ays e xport e d more silve r
,
than w e have import e d Now w e ar e buying all o ur

.
ow n min e s furnish and b e ing burd e n e d w ith som e

,
from Europ e for w hich w e should hav e re c e ive d gold

,
.
In e ight e e n days of th e month of April w e have se nt

abroad nin e millions of d ollars in gold ; so that und e r
o ur pr e s e nt Silv e r Law you s e e Europ e has alr e ady
b e gun to s e nd us h e r d e pre ciat e d Silve r and r ob us of

o ur pur e gold — a p e rilous e xchang e for our country
and on e which Should fill o ur l e gislators w ith sham e .
Und e rstand pl e ase th at hith e rto und e r both bills

, , ,
comp e lling th e gove rnme nt to buy Silve r bad as th e s e ,
we re ye t th e gov e rn m e nt has got th e m e tal at th e

,
marke t pric e now about s e ve nty e ight c e nts for 37 4

,
-
1 1 -
grains ; and only this amount th e gove rnm e nt has put

into th e so call e d dollar Und e r fre e coinage all
-
.
$
this will change Th e own e r o f th e silve r will th e n

.
g e t th e dollar f o r s e v e nty e i ght c e

-
nts worth o f silv e r
’
.
For pure cool audacity I submit that this proposition
,
b e ats th e re cord ; and ye t w h e n th e Farm e rs Allianc e ’
Shouts for fre e coinage this is e xactly what it suppo rts

,
—a sche me to take from th e p e opl e t w e nty tw o c e nts -
upon e ach dollar and put it into th e pocke ts o f th e

o n e rs o f silve r Sure ly you will all agre e that if
w .
s e v e nty e ight c e nts worth of silv e r is to be made a

-
’
dollar by th e gov e rnm e nt th e n th e gov e rnm e nt and , ,
n o t th e silv e r own e r should g e t th e e xtra tw e nty tw o

-
,
-
c e nts profit o n e ach coin if it succ e e ds T h e gove rn

’
, .
m e nts n e e ds it all ; for as I told you b e fore th e Silve r

, ,
bought by th e gove rnm e nt only at marke t value could

not be sold to day without a loss of millions
-
.
’
If th e fre e coinage of silve r b e com e s law o ur farm e rs ,
will find th e ms e lve s just in th e position of th e Indian

farm e r ; and y e t w e ar e told that th e y ar e in favour o f
s ilv e r. If this be true th e re can be only o e re ason
,
n
i —
for t the y do not u n d e stan d th e ir o w n int e re sts
$
No class of o ur p e opl e is so d e e ply int e re st e d in th e

maint e nanc e of th e gold standard and th e total sw e e p
ing aw ay o f silve r purchase s and d e bas e d coinage as
-
th e farm e r Io r many of his products ar e sold in coun

,
trie s that are upon th e gold basis If th e Am e rican .
farm e r agre e s to take S ilve r in lie u o f gold h e w ill e h ,
able th e Live rpool m e rchant to buy upon th e low e r

silve r basis at pre se nt s e ve nty e ight c e nts f o r th e dol
,
-
lar ; w hil e for all th e articl e s coming from abroad that

th e farm e r buys h e w ill hav e to pay upon th e gold
basis He will thus have to s e ll ch e ap and buy d e ar

. .
This is just w hat is troubling India and th e South

Ame rican re publics Pric e s for this s e ason s crops .
’
promise to be high e r than for y e ars S e e th at you ge t .
th e s e upo n th e gol d bas i s .
Op e n our mints to th e fre e coinage O f silve r and thus ,
offe r e ve ry man in th e w orld w h o has Silve r to s e ll a

o n e dollar -
coin stamp e d by th e gove rnm e nt and ,
take n by it for all due s for w hich h e give s only 37 ,

1 1 -
2
grains o f silve r worth s e ve nty e ight c e nts and e ve ry

,
-
,
Silve r mine in th e world will be worke d day and night

and e ve ry pound o f silve r obtain e d hurri e d to our
shore s Th e nations o f Europ e with e l e ve n hundre d
.
,
millions of d e pre ciat e d Silve r alre ady on hand will ,
promptly unload it upon us ; th e y w ill d e mand gold

from us f or all that w e buy from th e m and thus rob ,
us of ou r gold w hile w e take th e ir S ilve r With fre e .

$
coinage in sight w e Shall fall from th e gold to th e

”
,
silve r basis b e fore th e bill is passe d T h e last words .
o f th e lat e lam nt e d S e cre tary Windom will prove

e
tru e
b by b f
Pro ift t c g y u d c u d d
a l e ore th e sw es o e an re h o n o l l an i ts
il v c g N Y k
er ar otg in it i c u
ew or th e l as ol d d o l l ar w h n re a h ld
f y i d p iv t b x v u t f f p it
S , w o
be sa e l h d en in r a e o e s an d i n th e a l s o sa e - de
c p i b ug t y by ig p iu xp t
os
om an e s , to be ro h out o n l a h h re m m for e or a
ti on .
It is a dange rous Se a upon which w e have e mbarke d .
Yo u should ask yours e lve s w h y you should e ndange r

th e gold basis for silv e r Do e s any o n e ass e rt that .
58 T HE EMPI R E OF BUSINESS
th e Silv r bas s would
e i b e tt e r for you o r f or th e
be
country $ Impossible No o n e dare s go so far as .
this All that th e w ild e st advocat e of th e change v e n

.
ture s to say is that h e b e lie ve s that silve r could be

mad e as good as gold Eve rybody knows that noth .
ing could be mad e b e tt e r Le t us ask why any o n e .
but an ow n e r of silve r should wish Silve r to be mad e

artificially anything e lse than it is intrinsically What .
b e n e fit to any o n e e xc e pt th e own e r o f silve r that

, ,
th e m e tal S ilv e r S hould not r e main w h e re natural
caus e s plac e it like th e m e tals C opp e r and nicke l $

,
Why should it be cre dit e d w ith anything but its ow n

m e rits $ Th e re w as no pre judic e in th e mind o f any o n e
against it It has had a fair rac e with gold ; th e fi e ld
.
is alw ays op e n for it or for any m e tal to prove its e lf

, ,
b e tt e r suit e d for th e basis of valu e If Silve r b e cam e .
more valuable in th e marke t and st e adie r in valu e

than gold it w ould supplant gold Why not give th e
, .
position to th e m e tal that wins in fair comp e tition $

Gold n e e ds no bolst e ring by l e gislation ; it sp e aks for
itse lf Eve ry gold coin is worth just w hat it pro
'
fe sse s to be w orth in any part o f th e w orld ; no doubt

about it ; no possibl e loss ; and what is e qually import
ant no possibl e sp e culation ; its valu e cannot be raise d
,
and cannot be d e pre ss e d T h e sp e culator having .

,
no chanc e to gambl e upon its ups and do w ns do e s n ot ,
favour it ; but this is th e ve ry re ason you should favour

that w hich give s yo u absolut e se curity of valu e all th e
tim e Your int e re sts and th e int e re sts o f th e spe cu

.
lator are n o t th e sam e Upon your l oss e s h e make s .
his gains .
On e r e ason urge d why S ilve r S hould be purchas e d
and coin e d is that th e country has not e nough mon e y $

,
and that fre e coinage of silve r Will gi ve it more But .
if w e n e e d more mon e y th e only m e tal which it is

$
,
”
wise to buy is gold Why issu e your not e s for Silve r

’
.
,
w hich is falling in valu e and i n v bl v e s unkn own dang e rs ,
w h e n for t h e s e same not e s you can ge t th e solid pure ,
article its e lf re al mon e y gol d which cannot possi bly

, , ,
e ntail a loss upon th e country $ But is it tru e that th e

country has not e nough mon e y —that i s you ”
,
re me mb e r th e coin e d article us e d for e xchanging oth e r

,
article s If so it is a n e w discov e ry W e have not

.
,
.
suff e r e d for w ant of coin e d mon e y in tim e s past and ,
y e t th e r e is for e ach man woman and child fi v e doll

,
ars ,
more mon e y i n circulation than th e re e v e r w as

$ ”
.
—
W e hav e more circulating m e dium that is mon e y ,
$ ”
—pe h e ad than any country in Europ e w ith o n e e

r ,
x
c pti o n
e Franc e w h e re th e p e opl e do not u se ch e que s
, ,
and drafts as much as oth e r Similar countri e s a fact —

w hich make s n e c e ssary many tim e s more coin e d
mon e y than w e re quire Still th e re is littl e Obj e ction
.
to having just as much coin e d mon e y as is d e sire d pro ,
v i d e d it is n o t d e bas e d but hon e st mon e y ; and th e only

,
way to be sure of that is to buy gold and coin it into

$
mon e y — not silve r th e future valu e o f which i s so
”
,
doubtful and th e purchas e s o f which have s o far b e e n
,
a losing sp e culation Ask th e advocat e o f more mon e y

.
why gold is not th e b e st m e tal f or th e gove rnm e nt to

buy and coin into mon e y f o r th e p e opl e and se e w hat ,
h e has to s ay Gold is as much an Am e rican product

.
as Silve r ; o ur min e s furnish more than tw o millions o f

dollars of it e ve ry month He could have no obj e c .
tion e xc e pt that this would n o t t e nd to k e e p up th e

pric e o f his ow n product Silve r He could not d e ny
, .
that it would give safe r mon e y for th e p e opl e .
The re is anothe r pl e a urge d o n b e half o f Silve r .
Many public m e n t e ll us that silve r coinage is in th e $
air that p e opl e want it b e cau s e th e y think that it

,
”
w ill mak e mon e y ch e ap a n d that silve r b e ing l e ss

$
, ,
valuabl e than gold th e d e bts o f p e opl e could be more

,
e asily paid .But l e t m e call your att e ntion to o n e

point just h e re Th e savings and th e prop e rty o f th e
.
p e opl e could only be thus re duc e d in valu e if th e gold

standard fe ll AS long as all gove rnm e nt not e s we re
.
ke pt e qual to gold as at pre s e nt no matt e r what

, ,
amount o f Silve r th e gove rnm e nt bought o r coin e d ,
not th e slight e st change is possibl e Only aft e r th e .
financial crisis had com e and th e gold standard had ,
gon e down in th e wre ck and e v e ry dollar O f gold w as

,
withdrawn and h e ld for high pre miums could any ,
change occur to favour o n e class or a noth e r If any .
man is vagu e ly imagining that h e is to save o r make

in som e way by th e gove rnm e nt b e comin g involve d
in trouble with i ts d e bas e d Silve r coin and silve r pur

chase s l e t him re m e mb e r that i n ord e r that this vain
, ,
e xp e ctation can be r e aliz e d th e re must first com e to ,
his gove rnm e nt a loss o f ability to make good its de

t e rmination to ke e p i ts silve r dollar e qual to gold wh e n ,
gold would at onc e vanish and command a pre mium .
A w ise S e cre tary o f th e Tre asury has truly fore told

th e re sult
u d ti
Th is t f s f g d
d en it re re m e n o o ol h th e ac
c p yi g p ic u d c u c t cti c ci d
, w
om an n an w o l a se on ra on an d om m er al is
t up hu xp i c c u t y ud
,
as e r d i
n ar all e l l e n m an e er en e an d o ur o n r l
c tp iv b i t u g
, w o
at o n e s e d ow n to th e s l er as s , w h en h e re w o ld no l on
i duc t f c i g d i v d u ik
er
be an y n em en or o na e an S l er o l l ar s w o ld to
t i bu i v u
, s n
he r ll on al e .
Th e man w h o trie s to bring about this disast e r in th e

hop e to profit by it is twin broth e r to him w h o would
w r e ck th e e xpr e ss train for th e C hanc e o f sharing i ts c o n
t e nts o r would drive th e ship o f stat e on th e rocks for

,
th e chanc e o f s e curing a part of th e wre ck e d cargo .
He is a w re ck e r and a sp e culator His int e rests ar e .
oppose d to th e int e re sts of th e toiling masse s .
Again w e a e constantly told that th e mass e s o f

,
r
th e p e opl e favour fre e Silve r coinage o r at l e ast u p

$
,
hold th e pre se nt Silve r laws b e cause th e y have re c e ive d ,
th e impr e ssion som e how o r oth e r that th e mor e S il

, ,
v e r th e re is coin e d th e more mon e y will com e to th e m .
Le t us look into that Wh e n th e gove rnme nt buys .
Silve r bullion it give s its ow n not e s o r silve r dollars

,
for it Who ge ts th e s e Th e own e rs o f th e silve r

.
$
bull ion How can the s e be take n from the ir pocke ts

.
and put into th e pocke t s O f th e p e opl e $ From w hat
w e kn ow o f th e silv e r m e n w e cannot e xp e ct th e m to
,
pre s e nt many o f the ir dollars to anybody ; it will only

be wh e n th e y buy th e labour or th e products o f th e
p e opl e that th e y will giv e th e s e dollars at th e valu e o f
a hundre d c e nts which hav e cost th e m only s e ve nty
e ight . Will th e y give more o f th e s e s e ve nty e ight -
Ce nt dollars than the y w ould have to give of on e

hundre d c e nt dollars for th e sam e labour or products $
-
No not un til or unl e ss th e e ff ort o f th e gove rnm e nt

,
to give an artificial value to Silve r broke do w n and ,
o ur mon e y lost valu e wh e n a dollar might not be worth

,
half a dollar in purchasing powe r ; calculat e d upon gold

value th e y would always giv e l e ss valu e than b e fore
, .
How th e n can th e working p e opl e o r th e farm e rs be

, ,
b e n e fit e d $ It is th e o w n e rs o f th e Silv e r who w ill give

,
th e gov e rnm e nt s e v e nty — e ight c e nts w orth o f bullion

’
and ge t for it a dollar h o ill mak e th profit Sure ly

,
w w e .
this is cl e ar Up to this tim e th e dollar w hich th e

.
farm e r o r workingman re c e iv e s is still w orth a dollar

b e cause th e gov e rnm e nt has b e e n able by tryin g hard , ,
to ke e p it worth this ; but w h e n fre e coinage of Silv e r

$ ”
com e s th e Silve r dollar must fall to its re al value

,
s e ve nty e ight c e nts and th e farm e r and workingm an

- —
will be d e fraud e d ; so that th e int e re sts o f th e farm e r ,
me chanic laboure r and all w h o re c e ive wage s are that

, ,
th e m on e y the y ge t should be of th e hi gh e st value ,
an d n ot ch e ap — gold and n o t silve r

, .
Up to this tim e w e have h e ld fast to gold as th e

standard Eve rything in th e Unit e d Stat e s is bas e d
.
upon gold to day all silve r not e s o r coins b e ing k e pt

-
,
e qual to gold Has that b e e n a wis e or an unwi se

.
policy $ Would it now be b e st to l e t th e gold standard

g o
,
to w h ich th e advanc e d nations cling and e sp e cially ,
Britain and a dopt th e S ilve r standard o f our South

,
Ame ric an n e ighbours $ U pon th e solid rock o f gold

”
as our basis — articl e w e hav e built up th e w e althie st

coun try in th e world and th e gre at e st agricultural
, ,
manufacturing and mining and comme rcial coun try

,
e v e r known . We hav e prosp e re d b e yond any nation

th e sun e v e r shon e upon In no country ar e w age s of
.
labour So high o r th e mass e s o f th e p e opl e so w e ll off .
Shall w e di scard th e gold basis o r e ve n e ndange r it $ ,
This is th e qu e stion b e fore th e p e ople o f th e Unit e d

Stat e s to d ay .
T h e New York E ve n i n g P os t is a fr e e trad e organ -

,
but it has re c e ntly said that it would rath e r be th e

party to pass te n Mc Ki n l e y Bills than o n e Silve r Bill
such as was urge d ; and I a Re public an and a b e lie ve r
,
in th e wisdom of prot e ction t e ll yo u that I would ,
rath e r give up th e Mc Ki n l e y Bill and pass th e Mills

Bill if f or th e e xchange I could hav e th e pre s e nt Silve r
,
Bill re p e ale d and silve r tre at e d like oth e r m e tals In .
th e n e xt pr e sid e ntial campaign if I hav e to vot e f o r a

,
man i n favour o f Silve r and prot e ction o r for a man in ,
favour o f th e gold standard and fre e trad e I shall vot e ,

and work f or th e latt e r b e cause my judgm e nt t e lls m e
,
that e ve n th e tari ff is not half so important f or th e

good O f th e country as th e maint e nanc e o f th e highe st
standard for th e mon e y o f th e p e ople .
Would it not be we ll for yo u to liste n to m e n w h o

have your confide nc e and w h o have b e e n comp e ll e d
,
by th e ir o fficial positions to inve stigat e and study thi s

silve r que stion we ll $ Pre sid e nt Harrison is we ll kno w n
as a most consci e ntious man He is not rich ; h e is poor
. .
If h e has anything at h e art it is th e good of th e plain

,
working p e opl e o f his country He has had to study .
this subj e ct and h e t e lls you that h e finds that th e first

,
thing a d e base d silv e r dollar will d o is to go forth and

ch e at som e poor man w h o has to take it for his pro
ducts o r labour Ex Pre side nt Cl e ve land like Pre si
.
-
,
d e nt Harrison is a poor man ; his sympathi e s are with

,
th e plain w orking p e opl e — th e mass e s He had to .
study th e que stion that h e might act upon it ; and al

though many of his party have b e e n l e d away into th e
—
c rusad e f or silv e r t e mporarily it is to be hop e d ( f o r
, ,
to its cre dit l e t m e say th e D e mocratic party has

, ,
hithe rto b e e n th e staunch frie nd o f th e b e st mon e y f o r

th e p e opl e ),
— Mr Cl e v e land fe lt that h e must t e ll th e
.
truth and d e nounc e th e fre e silve r coinage id e a be - -

,
cause h e found that i t must injure th e worke rs of th e

nation His re c e nt le tt e r give s anoth e r proof that h e
.
—
is a natural l e ad e r o f m e n a brav e man and n ot a
co w ard His p e rsonal prosp e cts h e we ighs not again st
.
th e tr ue we lfare of th e toile rs w h o onc e m ad e him

Pre sid e nt In addition to th e se no abl e r pure r or
.
, , ,
grand e r D e mocrat e ve r manage d th e financ e s of this

nation than Mr Manning ; n o abl e r pure r or grand e r
.
, ,
Re publican e ve r did so than Mr Windom Th e se . .
m e n w e re fri e nds o f th e mass e s if e v e r th e mass e s had

,
fri e nds Both had to inve stigat e th e Silve r qu e stion

.
that the y might l e arn what was b e st and act so as to

promot e th e p e rman e nt we lfare o f th e p e ople Both ’
b e cam e d e e ply conc e rn e d about th e imp e nding dange r

of d e base d mon e y an d us e d all th e ir powe rs to stop
,
”
re pre s e ntative s in Congre ss from forcing th e gove rn

m e nt to imp e ril th e int e re sts o f th e workingman who ,
must have th e b e st mon e y for his labour o r products ,
o r be th e pr e y o f S p e culators Th e se gre at m e n two

.
,
o f th e m e xalt e d to th e high e st political o ffic e upon th e
e arth by your suffrage s had and have at h e art only

,
th e good of th e many as against th e possibl e e nrich

‘
m e nt of th e f e w Political oppon e nts as th e y we re o r

.
are ,
that th e y S hould agre e upon this q ue stion must
sure ly give e ve ry farm e r m e chanic and workingman, ,
in th e Unit e d Stat e s grav e r e ason for b e li e ving that

th e y and n o t th e advocat e s o f silv e r are his wise st
, ,
coun se llors .
I close with on e word of advic e to th e p e opl e Un .
l e ss th e gove rnm e nt c e ase s to burd e n itse lf month by

month with more silve r o r if th e fre e coinage o f silve r
,
be s e riously e nt e rtain e d avoi d s i l ve r ; wh e n yo u lay b y

,
anything l e t it be in gold ; whe n you d e po sit in th e sav
,
—
ings bank l e t it be a gold d e posit ask th e bank to giv e
you a gold re c e ipt th e re for Th e re i s no u se in th e
.
poor taking any risk If you do not thus act promptly

.
,
you will find no gold l e ft for you T h e sp e culators .
and those Close ly id e ntifi e d with busin e ss will have it

all It is a fact full of w arning that n o bonds could be
.
sold to advantage to day which we re not mad e sp e cially

-
p ayabl e In gold The re is dang e r ahe a

. d What e ve r .
happe ns yo u can sl e e p soundly upon gold Silve r

, ~
.
will bring bad dre ams to wis e m e n Our gove rn m e nt .
can do much ; it is ve ry strong ; but th e re are two things

—
which it cannot do : it cannot by itse lf against th e ,
—
world pe rman e ntly give to silv e r a high e r valu e than
it poss e sse s throughout th e world as m e tal though ,
this is what it is trying to do ; and it cannot l e ss e n th e

val u e of gold Som e day p e rhaps you may have
.
, ,
re ason to thank m e f or th e advic e I have give n you ,
although I hop e not .
Do not think how e ve r that I d e spair o f th e r e public

, ,
—n e ve r ; e ve n if dragge d into th e difficu l ti e s ins e parabl e

from Silve r and matt e rs b e com e as bad with us as th e y
,
ar e to d ay in th e Arg e ntin e R e public w h e r e o n e gold

-
,
dollar is worth two and a half curr e ncy dollars th e re ,
is no occasion to fe ar th e final re sult Th e good se nse .
of th e p e opl e will r e store th e gold basis aft e r a tim e ,
and th e re public will march o to th e front rank among n
n ations ; but th e S ilv e r e xp rim e nt will cost much ; and

e
it is b e tt e r th at th e dire ct loss should fall as m uch as

possible upon th e f e w of th e mon e y e d class than upon
th e m ass e s o f th e p e opl e At b e st th e latt e r must suffe r
.
most f or m on e ye d m e n know b e tt e r than oth e rs can

,
h o w to prot e ct th e ms e lv e s All this loss I am sure

.
, ,
th e p e o pl e would pre v e nt if th e y could only be mad e
to und e rstand th e qu e stion ; for th e ir int e re sts far ,
more than those o f th e rich l i e with hon e st mon e y , ,
and th e ir wish e s have only to be e xpre ss e d to th e ir '
re pre se ntative s to pre ve nt th e thre at e n e d crisis .
Silve r owing to change s of value has b e co m e th e

, ,
tool of th e sp e culator St e ady pure unchange abl e

.
, ,
gold has e v e r b e e n and n e ve r was so much as now

, ,
th e b e st instrum e nt f or th e prot e ction o f th e mass e s
o f th e p e opl e .
I have writt e n in vain if this pap e r do e s not do som e

thin g to e xplain why this is s o and to imp e l th e pe o ,
p l e to l e t th e ir r e pr e s e ntativ e s in Congr e ss cl e arly

und e rstand that com e w hat may th e stamp o f th e
, ,
re public must be mad e true th e mon e y of th e Am e ri

,
can p e opl e ke pt th e high e st and sure st in value o f all

mon e y in th e world abov e all doubt or suspicion its
, ,
standard in th e future as in th e past not fluctuating

, ,
Silve r but unchanging Gold

,
.
T h e Co m m o n In te re st o f Labo u r
an d C ap i tal
Em pl y d p y i t d p
o er an t em lo e n er e en de n Th e ad
v tg utu t u t p y p
.
an a e s of m al r s Th e em lo er w h o h el s
t ug d uc ti c ti ci l
.
h is k
w or m en h ro h e a on re re a o n an d so a
up ift p i l f
,
l ,
h el s h m se .
T HE C O MMO N IN T E R EST O F L A B O U R
AN D C A PIT A L
A D D RE S S T O W O RKIN G ME N
GREAT philosoph e r has point e d o ut to us that in
this life th e chie f th e high e st re w ard that w e can
,
obtain is th e purchas e of s ati fa ti o

,
I hav e purchas e d s c ns
a gre at satisfaction o n e of th e gre at e st I have e ve r ac

,
quire d I have b e e n privil e ge d to h e lp som e o f my

.
a
fe llow workm e n he lp the ms e lve s This Library $Brad
-
.
dock Pa ] will give th e m an opportunity to make

, .
th e ms e lve s more valuabl e to th e ir e mploye rs and so ,
lay up int e ll e ctual capital that cannot be impaire d o r

d e pre ciat e d .
It is ve ry unfortunat e that th e irr e sistibl e t e nd

e ncy o f our ag e w hich draw s manufacturing into
,
imm e ns e e stablishm e nts re quiring th e work o f thou ,
sands o f m e n re nd e rs it impossibl e for e mploye rs

,
who re sid e n e ar to Obtain that intimat e acquaint

anc e with e mploy e s w hich und e r th e Ol d syst e m o f ,
manufacturing in ve ry small e stablishm e nts mad e ,
th e r e lation o f mast e r and man mor e pl e asing to both .
Whe n articl e s we re manufacture d in small shops by

e m ploy e rs who r e quir e d only th e assistanc e o f a f e w
F ro m an A dd r e s s to W or km e n at D e di c ti
a on of Carn e gi e L ib y
r ar
J u y
,
B r add o ck , Pa .
,
an ar ,
1 889 .
72 THE EMPIRE OF BUSI NESS
m en and appr e ntic e s th e e mploy e r had opportuniti e s
,
to know e ve ry o e to b e come we ll v u ai n te d with

n ,
e ach ,
and to know his m e rits both as a man and as a
w ork m an ; and on th e oth e r hand th e workman b e i n g
brought into close r contac t w ith his e mploy e r i n ,
e itabl y kn e w more of his busin e ss

v O f his care s and,
trouble s of his e fforts to succ e e d and more important

, ,
than all th e y cam e to kno w so m e thing of th e charac

,
te r i sti c s of th e man hims e lf An this is chang e d

. .
Thus th e e mploye s b e co m e more lik e human ma

chin e s as it w e re to th e e mploye r and th e e mploye r
, , ,
b e com e s almos t a myth to his m e n From e v e ry .
point of Vi e this is a most r e gre ttabl e re sult ye t it is

w ,
o n e for w hich I s e e no r e m e dy T h e fre e play o f

.
e conomic la w s is forcing th e manufactur e of all articl e s
o f g e n e ral consumption mor e and mor e into th e hands
of a f e w e normous conc e rns that th e ir cost to th e con

,
sum e r may be l e ss .
Th e re is no longe r any room for conducting th e

manufacture of such articl e s upon a small scal e ; e x
p e nsiv e w orks and machin e ry costing millions are
re quire d as th e amount p e r ton o r p e r yard of w hat
w e call fixe d charge s is so gre at a factor in th e total
”
cost that w h e th e r a conc e rn can run succ e ssfully

o r not in many cas e s d e p e nds upon w h e th e r it divid e s
—
th e s e fixe d charge s w hich may be said to be pr ac ti
cally th e sam e in a large e stablishm e nt as in a small e r
—by a thousand tons pe r day or by fi v e hundre d t ons
INTERESTS OF LABOUR AND CAPITAL 73
p e r day o f product H e nc e th e re ason for th e c on

.
ti n u al incre as e y e ar by y e ar in th e product of your
mills n o t that th e manufacture r wish e s primarily to

,
incre as e his product but that th e strain of comp e ti

,
tion forc e s him into e xt e nsions that h e may th e re by

re duc e m ore and more pe r ton or pe r yard th e s e fixe d
charge s upon which th e safe ty of his capital d e p e nds
, .
It b e ing th e re fore impossibl e for th e e mploye rs of

thousands to b e com e acquaint e d with th e ir m e n if w e ,
ar e not to los e all fe e ling o f m utuality b e twe e n us th e

,
e mploy e r must s e e k th e ir acquaintanc e through oth e r
forms to e xpre ss his care for th e w e ll b e ing of those

,
-
upon whos e labour h e d e p e nds for succ e ss by d e voting

,
part o f his e arnings for institutions like this library ,
and for th e accommodation of organi z ations such as

th e c O op e rativ e store s which occupy th e low e r floor
-
o f this building and I hop e in re turn that th e e m

,
l
p y o e s ar e to S how by th e u s e which th e y mak e of
such b e n e faction s that th e y in turn re spond to this
se ntim e nt upon th e part of e mploye rs w h e re ve r it
i
may be found B y such m e ans as th e s e w e may

.
hop e to maintain to som e e xt e nt th e old fe e ling o f

kindlin e ss mutual confid e nc e re sp e ct and e st e e m
, ,
w hich fo rm e rly distinguish e d th e re lations b e twe e n

th e e mploy e r and his m e n We ar e y cl rn ge r than
.
/
Eu rg p e and ,
hav e s ti l l Sd m e tf fin g to s e e from th e
old e r land in this re sp e ct ; but I re j o c e to se e that

i
many m anufacture rs in this country ar e awaking to

74 T HE E MPIRE OF BUSINESS
th e s e ns e o f duty to th e ir e mploye s ; and what is

e v e n still mor e important ar e th e e vid e nc e s which w e
find among our workm e n O f a d e sir e to e stablish

soci e ti e s which cannot but be b e n e ficial to th e mse lve s .
It is all we ll e nough for p e opl e to h e lp oth e rs but th e ,
grand e st re sult is achie ve d w he n p e ople prove able

to h e lp th e ms e lve s .
Anoth e r important fe ature which may be re fe rre d

,
to i s that in Pittsburg labour g e n e rally is paid s o

, .
, , ,
we ll that th e workman can save som e thing e ve ry

month if h e only w ill make th e e ffort Nothing can
, .
e xc e e d th e importanc e of saving part o f his e arnings .
Th e workman who owns his own hom e has alre ady a ,
sure foundation upon w hich to build th e comp e t e nc e

which is to give him comfort and ind e p e nd e nc e in o ld
ag e .
I have said h o w d e sirabl e it w as that w e Should

e nd e avour by e ve ry m e ans in o ur powe r to bring
, ,
about a fe e ling of mutuality and partn e rship b e twe e n

th e e mploy e r and th e e mploy e d B e lie ve m e th e
.
,
i nt e re sts of Capital and Labour ar e o e He is an $

n .
e n e my of Labour who s e e ks to array Labour against
Capital He is an e n e my of Capital who se e ks to

.
$
array Capital against Labour
I hav e give n th e subj e ct o f Labour and Capital
care ful study for y e ars and I w ish to quot e a f e w
,
paragraphs from an articl e I publish e d y e ars ago :

T h e gre at e st caus e of th e friction which pre vails
$
INTERESTS OF LABOUR A ND CAPITAL 75
b e tw e e n capital and labour th e re al e sse nc e o f th e

,
troubl e and th e re m e dy I hav e to propos e for this

,
un fortunat e friction : ”
T h e troubl e is that m e n are not paid at any ti m e

$
th e comp e nsation prop e r to that tim e All large .
conc e rns n e c e ssarily k e e p fille d with ord e rs say for ,
six m onths in advanc e and the s e ord e rs ar e take n

, ,
o f cours e at pric e s pre vailing whe n th e y are booke d

, .
This y e ar s O p e rations furni sh p e rhaps th e b e st illus

’ '
tr ati o n of th e di ffi culty St e e l rails at th e e n d o f

.
last ye ar for d e live ry this y e ar we re $ 9 pe r ton at 2
th e works Of cours e th e mills e nt e re d ord e rs fre e ly

.
at this pric e and ke pt on e nt e ring th e m until th e

,
d e mand grow ing un e xp e ct e dly gre at carri e d pric e s

up to $1; 35 pe r ton Now th e various mills in Am e rica
.
are comp e ll e d for th e n e xt S ix months or m or e to run
upon ord e rs which do not ave rage 553 pe r ton at 1 ,
th e s e aboard and Pittsburg and s ay it 3 4 at Chicag

, o .
Transportation iron ston e and pric e s of all kinds

,
-
,
have advanc e d upon th e m in th e m e antim e and th e y ,
must the re fore run f or th e bulk of th e y e ar upon

ve ry small margins of profit But th e m e n noticing .
in th e pap e rs th e gre at boom in st e e l rails ve ry

$
,
”
naturally d e mand th e ir share of th e advanc e and ,
und e r our e xisting faulty arrange m e nts b e twe e n capi

tal and labour th e y have s e cure d it Th e e m ploye rs .
,
th e re fore ,
h ave grudgingly give n what th e y know
un d e r pro p e r arr an g e m e nts th e y should n ot h av e b e e n
7 6 T HE EM PIRE OF BUSINESS
re quire d to give ; and th e re has b e e n friction and still
is dissatisfaction upon th e part of th e e m ploy e rs .
Re ve rs e this picture T h e st e e l rail marke t falls

.
-
again T h e mills have still Six months work at pric e s

.
’
above th e pre vailing mark e t and can afford to pay ,
m e n high e r wag e s than th e th e n e xisting stat e o f th e
marke t would appare ntly justify But having just .
b e e n am e rc e d in e xtra paym e nts for labour which

th e y Should not hav e paid th e y naturally att e mpt to
,
re duc e wage s as th e marke t pric e of rails go e s dow n ,
and th e re aris e s discont e nt among th e m e n and w e ,
have a re p e tition of th e n e go tiations and strike s which

have charact e riz e d th e b e ginning of this ye ar In .
oth e r words wh e n th e e mploye r is going dow n th e e m

,
l
p y o e insists
$
o n going up and vi c e v e rs a
,
What .
w e must s e e k is a plan by which m e n will r e c e ive
high wage s w h e n the ir e mploye rs ar e re c e iving high

pric e s for th e product and h e nc e are making large
,
profits ; and pe r con tr a wh e n th e e mploye rs ar e r e

,
c e i v i n g l ow pric e s for product and th e re fore ,
if any profits th e m e n w ill re c e ive l ow w age s If

,
.
this plan can be found e mploye rs and e mploy e d w ill

,
be
$
in th e sam e boat re joicing toge th e r in th e ir
,
”
prosp e rity and calling into play th e ir fortitud e to

ge th e r in adve rsity Th e re w ill be no room for quarre ls
.
and inst e ad o f a fe e ling of an tagon i sm th e re will be a

fe e ling of partn e rship b e twe e n e mploye rs and e m
ploye d Th e re is a simpl e m e ans o f producing thi s
.
INTER ESTS OF LABO UR AND CAPITAL 77
re sult and to its ge n e ral introduction both e mploye rs

,
an d e mploy e d should st e adily b e nd th e ir e n e rgi e s .
Wage s should be base d upon a S liding scal e in pro ,
portion to th e n e t pric e s re c e ive d for product month

by month It is impossible f or Capital to d e fraud
.
Labour und e r a sliding scale .
On e advantag e o f this Library $Carn e gi e Library

at Braddock Pa ] will be that it will bring b e fore you
, .
e v e ry local n e wspap e r and e v e ry Trad e Journal and

‘
I be g you all to re ad th e s e care fully You will find .
many misstate m e nts many blund e rs The s e are in

, .
s e parable from th e n e w spap e r pre ss w hich must work ,
hastily and re port e ve n rumours But by studying .
th e principal j ournals th e t e nd e ncy of affairs can be
corre ctly s e e n N e w spap e rs w ill not give you a c o r

.
.
re ct stat e m e nt o f th e pric e s o f mat e rial Man uf ac .
ture r s ar e dispos e d to giv e th e bright e st colouring to
th e S ituation —
to re port th e high e st sal e s mad e with
,
a vie w to maintain pric e s and induc e custome rs to

purchase The y will probably n o t re port how low
.
th e y have b e e n comp e ll e d to s e ll in ord e r to m e e t

comp e tition and ke e p w orks running N e ve rth e l e ss .
,
a care ful p e rusal of th e n e w spap e rs and Trad e Jour

n al s as I hav e said will e nabl e you to form a g e n e ral
, ,
opinion o f th e tre nd o f e ve nts in th e comm e rcial world .
If yo u re ad th e pap e rs to d ay you will kn ow that

-
,
o ut o f thirt e e n mills e ngag e d in th e manufactur e o f
ste e l rails in this co untry not more than thre e are

,
78 THE E M P IRE OF BUSI NES S
runn in g t o the ir c apa city Only o n e mill in all th e
.
We st is makin g rail s ( North Chicago ) and I am sorry ,
to say that it se e ms p robabl e that e v e n that o n e w ill

n o t be a bl e to run co n tinuously .
Th e m ost m e lanc h oly fe ature in all th e disput e s

b e twe e n labour and capital is that i t is scarc e ly e ve r
capital that succ e e ds in bre akin g down th e pric e o f
labour but alas it is labour which stabs labour Look
, , ,
.
aro un d yo u an d se e labour working for 0 2 0 an d e ve n 1 ,
3 p
0 e r c e n t ,l e ss in som e mills and at Johnsto
,
w n
an d Ha rrisburg f o r l e ss than o n e half hat w e pay for

-
w
skille d labour in this district ; and th e n in your he arts

blame not capital but consid e r e mploye rs who re gre t
,
those re ductions in wage s who stand out against

,
th e m an d run for ye ars at high e r pric e s as th e b e st ,
frie nds o f labour e ve n although at last th e y m ust

,
frankly confe ss that if th e y are to give th e ir m e n

st e ady e mployme nt an d save th e ir capital and work s ,
th e y are forc e d to ask the m to work at th e rat e s oh

tain e d by th e ir comp e titors Th e first e mploy e r who
.
re duc e s labour is labour s e n e my ; but th e last e mploye r

’
to r e duc e labour may be labour s staunch e st fri e n d

’
.
T h e fatal e n e my o f labour is labour n o t capital , .
T h e gre at e st charact e r in th e public life o f Britain ,
and th e staunch e st fri e n d o f th e Re public in its hour

of ne e d ,
th e Rad i cal John Bright b e ing onc e ask e d
, ,
wh at w as h i s m ost valuable acquisition re plie d A , ,

$
t ast e f or re adin g , I can t ruthfully say fro m m y

ow n xp e ri e nc e that I agre e with that gre at m an

e .
Most anxious to give you th e b e st advic e in my powe r ,
I advis e you to cultivat e th e tast e f o r re ading Wh e n

.
I was a boy in my t e e ns in All e gh e ny City Col And e r

, .
so n whos e m e mory I must e v e r r e v e r e who h ad a f e w

, ,
hun dre d books gave notic e that h e would l e nd the se

,
books e ve ry Saturday aft e rnoon to boys and y oung

m en . Yo u cannot imagin e with what an x i e t y som e
o f us w h o e mbrac e d this o ppo f tuni ty toO btain k nowl
e dge looke d forward to e ve ry Saturday aft e rnoon ,
wh e n w e could ge t o n e book e xchange d for an ot h e r .
T h e principal partn e r with m e in all o ur busin e ss Mr , .
Phipps e qually w ith myse lf had obtain e d acc e ss to

, ,
th e store s of knowl e dg e by m e ans o f this b e n e fac t or .
It i s from p e rsonal e xp e ri e nc e that I fe e l th at th e re

is no human arrange m e nt so powe rful f or good th e re ,
i s no b e n e fit that can be b e s t owe d upon a c ommunity
s o gr e at as that which plac e s within th e r e ach o f all

,
th e tr e asure s o f th e world which ar e store d up in
books .
W e occasionally fi n d trac e s e v e n at this day o f th e

Old pre judice which e xist e d against e ducating th e
masse s o f th e p e opl e I do not wond e r that this
.
should e xist wh e n I re fle ct upon w hat has hith e rto

passe d f o r e ducation Me n have wast e d the ir pre cious
.
y e ars trying to e xtract e ducation fro m an igno rant

past whose chi e f provinc e is to t e ach us n o t wh at to
,
adopt but what to avoid

,
Me n have s e nt th e ir So n s
.
to coll e ge s to wast e th e ir e n e rgi e s upon obtainin g a
'
knowle dge o f such language s as Gre e k and Latin ,
which are o f n o more practical us e to th e m than

Choctaw I have known f e w coll e ge graduat e s that
.
kn e w Shake spe are or Milton Th e y might be abl e

.
to t e ll you all about Ulysse s o r Agam e mn on or

H e ctor but w hat ar e th e se compare d to th e charact e rs
,
that w e find in our o w n classics $ On e se rvic e Russe ll

Low e ll has don e for which h e Should be th anke d h e
,
—
has boldly said that in Shake sp e are alon e w e have a
gre ate r tre asure than in all th e classics o f anci e nt
time The y have b e e n cramme d w ith th e d e tails o f
.
p e tty and insignificant skirmish e s b e tw e e n savage s ,
and taught to e xalt a band of ruffi an s into h e ro e s ;

and w e have calle d th e m e ducat e d
'
. Th e y have
”
b e e n e ducat e d as if th e y we re d e stin e d for life upon

$ ”
som e oth e r plan e t than this Th e y have in o s e nse

. n
re c e ive d instruction On th e contrary what th e y

.
,
have obtain e d has se rve d to imbue th e m with false

id e as and to give th e m a distast e for practical life I .
do not wond e r that a pre judic e has a ris e n and still

e xists against such e ducation In my o w n e pe ri
. x
e nc e I can s ay that I hav e known f e w young m e n
int e nd e d for busin e ss who w e re not injure d by a c ol

l e gi ate e ducation Had th e y gon e into active work
.
during th e y e ars sp e nt at colle ge th e y w ould have

b e e n b e tt e r e ducat e d m e n in e ve ry tru e se ns e of that
t e rm Th e fi re and e n e rgy have b e e n stamp e d o ut
.
INTERESTS OF LABOUR AN D CAPITAL 81
of th e m and h ow to so manage as to live a life of

,
idle n e ss and n ot a life o f us e fuln e ss has b e come th e

chi e f qu e stion with th e m But a n e w id e a of e duca
.
tion is now upon us .
We hav e b e gun to re aliz e that a knowl e dge o f

ch e mistry for instanc e i s worth a knowl e dge o f all
, ,
th e d e ad languag e s that e v e r w e re spok e n upon th e
e arth ; a knowl e dg e of m e chanics mor e us e ful than
all th e classical l e arning that can be cramm e d into

young m e n at coll e ge What is th e young man to d o
.
-
who knows Gre e k with th e young man that kn ow s

st e nography or t e l e graphy for instanc e or book , ,
ke e pi ng Or ch e mistry o r th e law of m e chanics in

, , ,
th e se days $ Not that any kind o f knowl edge is to

be un d e rrat e d All knowl e dge is in a s e ns e us e ful
.
, , .
Th e point I wish to mak e is this that e xc e pt f o r th e , ,
f e w w h o hav e th e tast e o f th e antiquarian and w h o

, ,
find that th e ir work in life is to d e lv e among th e dusty

r e c o r d s o f th e past and for th e f e w that l e ad pro f e s
,
s i o n al liv e s th e e ducation giv e n to day in o ur coll e ge s

,
-
is a positive disadvantage .
T h e lack of e ducation in its tru e s e ns e has don e
more than all th e oth e r cause s combin e d to pre v e nt th e

‘
unive rsal re cognition o f labour I re m e mb e r that .
th e g re at pr e sid e nt th e gr e at e st of all railway mana

,
ge rs Edgar Thomson aft e r whom th e works h e re

, ,
are call e d O nc e ask e d m e to r e mov e from Pittsburg

,
to be m ast e r o f machin e ry o f th e P e nnsy lvania Railroad .

We ll you may smile And I sai d to Mr Thomson
,
. .
,
$
Why Mr Thomson you amaz e m e I kn ow noth
,
.
,
.
ing what e ve r about machin e ry Th at is th e .

”
re ason I want you to take charge o f it h e re pli e d ,

”
.
$
I hav e n e ve r known a m e chanic with judgme nt and
good s e nse e xc e pt on e This w as b e fore th e tim e
.
’
o f Captain Jon e s s o h e could not hav e r e f e rr e d t o th e

,
Captain This lack of judgm e nt in m e chanics was

.
b e cause at that day in this country th e y had fail e d

to re c e ive an all round e ducation I m e an th e tru e
-
.
e ducation and knowl e dg e of matt e rs and things in
ge n e ral by which w e ar e surround e d and with w hich

,
'
w e hav e to d e al Th e unpr e c e d e nt e d succ e ss which

.
has att e nd e d th e d e ve lopm e nt of th e B e sse m e r works

in this country has aris e n from this caus e above all ,
othe rs that unlike th e manufacture o f iron it has

, , ,
fall e n into th e hands Of m e n of gre at S ci e ntific kn owl

e dge . T h e s e rvic e s Of th e s e m e n ar e r e cogniz e d
throughout th e world and re c e ive com p e nsation

which a f e w y e ars ago would hav e b e e n consid e re d
e normous and in conse que nc e th e y have lift e d m e
,
c h an i c al labor w ith th e m and s e rv e d to dignify it in
th e e y e s of th e world T h e m e chanic
H
th e m e ,
e ngin e e r manage r of st e e l m ills

” ”
c h an i c al th e
$
, ,
ar e n o w titl e s of honour If you want to make labour .
w hat it S hould be e ducat e yours e lf in us e ful knowl

,
e dge . That is th e moral I w ould e mphasiz e G e t .
kn owl e dge Cultivat e a tast e for re ading that you

.
,
m ay know what th world has don and is doing and

e e
th e drift of affairs .
T h e valu e of th e e ducation which young m e n can
n ow r e c e iv e cann ot be ov e r e stimat e d and it is to this ,
e ducation as give n in t e chnical schools to which I

, ,
wish to call your att e ntion Time was wh e n m e n .
had so littl e knowl e dge that it w as e asy f o r on e m an

to e mbrac e it all and th e cours e s in coll e ge s b e ar
,
painful e vid e nc e o f this fact to day Knowl e dge is -

.
n o w so various s o e xt e nsiv e
, so m inut e that it is i m
, ,
$
possibl e f or any man to know thorough ly more than
o n e small branch This is th e ag e p f th e spe cial i sm /y
.
th e re fore yo u who have to make your living in this

world should re solve to know th e art which giv e s you
support ; to know that thoroughly and we ll to be an ,
e xp e rt in your sp e cialty If you are a m e chan ic th e n

.
,
from this library study e ve ry work b e aring upon th e

subj e ct of m e chanics If y ou are a ch e mist th e n
.
,
e v e ry work b e aring upon ch e mistry If y o u ar e at .
th e blast furnac e s th e n e v e ry w ork upon th e blast

,
furnac e If in th e min e s th e n e ve ry w ork upon

.
,
mining Le t n o man know more of your sp e cialty

.
than you do yours e lf That should be your id e al

. .
The n f ar l e ss important but still important to bring

, , ,
swe e tn e ss and light into your life be sure to r e ad ,
prom iscuously and know a littl e about as m any things

,
as y ou hav e tim e to r e ad about Just as o n h is farm .
th e farm e r m ust first att e nd we ll to h i s potato e s and

his corn and his wh e at from w hich h e d e rive s h is re ve
,
n ue and h e may sp e nd his spare hours as a labour o f

,
love in cultivating th e flow e rs that surround his hom e .
On e domain your w ork and th e oth e r your r e cr e ation

, .
In th e se days of transition and of struggl e s b e twe e n

labour and capital to no b e tt e r purpos e can you d e vot e
,
a f e w o f your spare hours than to th e study o f e c o

nomic que stions Th e re ar e c e rtain gre at laws which
.
w ill be ob e y e d : th e l aw of supply and d e mand ; th e law
o f comp e tition ; th e law of w ag e s and of profits All .
th e se you will find laid down in th e t e xt books and

.
-
,
re m e mb e r that th e re is no more possibility o f d e fe at

ing th e op e ration o f th e s e laws than th e re is o f thwart
ing th e laws o f nature which d e t e rmin e th e humidity
O f th e a tmosph e re or th e re volution o f th e e arth upon
its axis .
T h e s e v e re study o f sci e ntific books must not be
p e rmitt e d to e xclud e th e e qually important duty of

re ading th e mast e rs in lit e rature ; and by all m e ans of
fiction T h e fe e ling which pre vails in som e quart e rs
.
against ficti on i s in my O pinion only a pre judic e

, , .
I know that som e ind e e d most o f th e most e min e nt

, ,
m e n find in a good work of fiction o n e o f th e b e st m e ans
of e njoym e nt and of re st Wh e n e xhaust e d in mind

.
and body and e sp e cially in m ind nothing is so b e n e

, ,
fi c i al to th e m as to re ad a good nov e l It i s no dis

‘
p a r a g e m e n t o f fr e e librari e s that most of th e work s
re ad are works o f fi ction On th e contrary it i s .

,
doubtful if any oth e r form o f lit e rature would so w e ll

se rv e th e im portant e n d of lifting hard working m e n -
o ut o f th e prosaic and routin e duti e s of life Th e .
works of Scott Thacke ray Eliot Dicke ns Hawthorn e

, , , , ,
and oth e rs o f th e sam e class ar e not to be rat e d ,
b e low any oth e r form of it e rature f or workingme n

l .
Yo u all know h o w much manufacturing sci e nc e is

ind e bt e d to th e im prove m e nts and inv e ntions which
o w e th e ir first sugge stion to th e workman hims e lf .
No w mark this important fact Th e s e improv e m e nts

.
and inv ntions com e from th e e ducat e d e ducat e d in

e —
t e tru e s e ns e
h — and n e ve r from th e ignorant work
man The y must come and the y do come from m e n
.
, ,
who are in th e ir Sp e cial d e partm e nt m e n o f more '
knowl e dge than the ir fe llows If th e y have not r e ad

.
,
th e n th e y hav e obse rve d which is th e b e st form of

,
e ducation .T h e important fact is that th e y must
kn ow ; how th e knowl e dg e was acquire d it matt e rs not , .
Th e fact that th e y know more about a probl e m than
th e ir fe llow s and are abl e to sugge st th e re m e dy or

im prove me nt is w hat is of valu e to th e m and th e ir
,
e mploy e r . The re is no m e ans so sure for e nabling

th e workman to ris e to th e fore manship manag e r ,
ship and finally partn e rship as knowl e dge of all that

has b e e n don e and is b e in g don e in th e w orld to day -
in th e sp e cial d e partm e nt in w hich h e labours From .
th e high e st down to th e low e st a b e tt e r grad e of se r
V ic e is re nd e r e d b y th e i n t e l lig e nt man than it is poss i

86 THE E M PIRE OF BUSINESS
bl e for th e ignorant m an to re nd e r Hi s knowle dge .
alw ays come s in and wh e the r you have knowle dge

, ,
o n th e part o f th e manage r w h o dire cts o r o f th e man ,
who only han d l e s a shove l you hav e in him a valuable

,
e mploy e in proportion to his knowl e dg e othe r things ,
b e ing e qual In th e course o f my e xp e ri e nc e as a

.
manufacture r I know o ur firm has mad e many mis

take s by n e gl e cting o n e Simple rule n e v e r to und e r
,
$
take anything n e w un til your manage rs have had an

opportunity to e xam in e e ve rything that h as b e e n done
throughout this world in that d e partm e nt N e gl e ct .
”
o f this has cost us many hundr e ds of thousands o f
d ollars and w e hav e b e com e wis e

, No w I say h e r e
.
to th e man who i s ambitious to l e arn who p e rhaps , , ,
thinks that h e has some improve m e nt in h i s mind .
h e re in th e rooms o f this library th e re is o r I hop e

, ,
soon will be th e whol e world s e xp e rie nc e upon that

,
’
subj e ct brought right b e fore you down to a re c e nt dat e .
In any qu e stion o f m e chanics o r any qu e stion o f

ch e mistry any que stion o f furnac e practic e you will
, ,
find th e re cords of th e world at your d isposal h e re If .
you are o n th e wrong track th e s e books will t e ll yo u ;

,
if yo u are on th e right track th e y will t e ll yo u ; if yo u

,
ar e on th e right track th e y will a ff ord you e ncourage

,
m e nt You can go through hall aft e r hall in th e

.
pat e nt offic e in Washington and se e thousands O f

,
mod e ls of inve ntions b e aring upon all branche s o f

human industry and nine ty nin e o ut of e ve ry hundre d
,
-
would n e ve r have b e e n plac e d th e re had th e ign orant

inve ntor had at command such facilitie s as will be
yours in this library .
I hav e he ard e mploye rs say that th e re was gre at

.
dange r that th e m asse s of th e p e ople might b e com e

to o w e ll e ducat e d to be cont e nt in th e ir us e ful and
‘
n e c e ssary occupations It has re quire d an e ffort upon

.
my part to list e n to this doctrin e with pati e nc e It .
is all w rong ; I give it an un qualifi e d contradiction .
T h e troubl e b e tw e e n capital and labour i s just in pro
portion to th e ignoranc e o f th e e mploye r and th e

ignoranc e of th e e mploye d T h e more inte llige nt .
th e e mploy e r th e b e tt e r and th e more int e llige nt th e

,
e mploy e d th e b e tt e r It is n e v e r e ducation it is
.
,
n e ve r knowle dge that produc e s collision It is

, .
always ignoranc e o n th e part o f o n e o r th e oth e r o f

th e tw o forc e s Sp e aking from an e xp e ri e nc e n ot
.
inconsid e rable I make this stat e m e nt Capital is

,
.
ignorant of th e n e c e ssitie s and th e just due s o f labour ,
and labour is ignorant o f th e n e c e ssiti e s and dange rs

o f capital That is th e true origin of friction be
.
tw e e n the m More knowl e dge o n th e part o f capital

.
o f th e good qualiti e s of thos e that s e rv e it and som e ,
knowle dge upon th e part O f th e m e n o f th e e conomic

laws w hich hold th e capitalists in th e ir re le ntl e ss
grasp would obviat e most of th e difficulti e s which
,
arise b e twe e n th e se two forc e s which are in di spe n sa

,
bly n e c e ssary to e ach oth e r I hop e that those of

.
88 T HE EMPIRE OF B U SINESS
o ur m en w that in e stimable priz e th e tas te

h o pos se s s
'
for re ading will make it a point to study care fully a

,
f e w o f th e fundam e ntal laws from which th e re is n o
e scap e e ith e r o n th e part o f capital o r labour

, If .
this library be instrum e ntal in th e slight e s t de gr e e in

Spre ading know le dge in this d e partme nt it will have ,
justifi e d its e xist e nc e .
I trust that you will not forge t th e im portance

o f amus e m e nts Life must n ot be take n to o s e riously
. .
It is a gre at mistak e to think that th e man who works

all th e time wins in th e rac e Have your amus e m e nts
. .
L e arn to play a good gam e of whist or a good gam e

o f drafts or a good gam e o f billiards
,
B e com e in .
te r e ste d in bas e ball o r crick e t o r hors e s a nything

, ,
that will give you innoc e nt e njoym e nt and r e li e ve

you from th e usual strain Th e re is not anyth ing.
b e tt e r than a good laugh I attribut e most of my

.
succ e ss in life to th e fact that as my partn e rs oft e n

,
s ay troubl e runs Off my back like wat e r from a duck

, .
Th e re is a po e tical quotation from Shake spe are that ,
is applic abl e It is to we ar your troubl e s as your

.
$
o utsid e s — like your garm e nts care l e ssly , .

”
Many m e n are to be m e t w ith in this life who would

have b e e n gre at and succ e ssful had th e world rat e d
th e m at th e value which th e y plac e d upon th e mse lve s .
This class are th e victims of an hallu cination No .
body in th e world d e sire s to ke e p down ability Eve ry .
body in th e world has an outstre tch e d hand f or it .

INTERESTS OF LABOUR A ND CAPITAL 89
Eve ry e mploye r o f labour is study ing th e young m e n

aroun d him most anxious to find o n e o f e xc e ptional
,
ability Nothing in th e world S O d e sirable f or him

.
an d s o profitabl e f o r him as such a man Eve ry .
manage r in th e works stands r e ady to grasp to utiliz e ,
th e man that can do som e thing that is valuabl e

‘
Eve ry fore man wants to have und e r him in his d e

p a r tm e n t abl e m e n u pon whom h e can r e ly and w hos e
me rits h e Obtains cre dit for b e cause th e gre at e st t e st ,
o f ability in a manage r is not th e man hims e lf but ,
th e m e n with whom h e is abl e to surround hims e lf .
The s e books o n th e sh e lve s will t e ll you th e story of

th e ris e of many m e n from o ur ow n ranks It is n o t .
th e e ducat e d o r so call e d classically e ducat e d man

,
-
, ,
it is not th e aristocracy it is not th e monarchs that , ,
have rul e d th e d e stini e s of th e world e ith e r in camp , ,
council laboratory o r workshop T h e gre at in v e n

, .
tions th e improve m e nts th e discove ri e s in S cie nc e

, , ,
th e gre at works in lit e ratur e hav e sprung from th e
ranks of th e poor You can scarc e ly nam e a gre at

.
inve ntion o r a gre at discove ry you can scarc e ly

, ,
nam e a gre at picture or a gre at statu e a gre at song

, ,
o r a gre at story nor anything gr e at that has not b e e n

,
th e product o f m e n w h o start e d lik e yours e lv e s to
e arn an hon e st living by hon e st work .
And b e li e ve m e th e man whom th e fore man do e s

, ,
n o t appre ciat e and th e fore man whom th e manage r

,
do e s not appre ciate and th e manage r whom th e firm

,
do e s n o t ap pre ciat e has to find th e fault not in th e
,
firm or th e manage r o r th e fore man but in himse l f

, , , .
He cannot give th e s e rvic e that which is so invaluabl e

and so anxiously looke d f o r Th e re is no man w h o
.
may not rise to th e high e st position n or is th e re any ,
man who from lack o f th e right qualiti e s or failure to

,
e x e rcis e th e m may not sink to th e low e st

,
Employe s .
have chanc e s to ris e to high e r work to rise to fore man

, ,
to be sup e rint e nd e nts and e ve n to rise to be partn e rs

, ,
and e ve n to be chairm e n in our se rvic e if th e y prov e ,
th e mse lve s poss e sse d o f th e qualiti e s re quire d Th e y .
n e e d n e ve r fe ar b e ing dispe ns e d with It is w e who .
fe ar that th e abiliti e s of such m e n may be lost to us .
It is highly gratifying to know that th e hours of

labour are b e ing gradually re duc e d throughout th e
—
country e ight hours to work e ight hours to play , ,
e ight hours to sl e e p se e ms th e id e al division If w e

, .
could only e stablish by law that all manufacturing

conc e rns which run day an d night should u se thre e
turns it would be most d e sirabl e You know w e
, .
trie d to do so f or s e ve ral ye ars at a cost o f som e hun

dre ds of thousands of dollars but we re finally comp e ll e d
,
by o ur comp e titors to give up th e struggl e ; th e b e st

plan p e rhaps is to re ach it by slow d e gre e s through
, ,
Stat e law s NO o n e firm can do much All its c o m

. .
p e ti to rs in th e various stat e s must be comp e ll e d to
do like w ise for in our days profits are upon so narrow

,
a margin that no firm can run its works e xc e pt und e r

I NTERESTS OF LABOUR AND CAPITAL 9 1
Simil ar conditions with its comp titors It is e . n e ce s
sary th e re fore that laws should be se cure d bindin g

, ,
upon all We Should be glad to support s uch a law ; but

.
,
e v e n as at pr e se n t i f workm e n u se w e ll th e tim e th e y hav e

,
at th e ir disposal th e y will soon ris e to high e r positions .
Yo u n e ed not work tw e lv e hours v e ry long ; most O f

us have worke d more hours than twe lve in our youth .
T h e w orkman has many advantag e s to d ay ove r
his pre d e c e ssors A sliding sc al e for his labour ranks

. .
him high e r than b e fore as a man and a citiz e n T h e . .
proportion o f th e joint e arnings o f capital and labour

give n to labour n e ve r was so gre at and is constantly
rising th e e arnings O f capital n e ve r we re so low Th e
, .
Cost of living n e ve r was S O low in re ce nt time s .
I hop e th e future is to add many more advantage s and

that th e toilsom e march which labour has had to make
o n its way from s e rfdom wh e n o ur for e fath e rs w e r e ,
-
bought and sold with th e min e s and factori e s th e y

worke d up to its pre s e nt condition is n o t y e t e nd e d
, , ,
but that it is d e stin e d to continue and le ad to oth e r i m

portant re sults for th e b e n e fit and dignity o f labour .
$T h e i di g c l p p d
sl fts i t duc d by
a e ro o se w as a e r w ar d s n ro e Mr
gi y b p ti v i c
n .
Carn e e te n d e ar s ag o an h as een in o e ra on e er S n e Mr
gi c i d it b t p f ll ]
. .
Carn e e on s e rs th e es l an o a .
Th rift as a D u ty
Th e D u ti e s of R i ch Me n
i ft vid c civi i ti S vi g
Th r an e en e of l za on a n on e Of th e
ig t duti citi ip ccu u ti

.
h h es es of z e n sh Th e a m la on o f a
c p t c d uty cqui t fv t th
.
om e en e a ; th e a re m e n o as w e al
i tu bu t g t
n ot a v r e p ib il ity
a re a re s on s .
T H R IF T AS A D UT Y
T HE D U T IE S O F RIC H MEN
HE importanc e of th e subj e ct is sugge st e d by th e
fact that th e habit of thrift constitut e s o n e o f
th e gre at e st diffe r e nc e s b e tw e e n th e savag e and th e
civiliz e d man On e o f th e fundame ntal diffe re nc e s be

.
twe e n savage and civiliz e d l if e i s th e abse nc e of thrift ,

9 $
in th e o n e and th e pre s e nc e o f it in th e oth e r Wh e n .
millions o f m e n e ach save a littl e o f th e ir daily e arn

ings th e s e p e tty sums combine d make an e normous
,
amoun t which is calle d capital about which so much

, ,
i s writt e n If m e n consum e d e ach day o f e ach we e k

.
all th e y e arn e d as do e s th e savage of cours e th e re

, ,
—
would be n o capital that is no savin gs laid up for ,
futur e u se .
No w l e t us se e what capital do e s in th e worl d

, We .
will consid e r w hat th e shipbuild e rs do whe n th e y

have to build gre at ships Th e se e nt e rprising c o m .
p an i e s o ff e r to build an oc e an gr e yhound for l e t u s ,
say ,
to be paid only w h e n th e ship is d e
liv e re d aft e r satisfactory trial trips Wh e re o r how .
do th e shipbuild e rs ge t this sum o f mon e y to pay th e

workm e n th e wood m e rchant th e st e e l manufacture r
, , ,
and all th e p e opl e w h o furnish mat e rial for th e build

F ro m T h e Yo u th
’
s C o m pa n i on , S e pt bem er, 1 9 0 0
95
9 6 T HE EMP IRE OF BUSINESS
ing of th e ship $ Th e y ge t it from th e savings of civil

i ze d m e n It is part o f th e mon e y save d f o r inve st
.
m e nt by th e millions o f industrious p e ople Each .
man by thrift sav e s a littl e puts th e mon e y in a

, , ,
bank and th e bank l e nds it to th e shipbuild e rs w h o

, ,
pay int e re st for th e use o f it It is th e sam e with th e .
building o f a manufactory a railroad a canal o r any , , ,
thing costly We could not have had anything more

.
than th e savage had e xc e pt f o r thrift , .
T HRI F T T HE F IRS T DU T Y
H e nc e thrift is mainly at th e bottom o f all i m
,
prove m e nt Without it no railroads no canals n o

.
, ,
ships no t e l e graphs no church e s no unive rsiti e s

, , , ,
no schools no n e w spap e rs nothing gre at o r costly

'
, ,
could w e have Man must e xe rcise thrift and save

.
b e fore h e can produc e anything mat e rial of gre at value .
Th e re was nothing built no gre at progre ss mad e as , ,
long as man re main e d a thriftl e ss savage Th e civil .
i ze d man has no cl e ar e r duty than from e arly life to
ke e p st e adily in vie w th e n e c e ssity of providing for

th e futur e of hims e lf and thos e d e p e nd e nt upon him .
Th e re a e f e w rul e s more salutary than tha t which

r
has b e e n follo w e d by most wise and good m e n nam e ly , ,
that e xp e nse s should always be l e ss than incom e .

”
In oth e r word s o n e should be a civiliz e d man saving

, ,
som e thing and not a savage consumin g e ve ry day

, ,
all that which h e has e arn e d .

THRIFT AS A DUT Y 97
Th e gre at po e t Burns in his advic e

, , to a young man ,
says :
To c tc D F tu g d
a h am e or ne s
’
ol e n sm i le ,
i du u it u p
A ss o s w a on h er:
An d g th by v y i
a er g e ar e er W le
T t ju tifi d b y h u
ha
’
s s e on o r .
N f ot h id it i
or h dg
to e n a e e
t i tt d t
,
N f ot or a ra n a en an ;
B ut f g i u p ivi g
or th e lor o s r le e
f b i g i p d t
.
O e n n de en en .
That is sound advic e so far as it go e s and I hop e , ,
th e r e ad e r will tak e it to h e art and adopt it No .
proud s e lf re sp e cting p e rson can e ve r be happy o r

,
-
,
e v e n satisfi e d who has to be d e p e nd e nt upon oth e rs

,
.
for h i s n e c e ssary wants He who is d e p e nd e nt has .
not re ach e d th e full m e asure o f manhood and can

hardly be count e d among th e worthy citiz e ns o f th e
re public T h e safe ty and progre ss o f o ur country
.
d e p e nd not upon th e highly e ducat e d m e n n or th e ,
f e w millio n naire s nor upon th e gre at e r numb e r of th e

,
e xtr e m e poor ; but upon th e mass of sob e r int e llig e nt , ,
industrious and saving worke rs who are n e ith e r ve r y ,
r ich nor v e ry poor .
T HRI F DU T T Y HA S IT S LIMI T
AS a rul e y ou will find that th e saving m an is a

,
te m p e rat e man a good husband and fath e r a p e ac e ful

, , ,
l aw abidin g citiz e n
-
No r n e e d th e saving be gr e at
. .
It i s surprisin g h ow littl e it take s to provid e for th e

re al n e c e ssitie s o f life A littl e ho m e paid for and a
.
fe w hundre d —
pounds a —
ve ry f e w make all
th e dif
fe re nc e . The s e are more e asily acquire d by frugal

p e opl e than yo u might suppose Gre at we alth is .
quit e anothe r and a far l e ss d sirable matte r It is e .
not th e aim of thrift nor th e d uty o f m e n to acquir e

,
millions It is in no re sp e ct a virtu e to set this b e fore

.
us as an e d Duty to save e nds w he n just mon e y

n .
e nough has b e e n put asid e to provid e comfortably
for those d e p e nd e nt upon u s Hoardin g millions is .
avarice not thrift

, .
Of cours e und e r o ur industrial conditions it i s

, ,
in e vitable that a f e w a ve ry f e w m e n will find mon e y

, ,
coming to the m f ar be yon d the ir wants Th e ao

’
cumulation of millions is usually th e re sult o f e nt e r

prise and judgm e nt and som e e xc e ptional ability for
,
organization It do e s not come from savings in th e

.
ordinary s e nse o f that word M who in ol d age . en
strive only to incre ase th e ir alre ady gre at hoards are ,
usually Slav e s o f th e habit o f hoarding form e d in th e ir

youth At first th e y o w n th e mon e y th e y have m ad e
.
and save d Lat e r in life th e mon e y owns th e m and

.
,
th e y cannot h e lp the ms e lve s so ove rpowe ring is th e ,
forc e of habit e ith e r for good or e vil It is th e abuse

, .
o f th e civiliz e d saving instinct and not its u s e that ,
produc e s this class o f m e n .
NO o e n e e d be afraid o f falling a vict im to this abus e

n
o f th e habit if h e always b e ars in mind that what e v e r
surplus w e alth may com e to him is to be re gard e d as a

THRIFT AS A D UT Y 99
sacre d trust which h e i s bound to administ e r f or th e

, ,
good of his fe llows Th e man should always be

.
mast e r He should ke e p m one y in th e position of a

.
use ful s e rvant He must n e v e r l e t it mast e r and

.
make a mise r o f him .
A man s first duty is to make a comp e t e nc e and be

’
inde p e nd e nt But his whol e duty do e s n o t e n d h e re

. .
It is his duty to do som e thing for his n e e dy n e ighbours

who ar e l e ss favoure d than hims e lf It i s his duty to
.
contribut e to th e ge n e ral good of th e community in

which h e liv e s He has b e e n prot e ct ed by its laws
. .
B e cause h e has b e e n prot e ct e d in his various e nt e r

”
pris e s h e has b e e n abl e to make mon e y sufficie nt for

his n e e ds and thos e of his family All b e yond this .
b e longs in justic e to th e prot e cting pow e r that has

fost e re d him and e nabl e d him to win p e cuniary suc
c e ss T0 try to make th e world in som e way b e tt e r
.
than yo u found it is to hav e a nobl e motive in life

, .
Your surplus we alth should contribut e to th e d e ve lop

m e nt of your o w n charact e r and plac e yo u in th e
ranks o f nature s nobl e m e n
’
.
It is no le ss than a duty f o r you to und e rstand how

important it is and how cle ar your duty is to form
, ,
th e habit of thrift Wh e n yo u b e gin to e arn always

.
,
save som e part of your e arnings like a Civiliz e d man

, ,
in st e ad o f sp e nding all like th e poor savage

, .
Ho w to W in Fo rtu n e
Th e v tg
ad an y t t
a e s o f an e ar l s ar g d uc ti
Co ll e e e a on
c y bu i ucc by
.
n ot ne e s s ar to s n e ss s e ss Po o r o s th e
ucc fu bu i bil ity

.
s e ss l m d enM of to - ay en of s n e ss a
ur c g iti
.
s e o f re o n on .
HO W TO W IN F O RT U N E
ABOUR is divid e d into two gre at armie s

th e agricultural and th e industrial In th e s e .
dive rs e forc e s ar e in op e ration In th e form e r e ve ry

.
thing t e nds to a furth e r distribution o f land among

th e many ; in th e latt e r e v e rything t e nds to a con
c e ntration o f busine ss in th e hands Of th e f e w On e .
o f th e tw o gre at fallaci e s upon which Progre ss and

—
”
.
—
Pove rty Mr G e orge s book is founde d is that
’
th e land is g e tting more and more into th e hands
o f th e f e w No w th e only sourc e from which Mr

. .
Ge orge could obtain corre ct information upon this

point is th e c e nsus ; and this t e lls us that in 8 50 th e 1
ave rage e xt e nt of farms in th e Unit e d Stat e s w as 3 2 0
acre s ; in 8 6 0 99 acre s ; in 8 7 53 acre s and that

1 ,
1 1 0, 1 ,
in 8 80 it was still furth e r re duc e d to 34 acre s T h e

1 1 .
re ason is obvious for this rapid distribution o f th e

land Th e farm e r w h o cultivat e s a small farm by
.
h is o w n labour is abl e to driv e o ut o f th e fi e ld th e am

bition s capitalist who att e mpts to farm upon a large
s cal e with th e labour of oth e rs In Gre at Britain .
nothing h as b e e n more significant than that th e tille rs

F rom T h e N ew Yor k T r i bu n e , Ap i
r l 1 3, 1 890
1 03
1 04 THE EMPIRE OF B USINESS
of small farms hav e pass e d through th e agricultural

d e pre ssion th e re far b e tt e r than thos e who cultivat e d
large farms So in both countri e s w e have proo f

.
that und e r th e fre e play o f e qual laws land i s be com

ing more and more divid e d among th e masse s o f th e
p e ople In th e whole range o f social que stions n o
.
fact is more important than this and nothing give s ,
th e thoughtful stude nt gre at e r satisfaction Th e .
triumph o f th e small propri e tor ov e r th e large pro

p r i e to r insur e s th e growth and m aint e nanc e O f th at
e l e m e nt in soci e ty upon which civilization can most
s e cure ly d e p e nd f or th e re is n o forc e in a nation SO

,
cons e rvative o f what is good S O fair so virtuous as

, , ,
a rac e o f m e n w h o till th e soil th e y ow n Happily .
for mankind e xp e rie nc e prove s that man cannot

w ork mor e soil profitably than h e can till himse lf
with th e aid o f his ow n family .
Whe n w e turn to th e oth e r army o f labour th e —

—
industrial w e ar e oblige d to confe ss that it is swaye d
by th e opposit e law which t e nds to conc e ntrat e manu
,
fa c tu r in g and busin e ss a ff airs g e n e rally in a f e w vast

e stablishm e nts . T h e fall in pric e s o f manufacture d
article s has b e e n startling N e ve r w e re th e princi

.
pal articl e s o f consumption so low as th e y are to

day This ch e ap e ning proc e ss is made possible only
.
by conc e ntration We find . wat ch e s pe r day

turn e d o ut by o n e company and watch e s are sold
,
f or a f e w dollars api e c e . We hav e mills makin g

HOW TO WIN FORTUNE 10 5
many thousand yards o f calico pe r day and this ,
n e c e ssary articl e is to be had for a f e w c e nts pe r yard .
Manufacture rs o f st e e l make tons pe r day and ,
four pounds o f finish e d st e e l ar e sold for 5 c e nts .
And so o n through th e e ntire range o f industri e s .
Divide th e huge factori e s into smalle r e stablishme nts ,
and it will be found impossibl e to manufacture som e

o f th e articl e s at all t h e succ e ss O f th e proc e ss b e ing
,
o ft e n d e p e nd e nt o n i ts b e ing op e rat e d upon a larg e
scale while th e cost o f such article s as could be pro

,
d u c e d in small e stablishm e nts would be tw o o r thre e
tim e s th e ir pre se nt pric e s Th e re do e s not app e ar

.
to be any count e racting forc e to this l aw o f conc e ntra

tion in th e industrial world On th e contrary th e act
.
,
i v e forc e s at work s e e m to d e mand gr e at e r and gr e at e r
o utput o r turn ov e r from e ach e stablishm e nt in ord e r

-
that th e minimum of cost Should be re ach e d H e nc e .
come s th e rapid and continuous incre ase o f th e capi

tal o f manufacturin g and comm e rcial conc e rns fi v e , ,
te n fift e e n and e v e n t w e nty millions b e ing som e

, ,
tim e s m asse d in on e corporation .
HA S T HE Y OUNG MAN Now A CHANCE $
This has give n rise to a complaint w hich is oft e n

h e ard but which I hop e to show has no foundation
, .
T h e young practical man points to th e s e and says to ,
himse lf : It is no longe r possible for o u r class

without capital to rise b e yond th e position Of e m
l
p yo e s upo n Salarie s Th e re is a lion in th e path.
which l e ads to ind e p e nd e nt commands o r to partn e r

S h i p an d this lion is th e hug e e stablishm e nts alr e ady
’
,
e xisting which ar e an impassabl e barrie r to o ur ad

,
vanc e m e nt Th e man e ngage d i n th e agricultural

.
”
army as w e have s e e n has nothing to fe ar from capi

, ,
tal With a small sum w hich is not ve ry difficult

.
,
for him to save o r borrow h e can b e gin farming th e , ,
only comp e tition w ith w hich h e has to cont e nd be

ing that of oth e rs o f his o w n class situat e d like him
s e lf It is c e rtainly more difficult f o r a m e chanic o r
.
practical man to e stablish a n e w busin e ss o r to win ,
partn e rship in o n e that e xists than it is f o r th e young ,
farme r to b e gin his busin e ss ; y e t th e difficulti e s are

n o t insup e rabl e n or gr e at e r than hav e hith e rto e x
,
i ste d .Th e y ar e not such as to stimulat e th e ambi

tious ; and this is alw ays to be take n into account ,
that if th e rac e in th e industrial and busin e ss world

be hard e r to w in th e priz e is infinit e ly gr e at e r
, .
B e f o e consid e ring th e prosp e cts o f th e m e chanic

i y
in th e i ndustrial o f th e cl e rk in th e m e rcantile com

, ,
m e r c i al and financial worlds l e t m e S how that n o ,
classe s oth e r than th e s e tw o hav e had much to d o with

e stablishing th e factori e s busin e ss hous e s and fi n an ,
c i al institutions which are b e st known i n th e Unit e d
Stat e s to day And first as to th e part o f train e d

-
.
,
m e chanics I s e l e ct th e b e st known industrial e s

.
-
tabl i sh m e n ts in e ach d e partm e nt many o f th e m th e ,

How To W IN FO RTUN E to 7
m ost xt nsiv works e th e ir kind and Of world

e e of
w id e re putation : Baldwin Work s for loco m otive s ; ,
S e lle rs Co B e m e nt Dough e rty fo r m e chan ical ,
tools ; Disston s Works f o r saws ; w orks o f th e M e ssrs , .
Dobson and of Thomas Dol an Philad e lphia and

, , ,
Gary of Baltimore t e xtil e fabri cs ; Fairb anks for

,
‘
, ,
scal e s ; Stud e b ake rs for w aggons w h o c ount th e i r , ,
w aggons by th e acr e ; Pullman o f Chicago ; A l lis on of , ,
Phil ad e lphia for cars ; Washburn Mo e n and Cl e ve , ,

-
t
land Rolling Mills st e e l wire e tc ; Bartl e tt iro n , , , ,
found e r Baltimore ; Sloan e s also Higgins carp e ts ;

, , ,
We stinghouse e l e ctrical apparatus ; P e t e r H e n de r ,
son CO and Landr e th Co se e ds ; Harp e r Broth

.
,
.
,
e rs
,
publish e rs ; Babbitt for Babbitt s m e tal ; Otis ,
’
Works Cl e ve land boile r st e e l ; th e Re mington Work s

, , ,
and Colt s Works Hartford fire arms ; Singe r Co m

’
, ,
pany How e Grove r s e w ing m achin e s ; Mc Corm i ck

, , ,
Works of Chicago ; Balls o f Canton an d Walt e r A

, , , .
Woods f o r agricultural im pl e m e nts ; st e amship build

,
ing Roach Cramp Ne afi e o n th e Atlantic ; Scott

, , , ,
upon th e Pacific ; Parkhurst Wh e e l e r Ki rby McD u , , ,
gall Craig Co ffi n be rry Wallac e th e l e ading offi cials of

, , , ,
shipbuilding companie s o n our gre at lake s ; horse ‘
shoe s Burd e ns ; Att e rbury Work s f o r glass ; Gro e t

, ,
zinge rs tanning ; Ame s Works f or Shove ls ; St e in

, ,
way Chicke ring and Knab e pianos

, , .
Eve ry o n e o f th e se gre at works was found e d an d

m an age d by m e chanics m e n who s e rv e d t he ir ap ,
«
1 08 THE EMPIRE O F B USINESS
pre ntic e ship Th e list could be gre atly e xt e nd e d

.
,
and if w e we re to include those which w e re cre at e d

ffi —
by m e n w h o e nt e re d life as o ce boys o r cle rks w e ,
S hould e mbrac e almost e ve ry famous manufacturing

conc e rn in th e country Edison for instance was .
, ,
a t e le graph op e rator Corliss o f Corliss e ngin e ; .

,
Che n e y o f Ch e n e y Silk ; Ro e blin g o f w ire fam e ;

, ,
—
Spre cke ls i n sugar r e fi n in g all and many mor e
,
aptitud e to w hom a re gular appre ntic e ship w as

,
scarc e ly n e c e ssary .
In th e m e rcantil e comme rcial and financial branch e s

,
o f busin e ss w hich ar e all un d e r th e law which drive s

,
L
7 busin e ss a ff airs into large conc e rns th e poor cl e rk ,
take s th e plac e o f th e train e d m e ch anic in th e indus

trial w orld Cl afl in s J aff ray s Sloan s th e Lords
.
’
,
’
,
’
, ,
th e Taylors th e Ph e l p s e s th e Dodge s th e gigantic

, , ,
house s Of Jordan Marsh in Boston of Fi e ld in Chicago , ,
Barr in St Louis Wanamak e r in Philad e lphia Me l

.
, ,
drum And e rson B uffalo ; N e wcomb Endicott Co , , .

,
D e troit ; Taylor Cle ve land ; Danie ls ,

Fis h e r ,
D e nve r ; Hom e and Campb e ll Dick Pittsburg all

, , ,
th e se and th e corre sponding house s throu ghout th e

country as far as I am abl e to trac e th e ir history
, ,
have th e sam e story to t e ll Wanamak e r Cl aflin .

, ,
Jordan Lord Fi e ld Barr and th e oth e rs all poor boys

, , ,
in th e store and Phe lps and Dodge both poor cle rks
, .
In b ankin g and financ e it is an o f t r e p e at e d st ory ,

that our Stanfords Rocke fe ll e rs Goulds Sage s Fie lds

, , , , ,
Dillons S e ligmans Wilsons and Huntingtons cam e

, , ,
fro m th e ranks T h e millionnaire s who ar e in active

.
control start e d as po o r b o ys and we re train e d in

~ ,
that st e rn e st but most e ffici e nt o f all schools—pove rty .
W HER E Is T HE C LLEGE MADE MAN $

O -
I aske d a city banke r to give m e a f e w nam e s o f

p r e sid e nts and vic e pr e sid e nts and cashi e rs of our
-
gre at Ne w York city banks w h o had b e gun as boys

o r cl e rks .He s e nt m e thirty six nam e s and wrot e -
,
h e would s e nd m e more n e xt d ay I cannot take th e .
re ad e r s tim e with a compl e t e list but he re are a

’
f e w o f th e b e st known : Williams pr e sid e nt Ch e mi ,
cal Bank ; Watson Lang Bank of Montre al ; Tap ,
p e,
n pr e sid e nt Gallatin National ; Brink e rho ff pr e si ,
d e nt Butch e rs and Drove rs Bank ; Clark V ic e pre si

’ ’
,
-
d e nt Am e rican Exchange ; J e witt pre sid e nt Irving ,
National ; Harris pre sid e nt Nassau Bank ; Cran e

, ,
pre sid e nt Sho e and L e ath e r Bank ; Nash pre sid e nt ,
Corn Exchange Bank ; Cannon pre sid e nt Chase Na ,
ti o n al ; Cannon vic e pr e sid e nt Fourth National ; Mon

,
-
tagu e pre sid e nt S e cond National ; Bake r pre sid e nt

, ,
First National ; Hamilton vic e pre sid e nt Bowe ry ,

-
Bank and so o n
, .
Th e abs e nc e o f th e coll e ge graduat e in this list

should be d e e ply we igh e d I have inquire d and
.
se arche d e ve rywh e re in all quart e rs but find small ,

1 10 THE EMPIRE OF BUSINES S
trac e o f h im as th e le ad e r in affairs although n ot
,
s e ldom o ccupying positions o f trus t in fi n ancial

in stitutions No r is this surprising Th e priz e take rs
. .
-
have too many ye ars th e start o f th e graduate ; the y

have e nt e re d for th e race invariably in the ir te e ns
—
in th e most valuabl e o f all th e ye ars for l e arning from
fourt e e n to twe nty ; while th e colle ge stude nt has b e e n
l e arn ing a littl e ab out th e barbarous and p e tty squab
ble s of a far distan t past o r trying t o mast e r l a nguage s
-
,
which ar e d e ad such knowl e dge as se e m s ad apt e d fo r

,
life upon anoth e r plan e t than this as f ar as b usin e s s

,
—
affairs are conc e rn e d th e future captain o f industry
i s hotly e ngage d in th e school o f e xp e ri e nc e obtainin g
,
th e v e ry knowl e dge r e quire d for his future triumphs .
I do n o t Sp e ak o f th e e ffe ct o f colle ge e ducation

upon young m e n training f o r th e l e arn e d profe ssions ,
for w hich it is up to a c e rtain point almost indis

, ,
p e nsabl e in o ur day f or th e ave rage youth ,
but th e almost total abse nc e o f th e graduat e fro m

high position in th e busin e ss world se e ms to j us
tif y th e conclusion that coll e ge e ducat i on as it e xi s ts
s e e ms almos t fatal to succ e ss in that domain It i s to .
be not e d that salari e d o fficials ar e n o t in a strict s e n se

—
in busin e ss a captain o f industry is on e w h o make s
his all in his busin e ss and d e p e nds upon succ e ss fo r
comp e nsation It is in this fi e ld that th e graduat e
.
has little chanc e e nt e ring at twe nty against th e

, ,
boy w h o sw e pt th e o ffi c e o r w h o b e gin s as Shi p

,
HOW TO WIN F ORTUNE 1 1 1
ping cl e rk at fourt e e n T h e fact s prove thi s

. Th e r e .
are s om e instance s o f th e sons o f busin e ss m e n grad ,
u ate s o f c oll e g e s w h o addr e ss th e ms e l v e s to a busin e ss

,
life an d succ e e d i n m ana ging a busin e ss alre ady cre at e d ,
but e v e n th e se are f e w c omp are d with those w h o fail

i n k e e pi n g th e fortun e r e c e iv e d .
Th e re h as co me ho w e ve r in re c e nt ye ars th e poly
, , ,
t e chnic and sci entific scho ol o r cours e o f study f or, ,
b oy s w hich i s b e gin nin g to Show most v aluabl e fruits

, ,
in th e m anufacturi n g bran ch T h e train e d m e chanic .
o f th e past w h o h as as w e h av e s e e n hith e rto carri e d

, , ,
O ff m ost o f th e h o nour s in o ur industrial works is now ,
to m e e t a riv al in th e sci e ntific ally e ducat e d youth ,
—
who will push h im hard ve ry hard ind e e d Thre e .
o f th e large st st e e l m anufacturing conc e rns in th e
world are alr e ad y und e r th e m an age m e nt o f thre e

—
y oun g e ducat e d m e tr stud e nts o f th e s e schools who
e
l e ft th e ory at sch oo l for practic e in th e wor ks whil e

y e t in th e i r t e e ns .Walk er Illi n ois S t e e l Company
, ,
Chicago ; Schw ab Edgar Thomson Works ; Pott e r

, ,
Home ste ad Ste e l Works Pittsburg are typ e s o f th e

, ,
new —
product n o t on e of th e m y et thirty Most o f .
th e chi e fs o f d e pa rtm e nts und e r th e m are o f th e sam e
class Such young e ducat e d m e n have o n e important

.
advantage o ve r th e appre ntic e d m e chanic th e y are —

o p e n m i n d e d an d without pr e judic e
e
T h e sci e ntific.
att i tud e o f m ind ,

that o f th e se arch e r aft e r truth ,
re n de rs th e m re c e ptive of n e w id e as Gre at an d .
1 12 THE EMPIRE OF BUSINESS ‘
invaluabl e as th e working me chanic has b e e n an d ,
is and will always be ye t h e is dispose d to adopt

, ,
narrow vie ws o f aff airs for h e is ge n e rally we ll up ,
in ye ars b e fore h e com e s into pow e r It is diff e re nt

'
with th e sci e ntifically train e d boy ; h e has n o pr e j u

dic e s and go e s in for th e lat e st inve ntion or n e we st
,
m e thod no matt e r if anoth e r has discove re d it He

, .
adopts th e plan that w ill b e at th e re cord and discards

his o w n d e vic e s o r id e as which th e working m e chanic
,
sup e rint e nd e nt can rare ly be induc e d to d o Le t n o .
o n e th e r e for e
,
und e rrat e th e advantage o f e ducation ;
,
only it must be e ducation adapt e d to th e e n d in Vie w ,
and must give instruction b e aring upon a man s ’
care e r if h e is to mak e his way to fortun e .
Thus in th e financial comm e rcial and m e rcantile ,
branch e s o f busin e ss as in manufactur ing w e have to

, ,
ask not what plac e th e e ducat e d m e chanic and practical

,
m e n occupy but what th e s e tw o typ e s hav e l e ft f o r

,
oth e rs throughout th e e ntire busin e ss world Ve ry .
littl e ind e e d have th e y l e ft

, , .
In th e industrial d e partme nt th e train e d m e chanic

is th e found e r and manage r o f famous conc e rns In .
th e m e rcantil e comm e rcial and financial it is th e po o r

,
o ffi ce bo y w h o has prov e d to be th e m e rchant prin c e

-
i
w m e who sur e ly com e s into his h e ri tage
, Th ey
a e m
.
r i n pi ng p las se s It is th e poor cle rk and th e

d
.
working m e chanic w h o finally rul e in e ve ry branch of

aff airs without capital wi th out f ami l x j n due n c e an d
, , .
HOW TO WIN FORTUNE 1 1 3
without colle ge e ducation It is the y who have rise n

.
to th e to p and tak e n co mm and who hav e abandon e d

,
salari e d positions and boldly riske d all in th e founding

o f a busin e ss Coll e ge graduat e s will usually be found
.
und e r salari e s trust e d subordin at e s N e ith e r capital

,
.
,
nor influe nc e nor colle ge l e arning nor all combin e d

, ,
have prove d able to cont e nd in busin e ss succ e ssfully

against th e e nergy and indomitabl e will which spring
from all conque ring pove rty Le st anything h e re said
-
$
may be constru e d as t e nding to d e cry o r disparage

unive rsity e ducation l e t m e cl e arly stat e that those
addre ss e d ar e th e fortunat e poor young m e n w h o have
to e arn a living ; f o r such as can afford to obtain a
unive rsity d e gr e e and hav e m e ans suffi cie nt to insure
a live lihood th e writ e r is th e last man to advise its r e
j e c ti o n —compar e d with which all th e p e cuniary gains
o f th e m ulti m illionnair e ar e dross

- — but f o r poor youth
th e e arning o f a comp e t e nc e is a duty and duty don e
is worth e ve n more than univ e rsity e ducation pr e cious ,
as that is . Lib e ral e ducation give s a man w h o re ally

absorbs it highe r tast e s and aims than th e acquisi
tion o f w e alth and a world to e njoy into which th e
, ,
m e re millionnaire cannot e nt e r ; to fi n d th e re fore that

t
it i s not th e b e st training for busin e ss is to prove its

claim to a highe r domain True e ducation can be
.
Obtain e d outsid e o f th e schools ; ge nius is not

an indige nous plant in th e grove s acade mic a —
wild flow e r found in th e woods all b y it s e lf n e e d ,
ing n o c are fro m S ocie ty but ave rage man ne eds
—
unive rsitie s .
A RE COR RA IONS
PO T To DISA PP EAR $
Th e y oung practical man to day workin g at of -
th e b e nch o r count e r to whom th e fair godd e ss

, ,
Fortun e has n ot ye t b e cko n e d may be dispose d to

, ,
conclud e that it is impossibl e to start busin e ss in

t his age Th e re i s s om e thing in t hat It i s n o
. .
,
doubt infinit e ly more difficult to start a n e w busi

,
n e ss of any kind to d ay than it was But it is only .
a diffe re nc e in form n ot in substanc e It is in fi

, . .
n i te l y e asi e r for a young practical man o f abilit y
to obtain an i n t e re st in e xisting firms than it has
e ve r b e e n Th e doo r s have n ot clos e d upon ability ;

.
o n th e contrary th e y swing e asi e r upon th e ir hing e s

, .
Capital is not re quisit e Family influe nc e as b e fore .

, ,
passe s f or nothin g Re al ability th e capacity f or

.
,
doing things n e v e r was S O e age rly se arch e d for as

,
now ,
and n e ve r command e d such re wards .
Th e law which conc e ntrat e s th e l e ading indus

trie s and com m e rcial m e rcantil e and financial affairs
,
in a f e w gre at factorie s o r firms contains within itse lf

anothe r law not l e ss imp e rious The se vast c o n .
c e rns cannot be succ e ssfully conduct e d by salari e d

e mploy e s NO gre at busin e ss o f any kind can scor e
.
an unusually brilliant and p e rman e nt succ e ss which

,
i s not in th e hands of practical m e n p e cuniaril y in

Ho w TO WIN FORTUNE 1 1 5
te r e ste d in its re sults In th e industrial world th e

.
days o f corporations s e e m like ly to com e to an e n d .
It h as b e e n n e c e ssary for m e to watch close ly most o f

m y life th e op e rations of gre at e stablishme nts own e d
b y hundre ds o f abse nt capitalists an d conduct e d by
,
salari e d offi c e rs Contrast e d with th e s e I b e lie ve that

.
th e partn er ship conduct e d by m e n vitally int e re st e d
and owning th e works will mak e satisfactory divi

d e n d s wh e n th e corporation is e mbarrass e d and
scarc e ly knows upon which Sid e th e balanc e i s to be

at th e e n d o f a ye ar s op e ration s T h e gre at dry
’
goods hous e s that int e re st th e ir most capable m e n

in th e profit s o f e ach d e partm e nt succ e e d wh e n thos e
,
fail that e nd e avor to work with salarie d m e n only .
Eve n in th e manage m e nt o f o ur gre at hot e ls it i s,
foun d wis e to take into partn e rship th e principal m e n .
In e ve ry branch o f busin e ss this law is at work and ,
Conc e rns ar e prosp e rous ge n e rally S p e akin g just

, ,
i n proportion as th e y succ e e d in int e re sti ng in th e
profits a large r and large r proportion of th e ir able st

worke rs Co op e ration in this form is fast coming
.
-
in all gre at e stablishm en ts T h e manufacturing busi

.
ne ss that do e s n o t hav e practical manufacturing

partn e rs had b e tt e r supply th e omission without
d e lay and probably th e ve ry m e n re quire d are th e
,
bright young m e chanics who hav e distinguish e d

th e mse lve s while working for a f e w dollars pe r d ay
o r th e y ouths from th e polyt e chnic school .Instanc e s
1 1 6 THE EMPIRE OF BUSINESS
constantly occur wh e re th e corporation unwilling
to int e re st a promising practical man los e s his s e rvic e s ,
and se e s an int e re st give n him by som e abl e individual

manufacture r o r comm e rcial firm w h o are constantly
o n th e lookout f or that indisp e nsabl e articl e — ability
It has not hith e rto b e e n th e practic e for corporations
prop e rly to re ward th e se e mbryo manage rs but this ,
th e y must come to if th e y ar e to stand th e comp e ti

,
tion o f works op e rat e d by th os e in t e re ste d in th e

profits .
Corporations on th e oth e r hand as I d e sire to point

, ,
o u t to practical young m e n hav e o n e adv an

,
tage The ir Share s ar e sold fre e ly If a worke r

. .
wish e s to b e come int e re st e d in any branch o f man

u f ac tu r i n g in Am e rica to day th e path is e asy
-
, Fo r .
$ 5 or $ 00 h e can b e com e a stockhold e r

0 1 It is be .
coming more and more common for worke rs so to

inve st th e ir savings The re ar e many w e l l m am
.
-
age d corporations whose ass e ts and pre stige e nabl e

th e m to e arn satisfactory r e turns and n o b e tt e r,
e vid e nc e o f capacity and o f good judgm e nt can a
workman give to his e mploye rs than that furnish e d

by th e pre se nc e o f his nam e upon th e books as a share
hold e r in th e conc e rn .
Workingme n have a pre judic e against Showin g

th e ir e m ploy e rs that th e wage s th e y e arn suffic e to
e nabl e th e m to save ; but this is a m istake Th e . .
saving workm an is th e valu abl e workm an and th e ,

HOW TO WI N FORTUNE 1 1 7
wise e m ploye r re gards th e fact that h e do e s save

as p r ima faci e e vid e nc e that th e r e is som e thing e x
c e pti o n al l y valuabl e in him It should be th e e ff ort

.
o f e v e ry co rporation to induc e i ts prin cipal work e rs
to inve st th e ir savin gs in its S hare s Only in this .
way can corporations hop e to cop e succ e ssfully with

individual manuf acture rs who have alre ady d i sc o v
e re d o n e o f t h e valuabl e s e cre ts o f unusual succ e ss ,
v i z : to shar e th e ir profits with thos e who ar e most

.
instrum e ntal in producing the m T h e day o f th e .
abse nt capitalist st ockhold e r who take s n o int e re st

,
in th e op e ration of th e works b e yond th e re c e ipt o f

h i s divid e nd is c e rtainly passing away
, Th e day .
o f th e valuabl e activ e work e r in th e industrial world
is comin g Le t th e re fore n o young practical work

.
, , ,
m an be discourage d On th e contrary l e t him be

.
,
ch e ere d More and more it is b e coming e asie r f or th e

.
me chanic or practical man o f re al ability to dictate

t e rm s to his e mploy e rs Whe re th e re was o n e av e nu e
.
o f promotion th e r e are now a doz e n

,
T h e e normous
.
conc e rn o f th e future is to divid e its profits not among ,
hundre ds o f idle capitalists w h o contribut e nothing

to its succ e ss but among hundr e ds of its abl e st e m
,
p yl o e,s upon whos e abiliti e s and e x e rtions succ e ss
gre atly d e p e nds Th e capitalist abse nt stockhold e r

.
is to be re plac e d by th e able and pre s e nt worke r .
As to th e qualifications n e c e ssary for th e promotion

o f yo un g practic al m e n o n e cannot do b e tt e r than
,
1 18 THE E M P IRE OF B US INE S S
or g e Elio t who pu t th e m att e r v e ry pithi l y

.
q uot e G e ,
$
I ll t e ll yo u h ow I got on I ke pt my e ars and m y
’
.
e y e s op e n an d I m ad e my maste r s int e re st my ow n
’
’
.
,
T h e co n ditio n pre c e d e n t f o r pro m oti o n is that th e ,
m an m u st first attract notic e He must d o som e .
thing un usual an d e sp e cially must this be b e yond

,
th e strict boundary o f his duti e s He mus t sugge st .

,
o r sav e o r p e rform som e S e rvic e f or h i s e m pl oy e r

,
which h e coul d n o t be c e nsure d for n ot h av ing don e .
Whe n h e has thus attract e d th e notic e o f h is imm e

diat e sup e rior wh e th e r that be o nly th e fore man
,
o f a gang it m att e rs not ; th e fi r st gr e at st e p h as b e en

,
take n f or upon his imm e diat e sup e rior promotion

,
d e p e nds How high h e climbs i s h is ow n aff air

. .
We oft e n h e ar m e n complaining that th e y g e t n o

chanc e to Sh OW th e ir ability and wh en th e y do show,
ability that it i s not re cognize d The re i s ve ry littl e .
in this S e lf int er e st comp e ls th e imm e diat e sup e rior

.
-
to give th e highest plac e und e r him to th e man w h o

can b e st fill it for th e Off ic e r is cre dit e d with th e work
,
o f his d e partm e nt as a whol e No man c an k e e p an .
oth e r down It will be notic e d that m any o f th e

.
practical m en who hav e e arn e d fam e and fortun e have

don e so through holding o n to improve m e nts which
th e y have mad e I m prove m e nts ar e e asily mad e by
.
practical m en in th e branch in which th e y ar e e ngage d ,
f o r th e y hav e th e mos t intimat e knowl e dge o f th e
proble m s to be solve d th e r e It is in this way that .

HOW TO WIN FORTU NE 1 19
many o f our valuabl e im prove me n ts h ave com e Th e .
man w h o has m ade an i m prove m e n t S houl d alw ays

have an e y e upo n Obtainin g an i nt e re st in th e b usin e s s
rathe r t h an an incre ase of sal ary Ev e n if th e b usi .
n e ss up to this tim e h as not b e co me v e ry p rosp e rous ,
if h e has th e pro p e r stuff in h im h e b e lie ve s t hat h e ,
could make it so and SO h e could All form s o f busi

, .
n e ss have the ir ups an d down s S e ason s of d e pr e s .
sion and buo yancy s uc ce e d e ach o th e r on e ye ar o f ,
gre at pro fits se ve ral y e ars with little o r n on e Thi s

, .
i s a law o f th e busin e ss wo rld i n t o th e re ason s o f wh ich

,
I n e e d n o t e nt e r Th e re fore th e able y o ung practic al

.
m an should n o t h av e m uch re gard as to a cho i c e o f th e
branch O f b usin e ss Any busin e ss prop e rly c onducte d

.
will yi e ld during a pe riod of y e ars a han dsom e re turn .
DANGERS TO Y O UNG ME N
Th e re are t hre e great rocks ahe ad practical of th e
yo ung m an who h as his foot upon th e ladd e r and is

b e ginn ing to ris e First drunk e nn e ss which O f
, , , ,
cours e i s fatal Th e re is no use in wasting tim e

,
.
upon an y young m an who drinks liquor no matt e r ,
how e xce ptional his tal e nts I n de e d th e gre at e r his

.
,
tal e n ts are th e gre ate r th e disappointm e n t must be .
T h e s e cond rock ah e ad i s S pe culation T h e busin e ss .
of a s p e culator and that o f a manufac ture r or man

o f aff air s
,
ar e n o t only distinct but incompatibl e .
To be suc ce s sful in th e busin e ss world th e m a n u ,

f ac tur e r
’
s and
me rchant s profits only should be
th e
’
sought T h e manufacture r should go forw ard st e ad

.
ily m e e ting th e marke t pric e Wh e n th e re are goods

,
.
to se ll se ll the m ; whe n supplie s are n e e d e d purcha se

, ,
th e m without re gard to th e marke t pric e in e ith e r

,
cas e I hav e n e ve r known a sp e culative m an uf ac

.
ture r or busin e ss man who score d a p e rm an e nt succ e ss .
He is rich o e day bankrupt th e n e xt B e s id e s this

n , .
,
th e manufacture r aims to produc e articl e s and in so ,
doing to e mploy labour This furnish e s a laudable .
care e r A man in this avocation i s use ful to his kind

. .
T h e m e rchant is us e fully occupi e d distributing co m
m o d i ti e s ; th e bank e r in providing capital T h e third

—
.
rock is akin to sp e culation indorsing Busin e ss .
m e n re quire irre gular suppli e s o f mon e y at som e ,
p e riods littl e at oth e rs e normous sums Othe rs be

, .
ing in th e sam e condition th e re i s strong te m pta ,
tion to indors e mutually This rock should be avoid e d . .
The re are e me rgencie s no doubt in which m e n should , ,
h e lp th e ir frie nds but th e re is a rul e that will ke e p o n e

,
safe No man should plac e his nam e upon th e obli

.
g a ti o n o f anoth e r if h e has n o t su ffi ci e nt to pay it with

o u t d e trim e nt to h i s own busin e ss It is dishon e st to .
do so Me n ar e trust e e s for those who have truste d

.
th e m and th e cre ditor is e ntitle d to all h is capital and

,
cre dit For on e s own firm your nam e your f or

.
’
,
$
tun e and your sacre d honour ; but for oth e rs n o

,
”
,
m att e r und e r what circumstance s only such aid as ,

yo u c an re nd e r without dange r to your trust It is a .
safe rule th e re fore to give th e cash dire ct that you

, ,
'
have to spare f or oth e rs and n e ve r your indors e m e nt

o r guarant e e .
On e gre at caus e o f failure o f young m e n in

busin e ss is lack of conc e ntration Th e y are pron e .
to s e e k outsid e inv e stm e nts T h e caus e o f many .
a surprising failur e li e s in s o doing Ev e ry dollar o f .
capital and cre dit e ve ry busin e ss thought should

, ,
be conc e ntrat e d upon th e o ne busin e ss upon which

'
a m an has e mbark e d He should n e ve r scatt e r his

.
shot It is a poor busin e ss which will not yi e ld

.
b e tt e r re turns for incre ase d capital than any o ut

side inve stm e nt No man o r se t o f m e n o r corpora
.
tion can manage a busin e ss man s capital as we ll as ’
h e can manage it hims e lf T h e rul e Do not put

.
,
all your e ggs in on e bask e t do e s not apply to a ,
man s life work Put all your e ggs in o n e baske t

’
’
.
,
and th e n watch that bask e t is th e tru e doctrin e ,
th e most valuabl e rul e o f all Whil busin e ss o f all . e
kinds has gon e and is still going rapidly into a f e w

, ,
vast conc e rns it is n e ve rth e l e ss d e monstrat e d e ve ry

,
day that ge nuin e ability int e re st e d in th e profits is

, ,
n o t only valuabl e but indisp e nsabl e to th e ir succ e ssful
Ope ration Through corporations whose share s are

.
sold daily upon th e mark e t ; through partn e rships that

fi n d it n e c e ssary to int e r e st th e ir abl e st work e rs ;
through m e rchants w h o can manage th e ir vast e nt e r

T HE EM P IRE O F B USIN ESS
p rise s succ e ssfully only by inte re sting e xc e p tion al

ab ility ; in e ve ry quart e r o f th e busin e ss world a ve nue s ,
gre at e r in numb e r wid e r in e xt e nt e asi e r o f acc e ss

, ,
than e ve r b e fore e xiste d stand op e n to th e sobe r frugal

, , ,
e n e rg e tic and abl e m e chanic to th e sc i e nti fi c ally e du

,
c ate d yo uth to th e offic e boy and to th e cl e rk

,
ave nue s through which th e y can re ap gre at e r succ e sse s

than we re e ve r b e fore w ithin th e re ach o f th e se classe s
i n th e history o f th e world .
Whe n the re fore th e young m an in any position

, , ,
o r in an y bu sin e ss e x plains and co m plains that h e

,
h as n o t opportunity to prov e h i s ability an d to ris e
to partn e rsh ip th e o ld answ e r suffic e s

,
$
Th e faul t d e ar B r utu s, is n ot in o ur t
s ar s ,
v th t
,
B ut i n o u r se l e s, a w e ar e u i
n d e r l n gs .
”
W e al th an d Its Us e s
Pov ty i c tiv g t c i v
er an n en e to re a a h e em en t S urpu l s
lt y b ti i pl
.
w ea h all ow s m e re l an ela ora on of th e s m e
need f i f W th l p c
s o l e e al h e s o n so l i da ti on an d
c p p ducti
.
h ea ens ro on .
W EA LT H AN D IT S U SE S
EA LT H as Mr Gladston e has re c e ntly said

,
”
.
,
is th e busin e ss o f th e world
$
That th e .
”
acqui sition o f mon e y is th e busin e ss of th e world arise s

fro m th e fact that with f e w un fortunat e e xc e ptions
3
, ,
youn g m e n are born to pove rty and the re fore unde r ,
th e salutary op e ration o f that re markably wis e law
which make s for the ir good : Thou shalt e arn thy $
bre ad by th e swe at of thy brow .
It is th e fashion nowadays to be w ai p v e rty as an

e vil
,
to pity th e young man who is not born with a
silve r spoon in his mouth ; but I h e artily subscrib e to
Pre sid e nt Garfi e ld s doctrin e that T h e rich e st h e rit
’
,
$
age a young man can be born to is pov e rty I make .
no idl e pre diction wh e n I s ay that is it from that class

f rom whom th e good and th e gr e at will sprin g It is .
not from th e sons of th e millionnaire or th e nobl e that

th e w orld r e c e iv e s its t e ach e rs its martyrs i ts i n v e n , ,
tors its stat e sme n its po e ts or e ve n its m e n of affairs

, , , .
It is from th e cottage of th e poor that all th e s e spring ‘ M -

I'
.
We c an ECarc e l y re ad o n e among th e f e w immortal

w
$
‘
nam e s that we re not born to d i e o r who has re nd e re d ,

”
e xc e ptional s e rvic e to o ur rac e w h o had n o t th e ad ,
vantage of b e ing cradl e d nurs e d and re are d in th e , , ‘ m _ _

x
From a Le c tu r e at U n o n i Co ll e g S ch ct d y
e , ene a , N Y . .
,
J y an
’
,
1 895 .
I2 5
stimulating school of pove rty Th e re is nothin g so
$
.
e n e rvating ,nothing so d e adly in its e ff e cts upon th e

qualitie s which l e ad to th e highe st achie ve m e nt ,
m oral o r int e lle ctual as h e re ditary we alth

, An d if .
th e re be among you a young man who fe e ls tha t h e i s

n o t co m p e ll e d to e x e rt hims e lf in ord e r to e arn an d ,
live from h i s ow n e ff orts I t e nd e r him my p rofoun d

,
sympathy Should such an one prove an e xc e ption

.
to his fe llows and b e come a citiz e n living a life cre dit

,
abl e to hims e lf and us e ful to th e Stat e inst e ad o f my ,
profound sympathy I bow b e fore him with profoun d

re ve re nc e ; for o n e w h o ove rcom e s th e se ductive t e mp
tati o n s which surroun d h e re ditary w e alt h i s of th e
salt o f th e e arth and e ntitl e d to doubl e honour

,
”
.
On e g e ts a gre at many good things from th e Ne w

York S un th e distinguish e d propri e tor and e dit or o f
,
which you h ad re c e ntly th e pl e asure be n e fit and , ,
honour of h e aring I be g to re ad this to you as o ne

.
o f its num e rous rays o f light :
OU R B oy s .
Eve ry moralist hard up f o r a th e m e a sk s at i nt e r

vals : What is th e matt e r with th e sons of o ur ri ch
and gre at m e n $ T h e que sti on i s follow e d by
statistics o n th e wicke dn e ss and bad e ndings of such
sons .
T h e troubl e with th e m oralist s is th at th e y put th e

$
que stion wrong e n d first The re is nothi ng wr ong

.
WEA LT H AND ITS US ES 12 7
with those foolish sons e xc e pt that th e y are un lucky ; ,
but th e re i s som e thing w rong with th e ir fath e rs .
Suppose that a fi n e sp e cim e n o f an old d e e rhoun d ,
ve ry succ e ssful i n his busin e ss sho uld coll e ct un told ,
d e e r in th e park fatt e n th e m up an d th e n say to his

, ,
u
p pp i e s f H e r e boys I
‘
v e had a,
hard lif e catching
,
’
the se d e e r and I m e an to se e you e njoy yours e l ve s

, .
I m so use d to racing through th e woods an d hunting

’
that I can t ge t o ut o f th e habit but you boys j ust pil e

’
,
‘
in to that park and h e lp yours e lve s Such a d e e r ‘

3
.
hound as that would be scorn e d by e ve ry human

fathe r T h e human fath e r w ould say to such a dog :
.
‘
Mr Hound y ou re simply ruining thos e puppi e s
.
,
’
.
Too much m e a t and no e x e rcis e will giv e th e m th e

man ge an d s e ve nt e e n oth e r troubl e s ; and if dist e mp e r
do e sn t kill th e m the y w ill be a kn ock —
’
kn e e d wat e ry
, ,
e y e d lot o f disgrac e s to you For h e ave n s sake k e e p ’

.
the m down to dog biscuit and work th e m hard -

.
’
That sam e hum an fath e r do e s with gre at prid e th e

$
v e ry thing that h e would cond e mn in a d og or a cat .
He r uins his childre n and th e n wh e n h e ge ts ol d pr o

, , ,
f u se l y and sadly obs e rv e s that h e has don e e v e ry thing

f o r th e m and y e t th e y hav e disappo int e d him
,
He .
who give s to his so n an o ffi c e w hich h e has not d e

se rv e d and e nabl e s him to disgrac e his fath e r an d
fri e nds d e se rve s no more s ym pathy t h an an y Mr

,
.
Fagin d e lib e rat e ly e ducating a boy to be di shon e st .
Th e fat us e l e ss pug dogs w hich yo ung wom e n

$
-
,
THE EMPIRE OF BUSINESS
drag wh e e zing about at th e e n d o f strings are n o t to
blam e for th e ir condition and th e sam e thing is tru e ,
of rich m e n s sons T h e young wom e n who ove rfe e d

’
.
th e dogs and th e fath e rs who ruin th e ir sons hav e
the ms e lve s to thank .
$
No man w ould advocat e th e thing p e rhaps ; but ,
who can doubt that if th e re could be a law making

it impossibl e for a man to inh e rit anything but a good
e ducation and a good constitution it would supply ,
us in short ord e r with a b e tt e r lot o f m e n $ ”
This is sound If yo u se e it in Th e S un it i s so
$
.
At l e ast it is in this case .
It is not th e poor young man w h o go e s forth to his

work in th e morning and labours until e ve ning that w e
should pity It is th e so n o f th e rich man to who m
.
Provid e nc e has not b e e n so kind as to trust w ith this

honourabl e task It is not th e busy man but th e man
.
,
of idle n e ss who should arouse our sympathy and

,
cause us sorrow Happy is th e man who has found

.
$
his work says Carlyl e I say Happy is th e man w h o

,
”
.
,
has to work and to work hard and work long A , .

”
gre at po e t has said : He praye th b e st w h o love th

$
b e st . Som e day this may be parodie d into He :

$
pray e th b e st who worke th b e st An hon e st day s .

” ’
work we ll p e rform e d is not a bad sort of praye r T h e .
c ry go e s forth oft e n nowadays Abolish pove rty l ”

,
but fortunat e ly this cannot be don e ; and th e poor w e

a e always to hav e w ith us
r Abolish pove rty and .
,
WEALT H A ND IT S USES 12 9
what would b e co m e o f th e rac e $ Progre ss d e ve lop ,
m e nt would c e as e Consid e r i ts future if d e p e nd e nt

,
.
upon th e rich Th e supply of th e good and th e gre at

.
would c e ase and human soci e ty re trograd e into bar

,
bari sm Abolish luxury if you pl e ase but l e av e us th e

.
, ,
soil uponwhich alon e th e virtu e s and all that is pr e c i ous

,
—
in human charact e r grow ; pove rty hon e st pove rty .
I will assume for th e mom e nt ge ntl e m e n that you, ,
w e re all fortunat e e nough to be born poor Th e n th e .
first que stion that pre ss e s upon you is this : What

shall I l e arn to do for th e community which will brin g
.
m e in e xchang e e nough w e alth to fee d cloth e lodg e , , ,
and ke e p m e ind e p e nd e nt of charitable aid from oth e rs $

What shall I do for a living And th e young man may
$
like or think that h e would like to do on e thing rath e r

, ,
than anoth e r ; to pursue o n e branch or anoth e r ; to be a

busin e ss man or craftsman o f som e kind o r minist e r , ,
physician e l e ctrician archit e ct e ditor o r lawy e r I

, , , , .
have n o doubt som e o f you in your wilde st flights

aspire to be journalists But it do e s not matt e r
.
what th e young man like s or disli ke s h e alw ays has ,
to k e e p in vi e w th e main point : Can I attain such

a m e asure o f profici e ncy in th e branch pre fe rr e d as will
c e rtainly e nabl e m e to e arn a live lihood by its practic e $
T h e young man th e re fore who r e solv e s to mak e
, ,
him se lf use ful to his kind and th e re fore e ntitl e d to

,
re c e ive in re turn from a grat e ful co mmunity which

h e b e n e fits th e sum n e c e ssary for his support s e e s ,
I 30 THE E M P IRE OF BU SINESS
cle arly o n e of th e high e st dutie s of a young m an He .
me e t s th e vital que stion im me diate ly pre ssing upon

him for d e cision and d e cid e s it rightly ,
.
So far the n the re is n o d iffe re nc e about th e ao

, ,
q ui s i ti o n o f w e al t h Ev e ry o n e is agr e.e d that i t is

th e first duty of a young m an to so train hi m s e lf as
to be s e lf supporting Nor is the re difficulty about

-
.
th e n e xt st e p f o r th e young m an cannot be said to hav e

,
p e rform e d th e whole o f his duty if h e l e ave s out o f

account th e con t inge nci e s of life liabili ty to a c cid e n t , ,
ill n e ss and t rad e d e pre ssions lik e th e pre se nt Wi s

, .
d o m calls upon him t o hav e re gard f o r th e s e things ;
an d i t i s a par t o f his duty that h e be gin to sav e a

‘
portion o f his e arn ings an d inve st th e m no t in spe cu ,
lation but in s e curiti e s or in p rop e rty o r in a l e giti

, ,
m at e busin e ss i n such form as will p e rhaps slowly , ,
but ye t sure ly grow into th e re se rve upon which h e

can fall back in e me rge ncie s o r in o l d age an d live ,
upon his ow n s avings I think w e are all agre e d as .
il — h —
to t e ad v i sab i ty nay t e duty o f layin g up a
h m
comp e t e nc e and h e nc e to re tain o ur S e lf re sp e c t

,
-
.
B e sid e s this I take it that some o f you have alre ady

,
d e cid e d just as soon as possibl e to ask a c e rtain

,
$
young lady to share his lot o r p e rhaps his lots an d

”
, , ,
of course h e Should have a lot o r two to share Mar

, .
r i ag e is a v e ry s e rious busin e ss ind e e d and give s rise ,
to m any we ighty consid e ration s B e sure to m arry .
a woman with good common s e ns e was th e advi ce -

,
WEALT H AND ITS US ES I 31
give n m e by m y m e ntor and I just hand it down to

,
you Common s e ns e i s th e m ost un common and

.
m ost valuable quality in man o r woman But b e fore .
y o u hav e occasion to provid e yours e lf w ith a h e lpmat e ,
the re com e s th e subj e ct upo n which I am to addre ss

y o u W e alth —
”
n o t w e alth i n millions but simply ,
re ve nue suffi cie nt for mod e st ind e p e nd e nt living , .
This op e ns up th e e ntire subj e ct O f w e alth in a gre at e r

o r l e ss d e gr e e
.
Now what is we alth HOW is it cre at e d and dis

,
$
t ribut e d $ Th e re ar e not far from us imme ns e b e ds of

coal w hich have lain for millions o f y e ars us e l e ss and ,
the re fore valu e le ss Through som e e xp e rim e nt o r

.
,
p e rhaps accid e nt it was discove re d that black ston e

,
would burn and give forth h e at Me n sank shafts .

,
e r e ct e d machin e ry min e d and b rought forth coal

, ,
an d sold it to th e community It displac e d th e u se

.
o f wood as fu e l ,
say at on e half th e cost Im m e di
-
.
at e ly e ve ry be d of coal b e cam e valuabl e b e cause

use ful o r c apabl e o f b e ing mad e so ; and h e re a n e w
,
articl e worth hundr e ds ye s ,

thousands, o f m illio n s
was add e d to th e w e alth of th e com munity A Scotch .
me chanic on e day as th e story go e s gazing into th e

, ,
fi re upon which w at e r w as boiling in a k e ttl e s aw th e ,
st e am raise th e lid as hundre ds o f thousands had s e e n

,
b e fore him ; but non e saw in that sight what h e did

th e st e a m e n gin e which do e s th e work o f th e world
,
at a cost so infinit e l y trifling co m par e d with w hat

th e plans known b e fore involve d that th e we alth o f ,
th e world h as b e e n incre as e d o n e dare s not e stimat e
how much T h e sayi ng that th e community make s

.
‘ 0
is th e root o f w e alth in any branch o f mat e rial d e

v e l O pm e n t Now a young
.
,
or s e rvic e
to th e community cre at e s w e alth just in proportion
as his se rvic e is usef ul to th e ce m m u ity as it e ith e r n ,
save s or improve s upon e xisting m e thods Commo .
dore Vand e rbilt s aw I think thirt e e n diffe re nt short

, ,
railway lin e s b e tw e e n Ne w York and Buff alo i n v o l v ,
ing thirt e e n diff e re nt manage m e n t s, and a disjoint e d

and t e dious s e rvic e Albany Sch e n e ctady Utica
.
, , ,
Syracus e Auburn Roch e ste r e tc we re h e ads o f

, , , .
,
som e o f th e se companie s He consolidat e d th e m all.

,
making o n e dire ct lin e ove r w hich your Empire Stat e

,
Expre ss fli e s fi f ty o e mile s an hour th e fast e st time

-
n ,
in th e world ; and a hundre d passe nge rs patroniz e

th e lin e s wh e re o n e di d in old e n days He re nd e re d .
th e community a sp e cial s e rvic e w hich b e ing follo w e d , ,
by oth e rs re duc e s th e cost of bringing food from th e

,
prairie s o f th e We st to your doors to a trifling sum

p e r ton . He produc e d and is e v e ry day producing
, ,
untold w e alth to th e community by so doing and ,
th e profit h e r e ap e d for hims e lf w as but a drop in th e
bucke t compare d with that which h e showe re d upon

th e S tate and th e nation .
Now in th e old e n days b e fore st e am e l e ctricity or

, , , ,
an y oth e r of th e mod e rn inv e ntions which unit e dly

WEALTH AND ITS USES 1 33
have change d th e whol e asp e ct of th e world e ve ry ,
thing was don e upon a small scale Th e re was no .
room for gre at id e as to op e rat e upon a large scal e ,
and thus to produc e gre at we alth to th e inve ntor ,
discove re r originator or e xe cutive Ne w inve ntions

, , .
gave this opportunity and many large fortun e s w e re

,
mad e by individuals But in o ur day w e are rapi d ly

.
passing if w e h av e not al rW
,
ed this stage o f ,
d e v e lopm e nt an d f e w large fortun e s can now be

,
mad e in any part o f th e world e xc e pt from o e caus e ,

n ,
th e ris e in th e valu e of r e al e stat e Manufacturing .

,
transportation both upon th e land and upon th e se a ,
banking insuranc e have all passe d into th e hands

, ,
o f co r porations compos e d of hundr e ds and in many
case s thousands of Share hold e rs T h e Ne w York .
C e ntral Railroad is own e d by more than te n thousand

share hold e rs th e P e nnsylvania Railroad is ow n e d by
,
more p e ople than th e vast a rmy which it e mploye s ,
and n e arly o n e fourth of th e numb e r ar e th e e stat e s

-
o f wom e n and childr e n It is so w ith th e gre at manu

.
fa c tu ri n g compani e s ; so with th e gre at st e amship

lin e s ; it is so as yo u know w ith banks insuranc e
, , ,
companie s and ind e e d with all branch e s of busin e ss

,
.
It is a gre at mistak e for young m e n to say to th e m

s e lve s Oh $ w e cannot e nt e r into busin e ss
,
$
If .
an y o f yo u hav e sav e d as much as $ 5 or $ 00 I do 0 1 ,
n o t know any branch o f busin e ss into w hich you
c annot plung e at onc e You can g e t your c e rtificat e

.
1 34 T HE E M PIR E OF BUS INESS
of stock and att e nd th e me e ting o f stockholde rs ,
make you r sp e e ch e s and sugge stions qua rre l with ,
th e pre sid e nt an d inst ruct th e manag e m e nt o f th e

,
affairs of th e company and have all th e rights and ,
influ e nc e o f an own e r You can buy share s in any .
thin g from n e wspape rs to t e n e m e nt hous e s ; but

,
-
capital is SO p oorly paid in th e se days that I advis e you

t o e x e rcis e much circumsp e cti o n b e fore yo u inve st .
As I have said to wo rkingm e n and to ministe rs c ol ,
l e ge p rofe ssors artists m usicians an d physicians

, , , ,
an d all th e prof e ssional cl ass e s : Do not inve st in

an y busin e ss conc e rns w hat e ve r ; th e risks o f busin e ss
are n o t f or such as y ou Buy a hom e f or y ours e lf ’
first ; and if you have any surplus buy anoth e r l ot o r ,
anot h e r hous e or tak e a mo rtgag e upo n o n e o r upon

, ,
a railway and l e t it be a first mortgage and be satis

, ,
fi e d w ith mod e rat e in t e re st Do you know that o ut .
of e ve ry hundre d that att e mpt busin e ss upon th e ir

ow n ac count s tatistics ar e said to S how that ni n e ty
fi v e soon e r or lat e r fail I know that from my ow n .
e xp e ri e nc e I c an quote th e lin e s o f Hudibras and

.
t e ll you as far as o n e manufacturing branch is con

,
c e rn d that what h e found to be tru e is still t rue to

e ,
an e min e nt d e gr e to day e -
Ay m e $ Wh a tp i er ls do en vi ron
Th e m an t t
h a m e ddl e s w it c d i
h ol ro n .
Th e hare hold e rs o f iron and st e e l conc e rns to da y

S -
c an c e rtify that this is so wh e the r th e iron or st e e l ,

WEALTH AND IT S US ES 35
be h ot cold ; and such is also th e cas e in othe r

or
branch e s of busin e ss .
Th e p rincipal compla i nt against o ur industrial c o n

d iti o n s o f to d ay is that th e y caus e gre at w e alth to
flow into th e hands of th e f e w W e ll o f th e ve ry f e w

, , ,
ind e e d is t his tru e

, It w as form e rly so as I hav e
.
,
e xp l aine d imm e diat e l y aft e r th e n e w inv e ntions h ad

,
chang e d th e conditions o f th e world To d ay it is n ot .
tru e We alth is b e ing m ore an d m ore dist ribut e d

.
am ong th e m any Th e am O
, un t O f th e combin e d
profit s o f labour and cap ital w hich go e s to labour was
n e ve r so gre at as to d ay th e amount going to capital ,
n e v e r s o sm all Whil e th e e arnings o f capi tal have

.
fall e n m ore than o n e hal f in many cas e s have b e e n

-
,
e ntir e ly ob li t e rat e d st atistics prove that th e e arnings

,
o f labo ur w e re n e v e r so h ig h as th e y w e re pr e vious to
th e r e c e nt unpr e c e d e nt e d d e pre ssion in busin e ss whil e ,
th e cost o f l i vin g — th e n e c e ssari e s o f life —

have falle n ,
in some case s n e arly o n e half Gre at Britain has -

.
an incom e tax and o ur count ry is to be subj e ct to

,
thi s im position f or a tim e Th e British re turns Show .
that during th e e l e v e n y e ars from 8 76 to 8 8 7 th e I 1
numb e r o f m e n re c e iving from $ 7 50 to p e r
y e ar in c re ase d more than

, p e r c e n t whil e th e
2 1 ,
n um b e r r e c e iv ing from to actually

d e cre ase d 2 I pe r c e nt
-
2 .
You m ay be sur e ge ntl e me n that th e qu e stion o f

, ,
th e distributi o n of w e alth i s se tt lin g its e l f rapidly

I 36 THE EMPIRE OF BUSINESS
unde r pre se nt conditions and se ttling itse lf in th e
,
right dire ction Th e f e w rich ar e ge tting poore r and

.
,
th e toiling mass s are g e tting rich e r

e N e ve rthe l e ss
.
,
a f e w e xc e ptional m e n may y e t make fortun e s but ,
th e s e will be m o e mod e rat e than in th e past This

~ r .
may not be quit e as fortunat e for th e masse s of th e

p e opl e as is now b e li e ve d b e caus e gre at acc um ula
,
tions of we alth in th e hands Of o e e nt e rprisin g m an

n
who still toils o n ar e some tim e s most productive o f

all th e forms o f w e alth Take th e rich e st man th e
.
w orld e v e r s aw ,
who die d in Ne w York som e y e ars ago .
What was found in his cas e $ That w ith th e e x c e p

,
tion O f a small p e rc e ntage use d for daily e xp e ns e s his ,
e ntir e fortun e and all its surplus e arnings w e r e i n
ve st e d in e nt e rprise s which d e v e lop e d th e railway

syst e m o f our country which give s to th e p e opl e th e
,
ch e ap e st transportation known Wh e th e r th e mil

.
li o
nn air e w ish e s it o r n o t h e cannot e vad e th e law w hich
,
und e r pre se nt conditions comp e ls him to u se his

,
millions for th e good of th e p e opl e All that h e ge ts.
during th e f e w y e ars o f his life is that h e may live in

a fin e r hous e surround himse lf w ith fin e r furniture
, ,
and works of art w hich may be add e d : h e could e ve n

h av e a grand e r library more of th e gods around hi m ;
,
but as far as I hav e known millionnaire s th e library

, ,
is th e l e ast us e d part of w hat h e would probably c on

sid e r furniture in all his mansion He can e at
$
.
rich e r food and drink rich e r wine s which only hurt ,

WEALTH A ND IT S USES 1 37
hi m .But truly th e mod e rn millionnaire is ge n e rally

a man o f v e ry simpl e tast e s and e v e n mis e rly habits .
He sp ends littl e upon him s e lf and is th e toilin g be e ,
layin g up th e hon e y in th e industrial hive which all ,
th e in m at e s of that hiv e th e community in g e n e ral

, ,
will c e rtainly e njoy H e re is th e tru e d e scription of

.
th e mi l lionnaire as giv e n by Mr Cart e r in his r e mark

,
.
abl e sp e e ch b e fore th e B e h rin g S e a tribun al at Paris

$
Thos e who ar e most succe ssful in th e acquisition
o f prop e rty and w h o acquir e it to such an e normous
e xt e nt ar e th e v e ry m e n who ar e abl e to control it to ,
inve st it and to handl e it in th e w ay most us e ful to

,
soci e ty It is b e caus e th e y have those qualiti e s that

.
th e y are able to e ngross it to so large an e xt e nt Th e y

’
re ally ow n in any just s e ns e of th e word only what

, ,
th e y consum e Th e re st is all h e ld for th e b e n e fit o f

.
th e public Th e y are th e custodians o f it Th e y

. .
inve st it ; th e y se e that it is put into this e mploym e nt ,
that e mploym e nt anoth e r e mpl oyme nt All labour i s

, .
e m ploy e d by it and e m ploy e d in th e b e st mann e r ,
and it i s thus mad e th e most productive Th e s e m e n .
w h o acquir e th e se h undre ds o f millions ar e re ally '
groaning und e r a s e rvitud e to th e re st of socie ty for ,
that is practically th e ir condition ; and soci e ty re ally

e ndur e s it b e caus e it is b e st for th e m that it should
be so .
H e re is anothe r e stimat e by a n o l e ss re markabl e

m an Your fri e nd Mr Dana justly said at Corn e ll :
.
, .
,
1
38 T HE EMP IRE OF BUSI NESS
That i s class of m e n that I re fe r to th e think
on e ,
e r s th e m e n o f sci e nc e
, th e inve ntors ; and th e o t h e r
,
class i s that of those whom God h as e ndowe d with a

ge nius for s aving for ge tting ri ch for bringin g w e alth
, ,
toge the r for accumulating and conc e ntrating mo ne y

, ,
m e n against whom it i s now fashionabl e to d e claim ,
an d against whom l e gislation is som e tim e s d i re ct e d .
And y e t is th e re any b e n e factor o f humanity who i s

t o be e nvi e d in his achi e v e m e nts and in th e m e mory ,
an d th e monum e nts h e has l e ft b e hind h im more than ,
Ez ra Corn e ll $ Or , to take anoth e r e xampl e that is

h e re b e fore o ur e ye s more than H e nry W Sage $
, .
The se are m e n w h o kn e w how to ge t rich b e caus e th e y ,
had b e e n e n dowe d with that faculty ; and wh e n th e y

got rich th e y kne w h ow to give it for gre at public
,
e nt e rpris e s for us e s that will r e mai n living immo rtal

, ,
as lon g as m an re m ains upon th e e arth T h e m e n o f .
ge nius and th e m e n of m on e y thos e who pre pare ,
n ew age nci e s o f life and those who acc umulat e and

,
save th e mon e y for gre at e nt e rpris e s and gre at pub li c

works th e s e are th e p e culiar and th e i n e stim abl e
,
l e ad e rs O f th e world as th e twe ntie th c e ntury is ope n

, ,
in g upon us
”
.
Th e b e e s of a hiv e d o n ot d e stroy th e hon e y making -
b e e s but th e dron e s It will be a gre at mist ake f or

, .
th e comm unity to shoot th e millionnaire s f or th e y ar e ,
th e b e e s t hat m ak e th e m os t hon e y an d contrib ut e ,
most to th e hive e ve n afte r the y have gorge d the m

WEALTH A ND IT S USE S 1 39
s e lve s full H e re is a re markable fact that th e m ass e s

.
,
o f th e p e opl e in any coun try ar e prosp e rous an d c om
f o rtabl e just in proportion as th e re ar e m i llionnaire s .
Take Russia with its population littl e b e tt e r than

,
s e rfs and livin g at th e point O f starvation upo n th e

,
m e an e st possible fare such fare as non e o f o ur p e ople

,
could o r would e at and you do not find o n e million naire

,
in Russia alw ays e xce pting th e Emp e ror and a f e w

,
nobl e s w h o o w n th e land o w in g to th e ir political sys

,
te m. It i s th e sam e to a gre at e xt e nt in G e rmany

,
.
.
The re are only tw o millionnaire s known to m e in th e

whole Ge rm an Empire In Franc e wh e re th e p e ople
.
,
ar e b e tt e r o ff than in G e rm an y y o u cannot coun t o n e

,
half doz e n millionnai re s in th e whole coun try In th e

- .
o l d hom e o f o ur rac e in Britain which is th e riche st

, ,
—
country in all Europ e th e rich e st coun try in th e
world sav e o n e o ur ow n —th e re ar e more millionnaire s
,
than in th e whol e of th e re st o f Europ e and its p e opl e ,
ar e b e tt e r o ff than in any oth e r Yo u co m e to o ur .
o w n land : w e hav e mor e millionn ai r e s than in all th e
re st o f th e w orld put toge th e r although w e have n ot

,
o n e to e v e ry te n that i s r e put e d S O I hav e s e e n a list .
o f suppos e d millionnair e s pr e par e d by a w e ll kno w n -
l awy e r o f Brooklyn which mad e m e laugh as it has

, ,
mad e many oth e rs I saw m e n rat e d th e re as m illion

.
n ai re s w h o could not pay th e i r d e bts Many should .
have had a ciph e r cut from th e ir Som e

time ago I sat n e xt Mr Evarts at dinn e r an d th e
.
,
conve rsation touch e d upon th e id e a that m e n should
distribut e the ir we alth during th e ir liv e s f o r th e public
good On e ge ntl e man said that was corre ct giving
.
,
many re asons o n e o f which w as that o f course th e y

, , ,
could not take it with th e m at d e ath .
$
We ll said Mr Evarts I do not kn ow about
, .
,
$
that My e xp e ri e nc e as a Ne w York lawye r i s that

.
,
some how or oth e r the y do succ e e d in taking at l e ast

,
four fi f th s o f it
-
The ir re put e d we alth was n e ve r
found at d e ath .
What e ve r th e id e al conditions may d e ve lop it ,
se e ms to m e Mr Cart e r and Mr Dana ar e right Und e r

. . .
o ur pr e s e nt conditions th e m i llionnair e w h o toils o n is
th e ch e ap e st articl which th e community s e c ur e s at

e
th e pric e it pays for him nam e ly his sh e lt e r clothing

, , , ,
and food .
T h e inve ntions o f to day l e ad to conc e ntrating i n

-
d u str ial and comm e rcial a ff airs into huge conc e rns .
You cannot Work th e B e ss e m e r proc e ss succ e ssfully

without e mploying thousands o f m e n upon o n e spot .
Yo u could n ot mak e th e armour for S hips without first

e xp e nding s e v e n millions o f dollars as th e B e thl e h e m ,
Company h as sp e nt Yo u cannot make a yard o f .
cotton goods in comp e tition with th e world without

having an imme ns e factory and thousands o f m e n and
wome n aiding in th e proc e ss T h e gre at e l e ctric e s .
tabl i sh m e n t h e re in your town succ e e ds b e caus e it
h as sp e nt millions and is pr e par e d to do its work upon

,
WEALTH AND ITS USES 1 41
a gre at scale Und e r such conditions it is im possibl e

.
but that w e alth will flow into th e hands o f a f e w m e n

In prosp e rous tim e s b e yond th e ir n e e ds But o ut of.
fifty gre at fortun e s which Mr Blain e had a list mad e

.
o f h e found only o n e man who was r e put e d to hav e
mad e a large fortun e in manufacturing The s e are .
mad e from re al e stat e more than from all othe r caus e s

combin e d ; n e xt follows transportation banki ng Th e , .
whole manufacturing world furnish e d but o n e mil

l io n n air e .
But assuming that surplus we alth flows into th e

hands o f a f e w m e n w hat is th e ir duty $ How is th e
,
struggle for dollars to be lift e d from th e sordid atmos

p h e re surrounding busin e ss and mad e a nobl e car e e r $
N ow we alth h as hith e rto b e e n distribut e d in thre e
,
ways : Th e first and chi e f o n e is by willing it at d e ath

to th e family No w b e yond b e qu e athing to thos e
'
.
,
d e p e nd e nt upon o n e th e re ve nue n e e dful for mod e st

and ind e p e nd e nt living is such a use o f we alth e ith e r
,
right or wis e $ I ask you to think ove r th e r e sult as

.
,
a rul e o f millions giv e n ov e r to young m e n and wom e n

, ,
th e sons and daught e r s o f th e millionnaire Yo u w ill .
find that as a rule it is n o t good for th e daught e rs ;

, ,
and this is s e e n in th e charact e r and conduct of th e

m e n who marry th e m As for th e sons yo u have
.
,
the ir condition as d e scrib e d in th e e xtract w hich I

re ad yo u from Th e S un Nothing is tru e r than this
.
,
that as a rul e th e almighty dollar b e que ath e d to

$ ”
S ons daught e rs by millions prove s an almighty
or
curse It i s n o t th e good o f th e child which th e mil

.
-r
l i on n aire par e nt consid e rs wh e n h e mak e s th e s e be
que sts i t is his ow n vanity ; it is not affe ction for th e

,
child it is s e lf—
, g l o ri fi c ati o n for th e p ar e nt which is at
th e root o f th i s injurious d isposition O f w e alth The re
.
is only o n e thing to be said for this mod e it furnish e s ,
o n e o f th e most e fficacious m e ans o f rapid distribution
o f w e alth e v e r known .
The re is a s e cond u se o f w e alth l e ss common than

,
th e first which is n o t s o injurious to th e community

, ,
but w hich should bring no cre dit to th e t e stator .
Mon e y is l e ft by millionnaire s to public institutions

whe n th e y must re lax th e ir grasp upon it The re i s .
no grac e and can be no bl e ssing in giving what c ann ot

, ,
be w ithh e ld It is no gift b e caus e it is n o t ch e e rfully

.
,
give n but only grant e d at th e st rn summ ons o f d e ath

,
e .
T h e miscarriag e o f th e s e b e qu e sts th e litigation co n

,
n e c te d w ith th e m and th e mann e r in which th e y ar e

,
fritt e re d aw ay s e e m to prov e t hat th e Fat e s do not

re gard th e m with a kindly e y e . W e ar e n e v e r without
a l e sson that th e only mod e o f producing lasting good
by giving large sums of m on e y is f or th e millionnaire to
give as clos e att e ntion to its distribution during his
life as h e did to its acquisition We have to day th e
.
-
not e d case o f fi e or S ix millions of dollars le ft by a

v
gre at lawy e r to found a public library in Ne w York ,
an institution n e e d e d so gre atly that th e failure of thi s

WEALTH AND ITS USES I 43
b e q ue st i s a misfortun e It i s y e ars sinc e h e die d ; th e

.
will i s pronounc e d invalid t hrough a fl aw although ,
th e re i s n o doubt of th e int e ntion of th e donor It i s .
sad comm e ntary upon th e folly of m e n holding th e

mil lions which th e y cannot use until th e y ar e unabl e
to put th e m t o th e e n d th e y d e si re P e t e r C oop e r
.
,
P ratt of Baltimore and Pratt o f B rooklyn and oth e rs

, ,
ar e th e typ e o f m e n w h o should be tak e n by y o u
as yo ur mod e l ; th e y distribut e d th e ir surplu s during
life
T h e t hi rd use an d th e only n ob l e use of su rplu s
,
we alth is this : That it be re gard e d as a sacre d t rust ,

$
to be admin ist e re d by its posse s sor into whose hand s ,
it flow s f or th e high e st good of th e p e opl e Man do e s

, .
n o t liv e by br e ad al on e an d fi v e or te n c e n t s a d ay
,
more re ve nu e s catt e re d ov e r th ou sand s w ould produ ce

littl e or n o good Accumul at e d in t o a gre at fun d an d
.
e xp e nd e d as Mr Co op e r e x p e n d e d it for th e Coop e r
.
Institut e it e stablishe s so m e thin g that will la st f or ge n

,
e r ati on s . It will e ducat e th e brain th e spiritual p art

,
of man It furnishe s a ladd e r upon which th e asp r

. i ~
i n g poor may climb ; and th e re is n o u se what e v e r ,
ge ntl e m e n trying to h e lp p e opl e who do n ot h e lp

,
th e mse lve s You cannot push any on e up a ladd e r

.
unl e ss h e be willing to climb a littl e hims e lf Wh e n .
you stop boosting h e falls to his injury The re fore

, , .
,
I h ave oft en said and I n ow re p e at that th e day is

, ,
c oming ,
and alre ady w e se e its dawn in which th e ,
man who die s posse sse d of millions Of available we alth
which w as fre e and in his hands re ady to be di strib
u te d will d i e disgrac e d Of course I do not m e an
.
that th e man in busin e ss may not be stricke n dow n

with his capital in th e busin e s s which cannot be w ith ,
draw n for capital i s th e tool with which h e works his

,
wond e rs and produc e s more w e alth I re fe r to th e .
man who die s posse sse d of millions o f s e curitie s which

ar e h e ld simply for th e int e re st th e y produc e that h e ,
may add to his hoard O f mise rabl e dollars By ad .
minist e ring surplus we alth during life gre at we alth

may b e com e a bl e ssing to th e community and th e ,
occupation Of th e busin e ss man accumulating w e alth

may be e l e vat e d so as to rank with any profe ssion .
In this way h e m ay take rank e ve n with th e physician ,
o n e o f th e high e st o f o ur prof e ssions b e caus e h e too , ,
in a se nse will be a physician looking aft e r and trying

, ,
not to cure but to pre ve nt th e ills o f humanity To

, , .
those o f yo u w h o are comp e lle d or w h o d e sire to follow

a busin e ss life and to accumulat e we alth I comm e nd ,
this id e a T h e e pitaph which e ve ry rich man should

.
wish himse lf justly e ntitl e d to is that se e n upon th e

monum e nt to Pitt :
He l iv d it ut t t ti
e w ho os e n a on ,
An d h id p
e d e oor.
Such is th e man whom th e future is to honour while ,
h e who d i e s in ol d age re t i re d from busin e ss po ss e sse d ,

WEALTH AND IT S USES 1 45
of milli ons o f availabl e w e alth is to di e un w e pt un , ,
honoure d and unsung

,
.
I may justly divid e young m e n into four class e s :

First thos e who must w ork for a living and se t
, ,
b e fore th e m as th e ir aim th e acquisition of a mod e st

—
comp e t e nc e Of course w ith a mod e st but picture squ
, e
cottage in th e country and on e as a companion who $
make th sunshin e in a shady plac e and is th e good ”
ange l of his life T h e motto o f this class No might

.
, . I ,
be giv e n as Give m e n e ith e r pove rty nor rich e s

$
.
From th e anxi e tie s o f pove rty as from th e r e sponsi

bi l i ti e s o f w e alth good Lord d e liv e r us
”
, , .
Class No . 2comprising thos e among yo u who are

,
d e t e rmin e d to acquire w e alth whose aim in life is to ,
b e long to that much talke d o f and grandly abus e d

- -
class th e millionaire s those who start to labour f or

, ,
th e gr e at e st good o f th e gre at e st n umb e r but th e ,
gre at e st numb e r al ays numb e r o n e th e motto o f

w ,
this class b e ing short and to th e point : Put mon e y

in thy purse .
”
No w th e third class com e s along

,
T h e god th e y .
w orship is n e ith e r w e alth n o r happin e ss Th e y a e . r
inflam e d w ith nobl e ambition ; th e d e sire o f fam e is

$
th e controlling e l e m e nt o f th e ir liv e s Now whil e this .

,
is not so ignobl e as th e d e sire f o r mat e rial w e alth it ,
must be said that it b e tray s more vanity T h e shrin e .
of fam e has many worshipp e rs T h e e l e m e nt of .
vanity is s e e n in its fi e rc e st phase among those w h o

com e b e fore th e public It is w e ll know n for instanc e .
, ,
that musicians actors and e v e n paint e rs all th e

,
— ,
—
artistic class are p e culiarly pron e to e xc e ssive pe r
e
sonal vanity This has Oft e n b e e n wond e re d at ; but

.
th e r e ason probably is that th e musician and th e actor ,
and e ve n th e paint e r may be transc e nd e nt in his ,
sp e cial lin e w ithout b e ing e ve n highly e ducat e d with ,
o ut having an all around brain Some p e culiaritie s

-
.
,
som e o n e e l e m e nt in his charac t e r may give him ,
promin e nc e or fam e so that his lov e of art o r o f u se ,
through art is e ntire ly drown e d by a narrow se lfish

, , ,
p e rsonal vanity But w e fi n d this liability in a l e sse r

.
d e gre e all through th e profe ssions th e politician th e , ,
lawye r and w ith re ve re nc e be it Spoke n som e ti m e s

, , ,
th e m inist e r ; l e ss I think in th e physician than in any

, ,
o f th e profe s sions probably b e caus e h e more than in

, ,
any othe r profe ssion is calle d t o d e al w ith th e sad ,
re aliti e s o f life fac e to fac e He of all m e n s e e s th e .
vanity o f vaniti e s An illustration o f this class is we ll

.
drawn in Hotspur s addre ss : ’
vBy h eat i k it y p ens , me h n s w e r e an e as lea

p uc k b ig t u f p fc
,
To l r h h on o r rom th e al e - a e d m oon ;
Or iv i t
d b tt
e n p o th e o om of th e de e
f t i u d v t uc g u
,
W h e re a h om -l ne Co l ne er o h th e ro n d,
An d p uc k up l u by ck d r ow ne d h on o r th e lo s ;
80 t t t d
h ha t c ig tdo h re eem h er h en e m h w e ar
W it ut c iv ig iti
e
h o o rr al al l h er d n es .
Mark young ge ntle m e n h e care s not for u se ; h e

, ,
care s not for stat e ; h e care s only for himse lf and as a , ,
vain p e acock struts across th e stage

, .
WEA LTH AND ITS USE S I47
No w ge ntle m e n it d oe s not s e e m to m e tha t th e

, ,
love o f w e alth is th e co ntrolling d e sire of so many as

th e lov e o f fa m e ; and this is matt e r for S inc e re c o n e
gratulation and prov e s that un d e r th e irre sistibl e laws

,
o f e volut i on th e rac e is S lowl y m oving onward and u p
w ard ,
Take th e whol e range of th e a rtistic world ,
which give s swe e tn e ss and light to life which re fin e s ,
an d adorns and sure ly th e gre at co mpose r paint e r

, , ,
pianist law y e r judge stat e sman all those in public

, , , ,
life care l e ss f o r millions thanfor profe ssional re puta

,
tion in t h e ir re spe ctive fi e lds of labour What care d .
Washington F ran klin Lincoln o r Grant and She rman

, , ,
for we alth $ Nothing $ What c are d Harrison o r

C l e ve land two poor m e n not unworthy succ e ssors $
, ,
What care th e Judge s of our Supr e m e Court or e ve n '
th e l e ading couns e l that pl e ad b e fore th e m $ T h e ‘
gre at pre ach e rs physicians gre at t e ach e rs are n ot c on

, , ,
c e rn e d about th e acquisition o f we alth T h e tre asure .
th e y se e k is in th e re putation acquire d through th e ir

s e rvic e to ot he rs and thi s i s c e rtainly a gre at st e p
,
fro m th e millionnaire class who struggl e to o l d age and , ,
through Old age to th e ve rge o f th e grave with no ,
am bition appare ntly e xc e pt to add to th e ir pil e o f

, ,
mise rabl e dollars .
But th e re is a fourth cla ss high e r than all th e pre ,
c e ding w h o worshi p n e ith e r at th e shrine o f we alth

,
n
eg / m
fa e b ut ,
at th e nobl e st o f all shrin e s th e h
S rin e ,
of s ervi ce — se rvic e to th e ra ce S e lf abn e gation i s its .

-
watchword M e mb e rs o f this inn e r and high e r circl e
.
se e k not popular applause ar e conc e rn e d not with ,
b e ing popular but with b e ing right Th e y say with

, .
Confucius : It conc e rn e th m e n o t that I have not

$
high offic e ; what conc e rns m e is to make mys e lf worthy

o f o ffic e It is not cast down by pove rty n e ith e r
”
.
,
unduly e lat e d by prosp e rity T h e man b e longing to .
this class simply s e e ks to do his duty day by day in

such mann e r as may e nable him to honour himse lf ,
fe aring nothing but his ow n s e lf re proach I have -

.
known m e n and wom e n n ot promin e ntly b e fore th e

public for this class courts n ot promine nc e but who
, ,
in th e ir live s prove d th e mse lve s to have re ach e d this

id e al stage Now I will giv e you for this class th e
.
,
fitting illustration from th e words of a Scotch po e t

who die d altoge th e r too young :
I w il l o f t h
’
m on g m en n ot m a i l e d in c
s orn ,
u pu i t t
or
g ,
B u t i n th e arm o r of a re n en
G t uti bf g t g
.
re a d e s ar e e o re m e an d re a s on s;
t c c
,
An d d
w h e h er I f ll ro w n e or ro w n l e ss w h en a
I t tt
,
m a G k e r s n o t, s o as
’
od s w or i s do n e
pi qui t ig t i g d d
.
th l h
’
I ve l e arn e d to r ze e e n n ee
pp u i g t u
,
N ot th ah la d n h n d e r at i ts e els
W ic c f
e
h h m en al l am e .
The n ge ntl e m e n standin g upon th e thre shold o f

, ,
life yo u hav e th e good b e tt e r b e st pre s e nt e d to you

, , ,
th e thre e stage s O f d e v e lop m e nt th e natural spiritual , , ,
and c e l e stial th e y may fi tl y be call e d On e has suc

, .
—
c e ss in m at e rial things for its aim no t without b e n e fit
WEALTH A ND IT S USES 1 49
this f or th e rac e as a whol e b e caus e it lifts th e indi

,
vidual from th e animal and d e mands th e e xe rcise o f

'
many valuabl e qualiti e s : sobri e ty industry and s e lf , ,
disciplin e Th e se cond ris e s still high e r : th e re ward

.
—
sought for b e ing things more of th e spirit n ot gross and
mat e rial but in visibl e ; and not o f th e fl e sh but of th e
, ,
brain th e spiritual part of man and this brings into play

,
innum e rable virtue s which make good and use ful m e n .
T h e third o r c e l e stial class stands upon an e ntire ly
diff e re nt footing from th e o th e rs in this that s e lfish ,
consid e rations are subordinat e d in th e se l e ct broth e r

hood o f th e b e st th e s e rvic e to be don e f o r othe rs b e ing
,
th e first consid e ration T h e re ward of e ith e r w e alth o r

.
fam e is unsought for th e s e have l e arn e d and kn ow full

,
we ll that virtue is its o w n and th e only e xc e e ding gre at

r e ward ; and this onc e e njoye d all oth e r re wards are
,
n o t worth s e e king And so we alth and e ve n fam e

.
ar e d e thron e d ; and th e r e stands e nthron e d th e high e st
—
standard of all your o w n approval flowing from a
faithful discharge of duty as you se e it fe aring n o ,
conse que nc e s s e e king no re ward

, .
It do e s not matt e r much what branch O f e ff ort your

tast e s o r judgm e nt draw you to th e o n e gre at point ,
is that yo u should be drawn to som e o n e branch .
Th e n p e rform your whol e duty in it and a littl e more

th e
$
littl e more b e ing vastly important W e have
”
.
th e words o f a gre at po e t for it that th e man who do e s

,
th e b e s t h e can c an wh i l e s do m ore
,
M aintain your .
se lf re sp e ct as th e most p re cious j e we l o f all and th e
-
only true way to win th e re sp e ct o f oth ers an d th e n

,
re m e mb e r what Em e rso n say s f o r what h e says h e re

,
is tru e : No youn g m an can be che at e d out of an

honourabl e care e r in life unl e s s h e ch e at him se lf
.
”
T h e Bu g aboo o f T ru sts
Wh at is uta Tr s $ Co mbi ti na on s th e o r de r o f th e d ay
T u t t ti c p ducti uc p ic
.
r s s ha n r e as e ro on an d r e d e r es .
T HE B U G A BO O O F T R U ST S
E must all have o ur toys ; th e child his rattl e ,
th e adult h i s hobby th e man o f pl e asure th e ,
fashion th e man of art his Mast e r ; and mankind

,
in its various divisions re quire s a change o f toys at

short int e rvals T h e sam e rul e holds good in th e
.
busin e ss world W e have had o ur age of consolida

.
tions and wat e re d stocks

”
Not long ago e ve ry
.
thing was a syndicat e ; th e w ord is alre ady be c om

”
ing Obsol e t e and th e fashion is for Tru stS which

i
’
”
,
w ill in turn no doubt giv e plac e to som e n e w panac e a ,
that is in turn to be displac e d by anoth e r and so on ,
w ithout e n d T h e gre at la w s of th e e conomic world

.
,
like all laws aff e cting soci e ty b e ing th e ge nuin e o ut ,
growth Of human nature alon e re main unchange d ,
through all th e se change s Wh e n e ve r consolidations

.
o r wat e r e d stocks or syndicat e s o r Trusts e nd e avor

, ,
to C i rcumv e nt th e s e it always has b e e n found that

,
afte r th e collision th e re is nothing l e ft o f th e panac e as ,
w hil e th e gr e at laws continu e to grind ou t th e i r irr e
si stibl e cons e qu e nc e s as b e for e .
It is worth whil e to inquire into th e app e aranc e

and growth of Trusts and l e arn w hat e nvironm e nts
produc e th e m The ir ge n e sis is as follows : a d e mand
.
F m T h N th A m i
ro e or R i F bru y 88 9
e r c an ev e w ,
e ar ,
1
I 53
e xists for a c e rtain articl e b e yond th e capacity o f
,
e xisting w ork s t o suppl it Pric e s ar e high and

y . ,
profits t e mpting Eve ry manufacture r of that article

.
imme diat e ly proc e e ds to e nlarge his w orks and in

cre as e th e ir producing pow e r In addition to this .
th e unusual profits attract th e att e ntion of his princi
pal m anage rs o r those who ar e int e re st e d to a gre at e r

o r l e ss d e gre e in th e factory The se com mun icat e .
th e kno w l e dge o f th e prosp e rity o f th e works to oth e rs .
Ne w partn e rships ar e form e d and n e w works ar e ,
e r e ct e d and b e fore long th e d e mand for th e articl e

,
is ful ly satisfi e d and pric e s do n o t advanc e In a

, .
short tim e th e supply b e com e s gre at e r than th e d e

mand th e re are a f e w tons or yards more in th e marke t
,
for sal e than re quire d and pric e s b e gin to fall The y

, .
continue falling until th e article is sold at cost to th e

l e ss favourably situat e d or l ess ably manage d factory ;
and e ve n until th e b e st manage d and b e st e quipp e d
factory is not abl e to produc e th e article at th e pric e s
at which it can be sold Political e conomy says th at
.
h e re th e troubl e will e n d Goods will n o t be pro

.
d u c e d at l e ss than cost This was tru e wh e n Adam

.
Smith wrot e but it is n o t quit e tru e to day Whe n

,
-
.
an articl e was produc e d by a small manufacture r ,
e mploying probably at his ow n hom e two o r thre e

, ,
j ourn e ym e n and an appre ntic e o r tw o it w as an e asy ,
matt e r for him to limit or e ve n to stop production .
As manufacturing is carrie d o n to day in e normous -

,
T HE BUGABOO OF TRUSTS 1 55
e stablishme nts with fi v e o r te n millions o f dollars o f

capital inv e st e d and with thousan ds o f worke rs it
, ,
costs th e manufacture r much l e ss to run at a loss pe r

ton or pe r yard than to ch e ck his production Stop .
p age would be s e rious ind e e d T h e condition o f ch e ap .
manufacture is run ning full Tw e nty sourc e s o f e . x
p e nse ar e fi e d ch arg s many O f which stoppage would

x e ,
only incre ase Th e re fore th e articl e is produc e d f o r

.
months and in s om e cas s that I have known for

,
e
ye ars not only without pro fit o r w ithout int e re st

,
upon capita l but to th e impairm e nt of th e capital

,
inv e st e d Manufacture rs have balanc e d the ir books

.
y e ar aft e r ye ar only to find the ir capital re duc e d at

e ach succ e ss iv e balanc e While continuing to pro .
duc e may be costly th e manufacture r knows too we ll

,
that stoppage would be ruin Hi s broth e r manu .
f ac tur e r s ar e of cours e in th e sam e S ituation The y .
s e e th e savings of many y e ars as w e ll p e rhaps a s th e ,
capital th e y hav succ e e d e d in borrowing be coming

e ,
l e ss and l e ss w ith no hop e of a change in th e Situation

, .
It is in soil thus pre pare d that anything promising

re lie f is gla dly we lc o m e d T h e manufacture rs ar e .
in th e position of pati e nts that hav e trie d in vain

e v e ry doctor o f th e r e gular school for y e ars and ar e ,
n ow liable to b e com e th e victims of any quack that

app e ars Combinations syndicat e s Trusts th e y
.
are willing to try anything A m e e ting is call e d and

.
,
in th e pre s e nc e of imme diat e dange r th e y d e cid e to

take unit e d action and form a Trust Each factory -
.
is rat e d as worth a c e rtain amount O ffic e rs are .
chose n and through th e s e th e e ntire product o f th e

,
articl e in qu e stion is to be distribut e d to th e public ,
at re mun e rative pric e s .
Such is th e ge n e sis o f Trust s in manufacture d

articl e s In transportation th e situation while prao
.
,
tically th e sam e diff e rs in som e particul ars Many

, .
small railw ays lin e s ar e built und e r s e parat e chart e rs .
A ge nius in affairs s e e s that th e e ight o r te n s e parat e

organizations with as many diffe re nt id e as of man
,
age m e n t e quipm e nt
,
e tc ar e as us e l e ss as w e r e th e
, .
,
two hun dre d and fifty p e tty kings in Ge rm any and , ,
Bismarck like h e swe e ps th e m out of e xist e nc e cre at e s

-
, ,
a gre at through lin e doubl e s th e s e curiti e s or stock

, ,
th e int e rest upon which is paid o u t of th e saving e f
f e c te d by consolidation and all is highly satisfactory

, ,
as in th e cas e o f th e Ne w York C e ntral Or a lin e is .
built and manage d with such sagacity as distin guish e s

th e P e nnsylvania Railroad and it succ e e ds in d e v e l ,
oping th e r e sourc e s o f th e Stat e so e xt e nsive ly that

upon a lin e o f thre e hundre d and fifty mil e s b e twe e n
Pittsburg an d Philad e lphia it n e ts about thirt e e n
millions o f dollars pe r annum Twe lve millions o f .
dollars o f this it shows upon its books From o n e to .
two millions e xtra ar e e xp e nd e d in making o n e o f th e

b e st lin e s in th e world out o f a road which was origin
ally d e sign e d as a hors e railroad We do n o t call o ur
-
.
THE BUGABOO OF TRUSTS 1 57
railroad combinations Trusts but th e y are substan ,
ti al l y such sinc e th e y aim at raising and maint aining

,
transportation rat e s in c e rtain districts Th e y are .
$
combinations or syst e ms which aim at monopo
” ”
li e s within th e s e districts .
During th e re c e nt Pre sid e ntial campaign it suit e d

th e purpos e o f o n e o f th e parti e s to conn e ct Trusts
with th e doctrin e of prot e ction But Trusts are con .
fin e d to n o country and ar e o t in any w ay d e p e nd e nt

,
n
upon fiscal re gulations T h e gre ate st Trust o f all

.
just n o w is th e Copp e r Trust which is Fre nch and , ,
has its h e adquart e rs in Paris T h e Salt Trust is .
English w ith its h e adquart e rs in London T h e Wire

, .
r o d Trust is G e rman T h e only St e e l rail Trust that

.
-
e v e r e xist e d w as an int e rnational o n e which e mbrac e d
all th e works in Europ e Trusts e ith e r in transporta

.
,
tion or manufacture s ar e th e products of human

,
we akn e ss and this we akn e ss is c o e xt e nsive with th e

,
-
rac e.
Th e re is o n e huge combination class e d with Trusts

w hich is s o e xc e ptional in its origin and history that it
d e se rve s a s e parat e par agraph I r fe r to th e Standard

. e
Oil Company So favourable an opportunity to con

.
trol a product p e rhaps n e ve r arose as in th e case o f

pe trol e um At an e arly stage a f e w of th e abl e st
.
busin e ss m e n that th e world has e ve r s e e n re aliz e d

th e imp o rtanc e o f th e discov e ry and inv e st d larg e ly ,
e
in th e purchase o f prop e rty conn e ct e d with it Th e .

THE EM P IRE OF BUSINESS
'
1 5 8
succ e ss of th e p e trole um busine ss w as phe nom e nal ,
and so was th e succ e ss o f th e s e p e opl e T h e profits .
th e y mad e and n o doubt as much capital as th e y

, , ,
could borrow we re fe arl e ssly re inve st e d and th e y soon

'
,
‘
b e cam e th e principal own e rs and finally substa ntially , ,
th e only own e rs o f th e t e rritory which contain e d this
gre at source o f we alth Th e Standard Oil C ompany

.
would long ago have gon e to pie c e s had it n ot b e e n '
manage d upon th e whol e in harm ony with th e laws

, ,
w hich contro l busin e ss It i s g e n e rally admitt e d that

.
th e pric e s o f o il to th e consum e r ar e as l o w to day -

,
and many think that the y are e ve n low e r than c ould ,
have b e e n attain e d had th e busin e ss n o t b e e n groupe d

and manage d as o n e vast co nc e rn in th e broad spirit
for which th e Standard Oil manage rs ar e famous .
Th e y are in th e po sition s om e what o f th e C ol e mans ,
o f P e nnsylvania who pos se ss th e chie f sourc e O f th e

,
’
o re supply in th e East The y o w n th e Co rnwall de

’
posit o f o re as th e Standard Oil Company owns th e

source of th e o il d e posit But as th e co m pan y has
.
continually to d e al wi th th e finding o f oil in oth e r

localiti e s th e pric e o f its e xist e nc e an d succ e ss is th e
,
continuanc e of that e xce ptiona l ability in i ts coun cils

and manage me nt displaye d by its found e rs Thre at .
e n e d oppos ition aris e s e v e ry n o w an d th e n and th e ,
chanc e s are gre atly in favor o f th e Stand ard Oil Co m $
pany losin g its practical mon o poly an d going th e w ay ,
of all huge co mbinations It i s a hun dre d to o n e .

-
THE BUGABOO OF TRUSTS I 59
wh e th e r it will surviv e wh e n th e pre se nt m e n at th e

h e ad re tire ; o r p e rhaps I Should say wh e n th e pre s e nt ,
m an re tire s for wond e rful organizations imply a ge nius

,
at th e h e ad a command e r i n —
,
chi e f w ith e xc e ptionally
-
,
able corps command e rs no doubt but still a Grant at ,
th e h e ad . To those who quot e th e Standard Oil

Company as an e vid e nc e that Trusts or combinati o ns
can be p e rman e ntly succ e ssful I say w ait and se e
-
, , .
I have spoke n thus fre e ly o f that company b e caus e I ,
am ignorant o f i ts manag e m e nt profits and mod e s o f , ,
action I vie w it from th e outsid e as a stud e nt of

.
,
political e conomy only and as such have e nd e avoure d

,
t o apply to it th e principl e s which I know w i ll ha v e

th e ir way n o matt e r how formidable th e att e mpt
,
mad e to d e fe at th e ir ope rations .
W e hav e giv e n th e ge n e sis of Trusts and co mbina

tions in th e ir s e ve ral form s Th e qu e stion is DO th e y
.
,
m e nace th e p e rman e nt int e re st of th e nation $ Ar e

th e y a sourc e of s e rious dange r $ Or are the y to prove ,
as many oth e r Similar fo rms have prove d m e re pa ssing ,
phase s o f unre st and transition $ To answ e r thi s

qu e stion l e t us follow th e op e ration o f th e m anuf ac -
e
turing Trust which w e have in im agination cre at e d ,
salt or sugar nails b e ans or l e ad o r copp e r ; it is all

, , ,
th e sam e . T h e sugar r e fin e rs l e t us say hav e fo rm e d

, ,
a Trust aft e r comp e ting o n e with anoth e r through

y e ars of disastrous busin e ss and all th e sugar manu
,
fac ture d i n th e country in e xistin g factori e s is sold

through o n e chann e l at advanc e d p ric e s Profits be .
gin to grow Divid e nds a e paid a d thos e who be

. r ,
n
fore saw th e ir prop e rty vanishing b e fore th e ir e y e s

ar e n o w mad e happy T h e divid e nds from that part
.
of a man s capital inv e st e d in th e sugar busin e ss yie ld

’
him profit far abov e th e capital h e has inv e st e d in

various othe r affairs T h e pric e s o f sugar are such
.
that th e capital inve st e d in a n e w factory w ould yie ld

e normously He is p e rhaps bound n o t to e nlarge his
.
factory or to e nt e r into a n e w factory but his re lativ e s ,
and acquaintanc e s soon discov e r th e fre sh o ppo rtu

n ity for gain He can advis e th e m to push th e c o m
.
p l e ti o n of a small factory which o f cours e must,b e , ,
take n into th e Trust Or e ve n if h e do e s not giv e

.
,
his frie nds this intimation capital is always upon th e ,
al e rt e sp e cially w h e n it is bruit e d about that a Trust

,
h as b e e n form e d as in th e cas e of sugar and imm e

, ,
d i ate l y n e w sugar manufactori e s spring up as if by ,
magic Th e m ore succ e ssful th e Trust th e sure r

.
,
th e se Off — shoots ar e to sprout Ev e ry victory is a .
d e fe at Eve ry factory that th e Trust buys is th e

.
sure cre ator o f anoth e r and so on ad i n fin i tum until

, ,
th e bubbl e bursts T h e sugar r e fin e rs have tri e d to

.
g e t mor e from capital in a sp e cial cas e than capital

yi e lds in ge n e ral The y hav e e nd e avoure d to raise a
.
part o f th e oc e an o f capital abov e th e l e ve l o f th e sur

rounding w at e rs and ove r th e ir bulwarks th e floods
,
hav e burst and capital like wat e r has a gain found

, , ,
THE BUGABOO OF TRUSTS 1 61
its le ve l It i s tru e that to re gain thi s le v e l a longe r

.
o r a short e r p e riod may be r e quir e d during which th e

,
article affe ct e d may be sold to th e consume r in limit e d

q uantiti e s at a high e r rat e than b e for e e xist e d But .
f o r this th e consum e r is amply re comp e ns e d in th e
y e ars that follow during which th e struggl e b e twe e n

,
th e dis cordant and comp e titiv e factori e s b e com e s
s e ve re r than it e ve r was b e fore and lasts till th e gre at

,
law o f th e surv ival o f th e fitt e st vindicat e s itse lf .
Thos e factori e s and manage rs that can produce to th e

b e st advantage e ve ntually close th e l e ss comp e t e nt .
Capital wise ly manage d yie lds its l e gitimat e profit .
Aft e r a time th e growth of d e mand e nabl e s capital to

re c e ive an unusual profit This in turn attracts fre sh
.
capital to th e manufacture and w e have a re n e wal of

,
th e o l d struggl e th e consum e r r e aping th e b e n e fit

, .
Such is th e law such has b e e n th e law and such

, ,
promise s to be th e law for th e future ; for so far n o , ,
d e vic e has y e t b e e n de vis e d that has p e rman e ntly

thwart e d its op e ration Give n fre e dom Of comp e ti
.
tion and all combinations o r trusts that att e mpt to

,
e xact from th e consu m e r mor e than a l e gitimat e r e
turn upon capital and se rvic e s writ e th e chart e r o f

,
th e ir ow n de fe at We hav e many proofs that this

.
gre at law do e s not sl e e p and that it will n o t be sup

,
pre sse d Som e time ago as I have stat e d th e st e e l

. , ,
r ail manufactur e rs o f Europ e form e d a trust and ad
v a ce d th e
n pric e of rails to such an e xt e nt that Am e ri
1 62 THE EMP IRE OF BUSINESS
can manufacture rs we re able for th e first and pe r ,
haps for th e last tim e to e xport st e e l rails to Can ada

,
in c o mp e tition w ith th e Europ e an But th e mis .
und e rstandings and quarre ls ins e parabl e from th e s e

,
att e mpt e d unions o f comp e titors soon broke th e ,
Trust With vindictive f e lings add e d to w hat w as

. e ,
b e fore busin e ss rivalry th e struggle w as re n e we d

, ,
and th e st e e l rail industry o f Europ e has n e ve r r e

cove re d It was found that th e advanc e in pric e s had
.
only galvaniz e d into life conc e rns which n e ve r Should

have att e mpt e d to manufacture rails ; and so that
Trust die d a natural d e ath .
During th e gre at d e pre ssion which e xist e d for se v

e ral y e ars in this country in th e st e e l rail trad e many
anxious m e e tings we re h e ld under circumstanc e s

d e sc rib e d in th e ge n e sis o f Trusts and it w as re solve d
,
that th e plan o f re stricting production should be tri e d .
Fortunat e ly re action soon cam e A d e mand for rails

.
se t in b e for e th e plan w e nt into op e ration and as a , ,
matt e r of fact no re striction of product was e ve r

,
att e mpt e d and th e st e e l rail industry was thus save d

,
from a gre at e rror .
W e have r e c e ntly s e e n th e l e ad industry o f this

country shatt e re d and its chie f own e rs bankrupt e d .
T h e n e wspap e rs a f e w w e e ks ago w e re fill e d with ac

counts Of th e c onv e ntion of th e growe rs o f cattl e in
St Louis re solve d to bre ak down th e combination o f
.
,
slau ght e re rs and shipp e rs in Chicago and Kansas

THE BUGABO O OF TRUSTS I 63
City No busin e ss was poore r in this country f or

.
m any ye ars than th e manufacture of nails It was .
ove rdon e T o re m e dy this th e manufacture rs did not

.
form a Trust so far as th e sal e o f p roduct was c o n

c e rn e d but the y re strict e d production A c e rtain
, .
p e rc e ntage o f th e ir machin e s was ke pt idle This .
pe rc e ntage was incre ase d from tim e to tim e and only ,
th e quantity mad e that th e mark e t would tak e at a
c e rtain pric e But th e re sult was that th e re we re

.
soon more machin e s in Am e rica for th e manufacture

o f iron nails add e d to th e works than th e d e mand for
n ails will r e quir e for many y e ars to com e and this ,
combination of nail manufacture rs w e nt th e way of

all Trusts and l e ft th e busi n e ss in a worse plight than
,
it was b e fore .
Th e Sugar Trust has alre ady a not e d com p e titor
at its h e e ls Th e Copp e r Trust is in dange r

. All .
stand pre pare d to attack a Trust o r combin e

$ ” $
if it prove s its e lf worth attacking ; in oth e r words ,
if it succ e e ds in raising its profits above th e natural

l e ve l of profits throughout th e country it is subj e ct
to comp e tition from e v e r y quart e r and must finally
,
bre ak dow n It is unn e c e ssary to d e vot e much at

.
te ntion to th e nume rous Trusts in minor articl e s

which o n e re ads o f a n e w o n e app e aring e v e ry f e w
,
days and oth e rs passing o ut o f e xist e nc e b e caus e th e y

,
ar e all subj e ct to th e gr e at law . T h e n e wspap e rs
charge that Trusts e xist or have e xist e d in wall pap e r ,

sho e lac e s lumb e r coal coke brick scre ws rop e
, , , , , , ,
glass school books insuranc e an d hardware and

,
-
, ,
tw e nty more articl e s ; but th e fitting e pitaph for th e se

e ph e m e ral cre ations is
If I w as so soon to b e don e fo r ,
Iw on de r w h tI
a w as b gue n
”
for $
We may e xclaim with Macb e th as watch e d th e ,

he
shadowy de sc e ndants o f Banquo filing past What , ,
will th e lin e stre tch o ut to th e crack of doom $ But ”
as with Banquo s proc e ssion so with Trusts it is

’
, ,
comforting to re me mb e r that as on e approache s an

othe r disapp e ars Th e y com e like Shado w s and so
.
,
d e part .
SO much for Trusts in th e manufacturing d e part

me nt Le t us now e xamin e th e railways whose
. ,
$
pools and combinations and diffe re ntials ” $ ”
alarm som e p e ople In all th e ir various forms th e se

.
,
ar e th e e ff orts of capital to prot e ct its e lf from th e play
of e conomic for c es c e ntre d in fre e comp e tition In

, .
most case s th e stocks of railways have b e e n wat e re d .
Calculat e d upon th e re al capital inv e st e d th e divi

d e n d s o f railw ay lin e s hav e b e e n unusual and much ,
above th e re turn which capital ge n e rally has yi e ld e d

in oth e r forms o f inv e stm e nt T h e e ntire capital .
stock o f railw ays in th e We st as a rul e has cost littl e

o r nothin g th e proc e e ds o f th e bonds issu e d h aving
,
b e e n suffi cie n t to build th e m T h e e ff orts o f railw ay .
manage rs to d ay are the re fore dire ct e d to Obtain a

re turn upon more capital than would be re quire d to

duplicat e the ir re sp e ctive prop e rti e s Th e ir combi .
nations and agre e m e nts of var ious kinds which com e ,
to naught a f e w months aft e r th e y ar e sol e mnly e n
te r e d into ar e e vid e nc e s o f this att e mpt

, But just .
,
as e normous profits on capital re c e ive d from th e ,
manuf acture o f any articl e are sure to attract addi ,
ti o n al capital into th e production o f th e articl e so , ,
in like mann e r th e unusual succ e ss of th e s e railroads

,
attracts n e w capital into th e r t e rritory Ne w York i .
C e ntral paying divid e nds upon its e ighty pe r c e nt .
stock divid e nd culminat e s in th e We st Shore T h e .
P e nnsylvania Railroad e arning as I have said som e

, , ,
thing like thirt e e n millions pe r annum upon its lin e

in P e nnsylvania has its South P e nnsylvania On e
,
.
l in e b e twe e n Chicago and Milwauke e b e ing gre atly

profitable fortunat e ly brought into e xist e nc e a parall e l
,
road Th e tw o b e ing unusually profitabl e fortunat e ly

.
,
re sult e d in a third Th e re was o n e lin e b e tw e e n th e s e

.
points and n ow th e re are six ; and should th e six

,
combin e to morrow and e xact from th e public o n e

-
p e r c e nt mor. e r e turn upon capital than th e av e rag e
re turn th e re would soon be s e ve n and v e ry prop

, ,
e rly so .
This prove s onc e more that th e re is no possibility

o f e vading th e gr e at law provid e d capital is fr e e to e m
,
bark in comp e ting lin e s In Gre at Britai n and .
throughout Europ e ge n e rally a diff e re nt polic y h as

,
be e n pursu e d in re gard to railways from that of th e

fre e to all policy which w e hav e followe d T h e rail
- -
.
ways and oth e r transport atio n rout e s of Gre at Britain ,
in ord e r to ge t p e rmission to build have cost n e arly ,
as much pe r mile as our che ap e st W e st e rn lin e s have

cost to build M anche st e r for instanc e has re c e ntly
.
, ,
d e cide d to construct a canal thirty mile s long to , ,
Live rpool and th e e xp e nse incurre d in obtaining

,
p e rmission from Parl iam e nt to e mbark capital in this

e nt e rpris e h as cost n e arly ha l f a m illion o f dollars up
to this dat e Th e Gove rnm e nt through a commit

.
,
te e o f Parlia m e nt d e t e rmin e s wh e th e r a propose d

,
lin e is actually n e e d e d and to s e ttl e this point e ve ry

,
body conn e ct e d with e x isting transportation facilitie s

i n th e n e ighbourhood app e ar s b e fore th e committ e e
to prove that it is not n e e d e d whil e th e promot e rs ,
o f th e sch e m e ar e at e normous e xp e ns e to prov e by
hundre ds o f e xp e rts that it is Th e e m pirical d e cision

.
o f th e com m itt e e of th e Hous e O f Commons o n this
qu e stion is n ot to be compare d with th e une rrin g

d e cision o f th e c apitalists i nte re st e d Th e y know .
much b e tt e r than any committ e e of th e Le gislature

ar e lik e ly to know wh e th e r th e work i n qu e stion will
pay a fair divid e nd and this is th e b e st proof that i t

,
is re quire d T h e re sult of th e Am e rican policy is

.
s e e n in th e fact that notwithstanding all th e att e m pts

upon th e part o f our railways to thwart th e e conomic
l aws n e v e rth e l e ss th e Am e rican pe opl e e njo y th e
, ,
T HE BUGABOO OF TR UST S 1 67
che ap e st transportation in th e w orld T h e railw ay .
rat e s upon fre ight in Europ e compare d with thos e ,
in Ame rica Show startling contrasts T h e cost of

,
.
fre ightage o n English line s is upon th e ave rage more

than doubl e th e A m e rican charge and in many cas e s ,
w hich I have e xamin e d it is thre e time s as gre at In .
not a f e w c ase s th e British charg e is far b e yond thre e

tim e s th e Am e rican .
A frie nd bought a cargo o f grain at L e ith which ,
had paid o n e dollar pe r ton freight from Ne w York ;

it cost him nin e ty six c e nts per ton to transport it
-
thirty fi v e mil e s inland Anoth e r purchase d six hun

-
.
dre d tons charcoal pig iron upon Lake Sup e rior which
-
,
cost four dollars pe r ton fre ight to Live rpool ; h e paid

r to n to carry it e ighty mil e s inland by rail to
p e
his mills For this amount o ur trunk lin e s carry rails

.
fi v e hundre d and sixty mil e s as against e ighty mil e s in

,
Britain If Europe e njoy e d o ur advantage s o f fre e

.
co mp e tition in its transportation syst e m th e d e ve lop ,
m e nt o f its re sourc e s would be surprising e ve n at ,
this lat e day in its history Th e re is in my opinion .

, ,
only caus e for h e arty congratulation as re gards o ur

railway policy Its e vils are trifling ; its advantage s
.
ove r all oth e r syst e ms in th e world e normous .
T h e p e ople o f Am e rica can smil e at th e e ff orts o f
all h e r railway magnat e s and o f all h e r manufacture rs

to de fe at th e e conomic laws by Trusts or combinations ,
o r poo ls o r diffe re ntials or anything o f like charac

$ ”
, ,
te r .
Only l e t th e m hold firmly to th e doctrin e of fre e
comp e tition Ke e p th e fi e ld op e n Fre e dom fo r all
. .
to e ngage in railroad building wh e n and wh e re capital
d e sire s subj e ct to conditions O p e n to all Fre e dom

,
.
for all to e ngage in any branch o f manufacturing

und e r like conditions .
Th e re can be no p e rman e nt e xtortion o f profit

b e yond th e ave rage re turn from capital nor an y ,
monopoly e ith e r in transportation o r manufacturin g

,
.
Any att e mpt to maintain e ithe r must e d in failure n ,
and failure ultimat e ly disastrous just in proportion

to th e t e mporary succ e ss of th e foolish e ffort It is .
Simply ridiculous for a party o f m e to me e t in a room

n
and att e mpt by passing re solutions to change th e

gre at laws which gove rn human affairs in th e busin e ss
w orld and this w h e th e r th e y be railway pre sid e nts
, , ,
bank e rs o r manufacture rs .
Th e fashion of Trusts has but a S hort s e ason longe r
to run and th e n som e oth e r e qually vain d e vic e may

,
be e xp e ct e d to app e ar w h e n th e n e xt p e riod o f d e
pre ssion arrive s ; but th e re is not th e slight e st dange r
that s e rious injury can re sult to th e sound principle s
o f busin e ss from any or all o f th e s e mov e m e nts Th e .
only p e ople who have re ason to fe ar Trusts are tho se

foolish e nough to e nt e r into th e m T h e Consum e r
.
and th e Transport e r not th e Manufacture r and th e

,
Rai lway ow n e r are to re ap th e harve st

, .
Eve n sinc e th e fore going was writt e n a n e w form

,
has app e are d o n th e stage in th e shap e of T h e Pre si

’
—
d e nts Agre e me nt an agre e m e nt among ge ntle m e n ,
”
i n which th e parti e s e ngage to control strangl e and

,
re strict th e future d e ve lopm e nt of o ur magnific e nt

railway syst e m und e r th e law s Of natural growth ,
at a tim e wh e n th e country re quire s this d e ve lopm e nt

as much as it e ve r did Th e s e ge ntl e m e n are not go
.
ing to e ngage in building lin e s w hich will give th e

’
public th e b e n e fit o f h e althy compe tition o r p e rmit ,
such to be built h e re aft e r It is safe to say that ve ry

.
soon this toy will be discard e d like its pre de c e ssors

,
'
for anoth e r and that th e ve ry m e n appare ntly most

,
pl e ase d with this n e w rattl e will th e n re gard it with

th e gre at e st cont e mpt and go forward in th e good
,
work as hith e rto d e ve loping th e railway syst e m

, ,
w h e r e v e r and wh e n e v e r th e y think th e y s e e a fair
chanc e f or profit Whe n e v e r e xisting railw ays e xact

.
from th e public m ore than a fair re turn upon th e actual

capital inve st e d or upon th e capital which would be
,
re quire d to duplicat e e xisting lin e s comp e ting lin e s

,
—
will be built fortunat e ly for th e int e re sts of th e
—
co untry which is m uch more conc e rn e d in ge tting
ch e ap transportation than it is in insuring divid e nds
f o r capitalists ; and wh e n e v e r a p e rc e ntage is to be
obtaine d by th e n e gotiation o f railway s e curitie s
—
,
bank e rs will be found also fortunat e ly f or th e

,
—
be st int e re sts o f th e country who will gladly find
a m ark e t f or th e m w ithout stopping to in uire
q
1 70 T HE E MPIRE OF BUSINES S
wh e the r monopolie s are to be ove rthrown by th e n e w
lin e s .
It is not in th e powe r of m an to e xact for m ore

than a bri e f s e ason and a ve ry bri e f s e ason ind e e d
, ,
unusual profit upon actual capital inve st e d e ith e r

in Transportation o r Manufacture so long as all ar e
,
fre e to comp e t e and this fre e dom it m ay safe ly be

, ,
a ss e rt e d th e A m e rican p e opl e ar e not lik e l y to r e

,
strict .
A n g l o A m e r i c an T r ad e Re l ati o n s
t ti g
Co n r asc n th e om m er ci
al t d f
m e ho s th e tw o
cu ti p t t i p y t
o
o n r es Th e ar th e ar ff la s in r ad e Pr o
t i i it t t f t
. .
te c ti v e ar ff n th e Un e d S a es ; re e r ad e in
it i c p i
Br a n ,
a om ar s on o f r e s utl s .
A N G L O A ME R IC A N -
T RA D E R ELA
T IO N S
PON th e thre shold of this gr e at qu e stion w e

e ncount e r that e v e rgr e e n subj e ct o f discus
sion Fre e Trad e v e rsus Prot e ction Th e re is only

, .
o n e kind o f Fr e e Trad e but th e r e ar e tw o kinds o f Pr o

,
te c ti o n First : th e British kind and th e n th e Am e ri

‘
,
.
can varie ty ve ry d iffe re nt inde e d i n th e ory and in

,
practic e Prot e ction in Britain simply m e ans that

.
th e food o f th e p e opl e should be p e rm an e ntly mad e
d e are r to th e consum e r and conse qu e ntly that th e ,
valu e of land should be p e rman e ntly and artificially

e nhanc e d No w th e Am e rican id e a o f Prot e ction is
.
that fore shadowe d by Mill It adh e re s to Adam .
Smith s gre at doctrin e that th e e n d to be aim e d at

’
is th e b e st supply of an articl e at th e lowe st pric e

und e r th e fre e e xchange o f commoditi e s Thus h e .
ke e ps e v e r in vie w th e consum e r If w e have r e ason .
to b e li e v e that th e r e sourc e s o f a country ar e such as
only n e e d d e ve lopm e nt to furnish a b e tt e r and ch e ap e r

supply o f an ar ticl e than has e ve r b e e n or could e v e r
be obtain e d from oth e r lands w e b e li e v e with Ada m ,
Smith that it is som e tim e s advisabl e to pay d e are r

f o r that a rticl e for a tim e if th e e n d be th e conqu e st ,
F ro m a S p ch b f
ee e o re th e Ch am b er of Co m m e r c e ,
Hal i f x S pt
a ,
e .
1 900 .
of a gre at e r marke t Adam Smith was not a wild
.
dogmatist upon th e subj e ct Of Fre e Trad e : ind e e d h e ,
h as re cord e d his op i nion that h e might as w e ll e xp e ct
Utopia upon e arth as th e e stablishm e nt of compl e t e

Fre e Trad e e ve n in Britain ; and wh e re change s w e re
,
to be m ad e in fiscal la w s h e is cl e ar always upon th i s

,
p oint : that the s e m ust be slowly mad e an d without

s e riou s inju ry to trad e as it e xists H e re are two
.
e xampl e s to illustrat e th e diff e re nc e b e tw e e n Pro te c
tion in England and Am e rica During th e war for .
th e Union th e A m e ri can p e opl e w e r e hurt and in
c e nse d by hostility shown not by th e British p e opl e

, ,
but by th e British Gov e rnm e nt The y d e t e rmin e d .
to li m it th e u se of British produ cts as m uch as possi ‘
bl e an d e sp e cially to be n d e pe n d e n t in th e supply o f
'
iron an d st e e l th e sin e ws o f war sinc e by England s

, , ,
’
warlike attitud e and th e building o f th e A labam a ,
it was not as ce rtain as thank th e Fat e s $ it i s n ow

,
that w ar b e twe en th e tw o countri e s could n ot com e

thus do e s wrong don e nations o r p e opl e bring re tri
bution and e v e ry f o e cr e at e d is a da n ge r re ady to e x
p l o d e T
. h e A l abam a ga v e us thirty y e ars 0 0 11
’
tin u o us prot e ction and e nabl e s us to invad e Britain

,
succ e ssfully with our st e e l Th e Gove rn m e nt a sk e d

.
manufacture rs h ow much duty would be re quire d

to induc e th e m to e nt e r th e n e w bu sin e ss o f m akin g
st e e l Up to that tim e w e had mad e non e succ e ss
.
fully Thirty pe r c e nt duty w as aske d an d Obt ain e d

. . .
ANGLO AMERICAN TRAD E RE LATIONS
- 1 75
All kn ow th e re sult ; n ot only i s th e Am e ric an suppli e d

with ch e ap e r st e e l than any nation in th e world ,
B ritain n ot e xc e pt e d but it i s c e rtain that a large

,
part of th e want s of th e w orld is to be supplie d by

thi s country I t i s be yon d al l qu e sti on th e country
.
which c an b e st produce st e e l t o d ay Now w e thin k .
that te mporary P rot e cti on give n an d which has b e e n

—
r du ce d t o on e fou r t h i ts fi r st e x t e n t i s h e r e fully
e
v in dica t e d Take th e ot he r cas e : th e b e st m e n o f

.
e v e ry n a t i on m ust e v e r l ab our t o ad v an c e th e m at e ri al
progre ss of that n ati on by in troducin g n e w m anu

facture s and it w as thought that with prop e r P rot e ctio n
,
f or a t i m e th e U n i on w ould grow a f ull supply o f sugar
ch e ap e r th an it c ould be brought from ab road Thi s .
e x p e rim e nt howe ve r re sult e d in failure We we re

, , .
m istake n th ere fore P rot e ction w as ab andone d an d

,
sugar m ad e f re e In th e on e case P rot e ct i on w as a

.
succ e ss in th e oth e r a failure I thin k that wh at

, .
has t ake n pl ace in th e U n it e d Stat e s m ay be e x p e ct e d

to tak e plac e in oth e r n at i ons on e a ft e r th e oth e r as
the y d e ve l op Eve ry n ation w ill try to produc e

.
within its ow n bord e rs an arti cl e w he n th e re is a prob

abilit y Of its be ing abl e to m a k e it ch e ap e r an d b e t t e r
than it Could be h ad from ab road an d w e mu st wait ,
patie n tly th e re sult of t h e s e tri als J ust as th e U n it e d

.
St at e s aban don e d th e p rot e cti o n of sugar so I b e l i e v e

,
ot h e r n at i ons will co m e to th e A m e ric an i d e a o f Pro :
te cti on th at it is foll y to prot e ct f ore v e r th at th e

, ,
1 76 T HE EMPI RE OF BUSINESS
att e mpt o f a n atio n to b e n e fit itse lf by a p e rman e nt
tax upon any article as a matt e r o f prot e ction is akin
to th e att e mpt o f a man to raise himse lf by pulling
up his susp e nd e rs Thorough b e lie ve r as I am in
.
th e th e ory that som e tim e s it is wis e for a young nation
to induc e capital and brains to e ngage in th e e x pe ri

m e nt of manufacturing som e thing n e w which is ,
always att e nd e d with sp e cial risks I am non e th e l e ss

,
a b e lie ve r in Adam Smith s gre at doctrin e that th e

’
e n d must be th e fre e e xchang e of commoditi e s by all
th e nations o f th e w orld subj e ct only to th e n e c e ssity

,
o f r e ve nu e but this matt e r o f r e v e nu e i s important

, .
Yo u re m e mb e r Mr Chamb e rlain was at o n e tim e

.
carri e d away with th e id e a of a $ ollve re in o f th e Em

pire ; you we re to have fre e trad e within its bounds
as w e hav e within th e forty fi v e Stat e s e mbrac e d in
-
th e Union a b r illiant id e a at first sight ; but aft e r c on

,
fe rring with th e Colonials at th e Jubil e e Mr Cham , .
be r l ain announc e d that h e could not be induc e d to touch

th e subj e ct w ith tongs It is we ll for a stat e sman to
.
change his opinions w h e n h e finds th e m wrong T h e .
British colonie s to day fe e l that th e y have to rais e

-
most o f th e ir re ve nu e from taxing imports and th e re ,
for a ollv re in did not s e e m practicabl e and th e re

e $ e —
ar e oth e r obj e ctions Fo r instanc e th e Unit e d Stat e s
.
,
adds to its duti e s upon sugar an amount e qual to th e

bounty paid by any nation upon its growth this — ,
i s con sid e re d onl y fair to o ur ow n prod uc e rs o f sugar .

ANGLO AMERICAN TRADE RELATIONS- 1 77
It is probabl e th e re fore that for th e pr e s e nt prob

, , ,
ably fo r o ur ow n day th e n e e ds of re ve nu e and th e,
irn prac ti c ability o f coll e cting it fro m int e rn al taxe s

'
will caus e th e British Colonie s to continue high duti e s

upon im ports e sp e cially such as may be class e d as
,
'
luxur ie s which m e an th e fin e st things o f all grad e s ;

,
in oth e r words things us e d n ot by th e masse s o f th e

,
poor but by th e rich f e w Such is c e rtainly a popular

, .
policy and it is we ll known how pot e nt vot e s ar e to

,
th e politician T h e same influ e nc e s will I b e li e v e

.
, ,
pre vail in th e Unit e d Stat e s I kn ow of n o mod e of .
raising r e ve nue so e asy or on e so satisfactory to th e ,
vot e rs It may be a surprise but I b e lie ve it i s tru e

.
, ,
that und e r o ur pre s e nt tariff policy th e masse s of th e

Am e rican p e opl e practically e scap e taxation Th e y .
u e almost
s — —
ind e e d I might say wholly hom e mad e
,
article s : hom e tobacco win e spirits and b e e r hom e , , ,
mad e cot ton and w ooll e n cloths and silks s e rvic e abl e , ,
but n ot S O fi n e as th e fore ign and all th e s e are to d ay ,
surprisingly ch e ap I had a proof of that re c e ntly

. .
A family in c om r tabl e circumstanc e s n o t rich we nt , ,
to England e ach y e ar with th e ir fi v e childre n to visit

pare nts Form e rly th e cost of their passage was
.
,
save d by th e purchase of clothing and oth e r articl e s .
T h e lady told us sh e bought nothing on th e oth e r S id e
now sh e could clothe h e r childre n ch e ap e r in Ne w

,
York The re i s much t e stimony t e nding to b e ar this

.
o ut. We fi n d our se rvants who pass wit h us to an d ,

1 7 8 T HE EMPIRE OF BUSINESS
for buying many articl e s in Ne w York but pray r e ,
m e mb e r not fi n e luxurious articl e s in which p e opl e

, ,
with ampl e m e ans indulge Upon th e se about which

.
,
th e re n e e d be no fe ar our rich class will e ve r fore go ,
w e can by high duti e s rais e a larg e amount o f n e e d e d
r e v e nu e without gre atly re stricting th e d e mand

, .
Th e rich class e s Of th e R e public h e sitat e littl e about

'
cost in th e ir lux uri e s and fi n e silks fi n e lin e n fi n e

, , ,
lac e fin e st wooll e n fabrics fi n e win e s or Scotch w h i s

, ,
ke y and British b e e r ar e among o ur luxuri e s .
Pray not e this policy w ill no longe r be pursue d

primarily f o r prot e ction but for r e ve nu e only Eve n
, .
if Prot e ction as a policy we re discard e d it is probabl e

such articl e s w ould be taxe d—th e masse s would d e
,
mand this It is a gre at mistake to think that it is

.
th e f e w and n o t th e m any who favour taxing th e im
port e d articl e s use d by th e f e w rich It i s my opinion.
that th e re can be n o abolit i on of such duti e s in our

day This is th e most popular o f all m e ans O f raising
.
re ve nue .
Th e re is a n e w re ve lation in trad e b e twe e n nations

which cannot be ove rlooke d It m ay n ow be take n .
as e stablish e d that raw mat e rials in favoure d par ts

o f th e world hav e n o w attain e d th e pow e r to attract
to th e m capital and ability so that th e y will as a rule
,
be manufacture d clos e at hand Th e various p e opl e s

.
display un susp e ct e d capacity for manufacturing ; th e

o or m e n and wom e n o f India th e P e ons of M e xic o
p , ,
A NG LO A MER ICAN e
TRADE RELATIONS 1 79
th e N e gro e s of Am e rica m ake satisfactory mill op e ra,
ti v e s .Th e Chin e s e and Japan e s e ar e b e co m ing so ,
also Britain and th e Unit e d Stat e s furnish a f e w

.
h e ads o f d e part m e nts automatic m achin e s n e e d little

,
skill in th e m e re worke rs We must e xp e ct gre at .
change s to flow from this fact It b e hoove s B ritain .

,
long th e chie f and at o n e tim e ind e e d alm ost th e

, , ,
sol e manufacturin g n ation o f im portan c e and th e ,
Unit e d Stat e s also to k e e p our standard of e ffi ci e ncy

, ,
at th e ve ry high e st in e ve ry d epartm e nt Th e re may :
co me change s am ounting to re volution from this cause .
Sir Suth e rland of th e P , re c e ntly spoke to his

.
Share hold e rs o f th e probability o f ord e ring ste am~

ships in th e Far East I think how e ve r h e will first.
, ,
Obtain th e se from Brit ain and Am e ric a—it is a far cry

to th e F ar East .
Whil e w e m ay not look for any gre at incre as e in th e

fore ign trad e o f nations nothing c om parabl e f o r , ,
instance to th e gr owth o f th e ir dom e stic trad e sinc e

, ,
th e t e nd e n cy is f Or n atio n s to supply th e ir chi e f wants ,
still I b e lie v e that th e in cre ase of th e population an d

,
o f w e alth cr e ating n e w wants an d e xt e nding th e fi e ld

,
o f pre s e nt wan t s m ust be such as to k e e p th e e xchang e

,
o f articl e s n o t only at its pr e s e nt volu m e but with a ,
small ratio O f incre ase How smal fore ign trad e is .

’
.
at be st as comp are d to int e rnal trade I In th e cas e of

,
th e U n it e d St at e s notwithstandin g it e xport e d manu

,
f ac ture s last y e ar ( 8 99) t o th e e xt e n t o f 80 m i ll i on s

1
ste rling this was not quit e a paltry fi v e
p e r c e nt
. o f th e total valu e o f its manufactur e s abov ,
e
millions Th e re is littl e to fe ar as to th e wants of

.
th e world ; Britain s only conc e rn is to r e main and

’
b e com e th e country which can b e st supply th e m .
S O m uch f or Anglo Am e rican trad e r e lations

-
In .
th e se days o f bitt e r partisanship and s e ctarianism ,
it se e ms almost e ss e ntial that th e re should aris e a

body o f int e llige nt m e n in e ach c e ntre who know
n e ithe r rank we alth party nor cre e d in the ir d e lib e ra
, ,
tions as m e mb e rs of such body w h o subordin at e all

,
oth e r issue s to thos e which conc e rn th e p e ac e and

prosp e rity of th e ir coun try ; which e xt e nds its vie w
to all p e opl e s of all lands rightly re garding m e n e ve ry
,
wh e re as a broth e rhood bound toge th e r and th e re fore

,
d e p e nd e nt in gre at e r or l e ss d e gre e in a common pros

p e r i ty ; and which s e e s in th e p e ac e and prosp e rity
o f oth e r nations r e sults n o t antagonistic but tributary
to th e ir o w n discarding th e s e narrow conc e ptions

,
Of th e ordinary politician who se e s in war against

o th e r lands b e n e fit to his o w n and I fe ar s e e s e ve n
, , ,
more cl e arly popularity for himse lf It is e sse ntially.
tru e conc e rning comm e rcial nations e sp e cially such ,
as Gre at Britain long has b e e n and must re main and ,
such as o ur n e we r re public is b e coming which i s fast ,
sharing with th e moth e r country th e busin e ss of th e

—
world that th e re is no m e asure o f prosp e rity in any
a t of th e o ld i which w e do n o t S har e T h
p r w r n . e
ANGLO AMERICAN TRADE RELATIONS
-
1 81
whole world pays tribut e to th e nations which supply '
in any consid e rabl e d e gre e its wants H e nc e th e

.
gre at e st int e re st o f Britain and o f Am e rica is p e ac e .
H e nc e also a wis e policy to sustain p e ac e a grav e

, , ,
e rror Of policy to disturb it sinc e w e cannot d e stroy

,
th e prosp e rity o f any nation w ithout impairing o ur
ow n . Any se e ming t e mporary gain from th e injury

o f oth e rs is r e all y loss in th e e n d This is p e rhaps
.
what may be calle d a vi e w for th e future but st e ps ,
toward its acc e ptanc e ar e be m g take n e v e n in o ur own

day T h e first st e p li e s in e xploding th e id e a that
.
trade follows th e flag ; th e fact is that trad e sc e nts th e

b e st bargain Trad e i s no re sp e ct e r of flags ; loyal
.
Canada buys h e r Union Jacks in Ne w York S h e .
trad e s w ith th e Re public to thre e tim e s th e e xt e nt Sh e

trade s with England and to a gre at e r e xt e nt than with
all oth e r nations combin e d In vain do e s any nation
.
se e k political or nominal control ov e r fore ign t e rritory

with a vie w to p e rman e nt comme rcial advantage und e r
fre e trad e o r e qual laws for all Sh e s e cure s o r holds
.
only th e marke t which sh e can b e st supply To .
sp e nd millions o f mon e y and thousands of liv e s for th e

political control o f n e w t e rritory may be consid e re d
n e c e ssary som e time s for political re asons but n e ve r
,
for th e re quire m e nts o f trad e We Shall have gain e d

.
o n e st e p forward th e n wh e n it is fre e ly r e cogniz e d that
political acquisition is not e ss e ntial f o r acquiring th e

trad e of n e w t e rritory Thi s t ruth e ve n A m e rica jus t
.
now n e e ds to re l e arn sinc e sh e is trying to acquir e
,
political control of th e Philippin e s British and .
Am e rican int e re sts ar e safe guard e d wh e n e qual laws

for all nations ar e s e cure d Thus th e in t e re sts o f both
.
countrie s in fore ign trad e have b e co m e th e sam e an d

o c —
Should l e ad to a common p y th e Op e n D oor and
li w
P e ac e allow ing all nation s all p e opl e s to follow th e ir

, ,
o w n la w s o f d e v e lopm e nt in p e rf e c t fr e e do m We .
hav e had many proofs re c e ntly o f th e familiar adage

that blood is thicke r than wat e r ve ry m uch thic ke r
,
as I b e lie ve b e twe e n th e m e mb e rs o f o ur own rac e

, .
In th e e vid e nt drawin g toge th e r o f th e English sp e ak -
ing rac e and all t hat this implie s w e se e th e d awn o f

a n e w se ntim e nt a
s e ntim e nt of prid e and d e voti on in th e rac e n ow give n

by on e half o f th e rac e to th e U n ion Jac k and by th e ,
othe r half Of th e rac e to th e S t ars and Strip e s th e —

o th e r o f th e tw o flags which un it e dly hold sway o v e r
al l E n glish sp e aking m e n
-
, f or no co mm unity e xists
spe aking our tongue which do e s n ot ow e all e gianc e
to o n e or th e oth e r of th e se symbols Th e silv e r lining
.
to th e clouds of war in which alas $ th e t wo branch e s

,
o f o ur ra ce ar e at pr e s e nt e ngag e d i s that it h as s o
,
turn e d o ut t hat th e s e now stand close r to e ach oth e r

than at any tim e sinc e th e y s e parat e d We m ay .
safe ly I b e li e v e quit e safe ly assume that no qu e sti o n

, ,
can e ve n aris e b e twe e n th e tw o nations but o n e p e opl e ,
which will n ot be amic ably s e ttl e d th at no go v e rn ,

.
ANGLO AM ERI CAN TRADE RELATIONS
- 1 83
m t
en c an e ve r e x i st in e ithe r land strong o r wicke d
e nough to re sist th e de m and of th e b e st o f th e p e opl e
o f both t hat th e s e ttl e m e nt o f di ff e re nc e s shall n o t be
b y th e brutal arbitram e nt of th e sword Th e day has .
pass e d wh e n E n glish sp e aki n g m e n will e ve r be call e d

-
upo n to kill e ach oth e r in battle Th e sun i s n e v e r

.
again to shin e up on such a spe ctacl e W e hav e pass e d .
that st age and turne d down th e page s o f that h orrid

sto ry fore v e r .
What the n of th e future c harge d w ith this pot e nt

n e w s e nti m e nt o f rac e a triotism which s m s d awn
p e e
in g upon us $ Our ow n rac e e sp e c ially is pro n e to th e
dise ase kn own as lan d h un ge r Gre at Brit ain h as

.
spr e ad th e r e d s pots O f sov e r e ignty all ov e r th e world ;
w e hav e st re tch e d from th e shor e s o f th e Atlantic
thre e thousan d m il e s to th e Pacific from th e St , .
Lawre n c e to th e Gulf of M e x ico an d n o t conte nt I

, , ,
fe ar follow in g B rit ain s p e rilo us e x ample w e are try

’
,
in g to an n e x fo re i gn t e rritor y . Th e t ruth is th at w e
hav e t ake n th e Scripture much to h e art which t e lls ,
u s th at th e m e e k shall inh e ri t th e e arth an d w hich , ,
our h um o rist Mark Tw ain said e x pl ain e d it all

,
— o ur
rac e is so m e e k ; at al l e ve nts w e s e e m to hav e lost no

tim e i n disc ove ring that th e t ru e and only re liable
proof of th e tru e inh e rit ors was wh e th e r th e y spoke
E n glish .
This e x p an ding e poch must so on pa ss It is th e .
law of d e v e lop me nt that e ach country shall e v e nt uall y

,
rn le Canada do e s so Australia is ab out to
i tse lf .
,
assum e sov e re ign sw ay both have th e ir o w n fiscal ,
tariffs against e ve n England s products T h e se ve n

,
’
.
t e e n Re publics of South Am e rica only re c e ntly go v

e rn e d by Spain ar e n ow all ind e p e nd e nt and se lf
gove rning It is only during th e p e riods o f d e v e lop
.
m e nt that distant Powe rs can gove rn and hold sway

ove r a p e opl e but during this stage such may be th e
,
b e nign e ff e cts o f th e gove rnm e nt that e ve n aft e r

practical control has b e e n take n ove r by th e n e w c om
munity th e ti e s b e twe e n moth e r and child may n ot
,
only re main unbroke n but stronge r than e ve r b e fore , .
Of this Canada and Australia give ampl e proo f By .
th e wis e kind p e ac e ful and conciliatory policy pur

, , ,
sue d a rac e patriotism has b e e n cre at e d within th e

Empire which d e p e nds upon moral forc e s th e most ,
e ndur ing o f all not upon l aw but upon lov e T h e

, .
succ e ss o f Britain s colonial policy in re c e nt tim e s is

’
o n e of th e grand e st triumphs e v e r achi e v e d by a nation
p e rhaps th e g ran d e st o f all It has b e e n possibl e

fl
.
only by p e ac e ful not by warlike m e ans a victory

, ,
much more re nown e d than any conque st by forc e and

more e nduring as th e future is to Show ,
.
T h e flag o f gre at Britain floats ov e r Canada and
Australia ; by th e d e sire o f th e ir p e opl e th e y ar e part

o f th e solid unit e d whol e and th e qu e stion now is ,
wh e th e r this fe d e ration o f th e rac e is to stop within

th e E m pir e or finally d e v e lop into a fe d e ral council for
,
ANGLO AMERICAN TRADE RELATIONS
- 1 85
th e entire rac e gove rning int e rnational re lations which

Involv e th e p e ac e o f th e world and l e aving hom e rul e ,
to e ach country in all oth e r a ffairs e v e n as to th e form ,
of gove rnm e nt its e lf a crown e d o r uncrown e d r e

,
public I am on re cord as having pre dict e d y e ars

.
ago that our English sp e aking rac e would o n e day be

-
again un it e d and it w as not so ve ry l ong sinc e H e re

,
.
is a fit fi e ld for o ur Chamb e r of Comm e rc e to culti

vat e for it li e s in th e dire ction of p e ac e and goodw ill
, .
For th e pre s e nt at le ast th e y can e xe rt th e ir influ e nc e

to str e ngth e n th e good fe e ling th e drawing tog e th e r ,
o f th e tw o branch e s I faile d to m e ntion o n e o f th e

.
b e st p e rhaps th e b e st of all th e re sults of our t e mpo

, ,
rary policy Of Prot e ction It has brought to us so .
many British manufacture rs to e stablish industri e s

—
and thus d e ve lop our re sourc e s th e Clarks and th e
Coats o f Paisle y th e Dolans of Yorkshire th e Sand e r
, ,
sons of Sh e ffi e ld and last but c e rtainly not l e ast a

, , ,
gre at p rize from Halifax Who could e xp e ct us not .
to e xtol our id e a of Prot e ction if w e capture th e Firths $

W e must not lin e th e m up for a king s ransom w e ’
n e e d as many o f th e Halifax quality as can be had .
Whe n e ve r our tariffs suit all may tak e a sw e e ping ,
re ve nge com e ove r and e njoy p e rfe ct fre e trad e in

,
th e forty fi v e nations o f th e Union and be happy

-
.
Th e R e public calls th e m to com e o n e co m e all It , .
taxe s high e st th e ge ms and pre cious things import e d ,
but th e se j e we ls b e yond pric e are admitt e d duty fre e .

1 86 T HE EMPIRE OF BUSINES S
It i s not only for th e ir value industrially that th e y
should be value d but as links binding th e ol d and
,
th e n e w lands th e moth e r and child to ge th e r

, . Som e
o f th e y oun ge r m e mb e rs o f th e firm s e ttl e a m on g u s ,
t h e ir ch ildre n marry Am e rican s o r wh e n t h e y visit

,
th e Ol d h om e contract allianc e s t h e re an d th e t ru e
, ,
Anglo Am e ric an is th e re sult w h o is n ot unlike l y to

-
,
p rov e th e c omin g m an poss e

,
ss e d o f th e v irtu e s an d
stre ngt h o f bot h rac e s and th e vice s or we akn e ss o f
n e ith e r and who at all e v e nts w e m ay r e st assure d
, , , ,
will be th e fore most discipl e of race patriotism an d

labour for th e coming o f th e d ay o f comm on citiz e n -
x
sh ip within th e wide and e ve r e xpanding boundari e s

o f o ur rac e .
Bu s i n e s s
B u i
s n e ss is a pi y l ar g
i g e w o r d an d i n i ts r m ar m e an n s
cv o h
e rs g
th e w ff t Th
ol e r an e of m an
’
s e or s e s am e
p i cip f t i ft gy c c t ti d b i
.
r n le s o hr ener on en ra o n an ra n s
ucc b ch f b u i f di ci
, ,
wi n s e ss in an y r an o s n e ss ro m m e ne
to d r y go o d s .
B U SIN E SS
is a large word and in its p ri m ary

US INES S ,
m e aning cove rs th e whole range of m an s e ff orts ’

.
It is th e busin e ss of th e pre ach e r to pre ach o f th e physi ,
c i an to practis e of th e po e t to writ e th e busin e s s o f th e

, ,
uni ve rsity profe ssor to t e ach and th e busin e ss o f th e ,
colle ge stud e nt o n e might som e tim e s think from th e

, ,
amount o f att e ntio n b e stowe d upon it to play football , .
I am not to sp e ak o f busin e ss in this wid e s e ns e $ ”

,
but sp e cifically as d e fin e d in th e C e nt ury Dictionary

c ti d uf ctu i g pu uit c cti v y p y
Me r an le an m an a r n rs s o ll e el ; em lo
m t qui i g k d g cc u t
en re r n fi cin ow th d le e of a o n s an d n an al m e o s ; th e
cc p ti f c ducti g t d
u a on o t y t c ti f
on n ra e ; or m on e ar r an s a on s o an y
ki d
o
n .
Th illustration which follows is Si gnificant and

e ,
cle arly d e fin e s this vi e w of busin e ss . It re ads :

It s e l d om pp
h a ens t t
h a m en of a s tu d i o u s tu m a cqui re an y
de g re e o f r e put tia on for t i

he r k n ow le d g e of bu s i n e s s .
But w e must go o n e st e p furth e r more strictly to ,
d e fin e busin e ss as I am to consid e r it Is a railway

,
.
pre sid e nt re c e iving a salary o r th e pre sid e nt o f a bank , ,
o r a salari e d o ffic e r o f any kind in busin e ss $ Strictly ,
sp e aking h e is not ; for a man to be in busin e ss must

, , ,
be at l e ast part own e r o f th e e nt e rpris e which h e
F ro m a Le ctu re de l iv e re d at Co rn e l l Un iv ity J u y
e rs ,
an ar 1 1 1 8 96
1 89
manage s and to w hich h e give s his att e ntion and ,
chie fly d e p e nd ent for his re ve nu e s not upon salary but

upon its profits This vie w rul e s o ut th e e ntire salarie d
.
class Non e O f the se m e n ar e now m e i busin e ss

. n n ,
but many o f th e m hav e b e e n and most succ e ssful ,
th e re in Th e busin e ss man pure and simpl e plunge s

.
into and toss e s upon th e wave s o f hum an aff airs without

a life pre se rve r in th e shap e o f salary ; h e risks all
-
.
CHO I CE OF A CAREER
The re is n o gre at fortun e to com e from salary h o w ,
e v e r high and th e busin e ss m an pursue s fortun e If

, .
h e be wis e h e puts all his e ggs in o n e bask e t and th e n ,
watch e s that bask e t If h e is a m e rchant in coff e e

.
,
h e att e nds to co ffe e ; if a m e rchant in sugar h e att e nds ,
to sugar and l e ts coffe e alon e and only mix e s th e m ,
w h e n h e drinks his co ff e e with sugar in it If h e min e .
coal and s e ll it h e att e nds to th e black diamonds ; if

,
h e o w n and sails ships h e att e nds to S hipping and h e

, ,
c e as e s to insure his o w n Ships just as soon as h e has

surplus capital and can stand th e loss o f o n e ithout w
imp e rilling solve ncy ; if h e manufacture st e e l h e sticks ,
to st e e l and s e v e re ly l e ts copp e r alon e ; if h e mi e

,
n
ironston e h e sticks to that and avoids e ve ry oth e r

, ,
kind o f mining silve r and gold — mining e sp e cially

, .
This i s b e cause a man can thoroughly mast e r only o n e

busine ss and only an abl e man can do this I have
, .
n e v e r y e t m e t th e man who fully und e rstood tw o dif

BUSINESS 1 91
kinds of busin e ss ; you cannot find him any

fe r e n t
soon e r than you can find a man who thinks in two

language s e qually and do e s not invariably think o n ly
in o n e .
Subdivision Sp e cialization is th e ord e r o f th e day

, , .
E ER Y M
V AN T O HIS T RADE OR H S P ECIAL IS T Y
I have b e fore m e many r pre se ntative s o f all class e s
e
o f stud e nts If I could look into your h e arts I should

.
,
find many diffe ring ambition s; som e aiming at dis

tin ction in e ach O f th e profe ssions ; som e would be
law y e rs som e minist e rs som e doctors som e archit e cts
, , , ,
some e l e ctricians some e ngin e e rs som e t e ach e rs and

, , ,
e ach s e ts b e for e him as mod e ls honour e d nam e s that

, ,
have re ach e d th e high e st rank in th e s e profe ssions .
T h e e mbryo lawye rs b e for e m e w ould rival Marshall
and Story o f th e past or Cart e r and Choat e of th e

,
pre se nt ; th e pre ach e r w ould be a Brooks or a Van

Dyk ; th e physician a Jan e way o r a Garmany ; th e
e
e ditor ould be a Dana ; th e archit e ct a Richardson

w ,
and having re ach e d th e top o f his darling profe ssion

, ,
his ambition th e n would be satisfi e d At l e ast so .

,
h e thinks at pr e s e nt With th e s e class e s I have

.
nothing what e ve r to do dire ctly to day b e cause all -

,
th e se ar e profe ssional e nthusiasts N e ve rth e l e ss th e .

,
qualiti e s e sse ntial for succ e ss in th e profe ssions b e ing

in th e main th e sam e which insure succ e ss in busin e ss ,
much that I hav e to say applie s e qually to you all .

1 9 2 THE EMPIRE OF BU SINE SS
Th e re re main among you thos e w h o would s ail
th e unc e rtain se a o f busin e ss and d e vot e th e ms e lv e s ,
to m aki n g mon e y a gre at fortun e s o that you shall be

, ,
millionnaire s I am sure that whil e this may be chie fly

.
in your thoughts i t is not all you se e k in a busin e ss

,
care e r ; you fe e l that in it th e re is scop e for e xe rcis e of

gre at abiliti e s o f e nt e rprise e n e rgy judgm e nt and
, , , ,
all th e b e st traits of human nature and also that m e n ,
in busin e ss p e rform us e ful s e rvic e to soci e ty .
I am to try to sh e d a littl e light upon th e path to

succ e ss to point out some of th e rocks and shoals in
,
that tre ach e rous se a and give a f e w hints as to th e ,
mod e of sailing your Ship o r rowing your sh e ll wh e th e r , , ,
for instanc e th e quick or th e slow str o ke i s sure r to

'
win in th e long rac e .
T HE S ART T IN LI F E
Le tus b e gin th e n at th e b e ginnin g Is any would
, , .
be busin e ss man b e for e m e cont e nt in fore casting h i s

future to figure hims e lf as labouring all his life for a
,
fixe d salary $ Not o n e I am sure In this yo u hav e , .
th e dividin g lin e b e tw e e n busin e ss a n d non busin e ss ; -
th e o n e is a mast e r and d e p e nds upon profits th e oth e r

, ,
a s e rvant and d e p e nds upon salary Of course you

, .
,
have all to b e gin as s e rvants with salary but yo u have ,
not all to e n d th e re .
You have som e difficulty in obtaining a start gr e at ,
difficulty as a rul e but h e re com e s in th e e xc e ptional

,
BUSINESS 1 93
stud e nt Th e re i s not much difficulty f o r him ; h e has

.
attract e d th e att e ntion O f his t e ach e rs who know
m any m e n o f affairs ; has take n priz e s ; h e is h e ad o f

his class ; has shown unusual ability found e d upon ,
charact e ristic swhich ar e sure to t e ll in th e rac e ; h e h as

prove d hims e lf s e lf re sp e cting has irre proachabl e
-
,
habits good se nse m e thod untiring industry and

, , , ,
his spare hours are sp e nt in pursuing kno w l e dge that ,
b e ing th e labour in which h e most d e lights .
O e vital point more : his financ e s ar e always sound

n ,
h e rigorously liv e s within his m e ans and last but n o t , ,
l e ast h e has S hown that his h e art is in his work B e

,
.
sid e s all this h e has usually o n e strong guarant e e o f

,
future industry and ambitious us e fuln e ss h e is n o t ,
burd e n e d with we alth ; it is n e c e ssary that h e make his

o w n way in th e world He is not y e t a millionnaire
.
,
but is only going to be on e He has no rich fathe r .

,
or,
still more dange rous rich moth e r w h o can and
, , ,
will support him in idle n e ss should h e prove a failure ;

,
h e has no life pre s e rv e r and th e re fore must sink or

-
,
swim B e fore that young man l e ave s coll e ge h e is a

.
mark e d man More than o n e ave nue is op e n for him

. .
T h e door O p e ns b e fore h e is re ady to knock ; h e is
wait e d f or by th e sagacious e mploy e r Not th e writt e n .
c e rtificat e of his profe ssor f o r c e rtificat e s have ge n e rally

,
to be re ad and are re ad within th e lin e s ; but a

,
word o r two spoke n to th e busin e ss m an who is always

on th e lookout for th e e xc e ptional young graduat e ,
has s e cure d th e young m an all that a yo ung m an
—
n e e ds a start Th e most valuabl e acquisition to
.
his busin e ss which an e mploye r can obtain i s an e x

c e pti o n al yo un g man ; th e re is no b argain so fruitful
for him as this .
It is o f cours e much more diffi cult f or only th e

, ,
ave rage stud e nt ; h e has ge n e rally to s e arch f o r e m

ploym e nt but finally h e also ge ts a start
,
.
OP ENINGS TO SUCCE SS
It is th e care e r o f th e e xc e ptional stud e nt which

illustrat e s th e pathway to succ e ss We n e e d not .
re nd e r ours e lve s anxious about him ; h e i s all right He .
has b e e n thrown into th e se a but h e do e s not n e e d any

,
life pre se rve r ; h e do e s not n e e d to be coddle d h e will

-
,
swim ; h e was not born to be drown e d and you se e him ,
bre ast th e wav e s ye ar aft e r y e ar until h e is at th e h e ad

o f a gr e at busin e ss His start o f course is n o t at th e
.
, ,
h e ad h e is at th e foot ; fortunat e ly so for that is th e

$
, ,
re ason his progre ss has always b e e n upward If h e .
had start e d high h e would not have had th e chanc e to

e —
mak a continual asc e nt It do e s n ot m att e r much.
how h e starts for th e qualiti e s in him are such as to

,
produc e c e rtain e ff e cts in any fi e ld h e e nt e rs He .
go e s forward upon a ve ry small salary p e rforming ,
c e rtain small use s ind e e d much small e r th an h e thinks

, ,
himse lf capabl e o f p e rforming but th e s e h e p e rforms ,
thoroughly .
BUSINESS 1 95
Som e day in som e way som e thing happ e ns that

brings him to th e notic e o f his imm e diat e sup e rior He .
obj e cts to some plan propos e d and thinks it can be ,
b e tt e re d in some way o r h e volunt e e rs to assist in a d e

,
p a r tm e n t o th e r than his o w n ; o r h e stays o n e,

day lat e r, ,
at his work than usual or go e s som e morning soon e r

, ,
b e caus e the re was som e part o f th e busin e ss that had

not b e e n e ntire ly s e ttle d th e night b e fore o r th e re w as ,
som e thing to start n e xt morning that h e w as afraid

might n o t be re ady o r just rightand h e just go e s down ,
e arly to be sure . His e mploye r has b e e n some what

anxious upon th e sam e point and h e too go e s down , , ,
e arly that morning and finds his salari e d young man ,
Showing that h e do e s not work for salary alon e ; it is

n o t sol e ly an a ffair o f hire and salary with him ; h e
$ ”
is n o t that kind o f a young man ; h e is working f o r th e

succ e ss o f th e busin e ss Or it may be that som e day
.
his e mploye r propose s a c e rtain mod e of action in r e

gard to a custom e r s account ; p e rhaps th e young man
’
has start e d in th e O ffic e and h as b e e n aske d to look

,
aft e r th e cre dits a most important part His e m

, .
l
p y o e r s w ish to clos e t h is cr e dit which p e rhaps
,
would
, ,
e mbarrass th e custom e r This young man known to

.
,
th e custom e r has had to visit h i s plac e occasionally

,
in th e cours e of busin e ss coll e cting his accounts or

, ,
trying to coll e ct the m and th e young man mod e stly

,
says h e is a Spl e ndid fe llo w bound to succ e e d d o e s his

, ,
busin e ss upon fair and w ise m e thods and only n e e ds ,

a littl e t e mporary indulge nc e to com e o ut all
right .
T h e e mploy e r has faith in th e young m an s judg

’
m e nt and ability thinks it a rath e r strong sugge stion

,
for a cl e rk to mak e but says to him : You look out

,
$
for this matt e r and se e that w e do n ot lose ; but o f

, ,
course w e do not wish to injure on e o f o ur custom e rs ;

,
if w e can h e lp him without risk w e wish to do it .

”
T h e young man tak e s th e matte r in hand and r e sult s ,
prove h e was quit e right ; th e c ustom e r b e com e s o n e

o f th e v e ry b e st O f all th e ir custom e rs and o n e that it
,
would re quire a gre at d e al to take away from th e firm .
Or p e rhaps th e bright young man may have not e d

, ,
th e insuranc e polici e s upon th e works and th e ir dat e s

,
o f e xpira t ion ; h e finds th e fact has b e e n ov e rlooke d

that Some o f th e insuranc e s have lapse d and are i n
valid It is non e of h is busin e ss ; h e is not paid to
.
look aft e r th e insuranc e of th e firm ; in on e s e nse

th e narrow s e ns e — that is th e busin e ss o f som e oth e r
man but h e ve nture s to call att e ntion to th e fact and
, ,
sugge sts that th e pre miums should be paid But .

,
now mark th e advantage of ge n e ral re ading and e duca

tion This young man has re ad th e n e wspap e rs and
.
re vi e ws and l e arns o f s e v e ral Sharp busin e ss pra o

,
tic e s by w hich th e insure r is som e tim e s d e fra ude d

”
o f his insuranc e and e sp e cially has h e re ad of n e w

,
m e thods and ch e ap plans o f insuranc e He sugge sts .
that it would be we ll to change this and that po licy

BUSINESS 1 97
to a nothe r an d v e ry solid O ld co m pany You se e .

,
ge ntl e m e n th e busin e ss man o f this day has to re ad

, ,
y e s
,
and study and go, to th e roots o f many things ,
that h e may avo i d th e pitfalls that surro und busin e ss

upon e ve ry sid e He would n o t be an e mploye r
.
worth having that did n ot note what kind of a young

man that w as although n ow in th e humbl e guise of a
,
cle rk .
T HE SEC ND S TE U W ARD
O P P
Suppose h e is an e l e c trician o r e ngin e e r and com e s ,
from Sibl e y which is a good plac e to c o m e f r om In

, .
th e gr e at manufacturing conc e rn so fortunat e as to
s e cure his s e rvic e s h e has to do with som e humbl e

,
branch o f th e work but h e discove rs that th e re are a

,
f e w boil e rs which are n o t quit e safe and that th e e n

,
g in e s o r m otors ar e built upon fals e m e chanical pri n
c i pl e s and ar e v e ry wast e ful of fu e l

,
and that o n e o f
,
th e e ngin e s w ill soon giv e troubl e ; th e r e is a f o u n d a
tion un d e r it upon which h e finds that th e contractor

h as n o t don e hon e st work ; or dropping into th e works
o n e night just to s e e that all is going w e ll p e rhaps h e ,
discove rs that a man trust e d by th e firm has fall e n

int o bad habits and is n ot fi t f or duty o r p e rhaps is
,
‘
n o t o n duty and that an accid e nt might thus happ e n

,
.
He fe e ls it to be h i s duty to tak e action h e re and safe

guard th e busin e ss from th e dange r o f an accid e nt He .
draws th e plans which Show som e d e fe cts in th e m achin

e ry , lays it b e fore his e mploy e rs with sugge stions how to
cure th e s e mad e upon th e lat e st scie ntific principle s that
,
h e had b e e n taught in Sibl e y Th e e mploy e r o f .

,
course is v e ry ave rse to S p e nd m on e y and angry to

, ,
l e arn that his machin ery i s not what it should be .
But although his ange r e xplod e s and e nv e lops th e

young man f o r a mom e nt h e is not Shooting at him ; ,
w h e n th e de br i s cl e ars Off h e S its down and l e arns from
th e young man what a f e w thousand dollars now
might save and th e re sult is that h e t e lls th e Sibl e y

,
boy h e wish e s him to take up this subj e ct and att e nd

to it and be sure to make all right
, .
Alre ady that young man s fortun e is almost as ’
good as mad e He could n o t hid e his light und e r

.
a bushe l if h e tri e d and th e coming busin e ss man is,
not e xc e ssive ly liabl e to that sin and do e s not want to ; ,
h e is busin e ss all ov e r The re is no affe ctation o r false

.
mod e sty about him He knows his busin e ss and h e .

,
fe e ls fully conscious and proud o f th e fact that h e

know s it and that is o e o f th e many advantage s
,
n
Sible y give s him and h e is d e t e rm in e d that his e m

,
ploy e r should not at l e ast upon that p oint know l e ss

, ,
than h e do e s You must n e ve r fail to e nlight e n your

.
e mploy e r Yo u cannot k e e p such a young man as

.
thatback ; and this l e t m e t e ll you no e mploy e r wish e s ,
to ke e p him back The re is only o e p e rson as happy

. n
at finding this young man as th e young man is in fi n d

ing hims e lf a d that is his e mploye r He i s worth a
,
n .
BUSINESS 1 99
m l i lion more o r l e ss but o f cours e it would n o t be

, ,
good for him to ge t it w hil e so young , .
He has now mad e two st e ps upward First h e has .

,
g o t a start and s
,
e condly ,
h e has satisfi e d his e mploy e r
,
that h e re nd e rs e xc e ptional s e rvic e a d e cisive st e p ; as ,
th e Fre nch s ay h e h as arriv e d and h e i s th e re to

$ ”
, ,
stay Hi s foot is upon th e ladd e r ; how high h e climbs

.
is his o w aff air He is among th e f e w w ithin th e

n .
ve ry thre shold of th e w hol e busin e ss .
Th e re is a good d e al to be don e aft e r this how e ve r , .
This young man has z e al and ability and h e has sho n , w
that h e has also that indi sp e nsable quality judg —

m e nt ; and h e has shown anoth e r indisp e nsable quality
-
that his h e art is in th e busin e ss ; that n o oth e r cause
take s him from it ; that h e push e s asid e th e v e ry se duc
tive t e mptations w hich surround young m e n and ,
conc e ntrat e s his att e ntion his tim e his e fforts upon , , ,
th e p e rformanc e o f his duti e s to his e mploy e r All .
oth e r studi e s occupations and all amus e m e nts ar e

, ,
subordinat e to th e busin e ss w hich holds paramount ,
sway His salary o f cours e incre ase s If h e has

.
, , .
happ e n e d to e ngage w ith an e mploye r who do e s not

fully appre ciat e such s e rvic e s as h e has re nd e re d and ,
is re ady to re nd e r oth e r e mploye rs hav e not faile d to

,
not e that h e re is that rare articl e th e e xc e ptional ,
young man in th e s e rvic e of th e ir rival and it is possi

, ,
bl e that o ur young h e ro may hav e to change e mploy

e rs . It do e s not O ft e n happ e n but it do e s som e tim e s , ,
T HE EMPI RE OF BUSINESS
that a yo ung man has to do so AS a rule th e e m .
,
ploye r is only too thankful that such a young m an h as

com e to him and h e make s it his int e re st to re m ain
, .
Confid e nc e i s a matt e r o f slow growth howe ve r and , ,
it is a far cry from a high salary as a hire lin g in t o ,
e quality as a partn e r .
T HE CRUCIAL Q UES I N T O
Le tus trac e him a l ittl e furth e r This young man s .

’
s e rvic e s to th e firm have b e e n such as to re nd e r it n e c e s

s ary som e day that h e should visit his e mploy e r at his
hous e It is not long be fo re many occasions arise

.
’
which call th e young man to th e hous e wh e re h e is ,
now favoure d upon his m e rits by th e hous e hold and to ,
whom his nature soon b e com e s known and th e mast e r ,
soon b e gins to ask hims e lf w he th e r h e might n ot som e

day mak e him a partn e r and th e n com e s th e que stion,
o f qu e sti o ns : Is h e h on e s t an d tr ue 9 Le t m e paus e
’
.
h e re o n e mom e nt Ge ntl e m e n this is th e crucial

.
,
que s tion th e k e yston e of th e arch ; for no amount of

,
ability is o f th e slight e st avail w ithout honour Whe n .
Burns picture d th e G e nius of Scotland in T h e Vision $
,
”
the se m arv e llous words cam e to him
He r e ye ev n
’
tu rn d
’
on e m pty p ce
s a
u
, ,
B e am d
’
k een w i
'
h on o r .
No conc e alm e nt n o pre varication n o sp e culation

, , ,
trying to win som e thing f o r which n o s e rvic e is give n ;

B USINESS 01
n othin g don e which if publish e d would in volve your

, ,
sham e T h e busin e ss man s e e ks first in h i s partn e r

.
th e soul O f honour o n e who would sw e r v e from th e

$ ”
,
narrow path e ve n to s e rve him would only forfe it h i s

confid e nc e Is h e int e llige nt IS h e capabl e of form
.
$
in g a corr e ct judgm e nt bas e d upon knowl e dg e upon

, ,
distant an d far re aching issu e s $ Young m e n ye s

-
, ,
and o l d m e n also som e tim e s marry in hast e which is

, ,
ve ry foolish in both classe s But th e re is this to be .
—
said for th e partn e rship it is rare ly e nt e re d upon in .
'
a hurry It i s not o n e o r tw o qualiti e s which insure it

.
,
but in all round charact e r d e sirabl e in many re sp e cts

-
, ,
hi ghly obj e ctionabl e in non e and with S p e cial ability ,
in o n e or two .
W e oft e n h e ar in o ur day that it is impossibl e for

young m e n to b e com e own e rs b e cause busin e ss is ,
conduct e d upon S O gre at a scal e that th e capital n e c e s

sary re ach e s millions and th e re fore th e young man is
, , ,
doom e d to a salari e d life Now th e re is som e thing in

.
that vi e w only so far as th e gre at corporations ar e

conc e rn e d b e cause an int e re st in th e se i s only attain
,
abl e by capital ; you c an buy so many share s f or so

many dollars and as th e class o f young m e n I addre s s
,
ar e not w illing to r e main for e v e r salari e d m e n but ,
are d e t e rmin e d soon e r or lat e r to b e com e busin e ss ,
m e n upon th e ir o w n accoun t as mast e rs I do not be , ,
l i e v e that e mploym e nt in a gre at corporation is as
favo urabl e for th e m as with p rivat e own e rs b e caus e , ,

w hil e a young man can look forw ard to a large salary
in th e ir s e rvic e that is all to which h e can aspire
, .
Eve n th e pre sid e nts o f th e se corporations b e ing only ,
salari e d m e n ar e n ot to be classe d as strictly busin e ss

,
m e n at all .How the n can a young man und e r th e m

, ,
be anything but a salari e d man his life long $
W HERE TO L OO K FO R O PP OR UNI IE T T S
Many a busin e ss which has long b e e n succ e ssful as a

partn e rship is put into a joint stock conc e rn and th e ,
share s ar e offe re d in th e marke t and profe ssional m e n , ,
guil e l e ssly innoc e nt o f busin e ss and som e tim e s , , ,
w om e n of a S p e culativ e turn and I am sorry to say , , ,
many tim e s cl e rgym e n and artists are d e lud e d into

, ,
purchasing T h e public buys th e busin e ss but th e y

.
,
Should have bought th e man o r m e n w h o mad e th e

busin e ss .
Yo u re m e mb e r th e Trav e rs story $ A fri e nd call e d

Trave rs in to se e a dog that h e w ishe d to buy to cl e ar
his cons e rvatory o f rats and wh e n th e dog fancie r ,
-
und e rtook to Show him how this dog d e molish e d th e se

p e sts o n e gre at big old rat chase d th e d og Trav e rs s
, , .
’
fri e nd said to him

$
What w ould yo u do $
T rav e rs r e pli e d : B b b buy th e rat - - -

.
T h e public oft e n buys th e w rong thing .
It would be an e xc e lle nt study for you to re ad f re

que ntly th e stock lists of misc e l lan e ous compani e s
-
.
BUSINESS 03
Yo u will find som e o f th e n e wspap e rs give th e list and ,
th e n not e th e par value of th e Share s and th e pric e at

which yo u may purchas e th e m It may be said that
.
this par value is upon fictitious capital That is so .
only in som e instanc e s ; in manuf acturing companie s

e sp e cially I think th e re ve rs e is th e rul e Th e .
capital do e s not fully re pre s e nt th e cost o f th e

prop e rtie s .
But th e re ar e many corporations wh i ch are n ot c or

p o r ati o n s,many instanc e s of
, partn e rship in which th e
corporat e form has b e e n adopt e d and ye t th e busin ess

,
continu e d substantially as a partn e rship and c o m ,
paring ;such institutions with th e gre at corporations

whos e o w n e rship is h e re th e re and e ve rywh e re e
, , ,
w
find a most notable diffe re nc e Take for instanc e .

, ,
th e gre at st e amship lin e s of th e world Most o f th e se .

,
as thos e of you who r e ad w e ll know fail to make re ,
turns to th e ir Share hold e rs T h e share s o f som e o f

.
th e gre at e st compani e s hav e b e e n s e lling at o n e half -
and som e tim e s o n e third the ir cost Th e s e are cor

-
.
p o r ati o n s,
pur e and S impl e but if w e look at oth e r lin e s
,
e ngag e d upon th e sam e oc e ans w hich ar e manage d by

,
the ir ow n e rs and in w hich ge n e rally o n e gre at busin e ss

, ,
man is d e e ply int e re st e d and at th e h e ad w e find large ,
divid e nds e ach y e ar and amounts plac e d to th e re s e rve

fund It is th e di ffe re nc e b e twe e n individualism and
.
communism appli e d to busin e ss b e twe e n th e own e rs

,
managing the ir own busin e ss as partn e rs and a joint ,

stock conc e rn o f a thousand Shi fting own e rs ignorant
o f th e busin e ss .
T h e sam e contrast can be drawn in e v e ry branch o f
busin e ss in m e rchandising in manufacturing in

, , ,
financ e in transportation by land as w e ll as by se a

, .
It is so with banks Many banks are re ally th e prop

.
e r ty o f a f e w busin e ss m e n The s e soon b e com e th e .
l e ading banks and the ir Share s ar e invariably quot e d

,
at th e high e st pre mium e sp e cially if th e pre sid e nt of

,
th e bank be th e larg e st o w n e r as h e is in many Of th e ,
most re markable case s of succ e ss In such partn e r .
ship co r porations th e re is e ve ry opportunity f or th e

coming busin e ss man to Obtain ow n e rship which e xists
in p ure partn e rships f o r th e own e rs o f both
,
manage aff airs and are o n th e constant w atch f o r

ability .
Do not be fastidious ; take what th e gods off e r

.
.
B e gin if n e c e ssary with a corporation alw ays ke e p

, , ,
ing your e ye O p e n f or a chanc e to b e com e int e re st e d in

a busin e ss o f your o w n Re m e mb e r e ve ry busin e ss
can be mad e succ e ssful b e caus e it suppli e s som e e S
,
s e n ti al want of th e commu nity ; it p e rforms a n e e d e d
Offic e w he the r it be in manufacturing w hich produc e s

,
an articl e o r in gath e ring and distributing it by th e

,
m e rchant ; o r th e banke r whos e busin e ss is to take ,
care of and inve st capital .
The re is no lin e of busin e ss in which succ e ss i s n ot

at tai n abl e .
B USINES S
A SECRE T OF SUCCESS
It is a Simpl e matt e r of hon e st work ability and , ,
conc e ntration Th e re is no que stion about th e re be

.
ing room at th e top for e xc e ptional m e n in any pro

f e s si on The s e have not to s e e k patronage ; th e que s
.
tion i s rath e r how can th e ir s e rvic e s be s e cure d and

, , , ,
as with e ve ry profe ssion S O in e ve ry lin e o f busin e ss

, ,
th e re is pl e nty o f room at th e top Your probl e m is .
h ow to ge t th e re Th e answe r is S impl e : conduct your

.
busin e ss w ith just a little more a bility than th e ave rage

man in your lin e If you are only above th e ave rage
.
your succ e ss is s e cure d and th e d e gre e of succ e ss 15 In

,
ratio to th e gre at e r d e gre e of ability and att e ntion

which yo u give above th e ave rage Th e re ar e alw ays .
a f e w in busin e ss w h o stand n e ar th e top but th e re , ,
ar e always an infinit e ly gr e at e r numb e r at and n e ar
th e bottom . And Should you fail to asc e nd th e fault ,
is n o t in your stars but in yourse lve s Thos e w h o fail

, .
may say that this or that man had gre at advantage s ,
th e fat es w e r e propitious th e conditions favourabl e

, .
Now the re is v e ry littl e in this ; o n e man lands in th e

,
middle of a stre am whic h h e trie s to jump and is sw e pt ,
away and anoth e r trie s th e sam e fe at: and lands upon

,
th e oth e r S id e .
Examin e th e se two m e n .
Yo u will find that th e o e who fail e d lack e d judg

n ,
m e nt ; h e had not calculat e d th e m e ans to th e e n d ;

was a foolish fe llow ; had not train e d himse lf ; could
not j ump ; h e took th e chanc e s He was like th e youn g
.
lady who was aske d if sh e could play th e v iolin sh e ,
said sh e did not know S h e had n e ve r t ri e d

$
, Now .
”
,
th e o t h e r man who jump e d th e str e am had c are fully
traine d himse lf ; h e kn e w about how far h e could jump ,
and th e re w as o n e thing d e ad sure w ith him h e

$ ”
,
kn e w h e could at any rat e jump far e nough to land at

, ,
a point from w hich h e could wad e ashore and try ,
again He had Shown judgm e nt

. .
Pre stige is a gr e at matt e r my fri e nds A young

, .
m an who has th e re cord of doing what h e se ts o ut to

do w ill find y e ar aft e r ye ar his fi e ld o f op e rations e x
t e nd e d and th e tasks committ e d to him gre at e r and
,
gre at e r On th e oth e r hand th e man who has to adm it

.
,
failure and com e s to fri e nds trying to g e t assista n ce

in ord e r to m ake a se cond start is in a ve ry bad posi
tion ind e e d
, .
C LLEGE GRADUA E
O T S IN BUSINESS
Th e graduat e s o f o ur coll e ge s an d unive rsiti e s in
form e r y e ars graduat e d while ye t in th e ir t e e ns We .
have change d this and graduat e s are old e r as a rule

, , ,
wh e n th e y e nt e r upon life s struggl e but th e y are

’
taught much more Unle ss th e young unive rsity m an

.
e mploys his tim e to th e v e ry b e st advantage in ac
quiring knowl e dge upon th e pursuit which h e is to

make th e chi e f busin e ss o f his life h e will e nt e r busin e ss
,
at a disadvantage with younge r m e n who e nt e r in th e ir

BUSINESS 2 07
t e e ns although lacking in unive rsity e ducation This

, .
go e s without saying Now th e que stion is : Will th e

.
,
graduat e w h o has dwe lt in th e re gion o f th e ory ove r

take th e man who has b e e n for a y e ar o r tw o in ad
vanc e o f him e ngage d in th e hard and st e rn e ducative
,
fi e ld o f practic e .
That i t is possibl e for th e graduat e to do so als o

go e s without saying and that h e should in aft e r life
,
posse ss vie w s bro ad e r than th e ordinary busm e ss

man d e prive d o f unive rsity e ducation is also c e rtain
, , ,
and o f course th e rac e in life is to thos e whos e r e cord

, ,
is b e st at th e e n d ; th e b e ginning is forgott e n and i s o f

n o mom e nt . But if th e graduat e is e ve r to ove rtake
th e first start e r in th e rac e it must be by poss e ssing ,
stronge r staying powe rs ; his sup e rior knowl e dge l e ad

-
i n g to sound e r judgm e nt must be d e p e nd e d upon to

win th e rac e at th e finish A f e w disadvantage s h e .
must stre nuously guard against th e lack o f s e v e re ,
se lf disciplin e o f stre nuous conc e ntration and i n

-
, ,
t e nse ambition which usually charact e riz e s th e man

,
w h o starts b e for e th e habits o f manhood ar e form e d .
Th e habits of th e youn g man at coll e ge aft e r h e is a ,
man and th e habits of th e youngst e r in th e busin e ss

,
are na are like ly to d iff e r .
Th e re is anoth e r gre at disadvantage which th e old e r

man has to ove rcom e in most succ e ssful busin e ss e S
tabl i sh m e n ts The re will be found in op e ration th e re
.
a strict civil s e rvic e syst e m an d promotio n wit ho ut

-
favour It i s the re fore most diffi cult to find admis

.
, ,
sion to th e s e rvic e n any but th e lowe st grad e s On e

'
has to b e gin at th e foot and this is b e tt e r f or all partie s

,
conc e rn e d e sp e cially th e young graduat e

,
.
T h e e xc e ptional graduat e should e xc e l th e e x
c e pti o n al non graduat e He has more e ducation

-
.
,
and e ducation will always t e ll th e othe r qualitie s be ,
ing e qual Take two m e n o f e qual natural ability

.
,
e n e rgy and th e sam e ambition and charact e ristics and

, ,
th e man who has re c e iv e d th e b e st wi d e st most suit , ,
abl e e ducation has th e advantage ove r the oth e r ,
undoubt e dly .
BUSINESS ME N AND S P ECULA OR T S
All pure coins have th e ir count e rfe its ; th e count e r

fe it o f busin e ss is spe culation A man in busin e ss .
alw ays give s value in re turn for his re ve nue and thus ,
p e rforms a use ful function His se rvic e s ar e n e c e ssary

.
and b e n e fit th e c ommunity ; b e sid e s h e labours st e adily ,
in d e ve loping th e re sourc e s o f th e country and thus ,
contribut e s to th e advanc e me nts o f th e rac e This .
is ge nuin e coin Sp e culation o n th e contrary i s a

.
, ,
parasit e fast e n e d upon th e labour o f busin e ss m e n . .
It cre at e s nothing and suppli e s no want Whe n th e .
sp e culator wins h e take s mon e y without r e nd e ring

s e rvic e or giving valu e th e re for and whe n h e lose s
, , ,
his fe llow sp culator take s th e mon e y from him It

-
e .
i s a pure gambling op e ration b e tw e e n th e m d e grad ,

BUSINESS 2 09
in g to both Yo u can n e ve r be an hon e st man of

.
busin e ss and a sp e culator Th e mod e s and aims of .
th e o n e care e r are fatal to th e oth e r No busin e ss man .
can hon e stly sp e culat e for thos e w h o trust him have

,
a right to e xp e ct strict adhe re nc e to busin e ss m e thods .
Th e cre ditor tak e s th e usual risks o f busin e ss but ,
not those o f spe culation T h e ge nuin e and th e coun .
te rf e it hav e nothing in common .
That 9 5 pe r c e nt fail o f thos e w h o start in busin e ss

.
upon the ir o w n account S e ems incre dible and ye t .

,
such ar e said to be th e statistics u pon th e subj e ct .
Although it is said that figure s will say anything still ,
it is a fact that th e proportion is v e ry gre at D O not .
think that I wish to discourage you against att e mpt

ing to be your own mast e rs and having a busin e ss of
your ow n ; v e ry far from it B e sid e s th e coming .
,
busin e ss man is not to be discourage d by anything

that anybo d y can say He is a tru e knight who says
.
with Fit j am e s
z
If th e pt a h b e d an g u
e ro s kn ow n
g f u
,
Th e d an er se l is l re al o n e .
Th e young man who is d e t e rmin e d to be a busin e ss

m an will n o t be thwart e d n e ith e r will h e be div e rt e d
,
into any oth e r chann e l and h e is going to start and

,
have a trial ; h e will mak e a spoon o r Spoil a horn

$
tryin g to make it He must go ah e ad and find it out

. .
Tim e e nough to confin e y ourse l f to a life long bondage -

as m e re re c e ive rs o f a salary afte r you hav e tri e d
busin e ss and re ally discove re d whe th e r o r n o yo u ar e
,
o n e o f th e gift e d who poss e ss all th e n e c e ssa ry q uali
ti e s
.
I have tri e d to ske tch th e path of th e e xc e ptional

graduat e from salary to partn e rship It is no fanc y .
ske tch ; th e re is not a day passe s without change s in

m any firms which raise young m e n to partn e rship ,
and in e ve ry Singl e city n o first o f January p asse s

without such promotions Busin e ss re quire s fre sh
.
young blood for its e xist e nc e If any o f yo u ar e dis

.
c o ur ag e d upon this point l e t m e giv e you two stori e s

,
within my o w n e xp e rie nc e which should c e rtainly

,
che e r yo u .
A SK E CH F ROM LI F E
T
The re is a large manufacture r th e larg e st in th e ,
world in h i s lin e I know him we ll a spl e ndid man

.
, ,
who illustrat e s th e busin e ss care e r at its b e st No w .

,
like all S e nsibl e busin e ss m e n as h e gre w in y e ars h e

,
re aliz e d that fre sh blood m ust be introduc e d into his

busin e ss ; that whil e it was comparative ly e asy for
him to manage th e e xt e nsive busin e ss at pre s e nt it ,
was w ise to provid e for its continuanc e in abl e hands

aft e r h e had re tire d Rich m e n se ldom h ave sons
.
who inh e rit a tast e for busin e ss I am n o t conc e rn e d

.
to say wh e th e r this is we ll or oth e rwis e Lo oking at .
th e hum an rac e as a whol e I b e li e v e it is f o r good

, .
BUSINESS 2 I I
If rich m e n s sons had poor m e n s n e c e ssitie s and

’ ’
, ,
h e nc e th e ir ambitious abiliti e s th e re would be l e ss

,
chanc e for th e stud e nts o f coll e ge s than th e re i s It .
was not to any m e mb e r o f his family that this man

looke d for th e n e w young blood A young man i n .
th e s e rvic e o f a co rporation had attract e d his att e n
tion in th e man age me nt o f c e rtain busin e ss mat t e r s

conn e ct e d with th e firm T h e young man had to
.
call upon this ge ntl e man fre qu e ntly T h e wis e man .
did not mov e hastily in th e m att e r About his ability .
h e w as soon satisfi e d but that cov e r e d only o n e point

,
o f many . W hat w e re th e young man s surroundings ’
habits tast e s acquire m e nts $ B e yond his i m m e dihte

, ,
busin e ss what was his nature $ He found e ve rything

,
in th e se matt e rs just as h e would have it Th e young .
man w as supporting a w idowe d mothe r and a Sist e r ;

h e had as fri e nds som e e xc e ll e nt young m e and n ,
som e old e r than him s e lf ; h e w as a stud e nt ; h e was a

re ad e r ; had high tast e s of course ; I n e e d hardly say
,
that h e w as a young ge ntle man highly s e lf re sp e cting

,
-
,
th e soul of honour incapabl e o f anything l o w or vulgar ;

,
in short a mod e l youn g man and of course poor

, , ,
that go e s without saying .
Th e young man was s e nt f o r and th e millionnaire

,
told him that h e S hould like v e ry much to try him i n

his s e r vic e and aske d th e young man if h e would make
,
th e trial .T h e millionnaire stat e d frankly what h e

—
was looking for a young busin e ss man who might
d e ve lop and finally re li e ve him o f much care T h e
, .
arrange m e nt was that h e Should come for tw o y e ars

as a cl e rk subj e ct to cl e rk s rul e s which in this case
,
’
was ve ry hard b e caus e h e had to be at th e factory a

,
f e w minut e s b e fore s e v e n in th e morning He w as .
to have a salary some what large r than h e had re c e ive d ,
and if at th e e n d of two y e ars nothing had b e e n said

,
on e ith e r S id e no obligations w e re we ave d e ach was

, ,
fre e He was simpl y o n trial T h e young man

. .
proudly said h e would n ot have it oth e rw is e .
T h e busin e ss w e nt o n B e fore th e two y e ars e x .
p i r e d t h e e mploy e r w as satisfi e d that h e had found
that e xc e e dingly rare thing a young busin e ss man , .
What a numb e r o f qualiti e s this e m brac e s including ,
judgm e nt for without judgm e nt a busin e ss man

,
amounts to n othing T h e e mploy e r stat e d to th e .
young man that h e was d e light e d with him pl e as e d ,
w ith his s e rvic e s and e xpre ss e d his j o y at having

,
foun d him He h ad now arrang e d to int e re st him in th e

.
firm But to his amaz e me nt th e young man re plie d :

.
$
Thanks thanks but it is impossibl e f o r m e to ac
, ,
c e pt .
”
$
What is th e matt e r $ Yo u suit m e ; d o I not suit
”
y ou $
Excus e m e sir but for re asons which I cannot

.
$
, ,
e xplain I am to l e ave your s e rvic e in S ix months

, ,
w h e n my tw o y e ars a e up and I int e nd e d to gi ve you r ,
notic e o f this that you might fill my plac e , .

BUSINESS 2 1 3
Whe re are yo u going $

I am goin g abroad .
”
Have you mad e any e ngage me nt $

No Sir
, .
”
D O you not know wh e re y o u ar e going $
No S ir
, .
Nor what you are to do $

N 0 Sir
, .
Sir I have tre at e d you we ll and I d o think I am

, ,
e ntitl e d to k now th e r e al re aso n I think it is your

<
.
duty to t e ll m e .
T h e r e ason was dragge d o u t o f th e young man
Yo u ha e b e e n to o good to m e
v I would giv e any
.
thing to be abl e to re main with yo u Yo u e ve n i n $
v ite d m e to your hous e ; you hav e b e e n abs e nt trav e l
lin g ; you aske d m e to call oft e n to take your wife and

daught e r to such e nt e rtainm e nts as the y wish e d to
att e nd an d I cannot stand it any longe r
, .
We ll th e millionnaire o f cours e discov e re d what

, , ,
all o f you have susp e ct e d just what you would hav e

,
don e und e r th e circumstanc e s ; h e had fall e n in love

w ith th e daught e r Now in this country that would
.
not have b e e n consid e re d much o f an indiscre tion ,
and I do not advise any of you to fight much against

it If you re ally love you S hould ove rlook th e Ob
.
,
n that it is your e mploy e r s daught e r who has

’
j e c ti o
conque re d and that you may hav e to b e ar th e burd e n

,
o f rich e s ; but i n th e l an d o f which I sp e ak it woul d

2 1 4 THE EMPIRE OF BUSINES S
have b e e n consid e re d dishonourabl e for a y oun g cl e rk
to make love to any young lady without th e pare nts ’
p e rmission .
Have you spoke n to my daught e r $ w as th e

$ ”
que stion T h e young man scarc e ly d e ign e d to re ply

.
to that .
Of cours e not .
N e ve r said a word or l e d h e r to su sp e ct in an y ,
way $ ”
$
Of cours e n o t .
We ll h e said I d o not se e why you should n ot ;

,
”
,
you ar e th e v e ry kind o f son in law I want if you can - -
w in my daught e r .
”
Ve ry strange but som e how o r oth e r th e young lad y

, ,
did not diff e r from papa ; h e was th e kind o f husband

sh e want e d Now that young man is a h appy busi
.
n e ss man to day -
ROMANCE IN BUSINESS
I have anoth e r story which happ e n e d in anoth e r
country Both th e fath e rs in law told m e th e se stori e s
.
- -
th e mse lve s and proud m e n th e y are and proud am I

, ,
o f th e ir fri e ndship You se e busin e ss is n o t all this

.
hard prosaic life that it is picture d It b e ars romanc e .
and se ntim e nt in it and th e gre at e r th e busin e ss th e , ,
more succ e ssful th e more use ful in m y e xp e ri e nc e

, , ,
th e re is found more romanc e and imagination T h e .
high e st triumphs e ve n in busin e ss flow from rom anc e ,

BUSINESS 2 1 5
se ntim e nt imagination particularly in th e busin e ss

, ,
o f a world wid e firm -

.
T h e oth e r story is so similar to th e first that succ e ss
ful t e lling is impossibl e You will all jump to th e con

.
c l usi o n and th e d e tails in th e s e cas e s ar e nothing

,
It .
is as wh e n I b e gan to t e ll my young n e ph e ws about th e

battle Of Bannockburn ; th e re we re th e English and ,
th e re stood th e Scotch .
$
Which w hipp e d uncle $ cri e d th e thre e at onc e
,
”
de tails unn e c e ssary But th ere was n o battl e in this

.
,
cas e I infe r it w as all s e ttle d by amicab l e arbitra

.
tion .
I shall n o t t e ll it at l e ngth as I did th e oth e r but it , ,
is pre cise ly th e sam e e xc e pt that th e young m an in

,
this oth e r cas e was not e mploye d e xc e pt in th e ordi

nary manne r T h e young man s s e rvic e s we re n e e d e d
.
’
and h e was e mploy e d He finally b e cam e privat e .
se cre tary to th e millionnaire and with e qually fat al ,
re sults In this case howe ve r th e fath e r aske d this

.
, ,
e x e mplary and abl e yo un g m an to look aft e r his sons
during his abse nc e This n e c e ssitat e d visits to th e

.
re sid e nc e at th e coun try house and sports and gam e s ,
with th e sons M y fri e.nd forgot h e had a daught e r ,
and h e should not have don e this Whe n you b e com e .
not only he ads o f busin e ss but h e ads o f famili e s you ,
Should make a not e of this and not think your sons ,
e v e rything T h e privat e s e cre tary who was r e qu e st e d

.
,
to att e nd to th e sons som e how o r oth e r g e tting his i n

, ,
2 16 THE EMP IRE OF B USINES S
s truc ti o n s ve rbally s e e ms to have und e rstood the m

,
as having a S lightly wid e r rang e Th e daught e r ap .
p ar e n tl y n e e d e d most o f his att e ntion But not e this .
The se two young m e n won th e confid e nc e and cap

tu r e d th e judgm e nt and admiration o f th e ir e mploy e rs
—busin e ss m e n —fi r st and th e n fe ll in love with th e
,
daught e rs You will be p e rfe ctly safe if you take

.
matt e rs in th e sam e ord e r o f pre c e d e nc e .
V ALUE OF A BUSINESS CAREER

P e rhaps I may be p e rmitt e d without going to o far
, ,
b e yond th e scop e of my t e xt to make a f e w re marks ,
upon th e influe nc e of a busin e ss care e r upon m e n as ,
compare d w ith oth e r pursuit s .
First th e n I have l e arn e d that th e artistic care e r is

, ,
most narrow ing and produc e s such p e tty j e alousie s

, ,
unbound e d vaniti e s and spit e fuln e ss as to furnish m e

, ,
w ith a gr e at contrast to that which I hav e found in
m e n of a ffairs Music painting sculpture on e would

.
‘
, , ,
think Should prove most powe r ful in th e ir be n e fi c e n t

,
e ff e cts upon thos e who labour with th e m as th e ir daily
vocation Expe ri e n c e howe ve r is against this Pe r

.
, , .
haps b e cause th e work o r th e p e rformanc e o f artists

, , ,
is so highly p e rsonal so cle arly s e e n b e ing brought

, ,
dire ctly b e fore th e public that p e tty passions are ,
stimulat e d ; howe ve r that may be I b e lie ve it w ill n o t ,
be controv e rt e d that th e artistic mind b e com e s pr e j u

dic e d and narrow But und e rstand I sp e ak only of
.
, ,
BUSINESS 2 1 7
class e s and o f th e ge n e ral e ffe ct ; e ve rywh e re w e find

e xc e ptions which r e nd e r th e av e rag e still mor e u n s ati s
factory In re gard to what are calle d th e l e arn e d

.
profe ssions w e notic e th e e ffe ct produc e d by sp e ciali

,
z ati o n in a v e r y mark e d d e gre e .
In th e minist e rial class this is n o t S O marke d in our

day b e cause l e ad e rs in that gre at function p ermit
,
th e mse lve s a wid e r range of subj e cts than e ve r b e fore ,
and ar e d e aling l e ss with cre e ds and formulas and more

and more with th e practical e v ils and shortcomings O f
hum an life in its various phas e s This naturally .
broad e ns th e mind It has b e e n h e ld that th e le gal

.
profe ssion must t e nd to make cle ar but narro w in , ,
te ll e c ts and it is point e d out that gr e at lawy e rs hav e

,
s e ldom aris e n to commanding position and powe r

ove r th e ir fe llows This do e s not m e an that m e n w h o
.
study law b e com e unsatisfactory l e gislators o r stat e s

m e n and rul e rs If it did o ur country of all oth e rs
.
, , ,
Should be in a bad w ay b e cause w e ar e gove rn e d by

,
law ye rs But th e most famous Am e ricans w h o have

.
b e e n gre at m e n w e re not gre at law ye rs ; that is th e y

, ,
hav e se ldom attain e d th e fore most rank in th e pro

f e s si o n but hav e avail e d th e ms e lv e s of th e in e stimabl e
,
advantage w hich th e study of l aw confe rs upon a stat e s

man and d e ve lop e d b e yond th e bounds of th e pro
,
f e s si o n .We ar e r e mind e d that th e gre at law y e r and

th e gre at judge must d e al w ith rul e s and pr e c e d e nts
alre ady e stablish e d ; th e lawy e r follows pre c e d e nts ,
but th e rule r of m e n mak e s p re c e d e nts .

MERCHAN S AND P RO F ESSIONAL MEN
T
Th et e nd e ncy of all profe ssions it would s e e m must

, ,
be to make what is know n as th e prof e ssional mind
cle ar but narrow Now what may be claim e d fo r

,
.
busin e ss as a care e r is that th e man in busin e ss is

c all e d upon to d e al w ith an e ve r changing varie ty o f-
que stions He must have an all round judgm e nt

.
-
base d upon know l e dge of many subj e cts It is n o t .
sufficie nt for th e gre at m e rchant and busin e ss man

o f our d ay that h e know his country w e ll its physical ,
conditions its re sourc e s statistics crops wat e rways

, , , , ,
its financ e s in S hort all conditions w hich aff e ct not

, ,
only th e pre s e nt but w hich give him data upon which

,
h e can pre dict with som e d e gr e e o f c e rt ainty th e

, ,
future .
T h e m e rchant w hos e O p e rations e xt e nd to various
countri e s m ust also know th e se countri e s and also th e ,
chie f things p e rtaining to th e m His vi e w m ust be

.
w orld — wid e ; nothing can happ e n of mom e nt which had

—
not its b e aring upon his action political complica
tions at Constantinopl e ; th e app e aranc e o f th e chol e ra
in th e East ; monsoon in India ; th e supply of gold at
Crippl e Cre e k ; th e app e aranc e o f th Colorado b e e tl e s e
or th e fall Of a min istry ; th e dange r of w ar ; th e like li

—
hood O f arbitration comp e lling s e ttl e m e nt nothing
can happ e n in any part o f th e world w hich h e has n o t
to consid e r He must poss e ss o n e of th e rare st qual
.
— —
itie s be an e xc e lle nt judge o f m e n h e oft e n e mploys
BUSINESS 2 1 9
thousands and knows h o w to b rin g th e b es t o ut o f

,
various charact e rs ; h e must h ave th e gift o f organi z a

— —
tion anoth e r rare gift m ust have e xe cutive ability ;
must be able to d e cid e promptly and wise ly .
N ow none o f the s e rar e qualiti e s are so ab solut e ly

,
e s s e nti al to th e sp e cialist in an bran h pro f ssion

y c o r e .
He follows a care e r th e re fore which t e nds n ot only

, ,
to sharp e n h i s Wits but to e nlarg e his pow e rs ; di ffe r

,
e n t also from any O

, , th e r care e r s that it t e nds n ot to ,
S pe cializ ation and th e working of th e mind within

narrow groo ve s but t e nds to d e ve lop in a m an capacity
,
to judg e upon wid e dat a NO pro fe s

. si on al l ife e m
brac e s S O many probl e ms n on e oth e r re quire s so wid e
,
a Vie w of aff airs in ge n e ral I thin k th e re fo re that

.
, ,
it may justly be said for th e busin e ss care e r that it

, ,
must w id e n and d e ve lo p th e int e lle ctual powe rs of its

d e vot e e
.
On th e oth e r hand th e profe ssional c are e r is i m

,
m e asurably nobl e r in this : that it has not for its chi e f

e n d th e ignoble aim o f m on e y makin g and i s fre e -
from th e grave st dange r which b e s e ts th e care e r o f

busin e ss w hich is in o n e s e nse th e m ost sordi d O f all
,
care e rs if e nt e re d upon in th e wrong Spirit T0 m ak e .
mone y is o doubt th e primary consid e ration w ith

n
most young m e n w h o e nt e r it I think if you will loo k .
into your h e arts you will find this to be tru e But .
while this may be th e first it shoul d not be th e last

,
consid e ration .
Th e re is th e gre at use which a man can p e rform in
d e ve loping th e re sourc e s o f his country ; in f urnishing
e mploym e nt to thousands ; in d e v e loping inv e ntions
w hich prov e of gr e at b e n e fit to th e rac e and he lp it ,
forward T h e succ e ssful m an o f affairs soon rise s

.
above th e m e re d e sire to make mon e y as th e chie f e n d

o f his labours ; that is sup e rs e d e d by thoughts o f th e
use s h e p e rf orms in th e lin e which I have just m e n

ti on e d . T h e m e rchant soon finds his stronge st fe e l
ing to be that of prid e n th e e xt e nt o f his int e rnational

'
op e rations ; in his Ships sailing e ve ry s e a T h e manu .
facture r finds in his e mploye e s and in his works in

, ,
machin e ry in improve m e nts in th e p e rfe ction o f his

, ,
factorie s and m e thods his chie f int e re st and re w ard .
T h e profitabl e r e turn th e y mak e is chi e fly acc e ptabl e
not b e caus e this i s m e re mon e y but b e cause it d e not e s

,
succ e ss .
The re is a romantic as w e ll as prosaic Sid e to busi

n e ss Th e young man who b e gins in a financial firm
.
and d e als with capital inve st e d in a hundre d diff e re nt

—
ways in bonds upon o ur railway syst e ms in mone y ,
l e nt to th e m e rchant and to th e manufacture r to e n

—
able th e m to work th e ir w ond e rs soon finds romanc e
in busin e ss and unlimit e d room for th e imagination .
He can furnish cre dit world wid e in its range

-
His .
Simp will carry th e trave lle r to th e farthe st

part o f th e e arth He may e ve n be o f s e rvic e to h is
.
country in a crisis as Richard Morris th e gre at m e r

, ,
BUSINESS 221
chant in Philad e lphia was to Ge n e ral Washington in

,
th e R e volutionary Caus e o r as in o ur o w n day o ur

, , ,
gre at banke rs have b e e n in providing gold to o ur

Gove rnm e nt at se ve ral crise s to ave rt calamity .
T HE V ANISHED REJ UDICE AGAINS RADE

P T T
If th e young man do e s n ot find romanc e in h is busi

n e ss it is n o t th e fault o f th e busin e ss but th e fault
, ,
o f th e youn g man . Consid e r th e wond e rs th e m ys ,
te ri e s conn e ct e d with th e re c e nt d e v e lopm e nts in that

—
m ost Spiritual o f all age nts e le ctricity with its un
—
kn own and p e rhaps e ve n ungue sse d o f powe rs He
, , , .
must be a dull and prosaic young man w h o b e ing c o n ,
n e c te d with e l e ctricity in any o f its forms is n o t lift e d

,
from humdrum busin e ss to th e re gion o f th e m yste ri

ous . Busin e ss is not all dollars ; th e se are but th e
—
sh e l l th e ke rn e l li e s within and is to be e njoye d lat e r ,
as th e highe r faculti e s o f th e busin e ss man so c o n ,
s tan tl y call e d into play d e v e lop and mature

,
Th e re .
w as in th e re ign o f militarism and barbarous forc e
much cont e mpt f or th e man e ngage d in trad e How .
compl e t e ly has all this change d $ But ind e e d th e , ,
fe e ling was of re c e nt origin f or if w e look furthe r back

,
w e find th e old e st fa m il e s in th e world proud o f noth

i
ing but th e part th e y playe d in busin e ss Th e wool

sack an d th e galle y still flourish in th e ir coat of —
.
arm s
—
-
.
—
On e o f th e most p e rhaps th e most i n fl ue n ti al stat e s
m an in England to day is th e Duk e o f D e vonshire
-
,
2 2 2 T HE EMPI RE OF BUSINESS
b e c aus e h e has th e confid e nce Of both parti e s He is .
th e pre sid e n t of th e Barrow St e e l Company Th e .
me mb e rs of th e pre se nt Conse rvative cabin e t we re

found to hold S ixty four dire ctorships in vari ous trad
-
ing m anufacturing and mining companie s In Brit

, ,
.
ai n to day n o t h ow to k e e p o ut o f trad e but how to

-
,
g e t in it is th e qu e
,
stion T h e Pr e sid e nt o
. f th e Fr e nch
Re public a m an with a m arv e llous care e r has b e e n a
, ,
busin e ss man al l his d ays Th e ol d fe e ling of ave r .
sion has e ntire ly gon e .
Yo u re m e mb e r that th e lat e E m p e ror o f Ge rmany

wi sh e d to make h i s fri e nd th e st e e l manuf actur e r , ,
Krupp a Princ e o f th e e mpire but that busin e ss m an

, ,
was too proud of h i s works an d th e son o f his fath e r , ,
and b e gge d th e E m p e ror to e xcuse him from d e grad

ing th e rank h e at pre se nt h e ld as King o f St e e l H e rr .
Krupp s son who has now succ e e d e d to his fath e r s

’
,
’
thron e I doubt not would make th e same re ply to

, ,
day At pre se nt h e is a monarch e qual to his Em

.
p e ro r and from
,
all I kno w o f th e young King Krupp ,
just as proud of his position .
T h e O ld pre judic e against trad e has gon e e v e n from
th e strongholds in Europ e This change has come .
b e cause trad e itse lf has change d In ol d days e ve ry .
branch o f busin e ss was conduct e d upon th e smalle st

re tail scale and small d e alings in sm all aff airs bre e d
,
Small m e n ; b e side s e very man had to be occupie d with

,
BUSINESS
th e d e t ails and ind e e d e ach m an manufacture d o r
, , ,
trad e d f or himse lf T h e high e r qualitie s o f organi z a

.
tion and o f e nt e rpris e of broad vie ws and o f e xe cutive

,
ability we re no t brought in to play In o ur day

, .
,
busin e ss in all branche s is conduct e d upon so gigantic

a scal e that partn e rs of a huge conc e rn are rule rs ove r
a domain Th e large e mploye r o f labour som e tim e s
.
has more m e n in his industrial army than th e p e tty

Ge rman kings had und e r the ir banne rs .
It was said of o l d that two o f a trad e n e ve r agre e ;

’
to day th e warm e st fri e ndships ar e form e d in e v e ry

-
d e partme nt o f human e ffort among thos e in th e sam e

busin e ss ; e ach visits th e oth e r s counting house ’
-
,
fac tory ware hous e ; and are show n th e diffe re nt

,
m e thods ; all th e improve m e nts ; n e w inv e ntio n s and ,
fre e ly adapt th e m to th e ir ow n busin e ss .
Affairs ar e n ow too gre at to bre e d p e tty j e alousi e s ,
and the re is n ow alli e d with th e d e sire for gain th e

d e sire f o r progre ss inve ntion improve d m e thods
, , ,
scie ntific d e ve lopme nt an d prid e o f succ e ss in th e s e

,
important matt e rs ; s o that th e d ivid e nd w hich th e

busin e ss man s e e ks and re c e ive s t o day is not alon e ,
in dollars He re c e ive s with th e dollar som e thing

.
b e tt e r a divid e nd in th e shap e o f satisfaction in b e ing

,
instrum e ntal in carrying forw ard to highe r stage s o f

d e ve lopm e nt th e busin e ss which h e m ake s h i s l i fe
work .
RE W ARDS OF A BUSINESS CAREER
I can confi d e ntly r e comm e nd to you th e b usin e ss
care e r as o n e in which the re is abundant room f o r th e
e x e rcis e of man s high e st pow e r and o f e ve ry goo d
’
quality in human nature I b e lie ve th e care e r o f th e

.
gre at m e rchant or banke r or captain o f industry to

, , ,
be favourabl e to th e d e v e lopm e nt o f th e powe rs o f th e

mind and to th e rip e ning o f th e judgme nt upon a wid e
,
range of ge ne ral subj e cts ; to fre e dom from pre judic e ,
and th e ke e ping o f an op e n mind And I d o know .
that p e rman e nt succ e ss is not obtainabl e e xc e pt by

fair and honourabl e d e aling by irre proachabl e habit s ,
an d corr e ct living by th e display o f good s e ns e and

,
rare judgm e nt in all th e re lations o f human life f o r ,
cre dit and confid e nc e fly from th e busin e ss man fool ,
i sh in word and d e e d o r irre gular in habits o r e v e n

, ,
susp e ct e d o f sharp practic e Th e re may be room for

.
—
a foolish man in e ve ry profe ssion foolish as a child
b e yond th e range o f his sp e cialty and ye t succ e ssful ,
—
in that but no man e ve r saw a foolish busin e ss m an
succ e ssful If without sound all round judgm e nt
.
,
-
,
h e must fail .
Th e busin e ss care e r is thus a st e rn school o f all th e
virtue s and the re i s o n e supre m e re ward which it oft e n

,
yi e lds which no othe r care e r can promis e ; I poin t to

n obl e b e n e factions which it r e nd e rs possibl e I t is to .
busin e ss m e n following busin e ss care e rs that w e chie fly

ow e o ur univ e rsiti e s coll e ge s li brarie s and e duca
, , ,
BUSINESS 22 5
ti on al i nstitut ions as witn e ss Girard Le high Chicago

, , , ,
Harvard Yal e Corn e ll and many oth e rs

, , , .
What monum e nt can a man l e av e b e hind him pro

d uc ti v e o f S O much good and so c e rtain to hand his
,
name down to succ e e ding ge n e ration s hallowe d with ,
th e bl e ssings of thousands in e ach d e cad e w h o hav e
within its walls re c e ive d that most pre cious poss e s

sion a sound an d lib e ral e ducation Th e se ar e th e
,
$
works o f m e n who re cogni z e d that surplus we alth was

a sacre d trust to be administ e re d during th e life o f
,
its posse ssor f or th e high e st good o f his fe llows .
If th e n som e busin e ss m e n may fall subj e ct to th e

, ,
re proach o f grasping w e can justly claim for th e m as a

,
class w hat hon e st Thomas Cromwe ll claim e d for th e

gre at cardinal and say : If th e y have a gre e d o f
,
$
ge ttin g ye t in b e stowing th e y are most princ e ly as

, ,
witn e ss the se se ats o f le arning .

”
Ste e l Man u f ac tu re in th e Un i te d
State s in th e N i n e te e n th
Ce n tu ry
S om e r e as o n s wit d St t
h y th e Un e a es h as bc
e om e th e
g t t t p duci g c u t y
re a e s s e e l- ro n o n r i n th e w o rl d Co m
c t t i d uf ctu
.
p ar ati v e os s of r aw m a e r al an m an a re of
t l i t h i c u t y d br d
s ee n s o n r an a oa .
ST E E L MAN U FA C T U R E IN T HE
U N IT E D ST AT E S IN T HE
N IN E T E E N T H C E N T U RY
writ e o f th e manufacture o f st e e l in th e
0
Unit e d Stat e s during th e last c e ntury is in
d e e d to b e gin at th e b e ginning From Mr Swank s
$
’
. .
standard work Iron in All Age s w e l e arn that th e

, ,
Le gislature o f P e nnsylvania as lat e as 78 6 l e nt Mr 1 .
Humphre ys £ 300 f o r fi v e y e ars to e nabl e him to try

to make bar iron into st e e l as good as in England $
.
As lat e as 8 0 th e re w e re produced in th e whol e

1 1
country only 9 7 tons o f st e e l P e nnsylvania s share

1 ,
’
b e ing 53 tons o r more than half o f th e whol e It is

1 , .
r e markabl e that th e good o l d Ke yston e Stat e still

make s about th e sam e p e rc e ntage Eve n in 8 3 . 1 1
th e production o f st e e l was only tons an amoun t ,
w hi c h was said th e n to e qual th e w hol e amount i m
port e d so that th e marke t for st e e l w as divid e d e qually

,
w ith th e for e ign e r s e v e nty y e ars ago But this st e e l .
was mad e chie fly by c e m e ntation ; crucibl e st e e l was

to com e lat e r From 8 3 until as lat e as 8 6 0 littl e
. 1 1 1
progre ss was mad e in d e ve loping th e manufacture o f

st e e l for th e total product in P e nnsylvania in 8 50
,
1
Fro m th vi f
Re ew o th e Ce n tu y u b
r n m er of th e Ne w Yo r k
J u y
e
E ve n i n g P os t, an ar 1 2 ,
1 9 0 1
2 2 9
was only tons still principally blist e r ste e l In
, .
1 8 4 0 Isaac Jon e s and William Col e man b e gan its man
u f ac tu r e in Pittsburg and succ e e d e d In 1 8 53 Singe r

.
,
Nimick Co produc e d succ e ssfully th e usual gr ad e s

.
o f cast st e e l f or saws machin e ry e tc

, and for kindre d
, .
,
purpose s Huss e y We lls Co in 8 6 0 mad e out o f

, . 1
Am e rican iron crucibl e st e e l of first quality as a re gular

product and in 8 6 cam e Park B rdth e r
u
with
‘
,
1 2
th e bigge st crucibl e s t e e l plant o f all up to that tim e ,
and s e ve ral hundre d English workm e n we re import e d

to insure succ e ss This firm also use d Am e rican
.
iron All th e s e conc e rns we re in Pittsburg

. .
H e nc e forth th e struggle with fore ign st e e l b e cam e

se ve re until th e invade r was finally drive n from th e
fi e ld At first Europ e an make rs could dump th e ir
.
$
surplus upon th e marke t and forc e Am e rican make rs

to acc e pt f or th e ir e ntire output th e e xtre m e l ow rat e s
w hich had only to be t ak e n by th e invad e r f o r a small
part o f his Th e party in control o f a profitabl e

.
home marke t can most succ e ssfully invad e th e fore ign

marke ts In r e c e nt y e ars it is th e Am e rican
.
manuf acture r who is dumping his surplus in ”
fore ign t e rritory First conqu e r your hom e mar

.
k e t and th e fore ign mark e t will probably be add e d
to yo u is th e rul e w ith m anufacture s in int e rnational

trad e .
As I writ e o f Col e man Jon e s Nimick Singe r Hus

, , , ,
s e y and Park I am carri e d back to boyhood wh e n as

, ,
STEEL MANUFACT UR E IN THE U S . . 2 31
a m e ss e nge r boy in th e t e l e graph o ffic e in Pittsburg

I d e live re d to the m many a t e le gram and re c e ive d
cove t e d re cognition from th e s e gre at m en o f my youth .
Eve ry o n e pass e d b e fore my e ye s as I wrot e h is nam e

as vividly as if I we re still in daily int e rcourse with
him We re th e y in th e n e xt room and to sp e ak I
.
could te ll e ach voic e b e fore th e word was e nd e d All .
ar e gon e e xc e pt th e younge r broth e r Sing e r still my

,
partn e r and frie nd Th e se are th e fath e rs of st e e l in th e

.
Unit e d Stat e s Th e y have don e th e Stat e som e

.
$
s e rvice. P e ac e to th e ir ash e s
It was n ot till 8 6 4 wh e n th e last c e ntury was
1 ,
almost two thirds gon e

-
that th e re volution in st e e l
,
manufacture cam e to u s and th e Iron Age b e gan to

give way to th e n e w King St e e l for o ur first B e ss e me r
,
st e e l was mad e in that notabl e y e ar and st e e l hith e rto

,
costing from six to s e ve n c e nts pe r pound for ordinary

grad e s has sinc e sold at l e ss than o n e c e nt p e r pound ,
whil e st e e l bill e ts by th e hundre d thousand tons have

s old at thre e pounds o f st e e l for tw o c e nts Into
$ ”
.
this st e e l for e ach poun d e nt e r two pounds of iron o re

min e d and transport e d by rail and wat e r mil e s ,
o n e pound of cok e r e quiring o n e and o n e third pounds

,
-
o f coal to be min e d coke d and transport e d 50 m il e s

, ,
'
and on e third o f a pound o f lime ston e quarri e d and

-
transport e d 4 0 mile s ; so that thre e and a third poun ds

1
o f raw mat e rial hav e b e e n mad e into o n e pound o f
st e e l and give n to th e consum e r f or tw o thirds o f on e

-
T HE EMPIRE OF BUSINESS
c e nt thre e pounds f o r two c e nts b e ing $ 5 for
,
1
—
‘
pounds th e gro ss ton .
We re th e writ e r to be aske d how th i s m iracl e is pe r

forme d h e could n o t t e ll for n e ve r can h e disp e l th e
,
doubt w h e n h e thinks of it that th e re must be some

, ,
mistake and that th e conc e rn w hich b e stow s this pre

,
c i o u s m e tal upon an ungrat e ful p e opl e f o r such a

trifle must soon go to th e wall So ind e e d it would .
, ,
if this e xtre me ly low pric e had to be take n f o r any

l e ngth o f time o r for all forms o f st e e l The re is not .
su fficie nt profit to cove r th e risks o f busin e ss in thre e

pounds o f st e e l for tw o c e nts Still som e o f th e larg
.
,
e st conc e rn s o f th e Unit e d Stat e s which o w n all th e ir ,
raw mat e rials an d th e ir o w n Ships and railways and

ar e prop e rly e quipp e d and manage d might r e ach this ,
as th e ir cost pric e allowing nothing for divid e nds or

,
for int e re st upon th e capital inve ste d Int e re st ap .
a h e s t o dollars p e r ton and in most cas e s e xc e e ds

p r o c w
it Th e risks of manufacturing accid e nts and r e ne wals

.
, ,
and of sal e s should be rat e d at two dollars pe r to n .
This low cost w as mad e possibl e by th e i nve ntion of

Sir H e nry B e ss e m e r B e sse m e r st e e l was e nthron e d
.
as king and no monarch s e e me d so sure o f a long and

,
undisput e d re ign supple m e nt e d as th e B e sse me r pro

,
c e ss was by th e inve ntion of a young ge nius my fri e nd ,
Sidn e y Gilchrist Th omas who add e d th e basic pro,
c e ss by w hich impure ore s could be use d in th e m an u

,
facture o f B e ss e me r st e e l .
STEEL MA NUFACT UR E IN THE U S . . 2
33
Various contributory caus e s have mad e st e e l bill e ts

at $ 5 a ton po ssible among which auto m atic ma
1 ,
chin e ry ranks first and in this th e Ame rican e xc e ls ;

,
continuous proc e ss e s co m e s e cond Workshops .
and fe e t long ar e b e coming common in which ,
th e raw mat e rial e nt e rs at o n e e n d and e m e rg e s fi n
i sh e d a t th e oth e r without handling and oft e n with ,
o u t e v e n stopping e xc e pt for r e h e at i ng T h e writ e r .
h e ars o f plans to day for n e w works upon such a scal e

-
that a m il e an d a quart e r o f land is re quire d o n e shop

‘
alone b e ing fe e t in l e ngth On e e ss e ntial f o r .
che ap production is magnitud e Conc e rns making .
o n e thousand tons o f st e e l p e r day hav e littl e chanc e
against o n e making te n We se e this law in all d e .
p ar tm e n ts o f in dustry It e volv e s th e
. tw e nty
thousand ton st e amship and th e fi f ty to n railroad
- -
car Improve d e ngin e s and th e use o f e l e ctricity as

.
a motor th e n e w loading and unloading machine ry

, ,
ar e all contributory c a use s to th e ch e ap e n i ng of st e e l .
Th e re is o n e e l e m e nt o f cost howe ve r , w hich e ve ry

,
stud e nt o f sociology w ill re joic e to know has n ot b e e n

ch e ap e ne d and that is human labour It has ris e n
,
.
and th e t e nd e ncy is to highe r e arnings pe r man In .
o n e o f th e larg e st st e e l works last y e ar th e av e rag e
wage s pe r man including all t e paid by ,

h th e Ld ay - -
laboure rs boys and m e chanics e xc e e d e d 84 pe r day

, , ,
for 3 days F e we r m e n b e ing re quire d th e labour

1 1 .
cos t pe r ton is l e ss and contrary to th e o pinion ofte n

,
2
34 T HE EMPIR E 01
f BUSINESS
e xpre sse d the se m e n ar e o f high e r quality than e ve r
as m e n It i s a m i stake to suppose that m e n are be
. .
coming m e re m achin e s ; th e w p rkm an o f form e r days

.
would be unable to take charge o f th e complicate d

machin e ry o f to — day or to me e t th e d e mands made
by pre s e nt m e thods up on h is brain and al e rtn e ss .
Five y e ars ago had one aske d th e st e e lmake rs o f

,
th e country W h e th e r th e r e was any lik e lihood o f th e
B e sse m e r proc e ss b e ing rivall e d not o n e in a thousand

,
would have h e sitat e d to re ply w ith an e mphatic n e ve r

But th e on e in a thousand conve rsan t with re c e nt
,
e xp e rim e nts would have b e e n l e ss e mphatic and

,
would have int imat e d that p e rhaps e ve n th e B e ss e

m e r proc e ss m ight not r e main without a rival .
Th e m e rits o f th e Si e m e ns Martin op e n h e arth fur

- - ,
nac e had b e e n not e d by at l ast o n e firm w hos e r e pr e

e
s e n tati v e had s e e n it at w ork abroad T o Coo pe r .

,
H e witt Co is du e th e cre dit of having b e e n th e first

.
to e xp e rim e nt with it in th e United Stat e s This w as in .
1 86 8 . Th e cost o f op e n h e arth st e e l w as n e c e ssaril y

-
gre at e r than that o f B e sse m e r and so was re stricte d

,
to f e w us e s but a n e w plant w as n e e de d o n a large

,
scal e to plac e th e n e w proc e ss se cure ly upon its fe e t

as a rival to th e B e ss e m e r re ady to b e n e fit by th e
,
num e rous improve m e nts w hich cl e ve r m e n would

m ake in th e course o f de ve lopme nt Th e Thomas .
basic proc e ss was found to be re markably w e ll adapte d

to th e op e n h e arth furnac e
-
T h e first basic op e n
.
STEEL MANUFACTURE IN T HE U s . . 2 35
h e arth st e e l in this country was mad e by th e firm o f

Carn e gi e Phipps
, Co Limit e d at Hom e st e ad in .
, , ,
1 88 8 . The re are now two kinds o f st e e l mad e in th e

op e n h e arth th e acid and th e basic th e latt e r much
, ,
ch e ap e r than th e form e r though e ve n pure r Sinc e th e , ,
basic p roc e ss e liminat e s impuritie s thoroughly Basic .
op e n h e arth st e e l is now use d as a substitut e for

-
S w e dish iron in many instanc e s e ve n fo r hors e sho e s , .
Armour is mad e of it T h e E ast Rive r bridge is to be

.
,
built o f acid st e e l for which a high e r pric e is to be

,
paid but this is sol e ly b e caus e its e ngin e e r is n ot op e n

,
to d e monstration Th e gre at advantage to th e Unit e d

.
Stat e s o f th e basic op e n h e arth proc e ss is that o ur -
e normous d e posits of iron or e s high in phosphorus
can be us e d for st e e l w hile th e B e ss e m e r pr o c e ss n

,
l
i
Am e rican practic e re quire s ore s comparative ly fre e

from phosphorus th e supply of w hich i s limit e d T h e
, .
production of op e n h e arth st e e l is rapidly incre asing

-
.
Thus th e age of iron which passe d aw ay during th e ,
last c e ntury was succ e e d e d by th e age o f B e ss e me r

,
ste e l which e njoye d a —re ign o f only thirty six y e ars

,
-
,
b e ginning as it did in 8 6 4 and is in turn now passing

, ,
1 ,
away to be succ e e d e d by th e age o f Si e m e ns op e n

h e arth st e e l Alre ady th e product of th e op e n h e arth
.
-
is far b e yond that o f B e ss e m e r in Britain and such ,
th e w rit e r v e ntur e s to pr e dict will soon be th e cas e in
th e Unit e d Stat e s .
T h e passing away of th e B e ss e m e r age has brought

2 36 T HE EM P IRE OF BUSINESS
th e S o uth
‘
into promin e nc e as a possibl e manufacture r

o f st e e l w h e n oth e rwis e it n e v e r w ould hav e b e e n in
,
th e fi e ld its ore s b e ing unsuitabl e for th e B e ss e m e r

,
proc e ss but probably soon to be prove d to be adapt e d

,
to th e op e n h e arth proc e ss
-
Until th e n e w st e e l w orks
.
o f th e T e nn e ss e e Company hav e b e e n fully start e d
and run for som e time it cannot be compl e t e ly d e mon

s tr ate d wh e th e r st e e l can be mad e th e r e ch e ap e nough
to make th e South a gre at c e ntre for its manufacture .
T h e e xp e rim e ntal stage has not y e t b e e n cl e arly
pass e d sinc e only part o f th e plant h as b e e n op e rat e d

, ,
but th e re s e e ms littl e re ason to doubt that any d iffi

c u l ti e s w hich may be m e t w ill finally be ov e rcom e and
that th e South is soon to b e com e an important factor

in st e e l manufacture .
T h e pre s e nt c e ntr e of st e e l is in th e squar e mad e
by a lin e dra n from Pittsburg to Wh e e ling north

w ,
ward to Lorain e astw ard to Cl e ve land and south

, ,
again to Pitt sburg In this t e rritory most o f th e

.
st e e l is mad e Alle gh e ny county alon e including

.
,
Pittsburg produc e d in 8 99 n e arly o n e quart e r o f

, 1 -
all th e pig iron mad e in th e Unit e d Stat e s almost half ,
o f th e op e n h e arth st e e l-
and almost 39 pe r c e nt o f
,
.
th e total production o f all kinds o f st e e l As far as .
th e writ e r s e e s th e re is littl e chanc e o f this re gion
b e ing soon displac e d Colorado will no doubt e x .

, ,
pand as th e We st e rn coast is d e ve lop e d Chicago s .

’
position as a st e e l manufacture r is assure d The re .

STEEL MANUFACTURE IN T HE U S . . 2 37
is n o sign of th e gre at Southw e st making st e e l to an y

e xt e nt .AS lat e as th e middl e o f th e last c e ntury th e
Easte rn Stat e s upon th e Atlantic c onstitut e d th e
home of st e e l manufacture Eve n in P e nnsylvania .
about on e half o f all its st e e l was mad e e ast of th e

-
All e ghany mountains Sinc e th e n th e tre nd has b e e n

.
constant and rapid to th e re gion known as th e C e ntral

W e st which has P ittsburg as its m e tropolis T h e
, .
transfe r o f th e gre at Lackawanna Iron and St e e l

Works o f Scranton Pa to Buff alo an d th e spl e ndid
, .
, ,
triumphs o f th e B e thl e h e m St e e l Co m pany in P e nn ,
sylvania in armour guns and forgings as sp e cialtie s

, , , ,
which gav e it a uniqu e and commanding position are ,
proofs that for th e making of ordinary st e e l th e East is

n o t a favourabl e location T h e history o f th e st e e l
.
works at Troy is anothe r cas e in point Th e re is on e .
e xc e ption to this m arch w e stward at Harrisburg in , ,
East e rn P ennsylvania w hich re mains a prosp e rous

,
and important c e ntre o f manufacture T h e Maryland .
St e e l Company at tid e wat e r has advantage s for e x

-
port but probably more important f or th e future o f

,
that company i s its d e ve lopm e nt in shipbuilding for ,
which its plant is we ll locat e d So far as th e writ e r .
s e e s th e re is nothing to change th e c e ntre of st e e l -
m anufacture in this country in th e n e w c e ntury ; it is

in th e C e ntral We st alre ady d e scrib e d and th e re it is ,
lik e ly to re main .
In that c e ntre itse lf th e re are caus e s at work which

may l e ad to some important change s Th e w ond e r .
ful growth of th e lake citi e s o n th e north e rn bord e r

o f th e C e ntral W e s t r e g i o n is S ho w n by th e r e c e nt
'
c e nsus Th e se posse ss th e advantage s o f th e e

. x
tr e m e l y low cost o f lak e transportation and by th e
We lland Canal by which ve ss e ls of consid e rable to n

,
nage can load at Conn e aut and oth e r lake ports dire ct '
for Europ e and above all th e low rat e s which th e Eri e

,
Canal insure s manufacture s for more than half th e

y e ar Th e se are attracting att e ntion e sp e cially sinc e
.
,
an e ffort is b e ing mad e to w e ld th e trunk railway lin e s

into o n e dire ctorat e to e nabl e th e m to e xact high e r
rat e s of fre ight w h e n low e r pric e s for s e rvic e o r articl e s
s e e m to be th e pr vailing law T h e s e l e ction of
e .
B uffalo by th e Lackaw anna Iron an d St e e l Company

for its n e w works is e vid e nc e o f a move m e nt to th e
lake s T h e policy of th e railroad combination will
.
in e vitably op e rat e in favor o f th e south e rn ports and

to th e ad vantage of Ne w York Th e diffe re ntial o f
.
0
3 p . e r hundr e d in favor o f Baltimor e and c in favor
2 .
o f Philad e lphia ov e r Ne w York c e rtainly m e ans that

th e tra ffi c will continu e to s e e k th e s e ports and that ,
Ne w York s p e rc e ntage o f th e shipping trad e will

’
st e adily fall as it has b e e n doing It is n o t to be sup

, .
pose d howe ve r that th e City and Stat e of Ne w York

, ,
will fail to prot e ct th e ir position by improving th e

we apon which Ne w York Stat e alon e of all th e Stat e s
h as in h e r wat e rway from th e lak e s to th e port o f Ne w
STEEL MANUFACTURE IN T HE U S . . 2 39
York T h e writ e r take s this for grant e d and c on se

.
,
que ntly pre dicts a gre at d e ve lopm e nt in st e e l manu

facture in that part o f th e C e ntral We st lying along
th e south e rn bord e r o f La k e Eri e wh i ch will inur e to
,
th e b e n e fit o f Ne w York as b e ing th e port which m ay
be re ach e d ch e ap e st from th e Ce ntral W e st by wat e r .
On e o f th e fe atur e s of th e n e w c e ntury is to be a
r e turn to wat e r transport for h e avy m at e r i als Lak e .
ships of tons burd e n alre ady e xist Barge s .
will ply upon th e Ohio rive r Soon to be Sl ackw ate re d

, ,
and upon th e e nlarge d Eri e Canal an d also upon th e ,

-
canal from Chicago to th e Mississippi an d m any oth e r ,
wat e rways will be op e n e d upon which th e raw mat e rials

for st e e l and th e finish e d article itse lf ar e to be carri e d
for manufacture s at rat e s alre ady re ach e d upon th e
lake s o n e third and oft e n o n e fourth thos e charge d
,
- -
by rail .
It is scar c e ly within th e bounds o f b e li e f that any

ch e ap e r or b e tt e r proc e ss of making st e e l re mains to
be discov e r e d or that improv e m e nts upon pr e s e nt
,
m e thods can possibly be such as to gre atly re duc e th e

cost and e nabl e st e e l to be mad e without loss at l e ss
than 3 pounds for c e nts T h e twe nti e th c e ntury
2 . ,
with all its wond e rs y e t to be re ve al e d will probably ,
e n d with th e manufactur e of st e e l substantiall y as it
is n ow by th e op e n h e arth Th e re do e s not s e e m
,
.
room f or much improv e m e nt .
T h e last f e w y e ars hav e witn e ss e d th e e x po rt o f

2 40 T HE EMPIRE oF BUSINESS
st e e l from our country to oth e r lands T h e re public .
has not o nly supplie d its ow n wants but is comp e ting

to supply th e wants of th e w orld not only in st e e l but
,
in th e thousand and o n e articl e s of which st e e l is th e

chie f compon e nt part Th e ch e apne ss with which
.
st e e l is mad e is multiplying its use s to such an e xt e nt

that e stimat e s mad e o f th e possibl e wants o f th e world
in th e future can only be th e m e re st gue ss e s On e .
illustration o u t of many that could be giv e n is that

thre e y e ars ago th e re w as not a ton o f st e e l us e d for
railway fre ight cars in this country ; to day a thou -
sand tons o f st e e l p e r day are use d f or that purpose

alone ; ind e e d s o rapidly is th e u se o f st e e l e xt e nding
,
that it is difficult to se e how th e world s d e mands can ’
be fill e d . At pre se nt th e min e s o f ironston e and o f

coking coal in Britain ar e worke d to th e ir full e st ca
p a c i ty
,
and y e t th e output is not gr e atly incr e as e d ;
it is th e sam e with those of Ge rmany e xc e pt that ,
in th e latt e r Country th e re re main som e infe rior fi e lds

capable o f d e ve lopme nt if pric e s rise as i s probable, .
Russia so far has not b e e n much o f a factor in st e e l

making ; if sh e is abl e to supply h e r o w n wants by
th e middl e o f th e c e ntury sh e will be doing w e ll Ex .
c e pt by th e Unit e d Stat e s Gre at Britain and Ge r

, ,
many littl e st e e l is mad e nor is any oth e r country

,
like ly to make much Th e hop e s in re gard to Chin a

.
an d Japan making st e e l ,
th e writ e r b e li e v e s ar e to ,
d l u i G at B it ai a n d Ge rman
p r o ve e s v.e re r n y c a n
STEEL MANUFACTURE IN T HE U s . . 2 41
n ot manufacture much b e yond what th e y do now ,
so that th e incr e as e d wants o f th e world can be m e t
only by th e Unit e d Stat e s Th e known supply o f

.
suitabl e ironston e h e re is suffici e nt to m e e t all possi

bl e d e mands of th e world for at l e ast half of th e pre s e nt
c e ntury ; in th e cas e of coke for th e e ntire c e ntury .
It is no t to be suppos e d that oth e r d e posits will not

be discov e r e d b e for e known suppli e s ar e e xhaust e d .
A f e w y e ars h e nc e th e e xports o f iron and st e e l

and manufacture s o f iron and st e e l from th e re public
to many parts of th e world which in 900 we re value d
,
1
at promise to be so gre at as to consti

tut e anothe r chapt e r in th e re cord bre aking history
-
o f st e e l
.
T h e influ e nc e o f o ur st e e l making capacity upo n

-
d e ve lopm e nt at hom e must be marve llous for th e ,
nation that mak e s th e ch e ap e st st e e l has th e othe r

nations at its fe e t so far as manufacturing in most o f
its branch e s is conc e rn e d T h e ch e ap e st st e e l m e ans
.
th e ch e ap e st ships th e ch e ap e st machin e ry th e ch e ap
, ,
e st thousand and o n e articl e s of which st e e l is th e
bas e We ar e on th e e v e o f a d e ve lopm e nt of th e
.
manufacturing powe rs o f th e re public such as th e

world has n e ve r s e e n .
T h e r e public s progre ss and commanding position

’
as a st e e l —produc e r ar e told in a f e w words : In 8 73 1 ,
o nly tw e nty s e v e n y e ars ago

-
th e Unit e d Stat e s p ro
,
duce d t on s of st e e l an d Great Brit ain h er

, ,
chi e f comp e titor ,
tons more than thre e tim e s ,
as much Twe nty Si ye ars lat e r in 8 99 th e re

.
-
x ,
1 ,
public mad e more than tw ic e as much as th e mon

archy th e figure s b e ing
,
and
tons re sp e ctive ly an e ight fold incre as e for Gre at
,
-
Britain and fi f ty thre e fold for th e re public and it

- -
,
mad e almost 4 pe r c e nt of all th e st e e l mad e in th

0 . e
world which w as
,
tons Industrial his .
tory has nothing to show comparabl e to this .
So much for th e past ; as for th e future e re th e ,
pre s e nt c e ntury runs o n e third its course p e rchanc e

-
,
only o n e fourth th e Unit e d Stat s is to mak more

-
e e
st e e l than all th e r e st of th e w orld combin e d and

supply th e wants of many lands b e sid e s o u r ow n .
Fare w e ll th e n Age of Iron ; all hail King St e e l

, , , ,
and succ e ss to th e re public th e future s e at and c e ntre

,
o f his e mpir e w h e r e h e is to
,
Sit e nthron e d and work
his wond e rs upon th e e arth .
T h e Co s t o f Li v i n g in Bri tai n
co m p ar e d w i th th e
Un i te d State s
c t os s of th e ne c iti f if
e ss es o l e g
i n E n l an d an d
A ic Wh
m er a y th e A ic m er an c an en jy
o lu xu i
r es
t t d id gi h
.
h a ar e en e th e En l s m an .
T HE C O ST O F L IV IN G IN B R IT A IN
C O MPA R E D W IT H T HE
U N IT E D ST A T ES
F aske d upon what subj e ct th e ge n e ral opinion o f

Britons w as farth e st astray re garding th e Unit e d
State s o n e w ould not be far w rong in answ e ring As to
, ,
th e comparativ e cost of liv i ng in th e o l d land and in
th e new .
It will probably prov e a w ork of tim e and o f some

difficulty to re move an impre ssion so ge n e rally e nt e r
tai n e d as that which finds e xpre ssion in th e words
re c e ntly spok e n by a high English authority viz — .

,
that th e Unit e d Stat e s would be a p e rfe ct El Dorado

$
for th e workingman if it we re not for th e high cost of

,
living .
”
It is e asy to Show how this impre ssion has arise n .
T h e Briton arriv e s in Ne w York and hir e s a carriage ,
which has b e e n waiting for th e st e am e r s e v e ral hours ;

h e is charge d an e xorbitant pric e ; h e ord e rs a bottl e
o f import e d win e and finds it much d e are r than at

,
home ; h e le arns that th e cost of clothing mad e to

ord e r from import e d mat e rial is also much d e are r :
and th e s e things strike him d e e ply b e caus e th e y are ,
th e first impr e ssions r e c e iv e d Wh e n aske d u pon h is

.
F ro m T h C t m p e y R
on e i S
or ar p t m b
ev ew 8,94 e e er, 1
2 45
2 46 T HE EMPIRE OF B USINESS
re turn upon w hat d ata h e has re ache d th e conclusion
that th e cost of livi g is d are r in th e Unit e d Stat e s n e
than at hom e h e invariably giv e s th e s e thre e it e ms

, ,
an d stops th e r e But th e s e do not constitut e th e chie f

.
sourc e s of e xp e n d iture e ve n to trave lle rs much le ss ,
to r sid e nts Ask d h o h e found th e cost o f living

e . e w
at hot e ls h e re m e mb e rs that it costs l e ss in th e Re

,
public h re th e charge in th e b e st hot e ls is from

,
w e
fourt e e n to e ight e e n Shillings ( S to p e r day ,
th e latt e r b e ing th e e xtr e m e rat e In Ne York For w .
this h e has a comfortabl e room and all m e als—bre ak 4
fast lunch e on dinn e r and supp e r He also re m e m

, , .
b e rs that h e could scarc e ly have such a d inn e r at th e

M e tropol e in Lon d on for th e e ntire e ight e e n shillings
w hich pay f o r all me als and a room at a
good hote l in Ne w York Aske d how h e foun d .
th e cost of trav e lling h e figure s a littl e and finds that ,
it is just a littl e more than o e — half fi r st class e ve n n ,

-
,
including Sl e e ping cars Th e ch e ap e r cost of railw ay .
trave l pe r mile a d of hot e ls is not n e arly offs e t by

,
n ,
th e xtra cost of cabs and fore ign w in e s

e T h e visitor .
buys no clothing and if wise w ill follow th e Am e rican

,
e xampl e and u s e th e hot e l omnibus e s or e l e ctric cars ,
and rare ly if e ve r u s e cabs w hich ar e not an Am e rican

, , ,
institution If th visitor w ish e s ho w e ve r to hire

. e , ,
a carriag a d pair by th e d ay w e e k or month o r for

e n , , ,
th e atre or re c e ption h e is provide d in Ne w York at ,
pric e s not b e yond thos e charge d i n Lon don forty —

THE COST OF LIVING IN BRITAI N 2 47
to fifty pounds to $ 50) pe r month according 2 ,
to circumstanc e s and tw e lv e shillings p e r ,
night for a brougham ; for an aft e rnoon in th e park

th e charg e for a carriage and pair is e v e n l e ss in Ne w
York It is undoubt e dly a fact that th e cost o f trav e l

.
,,
includi ng all n e c e ssary e xp e nditure s pe r day ove r ,
e qual distanc e s is much d e are r in Britain than in ,
Am e rica But this fact aff e cts only th e f e w trav e lle rs

.
,
usually p e rsons of m e ans and is o f littl e mom e nt , .
T h e gre at point is as to th e comparativ e cost o f living ,
to th e mass of p e opl e th e wage — e ar ning class of th e ,
two countri e s .
Le t us calmly consid e r this Th e incom e o f th e .
mass o f workingm e n Skill e d and unskill e d is from , ,
£6 0 to £ st e rling ( 300 to 6 0 dollars ) pe r y e ar

1 2 0 0 .
No w w e must first l e arn th e p e rc e ntage of th e s e e arn

ings sp e nt for e ach o f th e principal n e c e ssari e s of life .
According to the Bure au o f Labor statistics of Massa

c h u s e tts th e high st autho r i ty th e s e in England and
,
e ,
Am rica ar e as follo s
e w
I n co m e , $ 300 to $ 450 pe r y e ar . I nc om e , $ 450 to $ 6 00 pe r y e ar .
It m e s. Am e ri can . E n g l i sh . It m e s . Am e ri ca n . E n g l is h .
O O O O O O O O O O O O O O O O
0 0 0 0 0 0 0 0 0 0 0 0
This Shows th e incre ase d cost of articl e s in Britain
to be 1 0 1
p
-
e r
2 Ce nt But pric e s.in th e Unit e d Stat e s
have falle n sinc e this tabl e was mad e much more than ,
in Britain In Charl e s Booth s valuabl e work Labour

.
’
,
$
an d Life of th e P e opl e ( British ) h e giv e s th e a m ount

,
sp e nt for food alon e as from 6 to 5 pe r c e nt ac 0 0 .

,
cording to th e family re v e nue s In th e broad e r t e rm.
$
subsist e nc e not only food but all that e nt e rs th e
,
”
mouth is e mbrac e d Thus subsist e nc e is th e chi e f

.
”
it e m of cost for th e workingman s family It range s ’

.
from 6 4 pe r c e nt in Am e rica to 8 in England T h e

. 1 .
re ason for this diffe re nc e is obvious Of course all .

,
food is ch e ap e r in th e Unit e d Stat e s than in Britain .
Th e form e r e xports it to th e latt e r Tobacco is v e ry .
much ch e ap e r Am e rica grow s tobacco and only taxe s

.
,
it 3d ( 6 c e nts ) p e r pound as against a 35 6 d ( 8 4

, . .
—
c e nts ) tax in th e Monarchy fourt e e n tim e s as gre at .
Of cours e what h e drinks is ch e ap e r Th e duty o n

, .
whisky is d ( 4 0 c e nts ) p e r gallon as against 5

'
zo .
, 1 1 .
— S i x tim e s gr e at e r— i n Britain and it is mad e ,
more ch e aply in K e ntucky than in Ire land o r Scot

land Upon b e e r th e taxation is 45 and 7s ( 96 c e nts
. . .
and re sp e ctive ly p e r barr e l T e a and coff e e are

.
fre e o f duty to th e Am e rican ; th e y ar e tax e d to th e

Briton Sugar ( r aw ) is fre e in both lands but in th e
.
,
Re public th e re is a slight tax upon fore ign re fin e d .
Whe n th e mass e s in Britain re aliz e h ow h e avily the y

.
ar e tax e d compar e d with th e work e rs of th e Unit e d

T HE COST OF LIVING IN BRITAIN 2 49
Stat e s th e re will probably be a prompt d e mand for

,
re ductions upon articl e s e mbrac e d in th e t e rm Sub

sist e nc e and e sp e cially f o r a fre e br e akfast tabl e
.
,
’
-
.
T h e l o w cost o f w hat go e s into th e mouths o f th e
p e opl e throughout th e Unit e d Stat e s would surpris e

any British inv e stigator who mad e it a study but ,
th e cost o f living in th e forty four S tat e s occupying -

,
a contin e nt is to be d e t e rmin e d n o t only in Ne w York

,
City and in th e citi e s and to w ns upon th e Atlantic

,
s e a coast
-
to which products o f th e gre at We st hav e
,
to be transport e d but also by taking into account cost

,
at th e c e ntre o f population which is now n e ar Indian ,
apo l i s ,
Indiana midway b e tw e e n Chicago and St
, .
Louis e ight hundre d mile s inland from Ne w York

, .
Having d e alt w ith s ay thre e fourths o f th e total

, ,
-
e xp e nditur e o f h
t e w orkingman s family nam e ly — ’
that f o r subsist e nc e
$
— an d f o u n d that it cannot be
” '
oth e rwis e than that th e articl e s consum e d must be

che ap e r in Indianapolis than in Manch e st e r by at ,
l e ast th e cost o f rail and oc e an transport and m e r

chant s profits w e com e to th e s e cond it e m which is
’
, ,
$
re nt consuming
, p e r c e nt o f th e e arnings
2 0 o f th e .
family in Am e rica and 3 in England T h e British 1 .
workman live s in a small e r hous e T h e b e tt e r class .
of Am e rican as a rul e has thre e o r four rooms ; th e

, ,
Briton tw o Re nt is undoubt e dly much highe r in

.
th e n e w e r land .
T h e n e xt it e m in importanc e is clothing which ,

re pre se nts 7 p e r c e nt o f th e e xp e nditure in th e Unit e d
.
Stat e s and e xactly th e sam e p e rc e ntage in Britain

, .
This will no doubt surpris e most r e ad e rs until th e

, ,
re ason is giv e n w hich is that w hil e clothing mad e

, ,
from th e fin e st import e d cloth is v e ry much d e are r in

Am e rica than in Britain w h e re th e cloth is produc e d ,
clothing mad e from th e Am e rican cloth is ve ry ch e ap

ind e e d and s e rvic e abl e It is howe ve r coars e and
.
, ,
.
—
harsh and not so agre e abl e to we ar harsh e r e ve n
,
than th e Scotch Che viot But th e mass o f th e p e opl e

.
w e ar it as th e y w e ar wooll e n und e rclothing o f th e sam e
kind H e nc e th e mass e s are not affe ct e d by th e

.
duti e s plac d upon th e fi e wooll e ns which ar e i m

e n ,
port e d only for th e rich f e w I have b e fore m e adv e r .
ti s e m e n ts in th e Am e rican pap e rs of compl e t e suits of
re ady mad e clothing ranging from tw o to thre e poun d

-
—
( te n to fift e e n dollars ) just th e cost in Britain .
H e re is a true story b e aring upon this subj e ct A .
we ll known m e mb e r o f Parliam e nt addre ssing his

-
,
constitu e nts in th e Midlands som e tim e ago told th e m ,
that living for th e workingman was much high e r in

Am e rica than in Britain and said that th e cost of ,
clothing was thre e tim e s as gre at A C opy o f this .
sp e e ch was S e nt to his frie nd o n e o f th e b e st know n ,

-
m e n in th e Unit e d Stat e s w hom th e sp e ak e r was in ,
th e habit of visiting A short tim e aft e r h e visit e d

.
,
his fri e nd in th e R e public accompani e d by his w ife , .
O e m orning th e host app e ar e d at bre akfast in a n e w

n
T HE COST OF LIVING IN BRITAIN 2 3 1
suit which e licit e d ge n e ral admiration th e English ,
lady stating that it was much smart e r than th e suit $
worn by h e r husband Th e host th e n ask e d his

.
visitor what h e suppos e d th e suit cost h i m ; to which

th e unwary Briton r e pli e d W e ll th e suit I am n ow , ,
w e aring cost m e £ 7 ( 35 dollars ) and I suppose yours , ,
in this t e rribly prot e ct e d country ; must hav e cost £ 1 2
( 6 0 dollars ) This w as his opinion aft e r having e x

am i n e d th e suit We ll said his host I paid just
$ $
.
, ,
$4 5
. 0 for this suit an d I wish yo u to take it back
,
to England and S how it to your cons titu e nts and t e ll
th e m this Amidst much laught e r this was d e

.
”
,
c l in e d His host had s e e n in th e village a trave llin g

.
v an from Boston from w hich re ady mad e clothing

,
-
w as b e ing sold and ask e d th e v e nd e r if h e had a suit

,
to fit him ; to which h e re pli e d Ye s and if you take a $

,
suit you can have it at w hol e sal e pric e Re tail pric e .
is $ 6 V e ry good : s e nd it to th e hous e
$
It .
was promptly s e nt w ith th e re sult stat e d Of cours e

, .
it was Am e rican m at e rial not as smooth or as fi n e as ,
th e cloth worn by th e honourabl e m e mb e r ; n e v e r th e
l e ss a good smart s uit T h e pric e how e ve r was s o

, , .
, ,
ve ry l o w that it is fair to re cord that I should h e sitat e

to say that it w as like ly to prov e s e rvic e able Fo r £3 .
howe ve r s e rvic e able suits are e asily ob

,
tai n e d .
Whe n w e look at th e amount of th e e xtra fi n e

wool le n goods import e d by th e Unit e d Stat e s w e se e ,
h ow trifling it is compare d with th e total con sum p
,
tion o f wool In 8 90 th e valu e o f hom e w ooll e n man

. 1
u f ac tu r e s was $53 — s ay sixty e ight millions -
st e rling T h e import o f th e high pric e d fi n e fore ign

.
-
wooll e ns was only —S e ve n and a t e nth

millions st e rling It is safe to say that th e value pe r
.
yard of th e fore ign was doubl e that o f th e dom e stic ;

h e nc e th e numb e r of yards of fore ign woolle ns use d
was not much b e yond 5 pe r c e nt o f th e amount con .
sum e d and all by th e f e w we althy p e opl e who alon e

, ,
u s e th e high pric e d for e ign articl e s

-
.
W e hav e th e s ame r e sult w ith cotton m anufactur e s ,
th e valu e o f th e hom e Am e rican product b e ing
0 00 — fi f ty four millions st e rling ; th e amount impo r te d

-
b e ing 8 2 not six millions st e rling which r e pre ,
s e nts not quit e 5 pe r c e nt o f th e total consum ption

.
,
assuming doubl e valu e pe r yard f or th e fore ign T h e .
amoun t o f cotton gdo ds us e d by a workingman s ’
family is consi de rabl e .
In re gard to silks w e have th e following figure s f o r

th e y e ar 8 90 : product o f Am e rican mills
1 ,
—thirt e e n millions e ight hun dre d thousand st e rling ;

th e import e d m anuf acture d silk six ,
—
millions two hundre d thousand st e rling It may .
safe ly be assum e d that th e valu e o f silks import e d ,
p e r yard was
, doubl e that o f th e dom e stic s o that ,
more than four yards o f Am e rican silk we re c o nsum e d

to o n e of for e ign .
THE COST OF LIVING IN BRITAIN 2 53
While upon th e subj e ct o f clothing I may not e tw o

facts within my ow n e xp e ri e nc e An Am e rican .
family having num e rous s e rvants re sid e s part o f

, ,
e ach y e ar in Britain T h e s e rvants pass to and f ro

.
an d thus hav e opportuniti e s to purchas e th e ir cloth
ing boots and sho e s e tc e ith e r in th e o n e land or th e

, , .
,
o th e r . T h e m e n s e rva nts contin u e to purchas e cloth

-
ing in th e old land Th e wome n s e rvants find th e y.

-
can purchas e to b e tt e r advantage in Ne w York Boots .
an d sho e s ar e purchas e d by al l in Ne w York .
Th e s e cond instanc e : A Scotch Am e rican family -

:
with fi v e childre n sp e nd part of almost e ve ry y e ar in

Scotland T h e abl e thrifty moth e r form e rly took
.
,
th e opportunity to s upply h e r o w n and th e childre n s

’
clothing e tc in Glasgow Upon r e c e nt visits sh e

, .
, .
has purchas e d nothing upon this sid e and I h e ard ,
h e r giv e as a r e ason that sh e found that clothing for

,
he rse lf and e sp e cially f or h e r childre n could n ow be

, ,
purchase d b e tt e r and ch e ap e r in Ne w York than in

Glasgow .
T h e we ll kno w n Fre e Trad e o r tariff r e form writ e r

- - -
,
Mr S ch o e n h of w as d e put e d by th e Stat e D e partm e nt

.
,
to re port upon cost in th e Unit e d Stat e s and

Britain and re port e d as follows som e y e ars ago
,
$
So far as clothing and dry goods in ge n e ral are
conc e rn e d I find that cotton goods are fully as ch e ap
,
in th e Unit e d Stat e s as h e re Shirtings and sh e e tin gs .

,
if anything are sup e rior in quality f or th e sam e m one y

,
w ith us so far as I can judge from th e article s e xpose d
,
for sal e In th e re tail store s Articl e s for und e rwe ar .
f o r wom e n mad e o f muslin ar e far sup e rior in work

, ,
manship and fi nish and ch e ap e r in pric e in th e Unit e d

, ,
Stat e s Nor can I find that m e n s shirts wh e n chie fly

.
’
o f cotton ar e any ch e ap e r h e r e
,
Of boots and sho e s .
,
if factory mad e th e sam e may be said In work

, .
manship and finish I find corre sponding articl e s o f th e

whol e sal e proc e ss o f manufacture supe rior in th e
Unit e d Stat e s This is tru e o f clothing as w e ll as o f
.
cuffs collars and like articl e s

, , .
Pric e s o f articl e s oth e r than agricultural have fall e n

in th e Unit e d Stat e s much more than in Britain sinc e
Mr S ch oe n h of re port e d This fall has b e e n so gre at
. .
as to put th e pric e o f B e ss e m e r pig iron and st e e l ,

-
,
bill e ts at Pittsburg lowe r than at Middl e sborough ; to

e nabl e Am e rican carp e ts to be sold in Britain ; to t e mpt
th e l e ading Am e rican shipbuild e rs to ask p e rm ission
m —
to t e nde r for so e of th e e w British w ar ships ; th e
n
Clyd e Trust e e s to purchas e th e ir n e w and powe rful

dre dge rs in Ne w York It has also e nable d th e Am e ri
.
can manufacture r o f agricultural impl e m e nts to re ach

th e British mark e t and th e quarrym e n to s e nd granit e
,
from Main e to Ab e rd e e n .
T h e n e xt it e m which figure s in th e e xp e ns e s o f th e
w orkingman s family is fu e l Sp e aking ge n e rally
’ $
.
,
this is much ch e ap e r in th e Unit e d Stat e s than in

Britain If w e compare Ne w York and London
.
,
THE COST OF LIVING IN BRITAIN 2 55
Ne w York re c e iv e s anthracit e coal as ch e aply as Lon

d o n r e c e iv e s bitum inous coal T h e form e r will at .
,
le ast give double s e rvic e and it is said to yi e ld thre e

, ,
tim e s as much In th e c e ntre o f population in th e

.
Unit e d Stat e s th e cost o f coal do e s n ot e xc e e d 83 .
( about p e r to n In th e gr e at w e.st e rn Pe n n syl

vania and Ohio districts it is n ot more than 6 3 Th e .
Am e rican h as to use more co al in winte r owing to th e

s e ve re r cold and has more fire s goin g in his large r
,
house Exp e rts have foun d that th e p e rc e ntage of

.
the ir e arnings sp e nt by th e Am e rican and Briton on

—
fu e l is e qual v i z 6 pe r c e nt
, .
It has b e e n common in Britain to attribut e th e

suppose d highe r cost o f living in th e Unit e d Stat e s
to th e e ffe ct o f th e tariff Now a littl e consid e ration .
will Show that this impre ssion i s n ot we ll found e d .
Th e principal highly tax e d articl e s und e r th e Mc Kin

-
l e y Bill are fi v e : First th e e xtra fi n e silks o f Franc e ;

,
se cond th e fi n e woolle ns and lin e ns o f Britain ; third

, ,
th e e xtra fi n e lin e ns o f Ge rmany and Franc e ; fourth ,
th e high pric e d win e s o f Franc e ; and fifth Havan a

-
,
tobacco and cigars T h e duti e s o n all th e s e ar e ve ry

.
high Woo lle ns 6 0 pe r c e nt o f th e ir value silks e ve n

. .
,
highe r champagn e s 3 s pe r doz e n e tc e tc This

, ,
2 .
, .
, .
is o ur D e mocratic Budge t The re is not a work

”
.
i n gm an in Am e rica who us e s any o f th e s e article s .
It i s consid e re d goo d poli cy thus to tax h e avily th e

luxuri e s o f th e rich and admit fre e th e te a and c off ee
,
and raw sugar use d by th e masse s It is n ot probabl e .
that this policy will be re ve rse d o r e ve n gre atly mod i

,
fi e d how e v e r much talk th e re may be o f tariff re form

, .
Ind e e d th e whol e som e t e nd e ncy now se e n in Britain

,
to lay th e burd e n o f taxation upon th e we althy f e w

who can b e st afford to b e ar it i s n ot l e ss strongly
marke d in th e Re public Th e n e c e ssari e s of life use d
.
by th e work e rs w ill probably re main duty fre e in th e

Re public and soon b e come fre e in th e Monarchy and ,
th e luxuri e s o f th e rich will continu e to be tax e d mor e
and more in both lands .
T h e position of th e suppos e d unfortunat e farm e r o f
th e Unit e d Stat e s us e d to be cit e d and th e point mad e

, ,
that ow ing to th e tax upon machin e ry h e had to pay

more for his agricultural impl e m e nts than was oth e r
wise n e c e ssary but as th e Ame rican has n o w th e c o m
,
mand o f th e world for agricultural machin e ry and ,
e xpo rts it th e farm e r is no long e r int e r e st e d in th e

,
tax upon fore ign machin e ry .
T h e app e aranc e o f th e Unit e d Stat e s as an e xport
ing country o f manufacture d articl e s owing to r e ,
d uc e d costs is o n e o f th e notabl e e v e nts o f r e c e nt

,
y e ars H e re are a f e w it e ms : In th e y e ar 8 93 agri

. 1
cultural impl e m e nts w e re e xport e d to many parts o f

th e world to th e e xt e nt of n e arly ( about
manufacture s of copp e r to th e e xt e nt of
cotton manufacture s ,
0 00 iron and st e e l and m anufacture s ,

THE COST OF LIVING I N BRITAIN 2
-
57
of the se ,
carriage s cars , ,
e tc . more than
,
wo od and ,
manufacture s o f wood ove r , st e rling

Am e rican furniture b e ing now large ly e x
port e d .
In th e ye ar 1 8 9 2 th e Re public e xport e d as much

iron and st e e l and manufacture s th e re of as Sh e im
, ,
—
port e d vi z ,
worth in both cas e s fi v e —
and th re e quart e r millions ste rlin g
-
.
It i s notable that musical instru m e nts value d at ,
we re e xport e d ; glass and glass

ware to th e e xt e nt O f le ath e r
and manufacture s of l e ath e r ove r ,
pap e r and manufacture s of pap e r to th e ,
e xt nt O f ov e r
e ( som e English
journ al s ar e n ow print e d upon Am e rican pap e r) ; in
s tr um e n ts for sci e ntific purpos e s ,
clocks and watch e s ove r ,
T h e e xport o f manufactur e d articl e s rapidly i n
cre ase s y e ar aft e r y e ar but unlike that of Britain

, , ,
must e ve r re main totally insignificant as compare d

w ith th e valu e o f th e total ho m e production o f manu
facture s which w as no l e ss in 8 90 than £ 7

, 1 1 ,
T h e valu e o f British m anufactur e s
i n 1 8 8 8 w as n ot quit e half as gre at b e in g ,
Th e prosp e rity of a n e w contin e nt like th e Unit e d

Stat e s is not to be guage d by its fore ign but by its ho m e
com me rc e As th e n e w land more and more supplie s
.
its ow n wants h e r fore ign comm e rc e must re lative ly

,
d e clin e ; more of th e cotton grown for instanc e b e ing , ,
manufacture d at hom e and l e ss going abroad and s o, ,
w ith all th e natural products as also with many ar

,
ti c l e s n o w import e d which will b mad e at hom e

,
e .
In vie w of th e facts h e re not e d and also th e Obvious ,
fact that subsist e nc e must be che ap e r in o n e country

,
than in th e oth e r and that this e mbrac e s thre e fourths

,
-
o f th e total cos t o f th e n e c e ssari e s o f life for a work
i n gm an s family h o w ar e w e to accoun t for th e ge n e ral

’
impre ssion still linge ring in Britain that th e cost of ,
living is high e r in th e Unit e d Stat e s $ Simply for this

re ason : that while it is true that a pound st e rling in
th e Unit e d Stat e s to day w ill purchas e more of th e
-
n e c e ssari e s of l i fe for th e mass o f th e p e opl e than it will

in Britain and w hile th e Am e rican w orkman has gre at
,
advantage s ove r his fe llo w British workman in con

s e qu e nc e still it do e s n o t follow by any m e ans that
,
-
th e Am e rican worm an liv e s as ch e aply as th e Briton

—far from it He has much high e r w age s T h e r e
. .
port o f th e S e nat e Committ e e re c e ntly made shows

that th e ave rage p e rc e ntage o f Am e rican wage s o b
tai e d by th e British workman is only 56
n p e r c e nt 1 -
2 .
not much more than o n e half th e principal handi -

w
crafts b e ing mad e th e basis o f comparison Havin g .
high e r r e ve nu e s th e Am e rican is n o t cont e nt to live

,
without w hat would be consid e re d luxuri e s in any o f

THE COST OF LIVING I N BRITAIN 2 59
th e coun trie s o f Europ e He e arn s more and h e

o ld .
sp e nds more Th e re fore in on e s e ns e it is tru e that

.
,
th e cost o f living as th e Am e rican workman liv e s i s
gre at e r than that of th e Briton as h e live s But it is .
non e th e l e ss tru e that this aris e s from th e fact that

h e liv e s in a di ff e r e nt mann e r For thos e similar
.
things Which ar e absolut e ly n e c e ssary th e cost is much

l e ss in th e n e w e r land .
T h e Am e rican Workman and h l s f amily can liv e
ve ry ch e aply ind e e d if so inclin e d or th e y can sp e nd

,
inordinat e ly just as e asily as in any oth e r country .
We find this prov e n by th e e xp e n diture s o f fore ign

workm e n e sp e cially Hungarians and Italians who
, ,
hav e in re c e nt y e ars e migrat e d to th e Unit e d Stat e s

in gre at numb e rs T h e usual pric e paid by th e s e for
.
e ign e rs to th e k e e p e r o f th e boarding hous e is te n c e nts

-
( 5d ) pe r day for food

, . Th e y usually sl e e p in woo d e n
huts e r e ct e d for th e m by the ir e mploye rs In tim e s .
o f un e xampl e d industrial d e pr e ssion lik e th e pr e s e nt

, ,
th e ability o f th e mass e s o f th e p e opl e o f th e Unit e d
Stat e s to live ch e aply and ye t comfortably is o f th e

gre at e st mome nt for it has shi e ld e d th e m from much
,
acu t e suffe ring which would oth e rwis e have re sult e d

—
from th e lack of work a e xp e rie nc e n e w to this ge n
n
e r ati o n of Am e ricans ,and like ly soon to pass away ,
unle ss th e faith of capital in th e maint e nanc e o f th e

gold standard be again shake n An e quivocal note
.
upon this subj e ct struck by th e S e cre tary of th e

,
Tre asury in May last ye ar paralyz e d th e busine ss of th e
,
—
co untry for th e tim e and re cove ry has b e e n re tard e d
by imp e nding n e w l e gislation affe cting duti e s upon
imports .
Wh e th e r Am e rica be th e El Dorado of th e workin g

man o r not d e p e nds upon th e workman hims e lf He
, .
and his family can now live for l e ss than a family in

Britain if th e y will live as frugally The y are in th e
, .
position of th e O ld Scotchwom an I kn e w who b e ing

, ,
aske d if sh e could live upon a c e rtain sum as an an

n u i ty r e pli e d Ou ay I could live on half o t but I’
, , , ,
could sp e nd do obl e That is to say a pound st e rli ng

.
,
in th e n e w land judiciously sp e nt f or th e n e c e ssari e s

,
o f life by th e workingman and his family will to day

,
-
purchas e more of th e se in th e n e w than in th e o l d

—
hom e o o ur rac e a fact probably fraught with far
f
re aching cons e que nc e s upon both Side s o f th e Atlantic

in th e n ot distant future .
T h e N atu r al O il an d G as W e ll s
o f W e ste r n Pe n n sy l v an i a
A sh o r h t it y f s or o th e d icv y f
s o er o oi l an d g as Th e
t d f d ivi g p duct
.
m e ho o r n w e lls and th e u se o f th e ro
f tu l c pit l p ibil iti

.
Th e or n e s w on o n a s m al a a Th e o ss es
futu
.
of i ts u se i n th e re .
T HE N AT U R A L O IL AN D G AS W EL L S
OF W EST E R N PEN N SYL V A N IA
HAT nove l fue l which th e e arth has re

th e
c e n tl y thrown forth for us should attract

ge n e ral att e ntion is n ot to be wond e re d at for c e r ,
tai n l y nothing lik e it has hith e rto e v e r b e e n kno w n .
Probably th e riche st district in subt e rran e an tre as «
u re s upon th e fac e o f th e e afth is We st e rn Pe n n s yl
vania which has f o r its m e tropolis th e smoky city of

,
Pittsburg To th e south e ast o f th e city lie s th e

.
famous d e posit o f coking coal known and use d all ove r ,
Ame rica from th e Atlantic s e aboard to th e silve r

min e s o f Colorado T h e ve in is from se ve n to nin e
.
fe e t d e e p and e mbrac e s an are a of two hundre d square

,
mile s It i s so favourably S ituat e d for min ing that

.
,
thousands of tons o f coke have b e e n sold f or thre e

shillings and S ixp e nc e ( 8 4 c e nts pe r gross ton ) load e d ,
upon cars T h e growth o f this trad e has b e e n rapid

.
,
e v e n f or this country for th e m e n ar e still living w h o

,
built th e first coking o ve n while th e re ar e to day be,

-
twe e n nin e and te n thousand ove ns It is but twe nty .
ye ars sinc e th e coke was first us e d in th e blast furnac e .
In th e ye ar 8 8 th e re we re mad e
1 2 b ush e ls .
Dire ctly e ast of Pittsburg lie s th e We stm ore an d ’
Fro m Macm i ll an ’
3 Magazi n e ,
J u y
an ar ,
1 885 .
2 63
2 64 T HE EMPIRE OF B USI NESS
gas coal fi e ld from whi ch th e e ast e rn citi e s draw th e ir
,
suppli e s for gas Th e ve in o f this coal is from fi v e to

.
si x fe e t d e e p and so e asily m in e d that th e Pe n n syl

,
vania Railroad Company obtains coal load e d in th e

e ngin e t e nd e rs for about thr e e shillings ( c nts ) pe r
7 e 2
gross ton Th e fi e ld e xt e nds e ast and south e ast o f

.
th e city along th e banks o f th e Monongah e la and

,
Yo ugh i o gh e n y riv e rs It is from min e s on th e ir banks

.
that citie s e ve n as far away as Ne w Orl e ans are sup

, ,
pli e d with gas coal Th e annual production e xc e e ds

.
tons .
Turning now from th e coking and th e gas coal de

posits tow ards th e north and at a distanc e o f a hun ,
dre d mil e s from Pittsburg w e re ach th e o il re gion , .
Rapid as has b e e n th e d e v e lopm e nt of coke and gas

coal that o f p e trol e um e clips e s anything e v e r kn own
, .
It is only twe nty two ye ars sinc e I visit e d in company

-
,
with some fri e nds th e th e n famous o il we ll of th e

,
Store y Farm upon Oil Cre e k T h e o il was th e n run

,
.
ning from th e we ll into th e cre e k w h e re a f e w flat ,
bottom e d scows lay fille d with it re ady to be float e d ,
down to th e All e ghany rive r upon an agre e d upon day -
e ach w e e k wh e n th e cre e k w as flood e d by m e ans o f

,
a t e mporary dam This was th e b e ginn ing of th e

.
natural o i l busin e ss W e purchas e d th e farm for

.
( about st e rling and so small was o ur ,
faith in th e ability o f th e e arth to yie ld for any c on

si d e rabl e tim e th e hundr e d barre ls pe r day which th e
NATURAL OI L AND GAS WELLS 2 65
w e ll was the n producing that w e d e cide d to make a

,
pond capabl e o f holding barre ls of o il which ,
w e e stimat e d would be worth 0 l ( about $ 9 7 5

2 0 ,
0o o .
,
00 0 ) w h e n th e supply c e as e d Unfortun at e ly f o r us
.
th e po nd l e ak e d fe arfully ; e vaporation also caus e d
much loss but w e continu e d to run oil in to make th e

,
losse s good day aft e r day until s e ve ral hundre d thou

sand barre ls h a d gon e i n this fashion Our e xp e ri e nc e
.
with th e farm may be worth re citing Its value rose .
to 000 0 l ( about
1 , ,
00 . that is th e share s ,
o f th e company sold in th e mark e t upon this basis ;
and o n e y e ar it paid in cash divid e nds 00 0 l ( about 2 ,

oo .
—
st e rling rathe r a good re turn upon an i n
ve stm e nt o f But this is an e xc e ptional re sult ,
many thousands of pounds having b e e n lost by in

v e sto r s in o i l prop e rti e s Only a f e w ye ars b e fore
.
this th e sam e oil had b e e n sold at e ight shillings ( about

,
two dollars ) pe r bottl e as a c e rtain cure f o r all th e

,
know n o r imagin e d disord e rs o f man It was th e n .
kno w n as S e n e ca o i l th e gre at Indian re m e dy

,
$
,
”
b e cause th e trib e of Indians o f that nam e which th e n ,
inhabit e d th e district skimm e d th e o il from th e sur

,
fac e o f th e cre e k . Th e sov e r e ign r e m e dy now s e lls

$ ”
for l e ss than thre e shillings ( about s e ve nty fi v e c e nts ) -
p e r barr e l but
,
strang e to s ay t h e p e opl e who e ag e rly
bought it for e ight shillings pe r bottl e and gave t e sti ,
mony to its h e alin g prop e rtie s now find that all its ,
virtue s have fle d sinc e it Can be purchase d for a half

p e nny So much for th e myst e rious in m ate ri a m e di ca
. .
Starting th e n at nothing only about twe nty y e ars

, ,
ago w e find th e re gion now 8 8 5) giving forth

,
’
,
1
barre ls of oil pe r day On th e first day o f Nove mb e r .
last th e re we re store d in tanks no l e ss than

barre ls an amount suffici e nt to m e e t th e wants o f th e
,
world for som e ye ars Up to January st 8 8 4 this . I ,

1 ,
re gion has yi e ld e d 2 2 2 2 12 o f 2 11 and still ,
it flows in incre asing quantiti e s day aft e r day T o .
transpo rt this e normous trafli c mil e s o f iron

pip e lin e s have b e e n laid T h e O il is pump e d through .
—
th e se from th e we lls which numb e r — to th e
s e aboard a distanc e of about 300 mile s

,
.
T h e valu e of p e trol e um and its products e xport e d
in th e y e ar 8 7 7 amount e d to 1 or O ve r
1 2 00
,
00 l st e rling In 88 3 its e xports w e r e only
0, 0 . . 1
st e rling ( about in value al ,
though th e numb e r o f gallons w as al
most doubl e that e xporte d in th e ye ar 8 77 T h e 1 .
total amount e xporte d up to Januar y st 8 8 4 e x I ,

1 ,
c e e ds in valu e 5 0 0 0 00 l ( about 1 2 ,
0, .
st e rling It may confid e ntly be said that th e oi l w e lls

.
o f W e ste rn P e nnsylvania bid fair to yi e ld suff ici e nt
to pay off th e e ntire national d e bt b e fore th e y are e x

h auste d .
We come now to lat e st re ve lation o f our sub th e
t e rran e an tre asure s v iz th e natural gas we lls which , .

, ,
ar e rapidly surro unding Pittsb urg Just as th e .

NATURAL OIL AND GAS WELLS 2 67
natural oil was s e e n upon th e surfac e of Oil Cre e k

( h e nc e its na m e ) ,s o throughout th e district north e ast
of Pittsburg and about fift e e n mile s distant small

, ,
j e ts o f gas hav e b e e n s e e n bubbling up through th e

wat e rs of th e cre e ks A m arsh gas h as also b e e n
.
found f or many y e ars at a d e pth o f twe nty fe e t which

, ,
th e farm e rs som e tim e s u s e for boiling th e sap o f th e
mapl e tre e into sugar T h e c e ntre o f this natural gas

.
district is th e village o f Murraysvill e in We stmore land ,
Coun ty In th e rac e o f a small flour mill at that

.
plac e a large r amount of gas than usual had b e e n

,
-
notic e d and fift e e n y e ars ago a party o f sp e culators

,
bore d th e re hoping to find o il but aft e r boring to a

, ,
d e pth o f 90 fe e t nothing w as found S e ve n y e ars

0 , .
lat e r anoth e r party conclud e d to try it again and ,
d e cid e d not to stop boring until a m uch gre at e r d e pth

had b e e n re ach e d Th e ir hop e o f course was that
.
, ,
o i l would be obtain e d but wh e n th e y had bor e d to a

,
d e pth o f fe e t a tre m e ndous e xplosion occurre d ,
which drove th e drills from th e we ll into th e air and

broke e ve rything to pi e c e s Th e roar o f th e e scaping
.
gas was h e ard in Mon ro e vill e fi v e mile s away Th e

, .
imprison e d forc e had found an e scap e at last an d a ,
n ew sourc e of we alth was give n to We ste rn Pe n n syl

vania alre ady far to o highly favoure d I suppos e m y
, ,
re ad e rs will be dispos e d to say Aft e r four pip e s e ach

.
,
tw o inch e s in diam e t e r had b e e n laid from th e mouth

,
o f th e w e ll
, and th e flow dire ct e d through th e m th e ,
gas was ignit e d and th e whol e district was light e d up
,
for mile s around This valuabl e fu e l was p e rm itt e d

.
to wast e for fi v e y e ars as capitalists could n o t be ,
found w h o we re willing to risk th e 40 000l ( about $ 2 00 , .

,
0 00 ) f o r pip e s to conv e y it to th e factori e s and mills
wh e re it could be utiliz e d .
I visit e d this re gion last w e e k and saw nin e we lls

furnishing gas Th gas from th e thre e large st was
. e
still passing into th e air Th e s e are wond e rful sights .
ind e e d Th e gas rush e s up w ith such ve locity through

.
a si inch pip e which e xt e nds p e rhaps twe nty fe e t

x -
,
above th e surfac e that it do e s not ignit e within six

,
fe e t of th e mouth o f th e pip e Looking up into th e .
cl e ar blue Sky you se e b e fore you a dancin g gold e n

fi e nd without visibl e conn e ction with th e e arth swaye d ,
by th e wind into fantastic shap e s and whirling in ,
e ve ry dire ction AS th e gas from th e w e ll strike s th e

.
c e ntre of th e flame and pass e s partly through it th e

, ,
lowe r part of th e mass curls inward giving rise to th e ,
most b e autiful e ff e cts gathe re d into grac e ful folds ,
at th e bottom a v e ritabl e pillar of fi re Th e re is n ot

, .
a particl e of smok e from it .
Al re ady four distinct pip e lin e s tw o of th e m e ight ,
inche s in diam e t e r conve y th e gas from this district

,
to manufacturing e stablishm e nts in Pittsburg an d ,
a fifth lin e conve ys it to our B e ss e m e r st e e l m ills n in e ,
and te n m ile s distant Anoth e r lin e of te n in ch pipe

.
-
is b e ing laid .
NATURA L OIL A ND GAS WELLS 2 22
Th e cost o f piping is n ow e stimat e d at th e pre s e nt

e xtre m e ly l o w pric e s with right o f way at
, ,
ste rling ( about p e r mil e so that th e cost

,
o f a
lin e to Pittsburg may be said to be about
st e rling ( about T h e cost o f drilling is
about ( about and th e mod e o f pro
c e d u r e as follows : A d e rrick b e ing first e re ct e d a ,
s ix inch wrought iron pip e is driv e n dow n through

-
th e soft e arth till rock is re ach e d from 7 5 to 0 fe e t

,
10 .
Large drills we ighing from thre e to four thousand

,
pounds are now brought into u se ; the s e ris e and fall

,
from four to fi v e fe e t a stroke T h e fue l n e c e ssary .
to r un th e s e drills is conv e y e d by small pip e s from
adjoin ing we lls An e ight inch hol e havin g b e e n ‘
-
.
bore d to a d e pth of about 500 fe e t a 5 5 8 inch wrought ,

- -
iron pipe is put down to shut off th e wat e r T h e hol e .
is the n continu e d six inch e s in diame t e r until gas is

struck wh e n a four inch pip e is the n put down From
,
-
.
forty to sixty days ar e consum e d in sinking th e w e ll

and striking gas Th e large st we ll known is e stimat e d
.
to yi e ld about cubic fe e t o f gas in twe nty

four hours but half o f this may be consid e re d as th e
,
product o f a good w e ll Th e pre ssure o f th e gas as it

.
issue s from th e mouth o f th e we ll is n e arly or quit e

2 00 pounds p e r squar e inch On e of th e gaug e s which
.
I e xamin e d showe d a pre ssure of 8 7 poun ds Eve n 1 .
at o ur works wh e re w e use th e gas nin e m il e s fro m

, ,
th e w e ll th e pre ssur e is 7 5 pounds pe r squar e inch

,
.
At o n e of th e w e lls wh e re it w as d e sirabl e to hav e a
,
supply o f pure wat e r I found a small e ngin e worke d

,
by th e dire ct pre ssure o f th e gas as it cam e from th e

w e ll and an e xc e lle nt supply o f wat e r was thus ob
,
tai n e d from a S pring in th e vall e y .
Th e re ar e o f cours e various the orie s as to th e loca

, ,
tion and e xt e nt o f th e gas b e lt Enough w e lls have .
alre ady b e e n bore d in th e Murraysville district to in

d i c ate that it is about half a mil e wid e and e xt e nds ,
in a south e ast e rly dire ction from Murraysvill e for fi v e

o r S ix mil e s
. Th e w e lls bore d b e yond this e ncount e r e d
a flow o f salt wat e r in such gre at quantitie s as to

n e arly drown out th e gas ; for while som e gas came
to th e surfac e it was not in sufficie nt quantitie s to
re nd e r it valuabl e and m e re ly prov e d its e xist e n c e
,
.
Exp e rts have th e re fore conclud e d that whil e th e gas

e xists in such w e lls it is und e r a basin o f salt wat e r
, .
S e ve ral we lls have b e e n bore d in th e city of Pitts

burg and th e vicinity but th e sam e trouble from
'
salt wat e r has b e e n e ncount e re d th e re A ge ological .
fri e nd informs m e that th e stratum dips about fe e t

n e ar Pittsburg and his th e ory is that this d e pr e s
,
sion has b e e n fille d with salt wat e r and h e nc e th e ,
att e mpts in that district hav e prov e d unsucc e ssful .
Wh e th e r d e e p e r boring o r som e plan o f shutting ou t

th e wat e r will ov e rcom e this di fficulty is y e t to be s e e n .
Northwe st from Murraysvill e but littl e has b e e n don e

to prove th e e xt e nt of th e gas b e lt So much f or th e .
Murraysvill e district which is to day furnishing most

,
-
o f th e gas consum e d in Pittsburg .
If any of my re ad e rs will take a map o f We st e rn

P e nnsylvania and follow th e Alle ghany rive r som e
twe nty mile s from Pittsburg th e y will find th e town
,
o f Tar e nt um ,
w hich i s th e c e ntre o f th e s e cond gas
district ; S e ve ral larg e w e lls have b e e n found th e re ,
and it is qui t e probabl e that future d e ve lopm e nts will

re ve al a t e rritory som e w hat like th e Murraysvill e .
A we ll re c e ntly struck compares favourably with those

in th e latt e r r e gion Capitalists have r e c e ntly ar
.
range d to bring this gas in pip e s laid in th e be d o f th e

,
rive r to Pittsburg ; and I have no doubt that by th e

,
e n d o f th e y e ar th e s e lin e s w ill be in op e ration and th e ,
Tare n tum district giving us a large amount o f gas .
I n ow com e to th e third district o f which th e county,
town o f Washington ( P e nnsylvania ) is th e c e ntre , ,
w hich is S ituat e d about tw e nty fi v e mil e s south o f

-
Pittsburg I drove o ut to this r e gion stopping ov e r

.
,
night at a frie nd s house twe lve mile s from th e we ll s

’
, .
Th e se had b e e n ignit e d and th e whol e sky was bril

,
l i an tl y illuminat e d by th e m It s e e m e d to us although
.
,
such a distanc e away as if a gre at c o fl agrati o n was

,
n
ragin g T h e n e xt morning w e drove to th e we lls

. .
A pip e lin e has al re ady b e e n laid and tak e s th e pro ,
duct o f o n e o f th e s e w e lls to th e iron mills along th e

bank of th e Ohio at Pittsburg and tw o m ore pip e ,
line s are alre ady und e r contract Wha t w e saw h e re .

w as ve ry similar to that s e e n in th e Murraysvill e dis
tr i c t e xc e pt that th e gas was l e d from th e m ouths o f
,
th e w e lls in pip e s along th e groun d inst e ad o f b e ing ,
shot upright in to th e air Looking down from th e .
road — sid e upon th e first we ll w e saw in th e vall e y ,
th e re app e are d to be an imm e nse circus ring th e ,
v e rdur e having b e e n burnt and th e e arth bake d by ,
th e flam e T h e ring was quit e ro und as th e wind

.
,
had drive n th e flam e in on e dire ction aft e r anothe r ,
and th e e ff e ct o f th e gre at gold e n flam e lying pron e

upon th e e arth swaying and sw irling with th e wind ,
in e v e ry dire ction was most startling Th e gre at , .
b e ast Apollyon minus th e sm oke se e m e d to have , ,
com e from his lair again .
Ame rica is ge n e rally suppos e d to be th e land which

re c e ive s e migrants but th e move m e nt o f man to and ,
f r o ov e r th e whol e e arth is fast b e coming m ore and

more ge n e ral T h e Anglo Saxon rac e grows re stl e ss
.
-
e v e rywh e r e As I stopp e d to climb th e fe nc e to go

.
down to this fi e ry monst e r my e ye caught sight of ,
th e following hand bill

$
PU B L C I S A LE
ig d g i g u v u t l i i l ll p ub ic
.
Th e de rs to A l l
u y
n ne , o n to m o e s ra a, w se at
s al e o n Th r s d a ,
S E TE M ER 5 P B
id c t k Ad C i f
2 ,
h is h M h a is ar l s l e arm
f i t f Hick y Hic k ry
at re s en e on w n o w n as t e rs . n re w ,
o n e an d o n e -h al d W
m le s th ash
ti t ck f e as o or ,
on e o an
in d
g to n roa h is en re s o o
H u h d d Kitc F u i tu
,
o se ol an h en rn re
c i ti g u u t igC i b i
,
of B B e ds e ad s , B e dd ha Ta le s D sh e s ,
C ki g t v i f ct v yt i g I v c c
on s s n re a s, n ,
rs , ,
S h ha S al e to
c ck p pt t
oo n o e ,
n a e er n e go t . om m en e
il b d k
’
at 1 o lo ,
r om ,
w h en e rm s w l e ma e n ow n .
W L A M T LA
Au ct
IL I IP D Y.
A W Cu
. . mm i n s, i on e e r ,
NATURAL OI L AND GAS WE LL S 2 73
No w what o n e arth take s Mr Tiplad y fro m this

.
be autiful r e gion o n e o f th e fin e st agricultural districts

,
—
in th e whol e of Am e rica tak e s him just as un e x
p e c te d tr e asur e s ar e found to e xist b e low him ; which

ar e bo und to produc e unwont e d activity in th e dis
trie t and giv e e v e ry m an a fair opportunity to do

,
more th an we ll $ Many re asons we re sugge st e d but ,
th e most lik e ly o n e was that h e had kin in Australia ,
and had d e t e rm in e d to e n d his days am ong the m .
T h e nam e had n e v e r b e e n h eard by any o f us but it

.
i s similar to many o f th e co m poun d nam e s which w e

had b e e n so much struck with in our r e c e nt coaching
tour through south we st e rn England so that w e thought
-
,
h e must be from th e moth e rland On e broth e r had

.
probably l e ft th e o l d hom e for th e antipod e s whil e ,
an o th e r so u ght th e sh e lt e r of th e Re public Truly .
o ur rac e ar e th e tru e no m ads and wand e r o ve r th e

,
e arth knowing n o r e st
, .
Laying our hands upon th e vibrating pip e at th e

—
we ll and it take s strong n e rve s to approach so n e ar
to th e scre aming roar and th e sw irling flam e and
—
,
stand th e re w e we re surprise d at its icy coldn e ss .
At on e we ll whe re a wood e n cov e ring had b e e n plac e d

,
ove r th e valve s a b e autiful coating o f i c e n ot l e ss than

, ,
an e ighth o f an inch thick caus e d by cond e nsation

, ,
cove re d th e pip e Ne w we lls are b e in g put down

.
,
an d it i s e vid e n t that Washington Coun ty is d e stin e d
to supply its quot a o f th e gas us e d in Pittsburg .

Thus upon thre e —
,
fourths o f a comple t e circl e sur
rounding th e city o f Pittsburg at a distanc e of fro m ,
fift e e n to t w e nty mil e s gas is alre ady prov e d to e xist

,
in large quantiti e s only waiting f o r e scap e from its

,
hom e b e n e ath th e sandrock .
Now as to th e comm e rcial asp e ct o f natural gas

, .
T h e first qu e stion naturally is How long will ,
it last $
Fri e nds w h o ar e b e st acquainte d with th e o il t e rritory ,
with which natural gas has much in common assure ,
m e that tw e nty y e ars w ill not s e e th e pr e s e nt known
t e rritory e xhaust e d That w e hav e discove re d all

.
th e g as t e rritory is not to be b e li e v e d ; o n th e contrary ,
it is highly probabl e that th e bre ak in th e b e lt n e ar

Pittsburg is m e re ly a local fault and that south ,
w e st Of Pittsburg th e b e lt will be found to e xt e nd

for many mile s It will probably be th e story o f th e
.
oil re gion ove r again Month aft e r month th e cry has

.
gon e forth that th e e arth cannot stan d this d e pl e tion .
Not only rive rs but s e as o f o il will be e xhaust e d wh e n

drain e d at th e rat e of barre ls pe r day S pe cu .
lators ste p in at int e rvals and buy millions of barre ls

,
o f oil c e rtain that th e supply must dim inish ; and e t

, y
e v e ry succ e ssiv e sp e culation crippl e s or r uins its pr o
m o te r s P e trol e um at 1 ( about $ 0) pe r barre l

. 2 . 1
was consid e re d ch e ap th e n at 1 ,
and at 45 1 . .
it was almost give n away ; y e t to — day ( 8 8 5) 1
it can be bought for s 0d ( about s e ve nty c e nts )

2 . 1 .
,
NATURAL OIL A ND GA S WELLS 2 75
and th e supply is gre at e r than e ve r It promise s to .
be m uch th e sam e with natural gas .
In th e manufacture o f glass o f which th e re is an ,
im m e nse quantity mad e in Pittsburg I a m inform e d ,
that gas is worth much more than th e cost o f coal and

its handling b e caus e it improv e s th e quality o f th e
,
product ; On e firm in Pittsburg is alre ady makin g

plat e glass o f th e large st siz e s e qual to th e b e st im
-
,
port e d Fre nch glass and i s e nabl e d to do so by this

,
fu e l In th e manufacture o f iron and e sp e cially in

.
'
that o f ste e l th e quality is also improv e d by th e pure

,
n e w fu e l In our st e e l rail mills w e have not use d a

.
pound o f coal for more than a y e ar nor in o ur iron ,
mills for n e arly th e sam e p e riod T h e change is a .
startling o n e Wh e re w e for m e rly had nin e ty fi r e

.
m e n at work in o n e boil e r hous e and w e re using 4 00

-
,
tons of coal p e r day a visitor n ow walks along th e long

,
row o f boil e rs and s e e s but o n e man in att e ndanc e .
T h e hous e b e ing whit e wash e d not a sign o f th e dirty

,
fue l of form e r days is to be s e e n nor do th e stacks ,
e mit smok e In th e Union Iron Mills our puddl e rs

.
have whit e wash e d th e coal bunke rs b e longing to th e ir

-
furnac e s Most o f th e principal iron and glass e stab

.
l i sh m e n ts in th e city e ith e r ar e to day ( January 8 8 5)

-
,
1
using this gas as fu e l or are making pre parations to

,
do so T h e cost of coal is n o t only sav e d but th e

.
,
gre at cost o f firing and handling it ; w hil e th e re pairs

to boil e rs and grat e bars are much l e ss .
Th e following e xtract from th e re port of a c o m
m itte e ma de to th e Am e rican Soci e ty of M e chanica l
,
Engin e e rs at a re c e nt m e e ting give s an id e a of th e ,
value o f th e n e w fue l .
$
Natural gas n e xt to hydroge n is th e most powe r
, ,
ful of th e gas e ous fu e ls an d if prop e rly appli e d o n e

, ,
o f th e most e conomical as v e ry n e arly its th e or e tical

,
h e ating powe r can be utili z e d in e vaporating wat er .
B e ing so fre e from all d e l e t e rious e l e m e nts notably ,
sulphur it make s b e tt e r iron st e e l and glass than coal

, ,
fue l It mak e s st e am more re gularly as th e re is n o

.
,
O pe ning of doors and no blank spac e s are le ft on th e

grat e bars to l e t cold air in and wh e n prop e rly ar , ,
range d re gulat e s th e st e am pre ssure l e aving th e m an

, ,
in charge nothing to do but to look aft e r th e wat e r ,
and e v e n that could be accomplishe d if o n e care d to

trust to such a volatile wat e r t e nd e r Boile rs will last .
longe r and th e re will be fe we r e xplosions from um

,
e qual e xpansion and contraction d ue to cold drafts
o f air b e ing l e t in o n hot plat e s .
An e xp e rim e nt was m ad e to asc e rtai n th e val ue

o f gas as a fu e l in comparison with coal in g e n e ratin g
st e am using a r e tort or boil e r o f forty tw o inch e s

,
-
diam e t e r te n fe e t long with four inch tub e s It was

,
-
.
first fire d with s e l e ct e d Yough io gh e n y coal broke n ,
to about four inch cub e s and th e furnac e was charg e d

-
,
NATURAL OI L AND GAS WELLS 2 77
in amann e r to obtain th e b e st re sults possibl e with th e

stack that was attach e d to th e boile r Nin e pounds .
o f wat e r e vaporat e d to th e pound of coal consum e d
w as th e b e st r e sult obtain e d Th e wat e r was m e as

.
ur e d by tw o m e t e rs — o n e in th e suction and th e oth e r
in th e discharge Th e wat e r was f e d into a h e at e r at

.
a t e mp e rature of from 6 0 to th e h e at e r was

°
plac e d in th e flue l e ading from th e boil e r to th e stack

in both gas and coal e xp e rim e nts In making th e .
calculations th e standard s e v e nty six pound bush e l -
o f th e Pittsburg district was us e d Six hundre d and

.
e ighty four pounds o f wat e r w e r e e vaporat e d p e r bush e l

-
which was p e r c e nt .o f th e th e or e tical valu e o f th e
coal Whe re gas was burn e d und e r th e sam e boile r

.
,
but with a diffe re nt furnac e and taking o n e pound of

,
gas to th e cubic fe e t th e w at e r e vaporat e d was

,
found to be pounds or p e r c e nt o f th e .
th e ore tical h e at units we re utiliz e d T h e st e am was .
und e r th e atmosph e ric pre ssure th e re b e ing a large,
e nough O p e ning to pr e ve nt any back pr e ssur e ; th e
combustion of both gas an d coal was not hurri e d It .
w as fo und that th e lo w e r r o w o f tub e s could be plugg e d ,
and th e sam e amount o f wat e r could be e vaporat e d

with th e coal ; but with gas by closing all th e tub e s
,
( o n th e e n d n e xt th e stack ) e xc e pt e nough to ge t rid

,
o f th e products of combustion wh e n th e pr e ssur e o n

,
th e walls o f th e furnac e was thre e ounc e s and th e ,
fi re forc e d to i ts b e st it w as found that v e ry n e arl y

,
th e sam e re sults could be obtaine d H e nc e it was .
conclud e d that th e most o f th e work was don e o n th e

sh e ll of th e boile r .
”
T h e only analys e s o f this natural fu e l which h av e
y e t b e e n mad e o r publish e d ar e thos e by o ur chi e f
ch e mist Mr Ford The se are from sampl e s o f th e

, . .
gas take n from th e pip e as it e nt e rs our st e e l rail mills ,
aft e r it h as trave ll e d nine mile s from th e we lls .
Mr Ford writ e s m e as follows

.
u c
E n l o se d fi n d l t t y h ic f o r of my a es an al se s , w h w e re m ad e th e
s am e p d ay th p cu p t t i v ti
e s am les w e re ro re d At re se n h e se n es
but by I i v I it ut
.
ati ar e in em r o w sh w h ene er c an do so w ho
i t f i g it b t y t
g o n s .
k w h th e k w or at th e la o ra or of th e s e e l w or s, to
tk p f f t k c cti t i
n er er n
a e s am le s rom di f e re n g as w e ll s , an d m a e a ol l e on o f he r
s alt Iti kI v icv

s h v y i t ti g f ct
n ha e d s o e re d som e er n e re s n a s in
g t t but it u d tu i p t
.
ar d to h e se s al s, w o l be m os nw se at th e e rse n
ti giv xp i pi i up t i ubj ct i c
re
m to e e r e ss on to m y o n on s on h s s e s n as
I v ti pp tu ity if t
e , e
t h a e h ad n o m e or o or n to g o to th e d f e re n w e ll s
y
c cti t i t d by t t c fi
e
an d m a k e a ol l e on of he r s al s , an h a m e an s on rm
m y fi ti p i m r e ss o n
M i c v y f ct t t tu v i i i c ic
rs .
y d s o er of th e a ha na r al g as ar e s n ts h em al
c p iti f ti
om os ti i on t t ti g r om m e to m e w ll b e ra h er s ar l n to so m e
it i p fi t ug t I i b f t
,
‘
eld for h h
'
an d w ll o en a n ew o w sh e d e o re h e se
ut pub ic c ti t t
.
l s w e re m ad e f l to as e r a n w h e h er th e g as r om h er
c g ti f Mu y vi ul
re s o
w e ll s h an ed as doe s h s r om th e rr a s ll e an d sh o d th e
f v y i tt t t i c t t
,
g as rom som e w e lls ar w h ls h a of o h e rs re m a n s o n s an
qu ti tu y i ic c i p v
.
,
th es on f na r all ar se s w h h l as s o w ell w ll ro th
ti g i f ct v i ti f
e e e
m ore l as n e Th s a of th e ar a on of th g as rom th s am e
i c ti yt ig t up ubj ct
. e
w ell w ll er a nl h row som e n ew l h on th e s e of th

g ti t i t i if I it p ib y
e
e n e ra on of h s m a e r al an d m ay d ar e s ay o ss l som e
iti ig t up ubj ct p t u H i g
, ,
add o n al l h as w e l l on th e s e of e rol e m av n
p i t vi I v f i f pub i i g
.
h ad al l th e o n s in h a re ra n e d rom l sh m y
u t u ti I u v Opi i c fi c fi
ew ,
e n
re s l s n l Sh o ld h a e m y n on s on rm e d an d r e on rm e d
by u u y H pi g t t t
n m e ro y i
s an al f se s . o n h a h e se an al se s w ll b e o u se
to y o u .
I
$
am ,
&c .
,
S A . F O RD .
NATURAL OIL A N D GAS WELLS 2 72
A NAL Y SES OF N AT U RAL GAS .
G as of G as of G as of G as of
9
i
9
13
‘ $
1 27
3
$
b c
Car o l i A d ci
Oxyg en
Ol e fi an t G as
b ic xi
C ar o n O de
y
.
H dro e n
Mar sh as
N it g
ro en
Mr Ford s inve stigation s are th e only on e s mad e

.
’
so far as I kn ow and my r e ad e rs hav e in th e m all that

,
-
is ye t d e t e rmin e d about natural gas .
Ho w wh e re and upon what scal e natural gas is

,
ge n e rat e d in th e re gions b e low must be a matt e r for

conj e cture This much i s cl e arly prove d that th e
.
,
gas i s found in e ve ry dire ction around Pittsburg e x

c e pt th e north we st that th e gas b e lt is about half
-
,
a mil e wid e n e ar Murraysvill e ; but this is not to be

assum e d as th e tru e limits o f th e supply for e ve n as I ,
w rit e n e ws com e s o f a larg e w e ll having b e e n struck
at Can on sbu rgh which is about e ight mil e s fro m th e

,
we lls which I visit e d in Washington Co un ty ; and be

sid e s this a n e w r e gion we st o f Can o n sburgh has b e e n
re c e ntly prove d th e gas from Which is now us e d in
,
th e manufacturing e stablishm e nts at B e av e r Falls ,
Pa tw e nty fi v e mil e s w e st o f Pittsburg

.
,
-
.
W e may th e re fore re asonably conclud e that Pitts

, ,
burg i s th e c e ntre of a gas supply cove ring man y

square mile s and capabl e of producing all th e gas that
,
.
can be use d Within h e r limits dur i n g th e pre se nt ge n

e r ati o n ,
both for manuf acturing and dom e stic use s .
By th e e n d of this y e ar e ight pip e lin e s will be conve y

ing it to th e city and still th e supply o f gas alre ady
,
obtain e d and now going to wast e wil l e xc e e d th e

capacity of the se lin e s Two o f th e s e have pip e s 5 5 8
.
-
inch e s in diame t e r four are of 8 inch on e i s of 0 in c h

,
-
,
1 -
.
and anoth e r o f inch e s in diam e t e r

1 2 .
Many the orie s ar e advanc e d to acco unt for th e e x

i ste n c e o f this fu e l but th e most r e asonabl e o n e is that
,
give n m e by Prof D e war of Cambridge w h o re ce ntly

.
, ,
visit e d us and w h o was d e e ply impre ss e d by what h e

,
s aw o f this n e w min e o f w e alth He holds that th e .
gas is b e ing constantly distill e d from th e oil or from ,
imm e ns e b e ds of matt e r which are s lowly b e in g change d

to oil and th e re fore that long aft e r th e oi l re gion
, , ,
has c e ase d to give o i l in paying quantiti e s w e shall ,
still have an ab undant supply o f gas ; f o r th e shallowe r

th e d e posit o f o i l th e more favourabl e will be th e c o n
,
d iti on s for rapid distillation Inst e ad of occupying .
th e bad e min e nc e th er e fore o f b e ing by far th e di rt i

, ,
e st city i n th e world which it undoubt e dly is to d ay

, ,
it is probable that th e othe r e xtre m e m ay be re ach e d ,
and that w e may be abl e to claim for sm oky Pittsburg

that it is th e cl e an e st city Howe ve r this may be I .
,
think that f e w will be dispos e d to dispute that sur ,
round e d by such re sourc e s as I have atte mpt e d to

d scrib Pittsburg is to day as far as subt e rran e an

e e ,
-
,
tre asure s are conc e rn e d th e m e tropolis of th e rich e st ,
district in th e known world .
N OTE p dig l b -
SO d g t h t f
ro a h as een th e u se an so re a t e w as e o
t tu fu ( i c t i tic itt ) t t v
.
his na r al el s n e h s ar le w as w r en ha e en th e
a pp t y i x u tib
ar e n l b c p ci u b c u f c city
ne h a s l e h as e om e re o s e a se o i ts s ar
t t d t ug t pip d lig t d
,
an d th e g as ha fl are h ro h th e w as e es an h e th e
t t
s re e s ofl itt t itth e f t igh i le ow n s w h fl am es five ee h s n ow m e as
u red by t r d l d b h th u d cubi c f t
m e e ; o e o ut y t e o san ee .
T h e Th re e Le g g e d S to o l -
SC HE ME OF THE W ORL S W OR K D
’
Th e t ip
r le i c
all an e
b u c pit bu i bi l ity c y
.
of la o r, a al an d s n e ss a ar e ne e s s ar
to p duc ucc fu y
ro e s e ss ll Ea h c de p e n de n t on th e
t —c bi d i vi ci b
.
o h e rs om ne ,
n n le .
T HE T H R E E L EG G E D - ST O O L
SC HE ME O F T HE WO RLD WO RK
’
S
HERE is a partn e rship of thre e in th e in dus

trial world wh e n an e nt e rpris e is plann e d Th e .
first o f the s e n t in imp rtanc but in tim e i s Capital

,
o o e , .
Without it nothing c stly can be built From it com e s

o .
th e first bre ath o f life into matt e r pre viously in e rt , .
T h e structur e s r e are d e quipp e d and r e ady to b e gin

,
in any lin e o f industrial activity th e s e cond partn e r , ,
come s into op e ration That is Busin e ss Ability

. .
Capital h as don e its part It has provid e d all th e .
instrum e ntalitie s of production ; but unl e ss it can c om

mand th e se rvice s of abl e m e n to manage th e busin e ss ,
all that Capital has don e c rumbl e s into ruin .
The n com e s th e third partn e r last in or de r o f tim e ,
but n ot l ast Labour If it fails to p e rform its part

e ,
.
,
nothin g can be accomplishe d Capital and Busin e s s .
Ability without it brought into play are d e ad T h e

, , .
whe e ls cannot re volve unl e ss th e hand o f Labour starts

th e m.
Now volume s can be w ritt e n as to which o n e o f th e

,
thre e partn e rs is first s e cond or third in importanc e

, ,
F ro m T h e N e w Yor k 30ur n a1
'
,
1 9 00 .
2 85
an d th e subj e ct will re main just as it was b e fore Po .
li ti c al e conomists sp e culativ e philosoph e rs and pre ach

,
e r s hav e b e e n giving th e ir vi e ws o n th e subj e ct f o r
hundre ds o f y e ars but th e answe r has n o t ye t b e e n

,
foun d nor can it e ve r be b e cause e ach of th e thre e

, ,
is all important and e ve ry o n e is e qually e sse ntial

-
,
to th e oth e r tw o The re is no first se cond or last

.
,
.
The re is n o pre c e d e nc e $ The y ar e e qual m e mb e rs o f

th e g re at tripl e allianc e w hich mov e s th e industrial
world As a m att e r o f history Labour e xist e d b e for

. e
Capital r Busin e ss Ability for wh e n Adam digg d

o ,
$
e
an d E v e span Adam had no capital and if on e m ay

”
judge from th e s e que l n e ithe r o f th e two was i n ordi

n ate l y bl e ss e d with busin e ss ability but this w as b e for e ,
th e re ign o f Industrialism b e gan an d hug e inv e stm e nts
o f C apital w e r e n e c e ssary .
In o ur day Capital Busin e ss Ability Manual Labour

, , ,
ar e th e l e gs o f a thr e e l e gge d stood While th e thre e l e gs

-
.
stand sound a n d firm th e sto ol stands ; but l e t any

,
o n e o f th e thr e e w e ak e n and br e ak l e t it be pull e d ,
o ut o r struck o ut down go e s th e stool to th e ground

, .
And th e stool is o f no u se until th e third l e g i s r e

store d .
Now th e capitalist is w rong who thinks that Capital

,
is more important than e ith e r of th e oth e r tw o l e gs .
Th e ir support i s e sse ntial to him Without th e m .

,
o r with only o n e of th e m h e toppl e s ov e r , .
Busin e ss Ability is wrong wh e n it thinks that th e

T HE THREE LEGGED STOOL -
2 87
leg which it re pre s e nts is th e most important With .
o ut th e l e gs o f Capital and Labour it is us e l e ss .
And last l e t it not be forgott e n that Labour also

,
is wrong wildly wrong wh e n it assum e s that it is o f

, ,
more importanc e than e ith e r of th e oth e r two l e gs .
That id e a h as b e e n in th e past th e sourc e o f many sad

mistak es .
T h e thre e ar e e qual partn e rs o f a grand whol e .
Combin e d th e y work wond e rs ; s e parat e n e ith e r is of ,
much account Thus far n o twithstanding th e diffe r

.
,
e n c e s that from tim e to tim e hav e unfortunat e ly r e nt
th e m apart th e y have mad e th e closing c e ntury th e

,
most be n e fi c e n t o f all that have pre c e d e d it Hum an .
ity th e world ove r is b e tt e r than it has e v e r b e e n

, , ,
mat e rially and morally and I have th e faith that it ,
is d e stin e d to re ach still high e r and lofti e r plan e s than

e v e n th e most sanguin e hav e imagin e d .
Capital Busin e ss Ability and Labour must be

,
unit e d He is an e n e my to all thre e who s e e ks to

.
s o w s e e ds o f disunion among th e m .
$F i t Sp k p t f dd
rs o e n as ar o an a r e ss to th e m e n at Ho m e s t up
e ad on
th e o p ig
en n ib y H d W
of th e L r ar al l an o r ki n gm e n s
’
C ub p
l td
re s e n e
to th e emp y t by M C gi
lo ees h e re r . arn e e .
Rai l ro ad s Past an d Pre se n t
i
R a l r o ad ig
n i n th e se v tien es ; ra i ls s yt
s em s, p d s ee s,
i t i ig futu
,
s al ar e s an d m e h ods R a l r o ad n in th e re
r i lr p ibil iti
. .
Th e n e e ds o f th e a o ad m an an d h i s re s on s es .
R A IL R O A D S PA ST AN D P R E SE N T
T matte r o f gre at satisfaction and som e

is a
prid e to m e that I b e gan in th e rai lroad s e rv ic e

as t e l e graph op e rator and ros e to th e position
o f sup e rint e nd e nt o f th e Pittsburg Division of th e
P e nnsylvania Railroad P e rhaps it would be int e r .
e sting to contrast i n a f e w particulars th e condition

o f a ff airs in th e railroad world th e n and now We .
ar e always urg e d to look We ll ah e ad in railroading .
It is o n e of th e chie f rule s but it is also w e ll to cast a ,
look back and se e th e progre ss that has b e e n mad e .
Wh e n I had th e honour to b e com e a railroad man ,
th e P e nnsylvania Railroad was not y e t finish e d to
Pittsburg By m e ans o f som e mil e s of staging be

.
twe e n two points and a climb ove r th e mountains ,
by m e ans of te n inclin e d plan e s th e pass e nge r w as ,
e nabl e d to r e ach Philad e lphia by rail Th e rails o n .
th e mountains w e re iron fourt e e n fe e t l e ngths i m ,

-
,
port e d from England lying on huge h e w n blocks of ,
ston e although th e lin e pass e d through woods an d

,
ti e s would have cost littl e T h e compan y had no .
t e l e graph lin e and was d e p e nd e nt upon th e u se o f th e

We st e rn Union w ire Mr Scott th e sup e rint e nd e nt . .
, ,
th e c e l e brat e d Thom e s A Scott who was aft e rward .
From p c
a S ee h de l i v e re d to a gt a h i
er n g of i
R a l r o ad Me n i n Ne w
Yo r k ,
J u y
an ar ,
1 9 0 2 .
pre sid e nt ofte n came to th e t e le graph offic e in Pitts
,
«
burg to talk to his sup e rior in Altoona th e Ge n e ral ,
Sup e rint e nd e nt I w as th e n a young op e rator and

.
mad e h i s acquaintanc e by doing this t e l e graphing f or

him .
I was re c e iving th e e norm ous salary of twe nty fi v e -
dollars pe r month th e n and h e offe re d m e thirty fi v e

,
-
to b e come h is s e cre tary and t e l e graph e r which m e ant ,
fortun e Le t m e congratulat e you upon th e gre at

.
advanc e in your o w n wage s and salari e s sinc e th e n

Mr Scott re c e ive d $ 2 5 a m onth
. 1 a ye ar and ,
my wond e r w as what a man could do with that amount

o f mon e y I hadn t thought th e n o f on e u se h e
.
’
—
might succ e e d by giving part o f it away What are
th e advantage s a man r e c e iv e s from we alth is oft e n
discusse d but th e b e st o f we alth is not w hat it do e s

,
for th e owne r but what it e nabl e s him to do for oth e rs .
I s e rve d for some tim e b e fore I re c e ive d an advanc e

o f salary of te n dollars p e r month -That gave m e an .
e normous r e v e nu e compar e d with th e a we e k

at which I start e d in th e cotton factory .
It is on e of th e most ch e e ring facts o f our day that

u nd e r pr e s e nt conditions th e wage s of labour t e nd
to ris e and th e pric e of th e n e c e ssari e s o f lif e t e nd to

,
fall The re n e ve r was a nation so spl e ndidly situat e d

.
as ours i s at this mom e nt in r e gard to labour Eve ry .
sob e r capabl e and w illing man finds e mploym e nt at

,
wage s which with thrift and a good wife to manag e

RAILRO ADS PAST AND PRESENT 2 93
will e n able him to go far toward laying up a comp e

te nce f or old age Thos e so fortunat e as to be mar
.
rie d kn ow h ow m uch d e p e nds upon a wife who can

manage your hous e ho ld aff airs and thos e who are n o t
y e t marri e d will find that o ut Th e r
. e is nothing that
th e succ e ss and happin e ss o f a workin gman so m uch d e
p e nds upon n e xt to his ow n good conduct as a good

, ,
m anaging wife And he re l e t on e who h as almost

.
,
without int e ntion or d e sire had hims e lf load e d with

,
som e what m ore than a com p et e nc e t e ll sob e rly that

what on e h as b e yond this brings littl e with it and ,
some tim e s nothing d e sirable with it ; what all should

strive for is a comp e t e nc e without which Junius has
,
wise ly said no man could be happy No man s h ould

'
be happy without it if it be within r e ach and I u

,
rge ,
e v e ryon e to sav e part o f th e ir e arnings th e s e prosp e r
o u s days and put in savings bank at int e r e st o r b e tt e r ,
still buy a hom e with it

,
.
But to re ve rt to railroading Pre sid e nt Thomson

.
on e day amaz e d th e community o f Pittsburg by

stating that o n some future day th e P e nnsylvania
Railroad would transpo rt 00 cars a day ove r it Cars
1 .
th e n carri e d e ight tons n e t We had small l o c om o

.
ti v e s and th e roadb e d was som e thing to fright e n o n e .
It was laid with light rails and cast iron joints we re -
use d I hav e known 4 7 broke n joints foun d o n e

.
m orning in wint e r on my division and it w as ove r ,
such a lin e that w e ran our trains It is n o wond e r.

that bre akdowns w e re fre que nt We had no caboos e s .
on fre ight trains Trainm e n had to be out in all

.
w e ath e rs . It w as single track and n o t having a ,
t e l e graph lin e i cas e o f d e lays trains ran curve s ;

,
n
that i s a fl agm a w e nt ah e ad and th e train followe d

,
n
and m e t wh e n th e y could and some tim e s m e t with

,
consid e rabl e forc e o n th e sharp curve s Th e re is

, .
nothing appare ntly take s so long to l e arn by th e

ave rage railroad m an as this proposition that tw o ,
trains cannot pass e ach oth e r succ e ssfully on a sin gle

track W e n e ve r did quit e le arn that l e sson e ve n
.
,
o n th e Pittsburg Division .
B e ing a t e l e graph e r I took charge o f o ur ow n rail

road t e l e graph wire wh e n it was construct e d and I ,
b elieve that I plac e d th e first young w oman t e l e graph

stud e nt at work on a railroad ; so I se e it stat e d In .
those days th e sup e rint e nd e nt had to do e ve rything ;

th e re was no division of re sponsibiliti e s It w as .
suppose d that no subordinat e could be trust e d to run

train s by t e l e graph or att e nd to a wre ck and Mr , .
Scott and I his succ e ssor we re tw o of th e m ost foolish

, ,
m e n I hav e e v e r known in this r e sp e ct We we nt .
o ut to e v e ry wr e ck work e d all night ; oft e n I was n o t

,
at hom e for a w e e k at a tim e scarc e ly e ve r Sl e e ping

, ,
e xc e pt a f e w snatch e s lying do w n in a fr e ight car

, I .
now look back and se e what poor sup e rint e nd e nts w e

we re ; but I had a gre at e xam pl e in Mr Scott It took . .
m e som e tim e to l e arn but I did l e arn that th e s u

, ,
RAILROADS PAST AND PRESENT 2 95
p re m e l ygre at manage rs such as you have th e se days

, ,
n e ve r d o any work th e ms e lv e s wo r th sp e akin g about ;
th e ir point is to make oth e rs work whil e th e y thin k .
I applie d this l e sson in aft e r life so that busin e ss with ,
m e has n e v e r b e e n a care My young partn e rs did

.
th e work and I did th e laughing and I c omm e nd to ,
all th e thought that th e re is v e ry littl e succ e ss wh e re

the re i s littl e laught e r T h e workm an w h o re joic e s
.
in his work and laughs away its discomforts is th e

man sure to ris e f or it is what W
, e d o e asily an d what ,
w e like to d o t hat w e d o w e ll
, Wh e n you se e a pre si
.
d e nt or sup e rint e nd e nt o r a tre asure r load e d down

with h i s duti e s oppre sse d w ith care with a c oun te
, ,
nanc e as s e rious as a judge utt e ring a d e ath s e nt e nc e ,
be sur e that h e h as more r e sponsibility than h e i s fit

for and should ge t re lie f .
Compare th e sp e e d o f trains f or instanc e On th e .
gre at P e nnsylvania Railroad w e thought that w e had

re ache d p e rfe ction wh e n a pass e nge r train w as put o n
$
which ran b e twe e n Pittsburg and P hilad e lphia in 3 1
hours about 7 mil e s an hour It was chris t e n e d th e

,
2 .
Lightning Expre ss That was n o t b e cause w e

.
’
thought th e lightning was so slow but b e cause w e ,
thought th e train was so te rr ifi c al l y fast To day .

-
th e Empire Stat e Expr e ss is run at doubl e this sp e e d ,
which holds th e world s re cord But do not l e t us

’
.
make th e mistake again o f thinking that w e have

re ach e d p e rfe ction T h e n e xt g e n e ration will run
.
2 22 T HE EMPIRE OF BUSINES S
trains at a hun dre d mile s an hour doubl e th e pr ese n t ,
sp e e d just as trains are run at double th e sp e e d of 30

,
ye ars ago T h e lin e will be straight In th e language

. .
o f Scriptur e th e crooke d plac e s that is th e curve s

$
, , ,
$
shall be mad e straight .
In th e improv e m e nts mad e to day o n th e various -
lin e s I don t think many manage rs look far e nough

’
ah e ad Th e y are sp e nding o n som e parts p e rhaps

.
half a million dollars wh e re th e y ought to sp e nd double ,
an d e asing th e curv e s which th e y S hould abolish and ,
some future pre sid e nt is to say that the y wast e d a

good d e al o f mon e y Nothing but a straight lin e will
.
be up to dat e in 9 50 o r b e for e that

1 , .
But th e re is anoth e r d e partm e nt in which progre ss

has b e e n as gre at and e ve n of gre at e r importanc e
,
than in that which has b e e n re fe rre d to It is in th e .
care o f railroad e mploy e s th e ir position th e ir ad , ,
vantage s th e ir e arnings and in th e p e nsion syst e m

, ,
which th e l eading railroads o f this country fe e l th e m

e lv e s obligat e d to e stablish that thos who labour
s e ,
y e ar aft e r y e ar at stat e d salari e s and have n o pros

p e c t o f making gr e at gains s h o u ld at l e ast hav e this '
consolation i n vie w that in the ir ol d age th e y will be

,
able to live in comfortabl e ind e p e nd e nc e n ot as a ,
matt e r of charity but by virtue of the ir own e xe rtions

, ,
and what th e y are e ntitle d to as a bonus for faithful '
se r v ic e re nd e re d I know of nothing which lifts and

.
improve s th e s e rvic e of a gre at lin e and adds so much

RAILROADS PAST AND PRESENT 2 97
to its safe ty as a staff w hich can re st in th e knowle dge

that aft e r the y have grown ol d in th e s e rvic e th e ir
o ld age is mad e comfortabl e through th e syst e m o f
p e nsions B e fore long no li n e will rank as in th e

.
front rank w hich has n o t this invaluable I might ,
alm ost say ne c e ssary e le m e nt in s e curi ng a staff o f

trustworthy int e llige nt and loyal m e n fille d with
, ,
e spri t de cor s f o r th e company th e y s e rv e In th

p - e
.
buildi ngs n ow b e ing provid e d at transfe r stations ,
i n th e r e ading rooms and libra ri e s and in som e cas e s

, ,
e sp e cially o n th e Santa F$ rout e I l e arn billiard table s

,
and oth e r m e ans of harmle ss and n e e dful e nt e rtain

m e nt are provid e d Last but n o t l e ast in such build
.
, ,
ings and socie tie s which draw m e n toge the r f o r th e ir

good in all the s e improve me nts and in many oth e r
, ,
ways w e have e vid e nc e that e mploy e rs are re cog

n i zm g th e i r duti e s to th e e mploy e d mor e cl e arly than
in th e past .
Th e railroad man is to be congratulat e d also upon
this fact that whe re ve r improving age ncie s have

,
b e e n e stablish e d th e m e n have e nd e avore d to Show

th e ir appre ciation by using th e m to th e full e st e xt e nt .
R ailway co m pani e s can mak e no b e tt e r u se o f mon e y

than in e stablishing additional institutions o f this
kin d and e nlarging thos e which alre ady e xist and
are crowd e d It will be that company which do e s

.
most fo r its m e n in th e dire ction indicat e d which will

d o b e st f o r its share hold e rs and on th e oth e r hand
,
it will be upon that lin e th e workingman w ill fe e l most
at hom e and in which the y will take th e gre at e st
,
prid e and for which the y will be most willing to incur

,
th e e xhaustin g labour and dang e r incid e nt to th e
railroad man s callin g thus giving anoth e r proof that

’
th e ir int e re st and th e int e re st o f those whos e capital

is inve st e d ar e not antagonistic but mutual It is a , .
gre at d e lusion to say that labour and capital are fo e s ,
the y must be allie s o r n e ith e r succ e e ds I have be

, .
fore use d th e simile of like ning Capital Busin e ss ,
Ability and Labour to th e le gs o f a thre e le gge d stool ; -
th e stool will not stand up without th e support o f all
th e se thre e l e gs and to disput e as to which o f th e s e

,
thre e is most importan t i s use l e ss It can n e ve r be .
d e t e rmin e d and if d e t e rmine d it w ould be o f littl e

,
conse qu e nc e Sinc e th e gre at fact re m ains that the y

,
ar e all absolut e ly n e c e ssary for such succ e ss as w e
se e on th e gre at transportation line s o f o ur

country .
T h e m e n o f th e railroad world ar e to be c o n gratu
lat e d on occupying th e proud position as I b e lie ve , ,
o f th e most t e mp e r at e body o f e m pl oye s in th e world .
The y are an e xampl e to th e workingm an in oth e r

branche s o f th e outspre ading tre e o f labo ur and ,
the ir influe nc e cannot fail to prove o f incalculabl e

b e n e fit No rul e th at a man can adopt will bring
.
gre at e r re ward than this to abstain from th e u se o f

,
alc o h o l as a b e v e rag e A drinking m an h as n o plac e

.
RAILROADS PAST A ND PRESENT 2 22
in th e railway syst e m Ind e e d h e should have no

.
plac e anywhe re .
T h e satisfactory re lations which e xist upon th e
whole b e twe e n th e railroads and th e ir m e n should be

gratifyin g to the m both It is always sure to be.
cre at e d and to e xist wh e re th e offic e rs are int e llige nt

and sympath e tic and fe e l th e mse lve s part o f th e o n e
,
organi z ation w hich manage s th e lin e com prising all ,
e m ploy e s f rom th e track labour e r to th e locomotiv e
e ngin e e r and up through all grad e s to th e pr e sid e nt
h ims e lf e ve ry o n e a N Y C or a P R R or a C B
, . . .
, . . .
, .
, .
Q
.
,
o r a D .L , W
. man
. .
The re is n o roo m f or antagonism upon a railroad

b e twe e n e mploye r and e mploye for th e pre sid e nt ,
and sup e rint e nd e nt do not own th e prop e rty any

more than th e e mploye s d o th e re fore all are as just
, ,
said m e mb e rs o f th e same corps ; all ar e e qually th e

,
se rvants o f th e company T h e official th e re fore

.
, ,
re cogniz e s in th e train man th e road man o r th e , ,
e ngin e e r ,e mploy e s lik e hims e lf to whom h e must

naturally fe e l th e glow o f comrad e ship while th e y ,
cannot but re gard th e o fficials as th e ir fe llow m e mb e rs

and fe e l that in all matt e rs o f comp e nsation o r dis
c i pl i n e, w hat th e ir f e llo w m e mbe rs in o ffic e pre scrib e
has not f o r its e n d the ir ow n s e lf aggrandiz e m e nt -
,
but th e succ e ssful op e ration of th e lin e .
Th e re is anoth e r fe ature of ch e e ring import T h e .
road to promotion is cl e ar and dire ct All can c e rtify .

32 2 THE E M P IRE OF BUSINESS
to that ; fo r I doubt n ot m any of th o se n ow in au
, ,
th ori ty b e gan in subordinat e positions an d hav e w o n
th e ir way by m e rit not by favour Ev e ry m an in th e

,
.
Railway Industrial Ar my as Napol e on said o f h i s

,
army carri e s a marshal s baton in his knapsack

,
’
.
Upon railroad e rs th e re r e st grave r e sponsibilitie s ;

th e y have in the ir ke e ping th e liv e s o f th e public I ,
n e e d n ot say th e trave lling public for with us all,
trave l Strict sobri e ty unc e asing vigilanc e staunch

.
, ,
courage faithfuln e ss to duty are d e mand e d o f th e m

, , ,
and that th e se are characte ristic o f th e forc e is t e sti

fi e d at r e curring int e rvals and by th e position th e y
have re ach e d and o cc cupy in th e e stim ati on of th e ir

grat e ful fe llow citi z e ns .
Iro n an d Ste e l at Ho m e an d
A bro ad
Co n d iti on s o f th e i r on t r ad e t d St t
i n th e U n i e a e s an d
ab ro ad c p
om are d . Th e futu f t h
re o tle se m e a s .
IR O N AN D ST EE L AT HO ME AN D
ABR OA D
R IT A IN hith e rto has b e e n abl e to make and

, ,
marke t ste e l ch e ap e r than G e rmany ; ( Ge rmany

now l e ads Britain tons to th e re
fore sh e had th e l e ad in Europ e S h e had th e l e ad in
, .
th e world But h e r position has b e com e artificial

’
. .
S h e cannot make coke und e r a ton It costs .
about a ton at th e st e e l w orks S h e can not ‘

.
maintain e ve n h e r pre s e nt supply o f o r e It is be .
coming more and more costly to ge t S h e has d e .
p e nd e d large ly o n th e Bilbao min e s of Spain but that ,
o r e has d e t e riorat e d in valu e and th e own e rs will no

,
longe r guarant e e th e quality British manufacture rs.
must take it as it come s and y e ar aft e r ye ar it is

,
bound to ge t scarc e r In this condition o f aff airs it

.
is not possibl e for Britain to make st e e l as che ap as

w e can mak e it in Pittsburg and s e nd it to Britain .
B e sid e s Britain and oth e r fore ign nations have be

,
com e o ur dumping ground for surplus w hich m e ans ,
more than th e uninitiat e d w ould susp e ct Th e Car .
n e gi e St e e l Company ar e making ov e r tons

o f st e e l a month ,
and Pre sid e nt Schw ab said to m e
th e oth e r day th at h e b e li e v e d in a short tim e a third
o f it would go abroad .
F ro m T h e Ir o n A ge ,
1 898 .
32 4 T HE EMPIRE OF BUSI NESS
Th e position o f G e rmany is also large ly artificial .
Of cours e th e y have a high prote ctive duty T h e

, .
manufacture rs ar e abl e th e re fore by combinations

, ,
to ge t a big pric e in th e hom e marke t This e nabl e s .
th e m to ship abroad and se ll v e ry ch e aply Th e y .

,
to o ar e trying to m ak e th e world th e ir dumping

,
ground But the re is this diff e re nc e : Th e pric e s

.
charge d to th e consum e r in Ge rmany limit th e co n

sumption T h e e xtraordinarily ch e ap pric e s pre vail
.
— —
ing h e re 3 pounds of st e e l f or 2 c e nts i ncre as e c on
sumption Ge rmany s foundation is o n sand I am
.
’
.
a staunch prot e ctionist but only whe n w e have re ason

,
to b e lie ve that by t e mporary prot e ction w e can furnish

th e consum e r th e supply of any giv e n articl e b e tt e r
an d ch e ap e r than h e has e v e r b e e n abl e to purchas e
it abroad If w e cannot do that I do n o t b e li e ve in

.
prot e cting If w e can do it I d o b e li e ve in p rote cting

. .
Ge rmany abandons that sound e conomic doctrin e and ,
is prot e ctin g f or th e sake of prote ction and th e Ge rman ,
consume r ge ts n o b e n e fit This is false political

.
e conomy .
Th e re is o nly o n e thing n ee d e d to furthe r e xpand

o ur e xport trad e in iron and st e e l and that is r e gular
l in e s o f st e a m ships to th e various parts o f th e world .
We can n e ve r hop e to hav e such faciliti e s as Britain ,
b e caus e Britain imports so much o f bulky goods from

various parts o f th e world which w e fortunat e ly grow
at h om e Th e re fore B rit ain s S hi ps ge t re turn car
’
.
. ,
IRON AND STEEL AT HOME AND AB ROAD 30 5
go e s and th e rat e s will be che ap e r But e v e n this
, .
disadvantage w e can ove rcom e in th e lowe r cost of our

manufacture s If w e could re store to th e Unit e d
.
Stat e s its rightful position as th e shipbuild e r o f th e

world our att e ntion would soon be dire ct e d to th e e s
tabli sh in g o f r e gular st e amship lin e s and this obstacl e ,
would fad e away Ev e n n ow th e e xport trad e is be

.
coming o f such magnitud e as to justify s e ve ral n e w

st e amship lin e s as you se e and w e will conque r by
, ,
and by I have b e e n urging th e im portanc e o f a Ship

.
building yard in Ne w York and it is bound to com e ,

.
Capital will se e that th e re is a good chanc e f or it sinc e ,
st e e l and w ood work are both ch e ap e r in Ne w York

than in B e lfast and on th e Clyd e It W ill not t ake .
long b e fore capital is attract e d .
Our pre se nt shipyards b e ing prosp e rous will e x

t e nd but th e re is ple nty o f room for a good shipyard
,
in Ne w York It is rath e r humil iating to se e th e

.
S t P au l and th e S t L oui
. th e N e w Yo rk and th e
. s,
P ar i s follow ing e ach oth e r to Southampton to be
d ocke d th e re th e re b e ing n o dock in th e gre at port

,
o f Ne w York capabl e o f holding th e s e sm all Ships .
Ye s small ships
, I came ove r in th e K ai s e r Fr i e d
,
r i ch, mad e in G e rmany Aft e r yo u trave l o n a ship

.
like that y ou can n e ve r think of anythin g e ls e W e .
had a rough passage th e rough e st I have e v e r kno w n

, ,
and ye t th e m ost comfo rtable .
Th e consol i dation of th e i ron an d st e e l int e r e st s

is a natur al e volution If w e are going to s e ll 3 poun ds
.
o f st e e l for c e nts it must be mad e by th e millions

2 ,
o f tons It is a tight rac e for th e b e st o f conc e rns

. .
R e vi e w th e re cord during th e past f e w y e ars o f e ve ry

o n e of th e large st e e l compani e s th e r e sults o f whos e
busin e ss has b e com e public prop e rty through the ir

annual re ports or w hose prop e rti e s have b e e n in th e
,
hands of a re c e ive r Th e re sult will S how that s e lling

.
3 pounds o f st e e l for c e nts troubl e2s th e b e st o f th e m .
The re fore conc e rns that ar e losing mon e y se e k con

,
solation som e w h e re and consolidation i s som e thin g

,
like M e sopotamia a ve ry comforting word D o n o t

, .
und e rstand m e as re fle cting o n th e manage m e nt o f

the se conce rns V e ry far from it It is not th e
. .
manage m e nt but th e situation St e e l cannot be .
mad e and sold as low as it has b e e n ruling without

involving loss to all th e s e conc e rns .
Consolidation i s wis e and n e c e ssary It is a st e p .
in th e right direction T h e st e e l man ufacture r must

.
re concile hims e lf to making a v e ry small shaving o f

profit pe r ton Whe n a conc e rn make s
.
tons pe r annum it d o e s not n e e d much p e r ton to ke e p

th e wolf fro m th e door e sp e cially if it has no bond e d
,
d e bt .
While th e consumption o f iron and st e e l is e nor

mous ye t pric e s do not rise I do not b e li e ve that
, .
w e can incr e as e consumption th e re fore I argue that

,
th e capacit y to man ufactur e i s b e yond o ur l e giti m at e

I RON AND STEEL AT HOME AND ABROAD 3 7
0
re quire me nts If it had b e e n oth e rwise w e would

.
h ave se e n a gre at boo m in pric e s which howe ve r , , ,
re main low Inde e d too low for our fri e nds to make
.
,
e v e n a fair r e turn .
Rail roads are e xc e e dingly prosp e rous e sp e cially in ,
th e We st . The re is littl e fe ar that all th e rails that

can be mad e will find a marke t Anoth e r thing th e .
,
u s e o f b e ams will g row in this country if th e pric e i s
k e pt down to th e pre se nt rat e At th e pre s e nt tim e

.
a little country like Ge rmany use s thre e tim e s th e

amount o f b e ams that th e Unit e d Stat e s do e s In .
Ge rmany n o o e thinks of building an ordinary house

n
without making it fire proof H e re th e millionnaire

.
builds h i s house fire proof although I know of s e ve ral

,
millionn aire s who have re c e ntly e re ct e d fi re traps No .

,
th e ordinary hous e in th e Unit e d Stat e s w ill in th e
n e ar future be mad e fire proof as it is in Ge rmany , .
At th e pre s e nt tim e howe v e r th e w hol e amoun t of

, ,
s tructural mat e rial consum e d in th e Unit e d Stat e s

could be mad e by th e Carn e gi e St e e l Company It is .
a ve ry triflin g busin e ss but it is an ind e x to th e possi

,
bi liti e s o f th e gre at e r use s and incre as e d consumption

o f st e e l an d iron .
The Man c h e ste r Scho o l an d
T o d ay
iti h c t ti t t c
Th e B r s on en on h a ea h na ti on is Sp e ci l y
al
qu ifi d f but g l b
al e or on e e n e ra r an ch of i n d ru s tr y d i s
cu d d c b tt d
s se an om a e .
T HE MA N C HEST E R S C HO O L
AN D T O D AY -
HILE Ex Pre mi e r Ros e b e ry was re c e ntly laud

-
ing th e triumphs o f th e Fre e Trad e Manch e st e r

School at Manch e st e r Fore ign Minist e r G ol uch ow ski
, ,
in Vi e nna w as b e s e e ching th e nations o f Europ e to

, .
combin e against th e d e structive comp e tition with

Trans Oc e anic countri e s : We must fight should e r to
-
$
should e r against th e common dange r h e exclaims , ,
$
and arm ourse lve s for th e struggle with all th e m e ans
at our disposal Europ e an nations must close
.
” $
ranks in ord e r succ e ssfully to d e fe nd th e ir e xist e nc e .

”
Thus do e xtre m e s m e e t and w e se e onc e more h ow

,
much d e p e nds upon th e point of vie w Had th e pre .
dictions o f th e Manche st e r School b e e n re aliz e d che ap e r ,
goods from across th e s e as would be haile d as an e c o n o

m ic gain and a ble ssing to th e re cipi e nts inst e ad of
, ,
b e ing consid e re d a me nac e to th e ir e xist e nc e Eve ry .
port would be op e n to this influx o f goods and th e n e w ,
countrie s w hich supplie d th e m haile d as b e n e factors ,
f or
$
Fre e e xchange o f commoditie s was th e watch ”
w ord but it was un dr e amt o f th e n that th e c o m m o d i

,
-
F r om T he N i ne te e n th C e n tu r y , Fe br u y
ar ,
1 898 .
31 1
ti e s of th e n e w lands s e nt to th e o l d m ight take th e
form o f com p e ting manufacture d articl e s which make s ,
all th e diff e re nc e .
Sixty ye ars ago st e am upon land and upon se a

th e st e amship and th e railway train — b e gan th e ir
re volutionary work Britain th e ir cre ator situat e d
, , ,
upon b e ds o f coal and ironston e b e ing naturally th e ,
sc e n e o f th e ir d e ve lopm e nt T h e world was a m e re

.
—
looke r ou while sh e harn esse d st e am and b e gan to
change it If any oth e r country wish e d to avail its e lf
.
o f th e advantag e s o f th e n e w inv e ntions to Britain ,
it must go for e v e rything conn e ct e d th e re w ith Brit .
ain had re aliz e d h e r d e stiny and was soon to b e com e

,
th e workshop o f th e world .
The re app e are d upon th e sc e n e th e Manche st e r

—
School Villie rs Cobd e n Bright and the ir colle agu e s
, , ,
d e manding o n b e half of th e mass e s that th e taxe s upon

food should be re p e al e d T h e r e p e al of th e s e taxe s
.
w hich pass e d und e r th e nam e o f Fre e Trad e in $ ”

-
Britain in contradistinction to Prot e ction has

, ,
”
littl e to d o with th e mod e rn doctrine of Prot e ction ,
as it is now known in oth e r countri e s Such taxe s .
could n e ve r have b e e n d e fe nd e d by th e Prot e ctionist

o f to day b e caus e it was impossibl e that th e amount
-
,
o f food products could th e r e by be

-
consid e rably i n
cre as e d Th e only sound d e fe nc e for a prot e ctive
.
duty according to th e cosmopolitan prot e ctionist

, ,
is wh e n it can be justly claim e d that to le vy it f or a

THE MANCHESTER SCHOOL AND TO DAY 3 -
1
3
tim e will so stimulat e hom e production of th e articl e

taxe d as to supply th e wants o f th e nation ; and furthe r , ,
that hom e comp e tition w ill th e n soon re sult in th e

nation obtaining a sure r ch e ap e r an d b e tt e r supply
, ,
from within its ow n domain th an it e ve r did o r could

d o from fore ign sourc e s .
A tax le vie d und e r th e s e conditions is e ndorse d by

John Stuart Mill s c e l e brat e d paragraph which John
’
Bright onc e said to th e writ e r would caus e h e re aft e r

more injury to th e world th an all his writings w ould
do good and is also re cogniz e d as sound o r unsound
,
”
by Marshall according to circumstanc e s and is what

, ,
i s m e ant in o ur day by Prot e ction outsid e o f Britain

”
.
Conditions conn e ct e d with this tax have in n o wis e

change d and th e re fore th e work o f th e Manche st e r
,
School stands Such a tax impos e d upon food to day

.
-
would op e rate pre cise ly as it did b e fore unle ss by som e ,
marve llous discove ry th e soil o f Britain can be mad e to

grow an ab undanc e of food for th e wants o f its i n h abi
tants A t e mporary tax th e n if n e c e ssary to induc e
.
, ,
capital to de ve lop th e n e w proc e ss would be justifiabl e .
Fo r th e re ason stat e d th e mod e rn advocat e o f Pr o

,
te c tio n d e noun ce s as str e nuously as any Corn Law
Re p e al e r th e tax upon food in Britain .
T h e wond e rful succ e s s o f th e s e British inv e ntions ,
th e st e a m ship and th e train and th e profits re sulting

,
fro m th e comm and of th e world s manufacturin g ’
wh i ch th e se inve ntions gave couple d with th e um

,
doubt e d advantage s flowing from th e fre e importa
tion of food products had th e natural re sult o f cre at ,
ing th e most sanguine vie ws of th e future position and

prosp e rity o f th e Unit e d Kingdom and th e succ e ssful ,
apostl e s o f th e Manch e st e r School we re above all m e n

justifiably th e most sanguin e and this was th e le sson ,
th e y dre w fro m th e the n e xisting conditions

Na tu
c d d i y t t
re h ti f h th
as de re e an w se l so , h a al l n a on s o t e e ar
l b i t d p d t c ith i i i giv
,
s h al e n er e en en ea h w a m ss o n To on e s en
f ti i t ic i t idg tf t
.
,
er le so l to an o h er r h m n e s, to a h r re a ore s s ; to on e
u i t t t p t t
,
s n sh d h ne an d ea to an o h er em e ra e z on e an to an o h er
c d ci ti p f r t i vic th t t
, ,
ol er l m e ; on e na on s h all er o m h s se r e an o er ha
t id tig p ti g ch fu i
, ,
an d a d h r s h all o s om e h n e l se ; al l c o - o e ra n ea rn s h
tu p duct f i g g d iu l
,
ing i ts na r al ro , orm n on e r an h ar m o n o s w ho e .
How b e autiful th e picture $ The n followe d th e
s e cond postulat e
It i s t t c l e ar l y
b v d l d G t B it i h
se e n h a to o ur elo e an re a r a n as
ig d ig i i u f ctu i g f it
, ,
b een as s ne th e h h m ss on of m an a r n or h er s s er
na ti on s b y d Our k i n d eh ip on th e se a s h al l se n to u s i n our s s
t i c tt f Mi i ippi v y I i l c t ibut i
.
he r o on ro m th e ss s s al l e ; n d a s h al on r e ts
jut Ru i i h p d fl Au t i fi
e ss a ts em d an i ts ax s r al a i ts n e r w o o l s , an w e
it upp i c d i t f ct i
, , ,
w h our s l e s of d k
o al an r o n s on e f or ou r a o r e s an w or
sh o p k i d m ch ic
s, o ur d s lle d t c pit
e an s an ar tifi c e r s , an o ur v as a al
i v t d c t uct c y ci y d v
,
s h al l n en an on s r th e ne e s sar m a h ne r an We a e
t t i it c th ti i
,
h e se m a e r al s n l b f
o fine lo f or th e na on s ; all s h al e ash o n e d
by m d fit
u s an d a O e h ip ic c f o r th e u se of m en ur s s w h h re a h
i th t i h l l tu l p t t
.
us l d a en w r aw m a e r al s s a re rn to a l ar s o f th e e ar h
la d enit t w ig p duct
h h e se f ourcu hi h er ro s m ad e r om th e r de Th s
xch g f f fi i d p duct u d d c tu
.
e an e o r aw or f n sh e ro s n er th e e re e s o na re
m a k c ti h v t f
es ea h tna ond p c i t e se r an o th e o h er an ro la m s th e
b t P c g d i ig up
,
ro h e rh o o
d f o l
m an ea e an d oo w ll s h al re n on th e
th ti ft t utf x pl
.
e ar on e na on a d f
e r an o h er m s o ll o w o ur e am e an re e
xc g c d iti v y p v il i p t
, ,
e h an e of om m o es s h al l e er w h e re re a Th e r or s
p i c pti f fi i h d p duct u
.
s h all o en w d e f o r th e re e on o our s , as o rs
p f t i t i
n s e ro
ar e o en or he r r aw ma e r al s .
S uch th e b e li e fs , th e —
hope s th e n ot unre ason able
THE MANCHESTER SCHOOL AND TO DAY -
31 5
e ,
—
hop s judging from th ir pr mis s f th Manch st r
e e e o e e e
School ; for l e t it be said in justic e to the s e good and

,
gre at m e n that th e picture th e y dre w and which W e

, ,
have e nd e avore d to portray w as re aliz e d Gre at Bri

, ,
tain did b e com e th e workshop o f th e world and e ach ,
o f th e gr e at nations play e d th e rol e pr e scrib e d and
pe rforme d th e s e rvic e s indicat e d N o nation n ot .

,
e v e n th e Am e rican e v e r mad e such progr e ss or accu ~

,
m u l ate d such we al t h upon products manufac ture d as

Britain did in this stage of h e r history T h e pros .
p e ctus of th e Barrow St e e l Company stat e d that profits

had b e e n 30 and 4 0 pe r c e nt pe r annum and in o e
.
,
n
ye ar th e y had re ach e d th e incre dible rat e o f 6 0 pe r

c e nt upon th e e ntire capital This is only straw
. .
sho ing th e unh e ard o f r e turns mad e by th e manu

w -
f ac tu r e r s o f Britain wh e n th e world was at its fe e t ,
and b e fore stre nuous comp e tition had re duc e d and ,
in many cas e s banishe d profits And w e ll d e se rve d

, .
was th e re ward re ap e d by th e nation gre at as it w as , ,
which had give n st e am to th e w orld inaugurat e d th e ,
age o f m achine ry and mad e th e world its d e btor for

,
all tim e .
T h e law o f Natur e as int e rpr e t e d by th e Manch e st e r
School was re ve al e d in th e suppose d facts that th e

re sourc e s o f th e various countri e s o f th e e arth gre atly
diff e re d th e capabiliti e s o f th e m e n and wom e n th e re of
,
n o t l e ss s o and that manufacturing could be succ e ss

,
fully conduct e d only in Gre at Britain That t ool .

3 1 6 THE EMPIRE OF BUSINE SS
ste e l o r ind e e d any kind o f st e e l much le ss fi n e m a
, ,
chin e ry could be mad e e xc e pt th e re —that th e fin e st

,
woolle n lin e n and cotton Cloth could be produc e d

, ,
—
succ e ssfully in n e w lands w e re sugge stions which at
that day w e re not e v e n hint e d but which if th e y had
, ,
b e e n mad e would have b e e n gre e t e d w ith d e rision

, .
It is unre asonabl e to suppos e that th e se abl e m e n

o f th e Manch e st e r School would e v e r hav e assum e d
that th e principal nations o f th e e arth or those as ,
piring to b e com e such would cont e nt e dly play th e

,
subordinat e part assign e d th e m had th e m an u f actur

ing fi e l d b e e n O p e n to th e m T h e v e ry ke ynot e o f
.
th e Manch e st e r structure was n e c e ssarily that th e
various nations we re r strict e d by nature to play th e

e
r ol e of gro w e rs o f raw mat e rials no oth e r b e ing possi

,
bl e .W e find to d ay o n th e contrar y aft e r a p e riod

, ,
o f e nforc e d acqui e sc e nc e that nations w ith rare un a

,
n i m i ty hav e aspir e d to shar e th e high e r task o f fash
i o n i n g th e ir r aw mat e rials into fin ish e d products for

th e mse lv e s and n e ith e r British capital nor skill has
,
b e e n wanting to insur e th e ir succ e ss Ind e e d it is .

’
,
'
chi e fly ow ing to th e s e that comp e tition with th e ir o w n

country has b e e n re nd e re d possibl e in th e Far East .
So far fro m th e re sourc e s of nations b e ing ge n e rall y

m e agre and unsuitabl e for manufacturing o r the ir ,
p e ople incapabl e as th e Manche st e r School assum e d

, ,
th e succ e ss of th e ir manufacturing e ff orts g e n e rally ,
spe aking has b e e n surprising Ge rm any has b e come

, .
THE MANCHESTER SCHOOL AND T O DAY 3 -
1 7
on e of th e large st manuf acturing coun tri e s Franc e .
and Switz e rland have al most monopoliz e d th e silk

manufacture in Europ e Russia is e ngage d in build
.
ing st e e l and e ngin e e ring works und e r th e sup e rvision

o f th e most skil l e d Am e rican constructors ; tw o o f
th e se e stablishm e nts n ow we ll forward rival th e b e st
, ,
work so f Am e rica aft e r which th e y are C opie d Japan

, .
and China are building factorie s of th e lat e st and most

approve d charact e r always with British m achin e ry
,
and ge ne rally und e r British dire ction M e xico i s .
we aving cotton cloth manufacturing pap e r and tw o

, ,
bicycle factori e s are n ow und e r constructio n th e re .
T h e jut e and cotton mills o f India ar e num e rous and
incre asing and Bombay is e stablishing an Engin e e ring

,
Works It is stat e d that on e British manufacturing

.
conc e rn s e nds abroad th e compl e t e machin e ry for a

new mill e ve ry we e k Of Am e rica it is unn e c e ssary
.
to sp e ak .
Thus e ve ry nation o f th e first rank or which has th e

,
e l e m e nts o f futur e rank has re j e ct e d th e rol e which

,
th e Manch e st e r School ass i gn e d it ,

and aspire s to
manufacture for its e l f Political Economy n ow points
.
o ut that it is f o r th e b e n e fit of mankind that th e trans
p o rta ti o n charg e s incurr e d by distanc e b e tw e e n pro
duoe r and manufacture r should be save d Att e mpts .
to manufacture by so me small populations in c e rtain

dire ctions will no doubt fail and be abandon e d but ,
succ e ss in th e main se e ms assure d .

Some lands notably Ge rm any and Am e rica n o t
, ,
cont e nt to supply the ir o w n wants now app e ar as e ,

x
port e rs o f many comp e ting article s to oth e r countri e s ,
s e ve ral o f which re ach th e Unit e d Kingdom and th e ,
e xp e ri e nc e which th e m e n o f oth e r nations hav e long
had o f innume rable article s mad e in Britain i s n ow $ ”
b e ing brought home to th e Briton and it i s found that ,
th e re is a good d e al o f human nature in him n o t

$ ”
diff e ring from that of o the r lands A score o f article s .
mad e in Ge rmany cause him irritation ; contracts

”
give n to Am e rican manuf acture rs for e ngin e s in Lo n

d on Dublin and Edinburgh ar e n ot approv e d
, ,
Glas .
gow re j e cts an Am e rican bid f or wat e r pip e s and give s -

,
it to Glasgow manufacture rs at a high e r pric e Wh e n .
a gr e at show o f bicycl e s tak e s plac e in London n o ,
r oom can be found for th e Am e rican Gove rnm e nt .
contracts e ve n including station e ry must be fill e d

, ,
by hom e mad e articl e s Although fre e e ntranc e f or

-
.
importations i s n o t d e ni e d y e t wh e n purchase s are

m
—
to be mad e no fore igne r n e e d apply T h e mails .
must go by slow home mad e ships e ve n if th e re by

-
,
d e lay e d All this is only what w e should e xp e ct and

.
e xcus e He i s a poor citiz e n w h o do e s not pr e fe r and

.
patroni z e h i s o w n country rath e r than fore ign lands ,
but th e Briton Should e xp e ct th e Am e rican and G e r ,
m an and oth e rs to be e qually patriotic With th e

, .
sam e fe e lings with which h e r e gards comp e ting articl e s

$
mad e in Ge rm any o r Ame ric a invading his ow n
”
31
9
country l e t him re aliz e that th e patriotic G e rman

,
and Am e rican naturally re gard comp e ting articl e s

$
mad e in Britain which invad e th e irs .
T o day it is s e e n that Natur e has distribut e d more

-
ge n e rously than was Imag n e d th e indisp e nsable min

i
e r al s coal lim e and ironston e as it was known be

, , , ,
fore that it had wid e ly distribut e d th e ability to grow

raw mat e rials ; and that it has e ndowe d th e man and
woman o f most countrie s with lat e nt ability suffici e nt ,
und e r th e n e w conditions to manufacture th e ir o w n

raw mat e rials in m ost cas e s n o t so we ll in o n e or two
, ,
sp e cial lin e s p e rhaps as we ll as th e Briton or Am e ri

,
can and that h e nc e th e re is n ot to be only on e or tw o

,
but many principal manufacturing countrie s .
T h e wond e rful machin e ry mostly o f British i n v e n

,
tion e sp e cially in iron and st e e l and in t e xtile manu

, ,
facture s e nabl e s th e Hindoo o f India th e Pae on of

, ,
M e xico th e n e gro of Am e rica th e Chin aman and th e

, ,
man of Japan to manufacture with th e more care ful ly

,
e ducat e d w orkman of Britain and Am e rica T h e .
m e chanical Skill o f old i s not n ow ge n e rally re quire d ,
but wh e re n e c e ssary for a f e w positions in e ach huge

,
factory is re adily obtain e d from th e old e r m an ufac

,
turin g lands .
Automatic machin e ry is to be cre dit e d as th e most

pot e nt factor in re nd e ring n o n e ss e ntial to succ e ssful
-
manufacturin g a mass of e ducat e d m e chanical labour

suc h as that o f B fitain o r Am e rica and thus making ,
it possible to cre at e manufacturing c e ntre s in lands
which until re c e nt ye ars s e e me d d e stin e d to re main
, ,
only produc e rs o f raw m at e rials We se e e ve rywhe re

.
to day th e influ e nc e o f this n e w m achin e ry

-
.It can be
acc e pt e d as an axiom that raw mat e rials have n ow i
powe r to attract capital and also to attract an d d e

,
v e l o p labour f or th e ir manufactur e in clos e proximity ,
and that skille d labour is losing th e powe r it onc e had

to attract raw mat e rials to it from afar .
This is n ot change ; it is re volution .
T h e abl e st and b e st citiz e ns of e v e ry country ar e
inspire d to favour th e d e ve lop m e nt of its re sourc e s .
The y cannot conside r it right to hide th e tal e nts give n

the m and are n o w e nable d to se e cle arly that th e e v i
,
d e nt law of Nature is that th e re Shall be give n to m any

n ations th e bl e ssings o f d iv e rsifi e d industri e s in th e
,
pursuit o f which th e various aptitude s and tal e nts o f

th e ir p e ople shall find scop e
All this th e M
.
anche st e r School could by n o possi

bil ity hav e fore s e e n .
It i s d e lightful to surv e y th e move m e nt of th e nations

in th e march o f industrial progre ss und e r th e n e w c o n
d iti o n s .Had o n e o r tw o b e com e th e chie f manu
f ac tu r e rs f or all th e g e nius o f th e ir p e opl e alon e would
,
have b ee n e nlist e d in th e work o f improve me nt and

inve ntion To day w e have th e ge nius o f many
.
-
n ations alre ady at work , with mo re to com e It i s .
ple asing also to not e how th e ge nius of e ach t e nds to

THE MANCHESTER SCHOOL AND T O DAY 3 -
2 1
e xc e l in a diff e re nt lin e Thus Franc e has al most

.
monopoli z e d th e sup e rfin e in t e xtile s as it has long,
e njoy e d supr e macy in th e d e partme nt of wom e n s ’
rich appare l Britain holds supre macy in machin e ry

.
for t e xtile s T h e inve ntor o f th e iron and st e e l in

.
d ustry sh e is also l e ading th e world to day in suc

,
-
c e s s f ul l y d e v e loping a collat e ral branch th e by prod

,
-
u ot cok e ov e n in which e v e n th e Am e rican has s o far

,
faile d Am e rica l e ads in e l e ctrical applianc e s and

.
machin e tools G e rmany is supre me in ch e mical

.
dye s and has re c e ntly inve nt e d a cond e ns e r for st e am

,
which is showin g gre at r e sul ts as we ll as a re markabl e

,
n e w proc e ss for th e making of armour T h e caus e o f

.
progre ss in things mat e rial is thus advanc e d by th e

contributions of many minds o f various nationaliti e s .
T h e stirring comp e tition which has b e gun among
th e nations and which w e may e xp e ct to s e e still more

,
stre nuously push e d is th e tru e ag e n c y for producing

,
c
th e b e st r e sults and is to be w e lcom e d and e ncourag e d

,
by those w h o can lift th e ms e lve s abov e th e narrow

vi e w f w hat is s e e mingly b e st for any o n e or two o f
o
th e g e ographical di v isions of th e world and r e gard ,
what is b e st for th e rac e as a whol e .
T h e d e v e lopm e nt of th e in dustrial world is taking

a diff e re nt lin e from that pre dict e d but th e gre at work
,
accomplish e d by th e Manch e st e r School is n e ith e r to

be b e littl e d nor forgott e n Villi e rs Cobd e n Bright
.
, , ,
an d th e ir comp e e rs in th e r e p e al o f th e tax e s upon

,
THE EMPIRE BUSINESS
'
32 2 OF
food imports did th e ir country a s e rvic e for which it

,
can n e ve r be to o grat e ful Th e ir d e votion to th e cause

.
o f p e ac e,
and to all that t e nd e d as th e y thought to
, ,
cre at e th e broth e rhood o f nations give s th e l e ad e rs

,
o f th e mov e m e nt a s e cur e plac e in th e history o f be n e fi
c e nt d e e d s and as a d vocat e s o f nobl e e nds That

, .
som e o f th e ir pre dictions ar e nullifi e d or re ve rs e d by

forc e s which have com e into play sinc e th e ir day ,
n e ith e r re fle cts upon th e ir sagacity n or d e tracts from

the ir s e rvic e s .
Th e
$
Fre e Trad e which Manch e st e r saw and for ,
which it pre dict e d unive rsal acc e ptanc e was th e e x ,
change o f diffe re nt and non comp e ting articl e s and

-
,
o f r aw mat e rials for manufactur e d goods ; for nations
had not th e n b e gun to comp e t e s e riously with e ach

oth e r in th e sam e manufacture d article s If this is .
not to be re aliz e d sinc e th e principal nations are to

,
d ay b e coming manufactur e rs o f th e ir r aw mat e rial ,
and supplying the ir o w n n e e ds and comp e ting w ith

,
e ach oth e r in th e world s mark e t for similar things

’
y e t w e may congratulat e ours e lv e s that som e thing

b e tt e r e ve n than th e Manch e st e r id e al for th e progre ss
o f th e world is rapidly b e ing e volv e d .
What th e e ffe ct o f this change is to be upon th e

re lative positions o f nations in th e future it w e re u se
l e ss to consid e r sinc e conditions might be transform e d
,
in a day ; a ch e mical discove ry an e l e ctrical inv e ntion

, ,
th e —
prop e rti e s o f a plant utiliz e d any o n e o f such ,
32 3
or of oth e r not improbable surprise s upon which w e

se e m to be som e tim e s o n th e ve ry thre shold mi ght ,
work an e ntire change T h e substitution o f b e e t f o r

.
cane sugar has just blight e d th e We st Indi e s which ,
se e me d to posse ss al most a monopoly Th e discove ry .
o f th e M e saba Iron Min e s improv e d transport and a

, ,
f e w oth e r minor caus e s hav e just mad e Am e rica th e
ch e ape st manufacture r o f st e e l while until re c e ntly

,
sh e was th e d e are st Th e basic proc e ss has mad e

.
Ge rmany a l e ading st e e l produc e r wh e n oth e rwis e ,
sh e s e e m e d d e stin e d to be e xclud e d and promise s to

,
t e ll scarc e ly l e ss h e avily f o r Britain T h e discov e ry

.
o f min e s and th e e xt e nsion of its rail w ay syst e m are
soon to make Russia an important manufactur ing

coun try in which sh e has hith e rto fail e d T h e utiliza
,
.
tion o f wat e rfalls for e l e ctricity displacing coal is

, ,
alre ady changin g some c e ntre s o f manufacture All .
th e se change s ar e o f y e st e rday .
It is not wise th e re fore for any nation to plum e

, ,
itse lf unduly upon pre s e nt re sourc e s o r prosp e cts ,
n e ith e r for any to d e spond We know not what a

.
$
day may bring forth .

”
W h at W ou ld I Do W i th th e
T ar iff if I W e re Czar $
Th t g f t xi
e ad v an i p t d l uxu i vi y
a e o a n g th e m or e r es h ea l
an d d uci g
re n t il
th e tax c iti
o n r aw m a e r a s an d ne e ss es
t i ki g x pl f c ct d i pp i d
.
A f ew s r n e am es o or re an m sa l e
t iff
ar s .
W HAT W O U L D I DO W IT H T HE
T A R IFF IF I W E RE C$ AR $
RATHER like th e swing of th e qu e stion and I ,
proc e e d to re ply T h e e stimat e d e xp e nditure .
o f th e National Gove rnme nt according to S e cre tary

Carlisl e s re port f or th e pre s e nt fiscal y e ar ( 8 9 5)
’
1
is and th e e sti m at e d re c e ipts

0 00 l e aving a d e ficit o f
, He e stimat e s
that n e xt y e ar th e re will be a surplus o f
assumin g th e e xpe nditure to be th e sam e $ .
Th e d e cre as e in th e cost of p e nsions this fiscal y e ar
o v e r last is no l e ss than and v e ry soon

e v e ry y e ar th e p e rc e ntag e o f d e cr e as e must b e com e
gre at e r T h e navy will re quire l e ss e xp e nditure

.
upon it than in future ye ars and th e incre as e in p op u ,
lation and w e alth w ill give incre ase d re ve nu e s o f

the ms e lve s so that th e re is no caus e for alarm in r e
,
gard to th e e xp e nditure s and re ve nue s of th e

Gove rnm e nt aft e r th e n e xt ye ar although th e S e cre ,
tar y is probably much ove rsanguine as to r e c e ipts

und e r pre s e nt laws for this y e ar .
$ Th f o l l ow ig n m ay be i t ti g
n e re s n as a c p i
om ar s on : In 1 90 1
tt v u tt i y
e
th al w as an d th e o al o r d n ar ex
vi g xc v u v di y
e o re en e
p e n d i tu r e s 35 3 l e a n an e e ss o fre en e o e r or n ar
xp
,
e e n se s o f
F ro m T h e For u m ,
Mar c h ,
1 895
Of Gove rnme nt re ve nue s th e tariff is e stimat e d to
,
yie ld this ye ar and is e stimat e d to

,
.
yie ld n e xt y e ar ; and th e qu e stio n is ,
What would I do about th e tariff if I had supre m e

powe r $
First m y aim would be to ke e p fre e o f duty th e
,
n e ce ssarie s of life use d by th e many and to tax highly

,
th e luxuri e s o f th e f e w. Th e mass e s who we ar and
consum e hom e products I should n o t tax but th e ,
luxurious man and woman of fashion who will we ar

at what e ve r cost th e fi n e woolle ns and th e e xquisit e ly
fi n e silks and th e d e licat e ly fi e lin e ns o f Europ e
n
should pay th e tariff dutie s This S mall rich clas s

'
und e r th e n e w tariff would be mad e much more fash

i o n abl e by paying p e rhaps doubl e th e pr e s e nt duti e s .
T h e Am e rican mass e s who u se Am e rican tobacco and
cigars should find no high e r tax upon th e se than at

pre se nt ; but th e rich and luxurious ge ntl e m e n whos e
d e licat e nostril s re quire th e p e rfum e o f th e Havana ,
should b e com e more profitabl e to th e Stat e by pay

ing at l e ast doubl e th e pre se nt duty Th e champagne
.
and rare old win e drinke rs and purchase rs of rare ol d

o r rar e new fore ign china and glass p e rfum e ri e s
, ,
and s imilar article s de l ux e should be abl e to boast

with p e rfe ct truth o f th e ir e nhanc e d valu e It Should.
n e ve r be forgott e n that import e d articl e s are use d by

th e rich f e w and hom e products by th e mass e s
, .
T h e incr e as e d duti e s propos e d upon fore ign articl e s

WHAT WOULD I DO WITH T HE TARIFF $ 32 2
de l ux e would n o t be le vie d with a vie w to prot e ction ,
but pure ly for re ve nue That incid e ntally this polic y .
might slightly b e n e fit th e manufacture rs at home

would n ot be consid e re d an obj e ction ; but this ad a
vantage if any could be but slight sinc e th e sup e r

, , ,
fi n e qualiti e s o f wool silk and lin e n goods ar e n o t , ,
mad e h e re nor ar e th e high pric e d win e s cigars

‘
-
, , ,
and hundre ds of fancy article s Home manufactur e rs ,
howe ve r almost compl e t e ly control th e marke t for

,
goods o f ordinary quality which are those us e d b y ,

’
th e mass e s .
Th e re v e rs e o f this has hith e rto b e e n th e policy
adopte d A page could be fille d with a list o f th e

.
l uxurie s o f th e rich upon which th e taxe s have b e e n

re duc e d by th e n e w tariff H e re are a f e w re ductions : .
china re duc e d 50 p e r c e nt glass — plat e and stain e d .

,
glass 40 gold p e ns 6 clocks 8 hats 7 knit fab 1 ,

2 ,
2 ,
rics 7 flann e l 6 8 silk umbre llas 8 brandy and

2 , , 1 ,
cordials 8 silks 4 glove s 30 c o m fi ts j e lli e s e tc

2 ,
0, , , , .
,
lac e s e mbroid eri e s e tc 6 wooll e ns and silks 0 to

, , .
,
1 ,
1
2 0, owing to ad val ore m inst e ad o f sp e cific duti e s .
Und e r th e pre s e nt t ariff th e rich man of fashion we ars

his sup e rfin e fore ign broadcloth sup e rfin e li n e n , ,
silk hat kid glove s fi n e Silk umbre lla sips his costly
, , ,
glass o f rare o l d win e from 2 0 to 70 pe r c e nt l e ss , .
than th e form e r duty upon th e se sup e rfluous l ux ur

ie s. His grand dam e plays h e r fan flourish e s h e r ,
e mbroid e r e d handke rchi e f displays h e r e xquisit e ,

lac e s and arrays h e rse lf in sup e rb silks at e qual re
,
d u c ti o n s w ith many smil e s and thanks to th e n e w ly

,
ari se n fri e nd o f th e p e opl e th e charming and brilliant ,
yo un g We st Virginian who apologiz e s for h i s failure,
to re duc e th e duti e s upon th e champagn e sh e off e rs

him e xplaining that this was not his fault as his bill
,
o riginally provid e d for its re duction also Hundre ds .
o f fancy articl e s mad e of wool silk and lin e n ar e now ,
un d e r re duc e d duti e s The s e re ductions as w e shall

.
,
s e e lat e r e mbrac e articl e s de l ux e which furnish tw o

,
thirds o f th e e ntire re ven ue from th e tariff Not o e . n
workingman in th e w hol e land us e s th e se luxuri e s .
Such is tariff re form up to dat e and thus is th e

$
,
burd e n of taxation re move d from th e mass e s of th e

p e opl e Strange d e lusion $ Th e taxe s ar e re move d
.
’3
only from th e rich .
This is not a party que stion for n e ith e r party h as ,
mad e th e primary obj e ct o f th e tariff th e coll e ction

o f th e r e v e nu e from th e luxuri e s o f th e rich r e gardl es s
o f e ith e r fr e e trad e o r prot e ction A prop e r tariff .
would re plac e th e burd e n upon th e should e rs o f thos e

b e st able to b e ar it and much high e r rat e s would be
,
impose d upon the s e article s than have e ve r ye t b e e n

charge d .
It i s a mistake to assum e that th e u se o f luxuri e s

would be s e riously l e sse n e d owing to highe r rat e s o f
duti e s On th e contrary o n e e l e me nt of fashionabl e
.
,
u se i s gre at cost T h e imports would be l e ss e n e d if

.
WHAT WOUL D I Do WITH T HE TARIFF $ 331
dutie s we re rais e d upon article s of ge n e ral c o n sum p
tion use d by th e masse s b e caus e on e article could be ,
substitut e d for anoth e r and th e cost is alw ays car e

fully conside re d But this do e s not apply strongly
.
to lux uri e s which are chie fly matt e rs o f tast e and

,
fashion and ar e purchas e d sol e ly by th e rich to w hom ,
pri c e 18 n o t th e first consid e ration To doubl e th e .
tax upon champagn e for instanc e or upon fi n e for , ,
e i gn china woolle ns silks lin e ns lac e s e m br o id

, , , , ,
e ri e s e tc
,
would n ot gre atly d e t e r th e rich class from
.
,
p ur chasing T h e re duction in th e amount consum e d

.
would probably not much more than e qual th e ordi

nary incre as e arising from th e incre as e o f population
and we alth Th e amount o f additional duty r e
.
c e iv e d ,
th e re fore would soon be substantially th e
,
amount impose d But e ve n if th e highe r tax e s r e

.
du ce d th e u se o f th e for e ign products o n e fourth for -
a time th e re ve nu e s would still be o n e fourth more

,
-
we re th e taxe s double d Should howe v e r a con .

, ,
s i d e r abl e re duction in consumption take plac e so ,
much th e b e tt e r Th e re is a silve r lining to that

.
cloud f or so much m ore o f th e w e alth o f th e country

,
would be us e d f o r th e purchase o f hom e products o r , ,
at l e ast n o t sp e nt in l ux ur io u s liv in g It might be

,
'
claime d that th e hom e manufacture r would finally

produc e th e fin e st qualitie s o f t e xtil e goods if th e
fore ign goods w e re highly taxe d So be it and s o .
,
much th e b e tte r for th e country if h e did ; but it would

332 THE EM PIRE OF BUSINE SS
take ye ars b e fore h e could do so and long b e fore this , ,
th e natural incre as e of th e r e v e nu e s from incre as e d
population and we alth would m e e t any re duction o f

imports In a f e w ye ars th e d e cre ase in p e nsions
.
th e gr e at drain at pre s e nt — will re lie ve th e Go ve rn

m e nt from th e n e c e ssity to coll e ct as much re ve nue .
Tariff dutie s as follow s we re coll e ct e d in 8 9 o n 1 2
fore ign importations o f th e luxurie s o f th e rich

W o ol uf ctu
m an a re s
i k uf ctu
S l m an a re s
Co tt onuf ctu
m an a re s
F x
la uf ctu
m an a re s
G l as s ci an d h na
Wi iqu
ne s, l o rs , e tc
To b cc a cig
o an d ar s
H e re are o f r e v e nu e from s e v e n class e s
o f luxuri e s and he re ar e a f e w oth e rs w hich n e tt e d

,
m ore than —
additional j e we ll e ry carriage s , ,
artificial flow e rs clocks brush e s pap e r p e rfum e ri e s

, , , , ,
musical instrume nts making— re ve nue

colle cte d from imports o ut of th e total of
To re duc e dutie s upon articl e s which ar e all luxurie s
of th e rich furnishing two thirds of th e whole
,
-
tariff re ve nue is th e chie f re sult o f th e Wilson act

,
.
T h e stat e m e nt cannot be disput e d that th e s e articl e s
we re not import e d for th e u se of th e mass e s o f th e

p e opl e With woolle n manufacture s as those o f silk
.
, ,
th e mass e s of th e p e opl e o f th e Unit e d Stat e s ar e sup
plie d by th e ho me m anuf actur e r alm ost e x c l usiy e l y .

WHAT WOULD I DO WITH THE TARIFF $ 333
Th e only class which use s import e d cloths and for ,
e i g n glass an d china and fore ign win e s and tobacco

, ,
i s th e rich T o pre v e nt th e charg e b e ing m ad e that

.
th e articl e s us e d to any e xt e nt by th e mass e s might
be mad e d e are r by th e incre as e d duti e s th e bill ,
should provide that wooll e n silk an d lin e n cloths ,
o f co mmon grad e s should be e x e mpt fro m th e high e r
duti e s Substantially non e but th e high grad e s is

.
import e d but th is claus e would disarm criticism

,
.
Had e ve n th e duti e s of 8 9 b e e n re tain e d upon the s e

1 2
luxurie s of th e f e w th e pre se nt d e fici e ncy in th e re ve

,
nue s would have be e n much l e ss than n ow disturbs

th e national e xch e qu e r W e hav e h e re a rich min e
.
,
ind e e d which should be drawn from wh e n th e n e xt

,
tariff l e gislation is und e rtake n We re th e duti e s .
upon th e se lux uri e s doubl e d and anoth e r ,
000 coll e ct e d o r if th e incr e as e d tax e s diminish e d

,
consumption by o n e fourth and th e Gove rnm e nt ob

-
tai n e d but half th e incre as e as it still would in that

,
e xtr e m e cas e th e n w e would have take n say 5 7

, , , ,
o f taxation from th e should e rs o f th e toiling
masse s and plac e d it upon those of th e luxurious ,
pl e asure loving e xtravagant class who can be mad e

-
,
to pay f or the ir e xtravaganc e with b e n e fit to the m

s e lve s and to th e nation If 50 pe r c e nt additional
. .
duty w e re trie d th e re ve nu e s would soon be incre ase d

,
to almost th e whol e o f th e e xtra tax This is n e ith e r .
prote ction n o r fre e trad e and has nothing to do with

,
e ith e r It is simply a que stion o f re ve nu e And
. .
it is submitte d that in no way can th e n e c e ssary

re ve nu e be so wise ly obtain e d as from fore ign l ux ur
ie s consum e d only by th e rich and most e xtravagant
class of th e p e opl e My tariff would about doubl e

.
.
pre s e nt duti e s upon all th e s e luxuri e s .
Whe n brought fac e to fac e with th e fact that th e

principal change produc e d by th e Wilson bill was
thus to re duc e duti e s upon two thirds of th e total
,
-
ta riff r e v e nu e s e xclusiv e ly for th e b e n e fit o f th e rich ,
who alon e u se import e d goods o n e asks h ow so abl e

, ,
hon e st z e alous and pure a man as Mr Wilson could

, , .
r e pr e s e nt hims e lf as lifting th e unn e c e ssary burd e n

$
o f on e rous tariff taxation from th e masse s o f th e

—
p e opl e th e e xplanation is e asy : h e was i n e pe ri
”
x
e n ce d . He had not studie d th e que stion I v e ry .
much doubt w h e th e r h e would to day produc e a -
m e asure so fore ign to his publishe d int e ntions It .
i s a matt e r o f se rious import that such a man as
h e is r e l e gat e d to privat e life simply b e caus e o n e

district vot e s for anothe r Our custom of choosing
.
only R e pre se ntativ e s r e sid e nt in th e district lose s us

many invaluabl e m e n Mr Wilson is to day capabl e
. .
-
o f p e rforming work o f th e b e st charact e r b e caus e h e ,
has n ow th e only quality h e lacke d b e fore knowl —

e dge of a ffairs . We n e e d just such m e n as h e in public
life and I f o r on e hop e f or his sp e e dy re turn to it
,
.
Som e day h e will advocat e a tariff I b e lie ve upo n , ,

th e floor o f th e Hous e which will tax high e r th e l ux ur

,
ie s of th e fe w n t r e duc e
o ,
—
dutie s sole ly f or the ir
b e n e fit .
Fe w p e rhaps und e rstand to what e xt e nt fore ign

t e xtil e articl e s are f or th e rich only Take woolle n .
goods f or instanc e : in 8 90 th e valu e of th e hom e

,
1
manufacture d product was T h e high

pric e d fore ign fi n e woolle ns we re import e d to th e
valu e o f only Th e ir valu e pe r yard was
much gre at e r than that o f th e ordinary qualiti e s pro
d u ce d at hom e so that th e numb e r o f yards probably
,
w as not more than 6 o r 7 p e r c e nt of th e total con .
sumption W e hav e a similar re sult with cotton

.
th e valu e o f th e hom e manufacture d product in 8 90

-
1
w as and th e total amount import e d was

valu e d at only Eve n in re gard to silks
import e d th e manuf acture d product o f Am e rican
,
mills in 8 90 was valu e d at

1 th e total i m
port e d silk manufacture s only Th e s e .
also are o f much high e r value pe r yard than th e hom e

product Sinc e 8 9 th e silk manufacture rs o f Am e ric a
. 1 0
hav e gain e d gre atly and are constantly filling th e ,
hom e d e mands more compl e t e ly .
If th e fore ign wooll e ns Silks and lin e ns we re classi , ,
fi e d as to fin e n e ss and valu e it would be s e e n that ,
goods o f common grad e s such as th e p e opl e ge n e rally ,
u se are no long e r import e d

,
Nor can th e y be to any .
con sid e rabl e e xt e nt e ve n und e r th e pre s e nt act 80 .

far has th e Am e rican manufacture r conqu e re d his
o w n mark e t The re is anoth e r point b e aring upon
.
this matt e r : a ve ry gre at proportion o f all t e xtile

importations consist not o f cloth in th e yard but o f ,
Sp e cial fancy t e xtil e

—
article s braids lac e s trim , , ,
,
—
mings e mbroid e ri e s which are not manufacture d
,
at all at hom e .
In re gard to coal and iron or e so call e d raw mat e ri ,

-
als th e n e w tariff should make no furth e r re ductions

, ,
b e cause a re duction o f n e arly o n e half of th e duty at -
o n e tim e just mad e is s e rious and time is n e e d e d

, , ,
b e fore any industry can adjust itse lf to so gre at a

change B e sid e s th e tax of forty c e nts p e r to n upon
.
,
o re and thirty c e nts p e r to n upon coal is comparativ e ly
trifling This applie s to iron and st e e l ge n e rally

.
,
which have suffe re d two re ductions re c e ntly ; f or th e

Mc Kin l e y act re duc e d th e se as much as th e Wilson ’
—
act did about 3 pe r c e nt in e ach cas e Makin g
0 . .
cotton tie s fre e Of duty whe n all oth e r forms o f st e e l

-
w e re le ft dutiabl e is th e gre at e st blot upon th e pre se nt

—
tariff a pi e c e o f pure s e ctionalism th e ban e o f th e ,
F e d e ral syst e m On e half o f th e forme r duty should

.
-
b e r e store d .
Works of art should re main fre e of duty and th e ,
fram e s o f picture s now dutiabl e should also be mad e

, ,
fre e Th e trifling sums l e vi e d upon th e s e at pre s e nt

.
ar e nothing ; but th e troubl e and d e lay caus e d by as
se ssing th e v alu e of e ach fram e will t e n d to discoura ge

im portations art tre asure s almost all o f which find
of ,
th e i r pe r m an e n t r e sting plac e soon e r o r lat e r in public

'
-
galle rie s and thus b e come th e pre cious poss e ssions

,
o f th e p e opl e
On e im portant point in th e tariff re c e iv e s not o n e

—
tithe o f th e att e ntion it d e se rve s that paragraph
which p e rmits all partie s to import mat e rials and to
u se th e m in making any articl e f o r e xport Nin e ty .
nin e pe r c e nt of all dutie s are in this case re mitt e d

. .
This is stat e smanship and d e se rve s to rank with r e c

i pr o c ity as a valuabl e st e p toward s e curing e xt e nd e d
trade f o r th e Re public This should be incorporat e d
.
in my suppose d tariff e xc e pt that I Should re mit th e

,
re maining pe r c e nt also so that th e Ame rican manu

1 .
,
facture r would stand fre e to avail himse lf of th e mar

ke ts o f th e world for w hat h e purchas e s f o r e xport
, ,
upon fre e trad e t e rms and thus com e into th e world s

-
,
’
marke ts w ith what h e has to s e ll upon e qual t e rms

i n comp e tition with th e man uf actur e rs of Euro pe .
Whe n writ e rs and sp e ake rs d e scant upon th e e xclu

sion of th e Am e rican manuf acture r from th e marke ts
o f th e world owing to prot e ctiv e duti e s th e y ar e prob ,
ably ignorant o f th e fact that at pre s e nt h e is und e r

fre e trad e conditions as to his mat e rials minus p e r
-
, 1
c e nt o f th e duti e s w hich th e Gove rnme nt withholds

.
to pay th e cost of accounting T h e n e w tariff would .
disarm criticism upon this poin t by omitting also th e

t rifling p e r c e nt
1 Am. e rican m anufactur e rs wou ld
th e n have e ve ry advantage o f fre e trad e in struggling
for th e marke ts of th e world .
Such qualiti e s of fore ign wool as cannot be pro

duc e d in o ur country owing to climatic caus e s and
, ,
y e t a r e valuabl e for mixtur e s w ith o ur hom e product ,
would re main fre e of duty .
Th e re would be no income tax I know o f n o .
stat e sman o r authority who do e s not d e nounc e an in

com e tax as th e most obj e ctionabl e o f all taxe s Mr . .
Gladston e onc e app e al e d to th e country upon this

subj e ct alon e d e nouncing it as t e nding to make a
‘
nation o f liars While it is in the ory a just tax in

.
,
practic e it i s th e sourc e o f such d e moralization as

re nd e rs it p e rhaps th e most p e rnicious form o f taxa
tion which has e ve r b e e n conc e iv e d sinc e human
socie ty h as s e ttl e d into p e ac e ful gove rnm e nt Any .
me asure is justifiabl e in time of w ar but th e only ,
e xcus e for an incom e tax is imp e rative n e c e ssity .
The re is at pre se nt no such n e c e ssity T h e Gove rn .
m e nt re ve nue s must soon produc e a surplus ove r e x

p e n d i tu r e s if
,
from no oth e r caus e than th e incr e as e
o f population and w e alth and th e y can be mad e to '
do so n ow as pre viously point e d out by taxing high e r

, ,
only th e e xtravaganc e s of th e f e w .
T h e qu e stion of sugar i s important Raw sugar .

,
molasse s e tc would be taxe d subj e ct howe ve r to

, .
, , , ,
admitting th e s e fr e e from such coun tri e s as giv e us
satisfactory advantage s in re turn which would practi ,

WHAT WOULD I DO WITH THE TARIFF $
339
cally make the m all fre e Th e Unit e d Stat e s holds

.
an imm e ns e powe r in h e r u se o f worth

of th e se article s annually purchase d chie fly from
,
o ur sist e r Re publics o f South Am e rica and from ,
Cuba It should be wise ly us e d to give h e r acc e ss

.
to th e ir marke ts in re turn upon b e tt e r t e rm s than

othe r nations A bounty upon home grown sugar
.
-
would be give n for th e pre se nt by th e n e w tariff in th e

hop e that thi s country might ultimate ly succ e e d in
producing its own supply : T h e b e e t — root and sorghum
e xp e rim e nt should n o t y e t be abandon e d .
T h e policy o f re ciprocity would be re store d to th e
fulle st e xt e nt T h e incre ase in our e xports o f articl e s

.
to countri e s und e r re ciprocity tre ati e s prove s that

Mr Blain e was corre ct in his b e lie f that by m e ans o f
.
this syst e m ably manage d w e have take n th e b e st

, ,
st e p that can be take n to give our country fore ign

’
trad e which it cannot oth e rwis e s e cure I b e li e ve .
in ge ttin g some thing in re turn from coun tri e s to

which w e op e n o ur marke ts to sugar molasse s and , ,
tobacco b e cause w e have prove d that it can be o h

,
tain e d .
Although I a m oppos e d to taxing th e food and th e

n e c e ssari e s o f th e p e opl e
, I should make an e xc e ption
in re gard to products o f Canada and this without r e
,
gard to th e doctrin e s o f e ith e r fre e trad e or prot e o

-
tion but as a matt e r o f high politics I think w e

,
.
b e tray a lack o f stat e smanship in allowing comm e r~

c ial advantage s to a country which owe s all e gianc e
to a fore ign powe r found e d upon monarchical insti
tuti o n s which may always be trust e d at h e art to d e t e st
th e R e publican id e a If Canada we re fre e and ind e

.
p e nd e nt and thre w in h e r l o t with this contin e nt it ,
would be a diff e re nt matt e r So long as sh e re mains

.
upon our flank a possib l e f o e not upon h e r o w n ac ,
count but subj e ct to th e ord e rs of a Europ e an Powe r

, ,
and r e ady to be call e d by that Powe r to e xe rt h e r .
forc e s against us e ve n upon issu e s that may not con

c e rn Canada I should l e t h e r distinctly und e rstand
,
that w e vie w h e r as a m e nac e to th e p e ac e and s e curity

o f o u r country ,
and I should tre at h e r accordingly .
Sh e should not be in th e Union and o ut o f th e Union

at th e sam e tim e if I could pre ve nt it The re fore I
, .
,
Should tax highly all h e r products e nt e ring th e Unit e d

Stat e s ; and this I should do not in dislike for Canada
,
but for love o f h e r in th e hop e that it would caus e

,
h e r to re aliz e that th e nations upon this Contin e nt
ar e e xp e ct e d to be Am e rican nations and I trust , , ,
finally o n e nation so far as th e English sp e aking -
portion is conc e rn e d I should u se th e rod not in

.
‘
ang e r but in lov e ; but I should u se it S h e should be .
e ith e r a m e mb e r o f th e R e public or s h e should stand,
f o r h e r o w n s e lf r e sponsibl e for h e r conduct in p e ac e

,
and in war as oth e r nations ar e re sponsible and sh e

, ,
should not shi e ld h e rs e lf by callin g to h e r aid a fore ign

Powe r This is as I hav e said n e ith e r fre e trad e
. , ,
-
WHAT WO ULD I DO WITH T HE TARIFF $
34 1
n or prot e ction but it do e s b e ar upon th e subj e ct of

,
th e tariff I would tax Canadian article s so long as

.
Canada continue d th e subordinat e o f a Europ e an

Powe r .
T h e n e w tariff bill S hould provid e that it is pass e d
with th e und e rstanding and cons e nt of both political

parti e s that n o furthe r tari ff l e gislation should be
un d e rtake n for te n y e ars Just as w e take a c e nsus
.
e v e ry te n y e ars w e should r e vis e th e tari ff

,
say th e ,
se cond ye ar afte r th e c e nsus is tak e n b e caus e w e ,
could the n act und e rstandin gly If f o r instanc e .

-
, ,
th e i m ports o f any articl e not e xclusiv e ly us e d by
th e rich f e w. but of ge n e ral consumption compar e d

, ,
with th e am ount o f that articl e m ad e at hom e prove d ,
that th e home manuf acture r had almost compl e t e ly

drive n th e fore ign manufacture r o ut of o ur mark e t ,
th e duty upon that articl e could be r e duc e d If on .

,
th e oth e r hand th e statistics prov e d that th e imports

,
o f an articl e had r e main e d as b e fore o r had incr e as e d
in comparison with th e amount o f th e production at

hom e th e duti e s upon that articl e could be incre as e d
, .
It woul d be impossible f or th e ho me m anufacture r

o r th e fore ign import e r to influ e nc e th e d e cision
.
be ,
cause w e should h ave th e figure s which prove d th e

situation No o n e could gainsay the m Of cours e
. .
th e qu e stion would be consid e re d wh e th e r th e hom e
produc e r had shown that it w as finally possibl e to

produce th e arti cl e in que stion at hom e so that it
could ultimat e ly be obtain e d by consume rs upon favour
abl e t e rms as compare d with those obtainabl e from
fore ign sourc e s If a committ e e appoint e d for th e
.
,
purpos e o f tariff r e vision w e re satisfi e d that th e manu

,
facture o f th e articl e in que stion was prove d not suit

abl e for this part of th e world it would th e n be w is e ,
to prot e ct it no longe r and to make th e articl e fre e

$
o f duty o r to tax it f or r e v e nu e only

, .
T h e attitud e in which th e com mitt e e should ap
proach th e subj e ct o f re vision should be that in which

a love r of th e country approach e s th e que stion o f
fe lling a tre e It should consid e r always as I know
.
,
th e lov e r o f th e country consid e rs how e asy it is to ,
cut dow n th e nobl e tre e h e love s how impossibl e to ,
re store it It matt e rs comparative ly littl e to th e

.
country whe th e r th e re be 5 o r 0 pe r c e nt more duty 1 .
upon a fore ign articl e for a f e w y e ars than re quire d .
But it make s all th e d iff e re nc e w h e th e r th e re be 5 o r

c nt l ss than is n c ssary to nabl h strug
‘
t
‘
10 p e r ee . e e e e e
gling hom e manufacture r to continue th e cont e st

which may ultimat ly re sult in victory In tari ff e .
le gislation th e rule should be in all case s of doubt

, ,
‘
to take th e safe sid e In a committ e e d e vot e d to this

.
duty the re would s e e m to be little play fo r partisan

ship as its functions w ould partake o f a judicial
,
charact e r Th e e n d aime d at by all would be to ob

.
tain a home supply of such article s o f ge ne ral con

sumption as can finally be produc e d und e r th e flag ,
through t e mporary prote ction so succ e ssfull y as to ,

WHAT WOULD I Do WITH THE TARIFF $ 343
supply th e consum e r upon t e rms as favourabl e as could
be obtain e d if d e p e nd e nt upon a supply from any
oth e r part of th e world Wh e re ve r it is d e monstrat e d
.
that th e Unit e d Stat e s cannot produc e this re sult i n

re gard to any article the n but not till th e n should
, , ,
prote ction be abandon e d and re ve nue only c on si d

,
e re d . With articl e s howe ve r which ar e th e luxuri e s

, ,
o f th e f e w upon w hich th e Wilson bill has gre atly r e

,
d u c e d duti e s I hold that n e ith e r fre e trad e nor pro

,
-
te c ti on should hav e anythin g to do Upon th e se th e

.
tax should be e xc e ssive ly high sol e ly for r e ve nu e

,
high to th e point of almost l e sse ning th e aggre gat e

re ve nue coll e ctibl e upon th e m ; and no othe r c on sid
e r ati o n should hav e w e ight in l e vying th e duti e s f o r ,
re ve nue is th e e n d d e sire d .
I am confid e nt that this point will n o t be re ache d be

fore th e pre se nt tariff rat e s ar e doubl e d o n those things
which have b e e n e num e rat e d as luxuri e s which yie ld ,
tw o thirds o f all tariff r e v e nu e ; and I am e qually c e r

-
tain that S e cre tary Carlisl e s b e li e f that th e lowe r

’
dutie s of th e Wilson act upon the se article s for th e

f e w w ill gre atly incre as e th e ir u s e is a mistak e Th e .
consumption o f th e luxurie s of th e rich can be i n

cre ase d o r diminishe d by any change o f duti e s only
to a d e gre e s o slight as to surpris e th e orists b e caus e ,
th e ir cost is not th e first consid e ration .
To s um up
First : Dutie s should be coll e ct e d chie fly fro m

fo re ign luxuri e s use d by th e e xtravagant rich class
without re gard to fre e trad e o r prot e ction but pri ,
marily for re ve nue Th e s e luxuri e s e mbrac e tw o

.
thirds o f all tariff re v e nu e .
S e cond : Th e re should b e no in co me tax in a tim e

'
o f p e ac e .
Third : Establish e d industrie s should not be sub

e d fre qu e ntly to viol e nt chang e s but S hould b e
j e c t
give n time to adjust the mse lve s to n e w conditions .
A re duction o f more than o n e half o f th e duty at o n e

-
'
tim e upon an articl e is ine xp e die nt and e ve n dange r

o us .
Fourth : Re ciprocity judging from what has al

,
re ady b e e n don e is th e b e st ste p that can be take n

,
to e xt e nd o ur fore ign trad e and th e policy shoul d be

,
re store d .
Fifth : T h e bounty upon hom e grow n sugar should -
n o t y e t be abandon e d for it is n o t y e t prov e d c o n

,
c l usi v e l y that th e grow th o f b e e t and sorghum sugar can
n o t finally be de v e lop e d su ffi ci e ntly to giv e us a ho m e

‘
supply upon favourabl e t e rms .
Sixth : Such wool as w e cannot produc e at hom e

'
and ye t is re quire d for mixture should be fre e o f ,
duty .
S e ve nth : Art of all kinds Should be fre e b e caus e ,
art tre asure s ine vitably flow into public institutions

soon e r or lat e r .
Eighth : T h e tariff onc e se ttl e d th e re should be ,
tariff l e gislation only in th e se cond y e ar aft e r e ach

WHAT WOULD I Do WITH T HE TARIF F $ 34 5
c e nsus e xc e pt in an e me rge ncy like th e pre se nt wh e n
, ,
a d e ficie ncy in th e national re ve nu e s and sound policy

re quire additional sums to be coll e ct e d from such im
ports as are luxuri e s of th e e xtravagant rich and not .
th e n e c e ssari e s of life of th e frugal poor .
Such would be a tari ff in favour of th e toiling masse s ,
and f or those who live frugal and unost e ntatious live s .
N e ith e r prote ctionist nor fre e trad e r as such could

, ,
claim it b e caus e it would be fram e d in th e int e re st

,
o f n e ith e r id e a but primarily w ith a vi e w to r e v e nu e

, ,
and upon th e th e ory that to rais e this from th e fore ign

luxuri e s of th e e xtravagant rich class is b e st f o r th e
p e ople in ge n e ral Und e r such a policy th e tariff
’
.
,
would be substantially take n out o f politics and tr e at e d

as a busin e ss que stion an d if p e riods o f te n ye ars
,
’
re st from tariff l e gislation are p e rmitt e d I b e li e ve th e

,
coun try would soon rally and b e gin its march toward
t e stat e of prosp e rity
h — as far as tari ff policy can be
mad e to acc e le rat e that longe d f or march which
- —
charact e riz ed th e d e cad e b e twe e n 8 80 and 8 90
1 1 ,
during which its most m arve llous d e v e lopm e nt took

—
plac e a d e cad e w hich is probably to rank as th e
,
Go ld e n Age o f th e Re public as far as m at e rial pros

,
p e r i ty is conc e rn e
. d

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PU B LIS HE RS

in various f orm s in s ve ral p riodi al s to hi h a ke e c w c c n ow l

F rom T HE CO NTE M ORAR Y P R E EW VI o f Br it i

Fro m T HE N I NETEENTH CENT R Y U of Br it ia n

T HE R OAD To B USINESS S UCCESS

ig t uti citi ip ccu u ti f

vi tu but g t p ibi ity

W EAL H AND I U SES

A A MERICAN T RADE R ELA IONS

S EEL M ANU F AC URE

f tu c pit p ibi iti

RAILR OADS P AS T AND P RESEN T

I RON AND S EEL H ME AND A BROAD

T HE M ANCHES T ER S CHOOL AND T O - D AY

W HA T W OULD I DO WIT H T HE T ARI FF IF I

Pittsburg h ad a se rious re sponsibility thrust upon

we re introduc e d to th e broom and sp e nt th e ﬁrst ,

hours of th e ir busin e ss live s sw e e ping o ut th e ofﬁc e .

I notic e w e have j an itors and janitre ss e s n ow in ofﬁc e s ,

and o ur young m e n unfortunat e ly miss that salutary

th e profe ssional swe e p e r is abs e nt any morning th e

bo y w h o has th e ge nius o f th e future partn e r in him

will n ot h e sitat e to try his hand at th e broom T h e .

o th e r day a fond fashionabl e moth e r in Michigan

said no h e n e ve r had and th e moth e r was gratiﬁ e d

b e yond m e asure but th e n said h e aft e r a pause

What I should like to se e h e r do is swe e p o ut a room .

It do e s n o t hurt th e n e we st com e r to swe e p out th e

se lf and w h o do you suppos e we re my fe llow sw e e p e rs $

Valle y Railroad ; Rob e rt Pitcairn Sup e rint e nde nt of ,

th e P e nnsylvania Railroad and Mr More land City , .

Attorn e y We all took turns two e ach morning did

th e sw e e ping ; and now I r e m e mb e r Davi e was s o proud

o f his cl e an whit e shirt bosom that h e us e d to S pr e ad

ove r it an Old Silk bandana handke rchi e f which h e

ke pt for th e purpose and w e oth e r boys thought h e

was putting o n airs So h e was Non e o f us had a

silk handke rchie f .

Assuming that you have all Obtain e d e mploym e nt

I w ould not give a ﬁg for th e young man who do e s not

your thoughts as h e ad cl e rk or fore man or ge n e ral , ,

manage r in any conc e rn no matt e r how e xt e n ,

sive Say e ach to yourse lf My plac e is at th e .

top . B e ki n g i n your dr e am s Make your v o w .

that you will re ach that position with untar ,

n i sh e d re putation and mak e no oth e r v ow to

distract your att e ntion e xc e pt th e ve ry comm e nd,

able o n e that wh e n you ar e a m e mb e r o f th e ﬁrm or

tim e s you will form anoth e r partn e rship w ith th e

love lie st o f h e r se x a partn e rship to Which our n e w

Le t m e indicat e two o r thre e conditions e sse ntial

moraliz e o r inﬂict a homily upon you I sp e ak upon

th e subj e ct only from th e vi e w o f a man of th e world .

d e si rous of aiding you to b e com e succ e ssful busin e ss

worthy succ e ss in life if you are n ot hon e st truthful

fair d e aling I assum e you are and will re main all

re sp e ctabl e liv e s fre e from p e rn icious or e quivocal

as sociations with on e se x o r th e oth e r Th e re is no .

cre ditabl e future f or yo u e ls e Oth e r w ise your l e arn