EDUCATION OF BUSINESS MEN.

A N ADDRESS

BEFORE THS CONVENTION

OF THE

American Bankers Association At Saratoga, September 3,1890,

BY

E D M U N D " J. J A M E S , Ph. D., Professor of Public Finance and Administration in the Wharton School of Finance

and Economy of the University of Pennsylvania,

Philadelphia.

P L A N O F T H E

W H A R T O N S C H O O L O F F I N A N C E A N D E C O N O M Y .

P R O C E E D I N G S O F T H E A S S O C I A T I O N R E L A T I V E T O T H E A D D R E S S

O F P R O F E S S O R J A M E S , A N D U P O N T H E F O U N D I N G

O F S C H O O L S O F F I N A N C E A N D E C O N O M Y .

PUBLISHED BY

W I L L I A M B . G R E E N E , SECRETARY,

N E W Y O R K .

1891.

COMMITTEE ON SCHOOLS OF FINANCE AND ECONOMY

OF

E X E C U T I V E C O U N C I L ,

AMERICAN BANKERS' ASSOCIATION.

WILLIAM 11. RHAWN, Chairman,

President, National B a n k of the Republic, Philadelphia.

GKORGK S. COE,

President, American Exchange National Bank, New Y o r k .

LYMAN J . GAGE,

Vice-President, First National Bank, Chicago.

MORTON MCMICHAEL,

Cashier, First National Bank, Philadelphia.

ASA P. POTTER,

President, Maverick National Bank, Boston.

Officer* OF THE

AMERICAN BANKERS' ASSOCIATION September, 1890.

PRESIDENT.

M O R T O N M c M I C H A E L ,

Cashier First National Bank, Philadelphia, Penn.

FIRST VICE-PRESIDENT.

R I C H A R D M . N E L S O N ,

President Commercial Bank, Selma, Ala.

TREASURER.

G E O R G E F . B A K E R .

President First National Bank, New York City.

SECRETARY.

W I L L I A M B. G R E E N E .

128 Broadway, New York.

Executive Council. {For term of two years.)

JOHN JAY KNOX, Chairman, President National Bank of the Republic, New York City.

WILLIAM H . RHAWN, President National Bank of the Republic, Philadelphia, Penn.

ASA P. POTTER, President Maverick National Bank, Boston, Mass.

LYMAN J. GAGE, Vice-President First National Bank, Chicago, 111.

A . U . WYMAN, President Omaha Loan and Trust Company, Omaha, Neb.

EMORY WENDELL, President First National Bank, Detroit, Mich.

S. A . HARRIS, President Northwestern National Bank, Minneapolis, Minn.

(For the term of one year,)

WILLIAM P. ST . JOHN, President Mercantile National Bank, New York City.

J . J . P. ODELL, President Union National Bank, Chicago, 111.

LOGAN H . ROOTS, President Arkansas Loan and Trust Company, Little Rock, Ark.

JOSEPH S. CHICK, President National Bank of Kansas City, Kansas City, Mo.

CHARLES MERIWETHER, Assistant Cashier Falls City Bank, Louisville, K y .

M . M . WHITE, President Fourth National Bank, Cincinnati, Ohio.

S. G. MURPHY, President First National Bank, San Francisco, Cal.

(For the term of three years,)

GEORGE S. C o s , President American Exchange National Bank, New York City.

EDWARD B . JUDSON, President First National Bank, Syracuse, N . Y .

CHARLES PARSONS, President State Bank, St. Louis. Mo.

EDWARD S, BUTTS, President Vicksburg Bank, Vicksburg, Miss.

GEORGE A . BUTLER, President National Tradesmen's Bank, New Haven, Conn,

JAMES H . WILLOCK, President Second National Bank, Pittsburgh, Pa.

JESSE G. HAMMER, Cashier Union National Bank, Atlantic City, N . J .

Vice Presidents. Alabama.

JOSEPH F . JOHNSTON, President Alabama National Bank, Birmingham.

Arizona. M . W . KALES, President National Bank of Arizona, Phoenix.

' Arkansas. CREED T . WALKER, Cashier Bank of Little Rock, Little Rock.

California. E . F . SPBNCE, President First National Bank, Los Angeles.

Colorado. E , L . RAYMOND, Vice-President State National Bank, Denver.

Connecticut. JAMES B. POWELL, President Mercantile National Bank, Hartford.

Delaware. EDWARD BBTTS, President First National Bank, Wilmington.

District of Columbia. E . FRANCIS RIGGS, Riggs & Co . , Bankers, Washington,

Florida. D. G. AMBLER, President National Bank of State of Florida, Jacksonville.

Georgia. A . W. HILL, Vice-President Gate City National Bank, Atlanta.

Idaho. A . G. REDWAY, Cashier First National Bank of Idaho, Boise City.

Illinois. JOHN C . NEELY, Cashier Merchants' National Bank, Chicago.

Indiana. VOLNEY T . MALOTT, President of the Indiana National Bank, Indianapolis.

Iowa. JUSTUS CLARK, President Red Oak National Bank, Red Oak.

Kansas. GEORGE B . LORD, President Johnson County Bank, Olathe.

Kentucky. PHIL. T . WATKINS, Cashier First National Bank, Owensboro.

Louisiana. THOMAS R. ROACH, Cashier Southern National Bank, New Orleans.

Maine. STEPHEN R. SMALL, President Casco National Bank, Portland.

Maryland. E . J. PENNIMAN, Cashier First National Bank, Baltimore.

Massachusetts. ISAAC T . BURR, President National Bank North America, Boston.

Michigan. F . W . HAYES, Vice-President Preston National Bank, Detroit.

Minnesota. HENRY P. UPHAM, President First National Bank, St. Paul.

Mississippi. LEE RICHARDSON, President Delta Trust and Banking Co. , Vicksburg.

Missouri. C. J. WHITE, Cashier National Bank of Commerce, Kansas City.

Montana. SAMUEL T . HAUSKR, President First National Bank, Helena.

Nebraska. HENRY W . YATES, President Nebraska National Bank, Omaha.

Nevada. D. A. BENLER, President First National Bank, Reno.

New Hampshire. GEORGE B. CHANDLER, Cashier Amoskeag National Bank, Manchester.

New Jersey. CHARLES S. GRAHAM, President North Ward National Bank, Newark.

New Mexico. JEFFERSON RAYNOLDS, President First National Bank, Las Vegas.

New York. G. A. VAN ALLEN, President First National Bank, Albany.

North Carolina. W. E . BREESE, President First National Bank, Asbeville.

North Dakota. E . ASHLEY MEARS, President Mortgage Bank and Investment C o . , Fargo.

Ohio. CHARLES A. STEVENS, Assistant Cashier Merchants' National Bank, Cincinnati.

Oklahoma. J. W . MCNEAL, President Guthrie National Bank, Guthrie.

Oregon. R. L . DURHAM, Cashier Commercial National Bank, Portland.

Pennsylvania. WILLIAM H . PECK, Cashier Third National Bank, Scranton.

Rhode Island. WM. H . PARK, Cashier First National Bank, Pawtucket.

South Carolina. ANDREW SIMONDS, President First National Bank, Charleston.

South Dakota. JOHN D . LAWLER, President First National Bank, Mitchell.

Tennessee. R. DUDLEY FRAYSER, President Memphis City Bank, Memphis.

Texas. EUGENE SIBLEY, Vice-President First National Bank, Victoria.

Utah. L . S. HILLS, Cashier Deseret National Bank, Salt Lake City.

Vermont. CHAS. W. MUSSEY, Cashier Merchants' National Bank of Rutland.

Virginia. J . W. LOCKWOOD, Cashier National Bank of Virginia, Richmond.

Washington. W. J . THOMPSON, President Merchants' National Bank, Tacoma.

West Virginia. F . P. JBPSON, Cashier Bank of the Ohio Valley, Wheeling.

Wisconsin. N . B. VAN SLYKE, President First National Bank, Madison.

Wyoming. HENRY G. HAY, Cashier Stockgrowers' National Bank, Cheyenne.

EDUCATION OF BUSINESSMEN.

E X E C U T I V E C O U N C I L ,

A M E R I C A N B A N K E R S ' A S S O C I A T I O N .

COMMITTEE ON SCHOOLS OF FINANCE AND ECONOMY

January / , 1891.

A t a mee t ing of t h e Execut ive Council of t h e Amer ican Bankers ' Association, held in New York City on October 16, 1889, t h e following resolution, offered by Mr. Will iam H . Rhawn, was unanimously adopted :

" Resolved, T h a t a commi t t ee of not less t h a n th ree or more than five be appointed by t h e chairman, t o whom shall be submi t ted the subject of the preparat ion or p rocu remen t of a paper t o be read at t h e next Convent ion of t h e Associat ion, upon the establ ishment of schools in connection with t h e universi t ies and colleges of t h e count ry , of general scope and character like t h a t o f ' T h e W h a r t o n School of F inance and Economy, ' connected with t h e Univers i ty of Pennsy lvan ia ; and the best means by which t he es­tab l i shment and endowment of such schools may be promoted and fos­tered by the Associat ion." ; , ^.^x.

T h e Chai rman, H o n . J o h n Jay Knox, apppin tecLlas^ Commit tee under t h e resolut ion, Mr. Wil l iam H . Rhawn, Mr. Logan C Murray, and Mr. Mor ton McMichael .

T h e Commi t tee invited E d m u n d J. James , P h . D., Professor of Public F inance and Adminis t ra t ion in t h e W h a r t o n School of F inance and Econ­omy of t h e Univers i ty of Pennsylvania, Phi ladelphia , t o prepare and read the proposed paper upon Schools of Finance and Economy before t h e next Convent ion , which invitation he kindly accepted.

In announc ing t h e for thcoming paper by Professor James, t h e Commit tee presented t h e general plan of the W h a r t o n School, with an int roductory s ta tement by its beneficent founder, Mr. Joseph Whar ton , and invited ex­pressions of opinion upon t h e subject from bankers and others , in response to which numerous le t ters strongly commending t h e establ ishment of such schools were received.

Professor J a m e s prepared and delivered an instructive and scholarly address before t h e Associat ion, a t t h e Convent ion a t Saratoga, on Septem­ber 3, 1890, and the Convent ion unanimously voted him t h e t h a n k s of the Association for his address , and ordered tha t it should be published with

the proceedings, and also in separa te pamphle t form, toge ther with the plan of t h e W h a r t o n School.

Resolut ions relative t o t h e address and to the establ ishment of School? :>f Finance and Economy were submi t ted t o the Convent ion and after dis-

^ i o n referred t o t he Execut ive Council , which repor ted back the follow-esolutions, which were unanimously adopted by t h e Convent ion :

«v'zsDived, T h a t t h e American Bankers ' Associat ion most earnest ly com-do* not only t o t h e bankers , bu t t o all intell igent and progressive citi-

& 1 ; \ M r o u g h e s t t h e country, t h e founding of Schools oi binanr* «n.'

Economy, for the business t ra ining of youth, to be established in connect ion with t h e universi t ies and colleges of t he land, upon a general plan like t ha t of t he W h a r t o n School of Finance and Economy of t h e Univers i ty of Pennsylvania, so ably set forth by Professor James in his most admirable address before this Convent ion :

" Resolved, Tha t the Executive Council is hereby directed t o carefully consider and, if possible, devise some feasible plan whereby th i s Associa­t ion may encourage or p romote t he organization of a School or of Schools of F inance and Economy among our inst i tut ions of learning, and repor t upon t h e same to the next Convent ion."

A t a meet ing of the Executive Council, held a t t h e close of t h e Conven­tion on Sep tember 5, t h e foregoing resolut ions were referred t o t h e under-? signed Commit tee , appointed under t he direction of t he Council by Mr 0

Charles Parsons , Chai rman pro tem.> as a Commit tee on Schools of Finance and Economy.

In accordance with t h e several resolut ions of t h e Convent ion and of t h e Executive Council , t h e Commi t t ee here present t h e Address of Professor James and t h e Plan of t he Whar ton School , toge ther wi th t he proceedings of t h e Convent ion relat ing the re to , to which t h e thoughtful and serious considerat ion of bankers and all o thers interested in t he problem of t h e best education for t h e coming business men of t he country , is earnest ly invited.

Before en te r ing fully upon the considerat ion of a feasible plan whereby the Amer ican Bankers ' Associat ion may encourage or p romote t he organi­zation of a grea t educat ional ins t i tu t ion for t h e t ra in ing of youth into business men, such as has been so vividly por t rayed by Professor J ames , and of Schools of Finance and Economy in connect ion with t he universi t ies and colleges of t h e land, t he Commit tee desires to receive and respectfully invites, from the members of t he Associat ion and bankers generally, and from all friends of t h e cause of such educat ion, expressions of opinion and suggest ions which may aid the Commi t t ee in its work, t o be addressed t o t h e Cha i rman or any of its members , and for which the t h a n k s of the Commit tee are here tendered in advance.

W I L L I A M H . R H A W N ,

G E O R G E S . C O E ,

L Y M A N J . G A G E ,

M O R T O N M C M I C H A E L ,

A S A P . P O T T E R .

S C H O O L S O F F I N A N C E A N D E C O N O M Y A D D R E S S O F P R O F E S S O R E D M U N D J . J A M E S , P H . D .

Professor of Public Finances and Administration, Wharton School of Fi­nance and Economy, University of Pennsylvania—before Convention of American Bankers' Association, Saratoga, N. Y„ Sept. j , I8QQ<

M E M B E R S O F T H E A M E R I C A N B A N K E R S ' A S S O C I A T I O N :

Your commit tee have done me t h e honor of invit ing me to address you upon the subject of Schools of F inance and Economy. I respond to this invitat ion with much pleasure. I t is a del ight t o speak to an intelligent audience upon a quest ion of gdneral interest. It is a source of special pleasure t o present t h e claims of an important subject to a set of men who have unusual means of influencing public opinion in regard to it.

T h e r e are few subjects of more general interest to an American audi­ence than those re la t ing t o educat ion. Jus t a t present, moreover, the ques­t ions per ta in ing to h igher educat ion are receiving an unusual share of a t tent ion. T h e enormous expansion in our scheme of higher instruction which has t aken place in t he last twenty years, and which has revolution­ized all our leading inst i tut ions, has brought t o t he front a number of fundamental quest ions which have not yet been fully answered.

Unde r the American political and social system the hope of general and rapid progress in any line lies chiefly in interest ing t he public at laige in t h e matter . I t is no t possible with us, if an improvement is t o be made in our college system, for example, t o present t h e mat te r to a Minister of Educat ion who, upon being convinced of t h e wisdom of a proposed change, may, by a simple order, revolutionize every college in the country. W e must, on the contrary, t ry t o reach the public and create a demand for t he c h a n g e ; or persuade the leading college presidents or leading t rus tees of our grea t inst i tut ions to t ry t h e experiment .

I count myself happy, therefore, t h a t I have an oppor tuni ty to present t he subject of th is paper t o your Association. You are the very people who should be interested in it for its own sake, and whose co-operation would ensure its promot ion. Many of you, moreover, are t rustees of colleges and universi t ies and from such posit ions have unusual opportuni t ies to affect t h e educat ional policy of t he country. I am addressing, therefore, not merely American citizens who may be presumed t o have an interest in educat ion for its own sake ; not merely American business men who should have a very special interest in all t ha t relates to business educat ion, but also in many cases t rus tees of our h igher inst i tut ions of learning whose solemn duty it is to seek out and try all th ings which may help in t he advancement of our higher instruct ion.

T h e subject of my paper is t he h igher educat ion of the future busi­ness man or, as it may be otherwise stated, a college course for the future business m a n ; for this is t h e purpose of the Schools of Finance and Economy ment ioned in t he t i t le of t he paper. I do not know how I can present t h e subject t o your considerat ion be t te r than t o give you some account of t h e exper iment we are t ry ing in Phi ladelphia in t h e Whar ton School of Finance and Economy, a sub-depar tment of t he University of Pennsylvania. I do this t h e more readily, as it was t he success of th is school which first a t t rac ted the... a t ten t ion , of your Commi t tee to t he sub-

ject, and it was rny connection with th6 school which led t h e m to invite me to deliver th i s address .

You have all doubtless received a communicat ion, sent out by your Com­mit tee on t he 15th of November last, relating t o t he W h a r t o n School of Finance and Economy. Appended to the communica t ion was a copy of th2 original plan or prospectus of the school, drawn up by Mr. Joseph \Yaarton and submit ted to the Board of Trustees of the University of Penn­sylvania as a:i indication of what he wished the school to be, whose estab­l i shment he secured by the gift of $100,000 to the University. In t h a t pros­pectus and ia an address recently delivered before t h e Whar ton School Alumni Association,* Mr. Whar ton indicates the reasons which led him to establish this school. As they were reasons which go to t he very root of the matter, and involve some of the most impor tant aspects of our whole sys­tem of higher educat ion, 1 cannot do bet ter t h a n present t h e subject along the lines there laid down. His discussion of t he subject, t hough brief, is direct and convincing. I t involves th ree points : the inadequacy of existing facilities for t he h igher educat ion of our business classes; t h e desirability of h iv ing such facilities ; suggest ions as t o what can and should be done!

An American youth who is looking forward to a business career and has completed the ordinary g r ammar school course, s tands face t o face with ah (interesting and impor tan t problem. Shall I seek a si tuat ion in some business house, closing my school education with what I have now, and t rus t ing to the friction of active life for further education, or shall I go t o some other school a while longer, and t rus t to the benefits of t he t ra in ing there to make up for the greater practical knowledge which I might ge t in t he same number of years in the count ing house, factory or bank ? The average boy in our American life decides in lavor of going into business at once. This hiay be explained, of course, on t h e ground tha t t h e average boy has no money with which to pay his way at h igher schools. But even the average boy whose parents can afford to send him longer to school makes t he same cho ice ; nay, t h e average son of well-to-do or wealthy parents does t he same 1 th ing. Now why is t h i s ? W h y do such a large number of those able to get th is h igher t ra ining tu rn aside and refuse it ? T h e old answer was t ha t ,they are too ignorant or lazy or indifferent. Nei ther they nor the i r parents have any notion of t he immense advantage they would der ive from this h igher t ra ining. There is doubt less much t ru th in this reply ; but, perhaps, it is also t rue t h a t th is so-called h igher educat ion appears t o bear bu t little relation t o the i r future work. I t may all be very nice. It may belong t o the accomplishments of life. I t makes doubt less a fine des se r t ; but it is in all probabili ty a pure article of luxury which no energet ic and vigorous person who is determined t o succeed in t h e fierce conflict of competi t ive business can afford t o acquire at t h e cost of years of effort. Th i s is doubt ­less a very material, bu t also a very natural way of viewing the problem.

Now, what courses are open t o t h e youth who de termines t o ge t some th ing more in t he way of an educat ion before going into business? H e might t ake a medical or theological course ; t h e former would increase his knowl-

* t k Is a College Education Advantageous to a Business Man ? A d d r e s s delivered before t K Wharton School Association at its third annual reception, February 20^ 189P, at the Manufacture-is Club, Philadelphia.

edge of facts enormously, t he la t ter would sharpen his logical acumen. Such a proposit ion, however, would seem absurd, and very few s tudents would ever th ink of adop t ing th is plan. T h e youth might t ake a law school c o u r s e ; he would find much in t h a t work t o quicken his faculties and some infor­mation tha t would be of practical value t o him in his business. But still, if th is were t he only oppor tuni ty for h igher educat ion it is safe to say tha t but few you ths looking forward to a business career would ever ge t th i s h igher t ra ining. W e have now also t he technical schools. Our youth might g radua te in civil or mining engineering, archi tecture, etc., e tc . In each of these and similar courses he would find someth ing of value. But t h e same th ing applies t o t h e m as t o medicine and theo logy ; bu t few s tuden ts would ever t ake these courses unless they intended t o follow t h e corresponding profession. W h a t t hen remains ? Only t h e so-called Commercial or Busi­ness College and t h e l i terary college. I t is safe t o say then as our educational condi t ions lie, t ha t t h e only oppor tuni ty for h igher educat ion now open to youths looking forward to a business career is to be found in one of these insti tutions.

As t o t h e so-called Commercial or Business Colleges, I would not will­ingly do t h e m an injustice. I believe tha t they are a g rea t and permanent con­st i tuent of our educat ional system. They have done and are doing and are destined t o cont inue doing, a great and useful work. But t he t ra in ing which they, with few exceptions, furnish can scarcely be called a higher t ra in ing a t all. I t has t o do with " facilities "—indeed chiefly with manual facilities—writing, reckoning, etc. , those th ings t h a t go t o make up a good clerk, th ings of great value in themselves, th ings which every business man ;

would be the bet ter for having, and yet th ings which after all are only facilities; they do no t touch t he essence of successful business managemen t or tend to develop t h e higher sides of business act ivi ty; they bear little or no relat ion t o those broader views character is t ic of t h e business manager as dist inct from t h e business clerk and are of course next t o useless as a means of liberal educat ion. T h e knowledge which they impart , however valuable in itself, " does no t suffice to fit a young man for the struggle of commercial life, for wise managemen t of a private estate or for efficient public service."*

O u r literary colleges, on the o ther hand, are, t hough in qui te a different way, also incapable of answering this demand for t he higher education and t ra in ing of t he business man. T h e average curr iculum of the American col­lege is made u p chiefly of Latin, Greek, and higher mathemat ics with a dab of natural science, modern languages and history. I would not by any means underes t imate t h e value of such t ra ining viewed from a subjective s tand­point . A vigorous t ra ining in t h e classics and higher mathemat ics undoubt-i edly sharpens a man ^ in te l l ec tua l faculties ; it t rains his tas tes and widens his whole menta l horizon ; but it also, as things go now, and as they probably will go for all t ime to come, t ends t o draw away the youth who has enjoyed it from a business life ; t ends t o fix his mind, tas tes , t hough t s upon a very different class of th ings from those which mus t make up a large part of his future as a business man and citizen. Th i s is, of course, within certain limits an excellent th ing . T h e man should be more than his calling. We

*Parnphlet of \meriean Bankers' Association on Schools of Finance and Economy, November s"5> 188:9, P. 3-

should be men before we a re anyth ing else. W e should be human beings before we are bankers , or manufacturers or lawyers or physicians, and our educat ional system should aim to develop all our power and tastes and pos­sibilit ies—should increase our capacities for enjoyment in every direction.

But all th is has reached its limit when the educat ional process itself has so warped individual development as to turn aside the individual from a calling for which he has special apt i tude to one for which he is not a t all fitted. Now no one, I think, who has been th rough college himself and has afterwards t augh t for years in a college can help admi t t ing t h a t t he t radi ­tional college curr iculum has tu rned aside many a boy from a business cary

reer in which he might have succeeded to a professional one in which he failed. Our college courses as they are at present const i tuted—considering the preparatory course as a par t of the college—holds the boy who com*-pletes it dur ing two very critical periods : the one from 12 to 16 and the other from 17 to 21 ; where he passes from chi ldhood to youth and from youth to manhood. T h a t a course of s tudy pursued dur ing these years—no matter how good it may be in itself—may warp for ha rm many a boy who comes unde r its influence, can be denied, it seems t o me, only by him who th inks it possible to devise an absolutely good curriculum which will be suitable t o all boys—no mat te r what the i r tastes or abilities. There are some people who hold to th is view. They are fortunately, for the world, becoming fewer and fewer and losing thei r influence steadily.

I say these th ings with a full recognition of the fact tha t many of our most successful business men in all lines of life, banking, manufacturing, merchandising, etc., are college bred men, and t h a t they regard themselves and probably with justice as all the bet ter business men for the college edu­cation which they have had ; but this fact is, of course, no answer to the above proposi t ions since the claim is not t h a t a college education, even of the s t r ic tes t old-fashioned type destroys or even weakens a man 's business ability, but simply tha t it t ends in many instances t o draw men away from a business life who are naturally adapted to it ; and what is of far more im­por tance in this connection, the knowledge t ha t such a course is all the college has t o offer him de te rs t he youth looking forward to business from going to college at all—yea—even from considering seriously t he possible advantage of a collegiate t ra in ing.

However, whatever one may th ink of t he above views, and I am well aware tha t many people, both educationists and others , will t ake exception to them, I do not tiling tha t the fact ca.i be denied tha t our colleges are not-educat ing our business men as a mat te r ot fact. T h e case is not so bad by any means as it was represented some t ime ago by Mr. Carnegie, who declared tha t he did not kno.v any successful business men who are college gradu­ates. O u r larger cities, particularly, show many very successful business men who are graduates of colleges, and white I would not say tha t t he woods are full of them, yet certainly many of our Western frontier towns can show, especially a m o n g the very young men, numerous examples of collegians suc­cessful in business. And yet, after all, there is an immense a m o u n t of t r u t h in what Mr. Carnegie says. It may be perfectly t rue, as has been con tended on t h e o ther hand, t h a t t he propor t ion of college men, who, having gone into business, are successful is immensely g rea te r than t h e propor t ion of

J9

successful men a m o n g the non-college c lass ; and yet be also the case, as it undoubtedly is, t h a t of t h e successful business men in th i s coun t ry bu t very few are college graduates , /. e,, our colleges are no t educat ing our business men. I t was shown years ago t ha t t h e populat ion of t h i s count ry was grow­ing faster t han t h e number of s tuden t s in ou r colleges, and certainly the business classes have increased in number much more rapidly than the n u m ­ber of students^ z. e.f t h e ra t io of college men in business t o t h e non-college men is declining. Even t h e propor t ion of college g radua tes in t h e profes­sional schools of t h e count ry has no t been increasing of late, /. e., even the number of phys ic ians and lawyers, and possibly, clergymen, who are college g radua tes is no t relatively^ increasing, and indeed may be decreasing, and yet t h e college is cons idered specially adapted t o these classes.

In o the r words, t h e old-fashioned college curr iculum may be just t h e th ing for t h e business man—may be an ideal t ra in ing also, for him ; but ifi so, he does no t see it and has not been persuaded of it, and from all present-indications never will be . If then , it is desirable for our business men to have a h igher t ra in ing some o the r curr iculum than t h e old-fashioned one must be devised—some course ar ranged which will appeal t o t hem.

I t was these considerat ions, then , t h a t de termined Mr. Whar ton to es­tablish th is school . F i r s t : t he belief tha t t he business classes of our country need a h igher t ra in ing as much or more t han any o the r c lasses ; second, t h e view t h a t t h e Commercial or Business College, however valuable its curriculum, is by its very na tu re unable t o give this higher t ra ining ; third, t h e fact t h a t t he American college, however real and valuable its h igher t ra ining, does not in its present form furnish a kind of h igher t ra ining which appeals t o t h e business sent iment of t h e community, as is shown by the fact of t h e small number of you ths looking to business careers who enter college.

T h e result of these convictions was t h e establishment of the Whar ton School of F inance and Economy, an inst i tut ion to furnish a higher train^ ing t o t he business classes of the communi ty which should be at once l iberal and practical .

T h e desirability of such facilities for h igher business educat ion may be regarded from two points of v iew—that of t he communi ty and t ha t of the persons most immediately benefited by it. T h e r e can be little doubt tha t a liberal educat ion of t h e business classes lies in t he interest of the com­munity. O n e of t h e most s t r i k ing facts of modern civilization is the rapidly growing impor tance of t h e business, as dis t inct from the professional classes. Th i s is plain enough even in Europe where it is still kept back by the predominance of t h e court , t h e a r m / and the church and where t he bar and physic still maintain the i r high posit ion. I t is, however, beyond all doubt t rue in th is count ry where t h e g rea t merchant prince, t h e railroad president, t he g rea t manufacturer and banker have succeeded to the place of power once held by t h e great orator , s ta tesman, lawyer or clergyman. T h e professional class is losing ground, t he business world gaining it. Whe the r for weal or woe, t h e control of government , of society, of education, of t he press, yes, even of t h e church is slipping more and more rapidly into the h a n d s of t h e business classes, and it is th is class which to an ever increasing ex ten t will domina te our political and social life.

T h e question, therefore, what t he i r educat ion shall be is a fundamental one t o our prosper i ty and welfare. If it is an educat ion which will b roaden and liberalize them, enlarge the i r views, widen the i r out look, quicken thei r sympathies , beget and increase a public spirit which shall find its greates t happiness in seeking ou t and util izing means of p romot ing the common welfare, we may be sure t h a t the interests of our society and civilization will be in good hands . If it should be t he reverse of all th is , then woe to us and our pos te r i ty !

Now I am not one of those who would unduly exaggerate t h e tendency of) a h igher educat ion to produce those and similar results . I have met many men w h o had had t h e best oppor tun i t i es for a liberal education afforded by Europe and Amer ica and who have come ou t of it with all the narrowness and selfishness of t h e meanes t hayseed of t hem a l l ; and we all know many men, of no school educat ion worth speaking of, who were yet t he very salt of the ear th in all mat te rs which call for a liberal view, for a self-sacrificing public spirit. T o t ake a simple i l lustrat ion—how much of t h e educat ional endowment of th is count ry is owing to men who never had a chance to go t o school in the i r lives.

And yet after mak ing all due allowance for t he narrowness of many so-called liberally educated men, and for t h e liberality of many so-called un­educated men, it still remains t rue t ha t t h e h igher aspects of human society —the liberal support of science and art , t h e intel l igent direct ion of chari ty and benevolence is t o be expected chiefly from an educated class, and jus t in propor t ion as our rul ing sets became educa ted may we expect t o see these finer th ings increase and mult iply.

The re is ano the r aspect to the problem. T h e so-called uneducated men who th rough their ability, energy, and perseverance have accumulated for­tunes, have found in t he very necessi ty of s t icking to business early and late a conservat ive force which from boyhood on, speaking in a bus iness 1

sense, has kept the i r feet in t h e way tha t they should t read . • Having a c c u m u ­lated th is fortune themselves they do no t care t o put thei r sons through^ the same weary round. W h e r e shall t hey find for t hem t h e saving force which shall d o for t h e m in t h e growing years what hard work did for the i r fathers? It is t o be found chiefly in the r ight sort of higher education H - a n educat ion t h a t shall fit them to t ake up in the r ight spirit t he work t h a t will fall upon the i r shoulders , /. e.y the management of property already /accumulated or business already established.

I canno t agree, moreover, with those who believe tha t it is a good th ing for for tune once accumula ted to be squandered. Three generat ions frcm j

shir t sleeves to shi r t sleeves may be an accura te description of what occurs as a mat te r of fact. T h a t it should so frequently occur is, however, to be deplored. It is possible t h a t c i rcumstances may favor the accumulat ion of fortunes so great as to be a menace t o the welfare c f socie ty ; but aside from this c i rcumstance, t h e existence of wealth for jcvcral generat ions in a family, if it be kept, no t by artificial condit ions but by the existence of qualities necessary t o accumulate it in honest wa\ s under ordinary condi­t ions, may be a great means of br inging out the finer sides of life, of im­proving t h e s t ra in of the stock, of raising the general level of better quali* ties in society. I say th is with full acknowledgment of the fact t ha t wealth

produces in many cases t he very opposi te of all t h i s ; but if so, it is the fault of those w h 6 have it to adminis ter and a re too 1 shor ts ighted and nar­row to count , as Socrates used to say, t he th ings impor tant which are imv portant .

T h e higher educat ion, then, of t h e business class lies in t he interest cf society as a whole . Does it lie in t h e interest of the future business man himself ? Looking at the problem in a broad way, as t o whe the r a higher educat ion can make life t he be t te r wor th living, I should say perhaps the re 'would be but little difference of opinion. T h e answer mus t be in the affirmative. If t he re is something soul-satisfying in s t r iking off the narrow limitations which hedge about t he life of t h e corner groceryman in the backwoods village, and exchanging such a career for t ha t of t h e wholesale dealer in the large city with all t ha t t he la t ter position implies in larger o p ­portuni t ies for social intercourse and enjoyment , for self-improvement, and-for public service; what shall we say of t he process which lifts us out of the narrow material ru ts of every-day rou t ine and enables us t o share in the though t s and feelings of t he mightiest of ear th ' s sages in all depa r tmen t s of human science—which fills our hear ts wi th en thus iasm for all t h a t is goodi and grea t in human history, fits us to enjoy the highest pleasures of t h e human hear t and inte l lect?

But can this h igher educat ion serve any practical purpose ? it may be asked. We believe it can, and in a small por t ion of t he field we are trying a t Phi ladelphia t o show how it can be done. To do it adequate ly over a large field would require ten or fifteen t imes t h e endowment which we have. But we have reason to be satisfied, and indeed to feel somewhat proud of t h e results we have t h u s far achieved. W e feel t ha t we have laid a foundation upon which we can build indefinitely, and are now in a posi­t ion t o use wisely almost any addi t ion which may come to our income.

Our plan, as outl ined in the prospectus by Mr. W h a r t o n above referred to , embraces in brief two e l e m e n t s : a liberal and a practical e lement—the lat ter also being made up of two parts , a general and a special. The founder of the school had in mind two lines of work which should be pursued sim* Ultaneously and . toge ther cons t i tu te a ha rmonious curr iculum. H e wished' —to use his own words—to establish an inst i tut ion in which should be taught the principles under lying successful civil government , and a t ra in ing should be given in t h e management of proper ty . Bo th these ends were t o be conceived in a broad spirit. In accordance with these suggestions, and following the lines indicated in the prospectus above referred to, we have organized and developed a school which, in our opinion, is calculated t o serve these ends .

T h e curr iculum as it now s tands is appended to th is paper and it may not be ou t of place t o describe here t h e mode of conduct ing the courses aiid t he g r o u n d we aim to cover. One of t he p rominent e lements in our curriculum is a course in American history by t h e dist inguished historian lohn B. McMaster. Th i s qourse runs t h rough two years^— three hours per we;ek the first year and four hours per week the second. '1 his is no ordi­nary t e x t b o o k course deal ing chiefly with , Indian massacres, batt les and Goigre^sional speeches : while it aims, of course, t o give t h e leading facts of our p ) l r ical development , of t h e sei t lement and growth of the co lon ies ;

of the War of t he Revolu t ion ; of the war with England, with Mexico and the war between the .States ; yet its chief endeavor is to discover and lay bare t he very hear t -spr ings of our nat ional existence. It is not merely the what but the why. T h e professor is not content with teaching what batt les were fought in the French and Indian War , for example, and by whom and w h e r e : but he t r ies to show how it was t h a t a French and In­dian war arose at all, and why it had to be conducted as it was and how no o ther ou tcome was possible. This involves a careful s tudy of the eco­nomic and social condi t ions of t h e t i m e ; it makes t he s tudent acquainted with t he people as they were at t ha t period ; it leads him to see t he enor­mous difference between our count ry to-day and our count ry then. H e studies t he means of communicat ion which existed t h e n ; t he primit ive post-office, t he system of highways, or rather, lack of h ighways; the means of ge t t ing a b o u t ; the system of money, coin and paper ; t he kind of banks, and the way they were managed, t h e system of agricul ture, t he manufac­tur ing sys tem; t he products , raw and manufactured, t h e social habits, t he educat ion of t he paople, etc., etc., in a word, all t h a t is necessary t o recon­s t ruc t t ha t period in t h e imagination of t h e s tuden t and make it a par t of his mental furnishing for all t ime to come. A basis is t hus provided for comparison and by th is comparat ive me thod on the o ther hand the acqui­sition and retent ion of the facts t hus presented is made easy.

In th is way each subsequent period is taken up and worked over and when the s tudent has completed his dourse, he is not only familiar with the names of t h e Pres idents , of the Governors, of the o ra to r s and s ta tesmen of t he Republ ic ; he not only knows when the bat t le of t he Brandywine was fought and when the t rea ty of peace was signed at t he close of t h e Revolution ; but he has a tolerably clear not ion of the course of our coun­try 's his tory in each of the great depa r tmen t s of our nat ional life.

H e knows, for example, the his tory of highway improvemen t ; how long it took the American people to appreciate t he importance of good highways; t he growth of knowledge and interest in road -mak ing ; t he turn­pike era, t h e rage for canal building, the effects of our grea t canals on the l ines of material development , t h e impor tance of t he Erie Canal, econom­ically, socially, polit ically; the introduction of the railway and its effect on tlhe canal and turnpike sys tem; why the railways followed the parallels tfather t han the mer id ians ; the effect of the railway system on national industry and federal centralization ; t he reawakened interest in t he im­provement of land and water ways, etc., e tc .

H e knows something of t he educational history of the country. H e knows when t h e great colleges took the i r r i se ; what t he secondary and pr imary schools were a century ago ; how bi t ter was t he fight for a respect­able system of school educat ion in nearly every Nor the rn Sta te , t o say nothing of t h e States south of Mason and Dixon's l i ne ; how slowly the conviction grew tha t popular educat ion is necessary t o t he perpetui ty of republican ins t i tu t ions ; and how difficult was t h e struggle—by no means finished—to establish as the necessary s tandard of popular educat ion some­th ing more than the th ree R ' s ; how the whole idea of free public educa­tion so slowly germinat ing, so slowly growing, bore its first grea t and influ­ential fruit in t h e magnificent systems of educat ion developed in t h e Mis-

sissippi Valley—more especially in Mich igan ; how magnificently private liberality has come to the aid of the State , c rea t ing and support ing such inst i tut ions as Harvard, Yale, Columbia, Cornell, Pr inceton, Pennsylvania, Johns Hopkins and many o t h e r s ; how the Federal Government has aided

v in this great work—not only by its munificent land g ran t to which public ^education in all the States owes so much, but by t he es tabl ishment of those wonderful scientific depar tments at Washington which are the admira t ion and envy of every foreign country.

To take ano the r illustration, the s tudent has a good view of ounfinan.-cial history. T h e revenue system of the Federal Government , of the S ta tes and of t h e communit ies receives much a t ten t ion . T h e s tudent begins with the revenue system of t he Confederat ion, to which, of course, only brief a t tent ion is given. F rom 1789 on, details are carefully s tudied. T h e vari­ous tariffs are compared with reference to t h e rates -of duty, articles taxed, ffruitfulness of duties, system of adminis t ra t ion, method of valuation, kinds of duties, ad valorem, specific, combined, etc., etc., in a word, all t ha t is necessary to enable the s tudent to get a clear idea of ou r tariff history, t h e discussions and disputes which have occurred in its course. The same th ing is done for t h e internal revenue system, the system of direct taxes, etc.

Similar and, indeed, more detailed a t ten t ion is given to t he history of money and banking. A brief s tudy is made of t he money and bank ing system of pre-revolutionary times—a period full of interest ing and instructive exper iments . A careful s tudy is made of the period from t h e close of t he Revolut ion t o t he adopt ion of the present const i tut ion ; and from t h e discussions about the first Uni ted States bank down to the present , a detailed s tudy of money and bank ing is made. This is not confined to t he considera­tion of the two Uni ted Sta tes Banks , our present system of National Banks , and the sub-treasury system ; but it ex tends to t he system of S ta te banks as well. I t comprises not only the banks of issue but all sorts of banks—every kind of ins t i tut ion, indeed, t ha t enters into t h e money and credit system of the country . All this on t h e historical side of t he course ; t he discussion of t h e principles of banking belongs to a special course which will be men­t i o n e d later.

And so I might go on and take up o ther subjects, bu t th is is sufficient t o give you an idea of wha t is included within t he course in American h is ­tory. I t means, you see, a history of t h e people, , their origin, habits , feelings and inst i tut ions—economic, social and religious.

Side by side with th is course, runs a course in the government of t he United States, which being somewhat historical in character supplements the first very fully, t h o u g h its object is not so much historical as expository. I t embraces a careful s tudy of t h e Federal Government , supplemented by a s tudy of Sta te and Local government . I t begins with a consideration of the Federal Const i tu t ion—art ic le by article. Much a t ten t ion is given to the discussion of disputed quest ions with a view of br inging out t h e princi­ples underlying our system of federal government and t ra in ing t h e s tuden t to see t h e fine points of const i tu t ional law a t t h e same t ime t h a t he grows familiar w i th t h e principles of const i tut ional in terpreta t ion as laid down by our great juris ts . This is followed by a discussion of t h e government and its various depa r tmen t s as they now exist. T h e same th ing is then done

for t h e S ta te and Local government t hough in a briefer way. T h e s tuden t is t hus furnished with a knowledge of his own political inst i tut ions and his relation t o t he government under which he lives and in which he should jtake a part . • T h e work just described in American history and American politics is work which is of value and should be of interest to every American citizen and which receives, therefore, a very unusual a m o u n t of a t tent ion in the Whar ton School of F inance and Economy. ! Supplementary t o these courses and a iming to give a basis of comparison for careful and intell igent s tudy are courses in foreign polit ics and history. jThe government of one or more leading foreign countr ies is t aken up and presented point by point in compar ison wi th our own. In th is way t h e stu­den t increases his stock of knowledge and a t t he same t ime comes t o unders tand our own political system better , H e learns t o dist inguish t h e essential from t h e accidenta l . H e sees the weak points of our own system knd the s t rong points of o thers . H e acquires an inext inguishable interest; jin our political problems and an earnest ambit ion t o assist in the i r solu­tion.

Parallel again with these courses in American his tory and politics, runs a line of work in tended to t rain t he s tudent in t h e investigation of the un­derlying principles of economic, industr ial and political phenomena. This Includes t he courses in political science, political economy, finance, money and banking. T h e a t t empt is made here to discover and set forth funda­mental principles. T h e abst ract quest ions are discussed, the doctr ine of, theory of the State , value, rent, populat ion, wages, money, credit, taxat ion, free trade, protection, with the infinitude of sub quest ions related to them, such as paper money, bimetal ism, poor laws, banks , single tax, e ight-hour laws, strikes, etc. T h e s tuden t learns in th is course the various theories in re­gard t o these things, the various explanat ions offered for exist ing phenomena , and remedies proposed for social defects and diseases. I t is in these courses t h a t t h e s tuden t lays t h e foundation for an intelligent and independent opinion on all t he burn ing ques t ions of t he day, whether they relate t o his business in t h e narrow sense of t h e term or t o the impor tant and pressing quest ions of public policy in o the r directions.

Finally, parallel with these courses which, as will be seen, are all more or less genera l in their nature , are t he business courses in t he narrower sense of t h e te rm. These form a nucleus conta in ing what is of interest t o all busi­ness men alike. They consist of th ree par ts : First , a course in t h e general theory of accoun t ing ; second, in business l aw ; thi rd , in business practice. T h e first embraces a careful s tudy of the general principles underlying single and double entry bookkeeping, also t h e s tudy of a dozen or more sets of, books carefully selected from leading branches of business and representing^ the best practice of typical houses. A special point is made of developing t h e general principles and then i l lustrat ing typical variations or applicat ions, so tha t t he s tudent can unders tand with ease any set of books he mighty have occasion to examine or use. T h e idea is not so much to make a n . expert bookkeeper in any one set of books or style of account ing as t o t ra in the s tudent so t h a t in a shor t t ime he could become expert in any position he might t a k e ; a n d above all so t ha t he can unders tand with facility and

unravel with ease any set of accounts . A n o t h e r point t o which much at­t en t ion is directed is corporate and public accounting. It is hoped tha t in course of t ime a reasonable system of account ing can be int roduced into the practice of our cities, counties and Sta te governments .

I T h e course in business law is also of a general na ture . It comprises a s tudy of those business forms and acts which are common to all business alike—such as the promissory note . The idea, of course, is not to make a lawyer, nor t o make the lawyer indispensable, but t o give the future business man knowledge enough about such th ings that he may know when he does need a lawyer, and to familiarize him with some of t h e more usual forms common to all branches of business.

The course in business practice is intended to be a s tudy of the organiza­tion and me thods of work character is t ic of a few typical lines of business,, selected not so much with reference t o the i r relative money value as to their value as specimens or i l lustrations of t he business methods and spirit of the communi ty .

Wi thou t going further into detail , enough has beert said to give an idea of he scope and a ims of the school. Our me thods are directed to produc­ing so far as college t ra in ing can do it, educated young men v ith a taste for business, vigorous, act ive workers, of s turdy charac ter and independent opin­ion, having a lofty faith in all th ings good, and able t o give a reason for the faith tha t is in them. Each s tuden t is t ra ined to work and th ink for him­self. H e is put on t he t rack of t he best t ha t has been wri t ten on all sides of all impor tan t quest ions tha t fall within t h e range of ou r investigations, and if he holds an opinion he is expected to know on what grounds , and to be able to express them. I said above—all this, so far as college t ra in ing can do it. W e must never forget tha t college gradua tes are a t best a callow set and no th ing can be more amusing (except when he is disgusting) than a youth just out of college who has " matured " opinions on all subjects, and! one of t h e results of t he best college t ra in ing is a modesty of opinion, ait open mindedness which leaves room for future growth.

Let us glance one moment before leaving th is for another point, at what the Whar ton School of Finance and Economy can do for the higher edu­cation of the future banker .

If a young man co npletes t he course, h ^ w ;ll have acquired a fairly thorough knowledge of the history and go ••• ment of the people of the Uni ted States, with some knowledge of foreign politics and history, and a general view of the principles of accounting, of business laws and practice He'wil l also have a pre t ty t ho rough grasp of the fundamental principles of political economy, will have s tudied with some thoroughness , as college Study goes, the land quest ion, the labor quest ion, the railroad question, the ballot reform, civil service reform, congressional reform, prohibit ion and many o ther similar economic and political topics. H e will have had a pret ty thorough course in the theory of money and c red i t ; will understand the a rguments pro and con in regard to bimetal ism and to paper money, and will know our own his tory on these poin ts ; can set forth the consider­ations in favor of and against the const i tut ionali ty of t he original United Sta tes R a n k ; can explain its organization and give a history of its work-tegs and its end. H e is also acquainted with the his tory and methods of

t h e second bank and of our present National Bank ing system. H e will be able to explain t h e various functions of a bank and the economic system of the count ry a n d describe t h e different k inds of banks, both here and abroad, and give a fair history of pr ivate banks in th is country from 1789 t o t h e present . H e will be able t o explain t he workings of t h e money market , so far as it can be explained ; t ha t is, he can give the various theor ies in regard t o it, etc , etc.

All this , of course will not make him a banker. I t may not quicken his sense for a good securi ty one iota or enable him to devise a new kind of bank which shall m a k e him weal thy. But it will cont r ibute toward making him an educa ted man, knowing someth ing more about his business than the ordinary hand- to -mouth practical man, having a wide view of the rela­t ions of his business t o o the r lines of business and to society as a whole, and above all, an intel l igent Amer ican citizen, with a quickened interest in everything t ha t concerns his count ry and his t ime and an immensely greater desire and ability t o use what he may learn and what he may earn in his business for t he benefit of his fellow men.

It will doubtless have occurred to you tha t more instruction in the prac­tical details of the bank ing business would be desirable in the curriculum. In th is t he Facul ty would doubtless fully concur. W e need very much a lecturer on bank ing who could give his whole t ime and at tention to t h i s one subject. If we had t h a t t o supplement present facilities, we should have an a lmost ideal course for a youth who, looking forward to a banking career, desired a h igher educat ion which should bear some relation to his future work.

In closing, it is only necessary to add t ha t t he Whar ton School of Fi­nance and Economy is an integral par t of t h e college depar tment of t h e Universi ty of Pennsylvania. S tudents who have completed the first two years of t h e college course, e i ther classical or scientific, are admit ted to the Whar^ ton School and g radua ted with the Bachelor 's degree after two years suc^ cessful s tudy. Those s tudents who have studied Greek five years and Latiri six before enter ing t he school with the other studies usually embraced in t h e classical course t o t he close of t he Sophomore year, receive the A. B. de­gree ; o ther s tudents the Ph . B.

I believe t ha t our experience a t t he Universi ty of Pennsylvania amply proves the feasibility of in t roducing into our college curriculum the ele­ments of business, and tha t th is feature will popularize wi thout lower­ing t h e college, and thus s t rengthen its hold on the communi ty . Wherever th i s sort of course can be in t roduced and properly equipped, it will benefit t h e college and public alike.

I t will be seen from the above description t ha t t he bulk of t he Whar ton School curriculum, aside from t h e business course, consists of courses in his­to ry and t h e political and social sciences. These la t ter elements are also of fundamental impor tance in the liberal t ra in ing of lawyers and in t he profes­sional t ra in ing of journalists , s ta tesmen and college professors in these sub-jepts. Hence it comes t h a t of the s tudents in t he Whar ton School a large pejr cent, is made up of those who expect to enter the academic, legal, news-jMjiper or political career.

T h e ideal of t h e Faculty, it may be said, is a grea t inst i tut ion, compris-

ing many different courses, one looking to business, ano ther t o journalism, still ano the r t o politics, ano the r to the university—all composed alike of t w o e l e m e n t s : a common one, consisting of such studies as political econ­omy, const i tu t ional law, politics, history, e tc . ; and a professional one, e m 7

bracing such special instruct ion as may be of aid to preparing the s tudents for thei r part icular careers. T h e business coarse itself should be s u b d h idep! according to t h e intention of the s tudent , and should comprise not merely t h e fundamental branches we now have, but many others , such as railroa^r ing, commerce, insurance, etc.

An inst i tut ion like this , with a curr iculum based upon a tho rough knowlr edge of our own vernacular , its use, l i terature, history, etc., with such o ther languages, ancient or modern, as t h e s tuden t migh t choose to take , and all based on a thorough elementary t ra in ing in languages, mathemat ics anrj natural science, would be an addi t ion to ou r educat ional system compare-able in importance and influence only to t h e grea t system of technical scliools which in a different field are revolut ionizing our American educa^-t ion . It would give us also the best system of t ra ining for business, jouiv fialism, teaching—in a word for citizenship, which t he world has yet seen, ftjwould make the man or men, t he family o r t he communi ty who estab*-iislhed it immortal in the educational his tory—not merely of this count ry buSt of t he world. W h o shall be t h e first t o utilize th is magnificent chance? W e have begun to cul t ivate one corner of t h e field in Phi ladelphia , and shall press forward as rapidly as possible t o its full occupation, bu t shall also rejoice in t he meant ime if some o the r place outs t r ips us in th is gener­ous; race for t h e h ighes t posit ion in this great work.

. I would emphasize t h e fact t h a t t h e W h a r t o n School of Finance and Economy as it was conceived in a broad way, so we are t rying t o manage it in a broad and liberal spir i t—both educat ional ly and otherwise. O u r s tuden t s a re by no means confined t o the curr iculum or course outl ined above. All t h e studies represented in t h e modern American Universi ty of large type and equ ipment are open to t hem if they choose t o t ake them. To present t he subjects thus open t o t hem would be to repeat t he catalogue of t h e Universi ty of Pennsy lvan ia ; bu t a brief list of some of the more im­por tan t will be of interest in th is connect ion. Leaving out of view t h e Medical , Dental , Veterinary and Law Schools, with over 100 professors and ^instructors, t h e college depa r tmen t alone, with the Facul ty of Phi losophy, has over 70 instructors and professors, conduct ing more t han 225 half yearly courses in some sixty different subjects, a m o n g which may be mentioned : Hebrew (2)*; Sanskr i t ( 2 ) ; Greek ( 7 ) ; Latin (8)); English ( 1 5 ) ; Anglo-S a j o a (2) ; Goth ic (2 ) ; German (6) ; F rench (6 ) ; Italian (2); Spanish ( 1 ) ; Philosophy ( 6 ) ; Psychology (6) ; His tory ( 1 3 ) ; Drawing (3 ) ; Mathe­matics (25) ; Physics ( 5 ) ; Chemistry ( 1 6 ) ; Zoology ( 1 1 ) ; Botany (19) j Physiology ( 1 ) ; Geology (5 ) ; Mineralogy (3).; Metallurgy (4) ; Mining (3) ,* Civil Engineer ing (28); Mechanical Engineer ing (21) ; Archi tec ture (6) ; Music (3) ; etc.

Surely here is range of selection large enough t o suit most college boys. The possibility of selection is condi t ioned, of course, by t h e exigencies of the; p rogramme ; but any of these subjects may be t aken by regular s tu-

*The number m'parenthesis indicates the number of courses in the subject.

dents if t h e hours do no t conflict and the s tudent is physically and mentally able t o t a k e such extra work ; while special s tudents can, of course, adapt themselves t o siich hours as they wish.

Pe rmi t me, then , members of t h e American Bankers ' Association, to bespeak your interest in t h e W h a r t o n School of F inance and Economy; bu t still more in t h e great work t o which it is devoted—viz., t he develop­ment of a h igher course of s tudy, a t once liberal and practical, which will appeal t o t he business sent iment of t h e communi ty and the adoption of such courses in more and more of our colleges and universities.

N O T E . — F o r a fuller discussion of some topics connected with this gen- v

eral subject s e e :

1 . A S C H O O L O F P O L I T I C A L A N D S O C I A L S C I E N C E . By E . J. James, Ethical Record, 1890.

2 . S C H O O L S O F P O L I T I C A L A N D S O C I A L S C I E N C E . By E. J. James . Publicat ions of Phi ladelphia Social Science Association. Phila--delphia, 1886.

, 3 . T H E S T U D Y O F P O L I T I C S A N D B U S I N E S S A T T H E U N I V E R S I T Y O F

P E N N S Y L V A N I A . Phi ladelphia, 1889.

4. Is A C O L L E G E E D U C A T I O N A D V A N T A G E O U S T O A B U S I N E S S M A N ?

By Jas . Whar ton , Philadelphia, 1890.

A P P E N D I X .

T H E W H A R T O N S C H O O L O F F I N A N C E A N D E C O N O M Y .

U N I V E R S I T Y O F P E N N S Y L V A N I A .

This school was founded by Mr. Joseph Whar ton , of Philadelphia, in order to provide for young men special means of training, and of correct ins t ruct ion in t he knowledge and in the arts of modern Finance and Econ­omy. It serves for the Universi ty of Pennsylvania the same purposes as are served in o the r inst i tut ions by their Depar tments or Faculties of His­tory and Politics, or by t he so-called Schools of Political Science. In ad­dition, however, to the courses usually provided in such depar tments , this Inst i tut ion offers also a course, at once liberal and practical, which is spe­cially designed for those who intend to enter upon business pursuits.

T h e founder of t he School expressed the desire t ha t it should offer facil­ities for obtaining,—

(1) An adequate education in the principles underlying successful civtt, government.

(2) A training suitable for those who intend to engage in business or to undertake the management of property.

In order t o realize these objects, courses have been provided in Political Economy, Social Science, Finance, Statistics, Political Science, Adminis­trative and Const i tut ional Law of t h e Uni ted States and of leading foreign countries, Comparat ive Poli t ics, Political and Const i tut ional History of the

United States, Theory and Prac t ice of Account ing , and Mercantile Law and Pract ice.

I t will be observed tha t nearly all t h e courses above enumera ted are such as may fairly lay claim to be called liberal branches, and such as every American citizen should pursue in out l ine at least as a preparat ion for the duties of cit izenship.

They are, however, also studies which form a leading const i tuent in the special preparat ion for certain callings, such as the teaching of History and Politics, Journal ism, Business, Pub l ic Service and Law.

T h e at tent ion, therefore, of s tudents who are looking forward to enter­ing upon these or similar lines of work is especially invited to the facilities of th is Inst i tut ion.

C U R R I C U L U M .

J U N I O R CLASS.

FIRST TERM.

PUBLIC LAW A N D POLITICS I.—Constitution of the United States. Three hours {First Te?m). Mon., Th , at n , Tu. at 12. Professor JAMES.

BUSINESS L A W A N D PRACTICE 1.—Methods of Accounting. 7 wo hours. A/on. at 12, Tu. at 9, Wed. at 1, Fri. at 9. Dr. FALKNER.

HISTORY 7.—American Political and Social History. Colonial History. History of the Public Domain. Distribution of Population {Outline printed for 1 he class). Preparation of Boundary, Population, and Economic Maps. Three hours {First Term). Tu. at 11 , Wed., Th., at 10. Wharton School Confess meets once each week. Professor McMASTER.

; HJST6RY 8.—Church and State in America (Lectures). Two hours (First Term}. Mon. at 10, Wed. at 11. Professor THOMPSON.

ECONOMICS A N D SOCIAL SCIENCE I.—Political Economy. Walker's Political Econ-omy and Adam Smith's Wealth of Nations. Three hours {First Term). Mon., Wed., at 9, Tu. at 10. Professor PATTEN.

ECONOMICS AND SOCIAL SCIENCE 3.—Social Science. Thompson's Elements of Po­litical Economy. Two hours. Th. at 9, Fri at 11. Professor THOMPSON.

PHILOSOPHY I.—Logfc. Lectures and Recitations. Jevons' Lessons in Logic. Two hours {First Term". Wed. at 12, Fri. at 10. Professor F U L I E R T O N .

SECOND TERM

PUBLIC LAW A N D POLITICS 3.—History and Theory of the State One hour. (Sec­ond Term). Tu. at 12. Professor JAMES.

PUBLIC LAW AND POLITICS 4.—Constitutions of leading foreign countries. Two-% hours {Second Term). Mon., Th., at 11 . Professor JAMES.

PUBLIC LAW A N D POLITICS 2.—State Constitutional Law. Two hours {Second Term). Dr. THORPE.

BUSINESS LAW A N D PRACTICE I .—Methods of Accounting. Two hours. Mon. at 12, Tu. at 9, Wed. c* 1, Fri. at 9. 1 )T FALKNER.

HISTORY 9.—American Political and Social History (Washington to Jackson). Lec­tures, Maps, Outline printed for the class. Three hours (Second Term). Tu. at I I , Wed., Th.,at 10. Wharton School Congress meets once each week. Professor McM ASTER.

H I S T O R Y IO.—Economic History of the United States. Two hours (Second Term), Mon. at i o , Wed. atw. Professor THOMPSON.

ECONOMICS A N D SOCIAL SCIENCE 2.—Currency and Banking. Jevons' Money and the Mechanism of Exchange. Three hours (Second Term), Mon., Wed.,atqf

Tu. at 10. Professor P A T T E N . PHILOSOPHY 2 .—Ethics . Lectures and Recitations. Two hours (Second Term),

Wed. at 12, Fri. at 1 0 . Professor FULLERTON.

S E N I O R CLASS.

F I R S T T E R M .

PUBLIC L A W A N D POLITICS 5.—Public Administration in the United States. Two hours (First Term). Mon. at 1 2 , Th. at 1 0 . Professor JAMES.

ECONOMICS A N D SOCIAL SCIENCE 7.—Revenue System in the United States and lead­ing foreign countries. Two hours {First Term). Wed., Fri., at 1 1 . Professoi JAMES.

BUSINESS L A W A N D PRACTICE 2.—Mercantile Law. Parsons' Law of Business. Two hours (First Term). Mon. atw, Tu, at 1 2 . Dr. F A L K N E R .

ECONOMICS A N D SOCIAL SCIENCE 4.—Social Science. Lectures and Compositions. Three hours (First Term). Mon. at 11, Fri. at 1 0 . Professor THOMPSON.

ECONOMICS A N D SOCIAL SCIENCE 5.—Political Economy. Mill's Political Economy. Three hours (First Term). Tu., Th.atV). Wed. at 1 0 . Professor P A T T E N .

PISTORY 13.—American Political and Social History ( 1 8 2 5 - 1 8 8 9 ) . Lectures, Maps. Four hours (Fi?st Term). Mon., Tu., at 1 0 , Wed. at 12, Th. at 1 1 . Wharton School Congress meets once each week. Professor McMASTER.

SECOND T E R M .

^UBLIC L A W AND POLITICS 6.—Public Administration in leading foreign countries. Two hours (Second Term). Mon. at 12, Th. at 1 0 . Professor JAMES.

BUSINESS L A W A N D PRACTICE 3.—Mercantile Practice. Lectures. Two hours (Sec* ond Teim). Mon. at w, Tu. at 1 2 . Mr. FALKNER.

ECONOMICS A N D SOCIAL SCIENCE 6 —Political Economy. Ingram's History oj PolU tical Economy. Three hours (Second Term). Tu., Th. at 9 . Wed. at 1 0 . Pro­fessor P A T T E N .

ECONOMICS A N D SOCIAL SCIENCE 8.—History and Theories of Public Finance,, espe­cially of Taxation. Two hours (Second Term). Wed., Fri. at 1 1 . Professor JAMES.

ECONOMICS AND SOCIAL SCIENCE 9.—Statistics. General Theory. Statistics of Pop­ulation. Lectures. Two hours (Second Term). Dr. F A L K N E R .

H I S T O R Y 14.—American Constitutional History ( 1 7 7 6 - 1 8 8 9 ) . Diplomatic History. Biography of American Statesmen. Lectures. Three hours (Second Term). Tu. at 1 0 , Wed. at 1 2 , Th. at 1 1 . Professor M C M A S T R R .

H I S T O R Y 15.—Seminary of American History. Constitutional History of the United States. Two hours. Professor M C M A S T E R .

M E T H O D S O F W O R K . The plan for instruction embraces recitat ions, lectures and seminaries,

T h e endeavor is made to t rain the s tudents to th ink independently on the topics that form the subjects of instruction. An earnest effort is made to exclude all dogmat ism in political or economic teaching, to present fanlj all aspects <>f disputed quest ions, and to put the s tudents in a position to form thei r own opinions on intelligent g rounds .

The advanced s tudents receive special a t tent ion and assistance in t he seminaries, which are organized t o promote correct habi ts of work and to foster a spirit of original investigation.

In order t o quicken interes t in political and economical subjects, and to encourage acquaintance with par l iamentary procedure, a congress has been formed in the school, It is divided into Senate and House , and adop ts the rules of procedure of the respective houses, following the course of Congressional debate and action, but confining itself to a few leading topics.

F E L L O W S H I P S .

Five honorary Fellowships, which confer the privilege of a t tending any of the economic and historical courses of the Universi ty free of charge, are assigned a t the beginning of each year. Graduates of any American college, or of foreign schools of similar grade, are eligible for appointment .

A U X I L I A R Y F A C I L I T I E S .

All the courses in the o ther depar tments of the College, embracing those usually found in the g radua te and undergraduate courses of our best Uni ­versities, are open to s tuden ts of the Whar ton School wi thout extra charge for tuit ion, so far as this is consistent with their roster of studies in the School.

The folio ving courses given in the Law School are nf special interest to s tudents in this d e p a r t m e n t :

1. Roman Law. 2. Consti tutional Law of the United S ta tes . 3. International Law. 4. History of t he Common Law. Besides t h e University Library, which has an unusually valuable collec­

t ion of works on economics and statist ics, the public libraries of t h e city, and many of t he private ones also, aggregat ing several hundred thousand volumes, are open to the s tudents in the pursui t of the i r Universi ty work.

P U B L I C A T I O N S .

A series of occasional publications on Political Economy and Publ ic Law and on His tory will be issued by the University, represent ing a portion of the work done in the seminar ies by t h e professors and s tudents . The following numbers have already appeared : — 1 . Whar ton School Anna l s of Political Science. 2. T h e Ant i -Ren t Agi ta t ion in New York. 3. Ground Rents in Philadelphia. 4. Consumpt ion of Weal th . 5. Pr ison Statist ics in 1888 6. Rational Principles of Taxat ion. 7. German Const i tut ion. 8. Swiss Const i tu t ion.

L I B R A R Y .

The Univers i ty possesses a large and valuable library of works relat ing to finance and political economy. T h e foundation was laid by the great collection of the late Stephen Col well, comprising between seven and eight

thousand volumes, and including nearly every impor tan t book on these subjects in t h e English, French, and Italian languages, published before i860. This collection has been supplemented by the bequest of t he library of t h e late Hen iy C. Carey, which includes many later works and pamphlets , and is especially rich in statistical l i tera ture , European government reports, and the like. I t embraces a collection of about th ree thousand English pamphlets , formerly Mr. McCalmont 's , covering the period from the close of the seventeenth century t o our own t imes, and bound in chronological order. Mr. Joseph Whar ton has recently increased his benefactions to the School by a gift of twenty-five thousand dollars to establish a fund for the purchase of books in economics and politics.

Original research by the s tudents , under the direction of the professors, is a part of t he work Q.f t h e School.

2J

R E S O L U T I O N O F E X E C U T I V E C O U N C I L O F T H E A M E R I C A N B A N K E R S '

A S S O C I A T I O N , A T T H E I R M E E T I N G O N O C T O B E R 16, 1889, i t f

N E W Y O R K C I T Y .

I N T R O D U C I N G P L A N O F T H E

W H A R T O N SCHOOL OF F I N A N C E AND E C O N O M Y

O F T H E U N I V E R S I T Y O F P E N N S Y L V A N I A .

On motion of W I L L I A M H . R H A W N , it was Resolved, T h a t a Committee of not less than three, or more than five, be appointed by the

chairman, to whom shall be submitted the subject of the preparation or procurement of a paper tor' be read at the next Convention of the Association upon the establishment of schools in connection with the universities and colleges of the country, of general scope and character like that of ' " T h e Wharton School of Finance and Economy " connected with the University of Pennsylvania ; and the best means by which the establishment and endowment of such schools may be promoted and fostered by the Association.

T h e Chairman, t h e Hon . J O H N J A Y K N O X , appointed on above Com­mit tee , Mr. W I L L I A M H . R H A W N , Mr. L O G A N C. M U R R A Y and Mr. M O R ­

T O N M C M I C H A E L .

T o explain t h e intent ion and scope of Mr. Rhawn 's resolution, the following s ta tement is made :

In May, 1881, Mr. Joseph Whar ton , t h e founder of the W h a r t o n School' of Finance and Economy, sent to t he Trus tees of t h e Universi ty of Penn­sylvania t h e address and project he re to a t tached, marked Plan of the W h a r t o n School.

Those Trus tees having decided t o accept t he proffered endowment , and ' to establish the School, Mr. W h a r t o n transferred to t h e m on J u n e 22, 1881, t h e fund of $100,000,* and a cont rac t was executed between him and the said Trus tees , t o which was a t tached a copy of t he above-ment ioned ad­dress and project in o rde r to exhibi t in full the condi t ions of t he endow­ment . T h a t cont rac t bound the University t o carry ou t t he enterprise on the lines t h u s laid! down, and it provided t h a t by Mr. W h a r t o n dur ing his lifetime, and by t h e Judges of t he Phi ladelphia Courts of Common Pleas after his dea th , a visitor might be appointed who should have authori ty to inspect t he workings of t he School.

W i t h the commencement of t he next t e rm at t h e Universi ty th is School was opened, and was at first but modera te ly successful. T h e proposed course of instruct ion was novel and did no t apparent ly open an immedia te career to t h e g radua tes ; t h e requirements for admission and for s tudy be­ing at first t h o u g h t easier t h a n in o ther depar tments of the Univers i ty , those other depar tments had superior a t t rac t ions for the most v igorous young m e n ; t he professors and ins t ruc tors must needs feel thei r way at first, and gradually form both themselves and the School .

But, by steady perseverance in its task, the School has constant ly im­proved in t he thoroughness of its instruction, and has so. demonst ra ted its.

* M r . Wharton. Has sin.ee a d d e d $25,000 FOR a l ibrary,

usefulness t h a t it is now chosen by many of t he most earnest s tudents , and ranks as high as any o ther depa r tmen t in t he menta l discipline it impar ts .

Its peculiar and special line of work natura l ly draws t o it s tudents with many aims and from many quar ters . Japan , for instance, has from the first had one or more representat ives in t h e Schoo l ; t h e present United States Minister to Brazil s tudied here .

Al though t h e extensive libraries of t h e late Hon . Henry C. Carey and the late Hon. Stephen Colwell, as well as sundry o the r valuable contr ibu­tions of books, were placed a t t h e disposit ion of th is School, t he necessity for cont inued accession of new publ icat ions became apparent , and on October 4, 1889, Mr. W h a r t o n made a further endowment of $25,000—in six per cent, bonds—to found a l ibrary fund. T h e income derived from the said bonds or from any re inves tment of t h e fund to be applied to t he purchase of such books, periodicals, documents or publications as have a special bear ing on t h e subjects which by t h e deed of gift founding the School a re t o be the re in t augh t .

As t h e corps of professors and instructors has been improved by grad­ual selection and t ra in ing into a really capable and efficient Faculty, so has t he tone of t he s tuden t s been elevated. At present admission is of those who, after passing two years in t he general Freshman and Sophomore classes of t h e University, have elected to spend their Jun ior and Senior two years in this School .

ft seems reasonable t o expect no t only for th is School a career of real service to the c o m m u n i t y , b u t for o the r schools to be established elsewhere on similar lines, a large pa r t in t h e future education of this country .

Plan of the Wharton School.

T o T H E T R U S T E E S O F T H E U N I V E R S I VY OF P E N N S Y L V A N I A :

The general conviction tha t college education did little toward fitting for the actual duties of life any bu t those who purposed to become lawyers: doctors, or clergymen, b rough t about t he creat ion of many excellent tech­nical and scientific schools, whose work is enriching the country with a host of cult ivated minds prepared to overcome all sorts of difficulties in the world of ma t te r .

Those schools, while not replacing the outgrown and obsolescent sys­tem of apprent iceship , accomplish a work qui te beyond any th ing tha t sys­tem was capable of. Ins tead of t each ing and perpe tua t ing the narrow, various, and empirical rout ines of certain shops, t hey base the i r instruction ipon t h e broad principles deduced from all human knowledge, and ground

in science, as well as in art , pupils who are thereby fitted both to practice vhat they have learned and to become themselves teachers and dis­coverers.

1 1 the mat te r of commercia l educat ion there was formerly a system of m*tr iction practiced in t he count ing-houses of the old- t ime merchan t s re-se nbl in^ t h e system of apprent icesh ip t> trades. Comparat ively few ex-a noles of this sort of instruct ion remain, n >r i* their deficiency m a d e good bv the so-called Commercial Colleges, for however valuable may be the knowledge which they impart , it does not stfffi e t > tit a \ 01mg man for the

struggle of commercial life, for wise management oi a private estate, or for efficient public service.

It is obvious tha t t ra in ing in a commercia l house not of t he first rank for magn i tude and intelligence must , like t r ade apprenticeship, often re­sult in narrowness and empiricism which are not compensated by the hard and practical cer ta inty within l imited bounds derived from the rout ine of t rade or business. Since systematic inst ruct ion canno t be expected from the overworked heads of any grea t es tabl ishment , the novice mostly depends on what he can ga ther from the salaried employes of the house, and, instead of being instructed in t h e var ious branches, is probably kept working at some part icular function for which he has shown ap t i tude , or where his service is most needed. Besides, ordinary prudence requires t ha t many th ings indispensable to mastery of the business should be kept secret from these novices.

There is, fur thermore, in this country , an increasing number of y o u n g men possessing, by inheri tance, wealth, keenness of intellect and latent power of command or organizat ion, t o whom the channels of commercial education, such as it is, are, by the very felicity of their circumstances, part ly closed, for when they leave college at t h e age of twenty to twenty-five years they are already too old to be desirable beginners in a count ing-house, or t o descend readily to its drudgery.

No country can afford to have this inherited wealth and capacity wasted for want of tha t fundamental knowledge which would enable the possessors t o employ t h e m with advantage to themselves and t o t he communi ty , yet how numerous are t h e instances of speedy ruin to great estates, and indo­lent waste of great powers for good simply for want of such knowledge and of the tas tes and self-reliance which it brings. Nor can any country long afford t o have its laws made and its government administered by men who lack such t ra in ing as would suffice to rid their minds of fallacies, and qual­ify them for t h e solution of t h e social problems incident to our civilization. Evidently a great boon would be bestowed upon t h e nation if its young men of inheri ted intellect, means and refinement could be more generally led so t o manage the i r proper ty as, while husbanding it, t o benefit t h e com­munity, or could be drawn into careers of unselfish legislation and admin­istration.

As t h e possession of any power is usually accompanied by tas te for its exercise, it is reasonable to expect tha t adequate educat ion in the princi­ples underlying successful business management and civil government would greatly aid in producing a class of men likely t o become most useful members of society, whether in private or in public life. An oppor tuni ty for good seems here to exist similar to that so largely and profitably availed of by the technical and scientific schoo l s .

These considerat ions, joined to the belief that one of the existing great universities, ra ther than an insti tution of lower rank" or a new independent establishment, should lead in t he a t t empt to supply this important defi­c iency in our present sys tem of educat ion, have led me to suggest t he pro­ject herewith submit ted , for the establ ishment of a Schoo l of- Finance and Economy as a Depar tment of the Un ivc i s i t y which you now control, and which seems well suited to under take a task so accordant with its general

aims. Iri order t h a t the University may not, by under tak ing it, assume a pecuniary burden, I hereby propose t o endow t h e School with the securi­ties below named, amoun t ing to $160,000, and yielding more than $6000 annual in teres t ; these securities not to be converted dur ing my lifetime without my assent, and no par t of t he endowment t o be at any t ime in­vested in any obligation of the University, viz . :

$50,000 s tock in the Delaware and Bound Brook Railroad Company. $5 \ooo mortgage bonds, of the Schuylkill Navigat ion Company, due

in 1907.

1 am prepared to convey these securities at t h e opening of the first term of the School, or at any earlier t ime when t h e Universi ty shall satisfy me that the School will surely be organized as below stated, and opened at the b ginning of the next te rm, interest being adjusted t o such t ime of opening.

The only condi t ions which I impose a re t ha t t h e Universi ty shall estab­lish and maintain t he School according to t he t enor of t h e " P r o j e c t " hereto appended, and tha t if t he Universi ty shall a t any t ime hereafter, by its own desire, or by default e s t a b l s h e d in a sui table Cour t of Equity, cease so to maintain t h e School, or if t he School shall fail to a t t r ac t s tudents and therefore prove in t he judgmen t of such Court to be of inconsiderable utility, the endowment shall forthwith revert t o me or t o my heirs, I re­serving the r ight dur ing my life t o amend in any way, with the assent of t he then Trustees of the Universi ty, t he t e rms of t h e said " Projec t . "

To commemora te a family name which has been honorably borne in this communi ty since t h e foundation of t h e city, I desire t h a t t h e School shall be called " T h e W h a r t o n School of F inance and Economy."

T H E P R O J E C T .

1. Vbject. T o provide for young men special means of t ra in ing and of correct instruct ion in t h e knowledge and in t h e a r t s of modern Finance and Economy, both public and private , in order tha t , being well informed and free from delusions upon these impor tan t subjects, t hey may ei ther serve the communi ty skillfully as well as faithfully in offices of t rus t , or, remaining in private life, may prudent ly manage the i r own affairs and aid in main ta in ing sound financial mora l i ty : in short , t o establish means for impar t ing a liberal educat ion in all mat ters concern ing Finance and Econ­omy.

2. Qualifications for Admission. Assuming t h a t t he special instruction of this School will occupy th ree years, which may be called t h e sub-junior, junior, and senior years, t he genera l qualifications for admission to t he sub-junior class should be equal to those for t h e cor responding class in the Towne Scientific School, bu t different in detai l t o t h e ex ten t required by the difference in s tudies t o be thenceforward pursued.

As preparatory t o admission to t h a t class, candida tes may a t the discre­tion of t h e Trustees of the Universi ty, be received into e i ther of t he lower classes of t h e Depar tment of Ar ts , or of t he T o w n e Scientific School, upon 1 he same general condi t ions as shall , from t ime t o t ime, be established for admission to those classes. T o guard against t he too frequent unsound­ness of prel iminary instruction, which is a vice of our t ime, and which affords no proper foundation for a collegiate course, honest fulfillment must

be exacted of those reasonable detai led condi t ions for admission which shall, from t ime to t ime, be de termined upon and set forth in t h e official catalogue.

3 . Organization. T h e School to be conducted by— (a) One principal or dean, to exercise general control over t h e whole

School and to give tone to t he ins t ruct ion. H e should, besides t ak ing such part as may be found expedient in t h e rout ine instruct ion of t h e various classes, give s ta ted and formal lectures, cons t i tu t ing a par t of t h e ins t ruc­t ion of t he g radua t ing class, and should in each year produce for publica­t ion a t rea t ise upon some topic of current public interest connected with the lines of s tudy pursued in t he School, which treatises should be of such nature as to br ing reputa t ion to t he School, and to possess pe rmanen t value as a series. No such treatise t o be published unti l approved by a commit ­tee of the Board of Trus tees appointed for t h a t purpose , a certificate of thei r examinat ion and approval to be pr inted at the beginning of t h e treatise.

(b) One professor o r ins t ructor of account ing or bookkeeping, t o teach t h e simplest and most practical forms of bookkeep ing for housekeepers, for pr ivate individuals, ^or commercia l and banking firms, for manufactur­ing establ ishments , and for b a n k s ; also, t h e modes of keeping accounts by executors, t rus tees , and assignees, by t h e officials of towns and cities, as well as by t he several depa r tmen t s of a S ta te or Nat ional Gove rnmen t ; also, the rout ine of business between a bank and a cus tomer .

(c) One professor o r ins t ructor upon money and currency, to teach the meaning, history, and functions of money and currency, showing part icu­larly t h e necessity of permanent uniformity or integri ty in t h e coin uni t upon which t h e money system of a nat ion is based ; how an essential a t t r i ­bute of money is t ha t it should be hard to g e t ; t h e na tu re of, and reasons for, interest , or h i re of money, and r e n t s ; t h e advantages of an adequa te precious-metal fund for set t l ing in ternat ional balances as well as for regu­lat ing and checking by redempt ion the paper money and credits of a modern commercial na t ion ; how such metall ic hoards a re amassed and de­fended ; t h e extern t o which paper money may be advantageously em­ployed ; t h e dis t inct ions between bank-notes and Government n o t e s ; the uses and abuses of credit , bo th private and public ; t he uses and abuses of bills of exchange, le t ters of credit , and promissory n o t e s ; t h e his tory of banking, and part icularly of Government banks ; t h e advantages and dan­gers of banks of issue, banks of deposi t and savings banks ; how t h e func­t ions of different sorts of banks may be combined in one, and how any of t h e n may be banks of d i s coun t ; t h e functions of c lear ing-houses ; the phenomena and causes of panics and money c r i ses ; t h e na ture of pawn establ ishments and of lo t t e r i es ; t h e na tu re of s tocks and bonds, with the ordinary modes of deal ing there in .

(a*) One Professor o r Ins t ruc tor upon Taxat ion, t o teach t h e his tory and practice of modern taxat ion as dis t inguished from t h e plunder , t r ibute , or personal service which it for t h e mos t par t replaces ; t h e proper objects and rates of taxa t ion for municipal , S ta te , or Nat ional purposes ; t h e pub­lic ends for which money may proper ly be raised by taxat ion ; t h e nature of direct and indirect t axa t ion , of excise, of cus toms or import dut ies , of exp >rt duties, of s tamps, of income tax ; t he modern methods by which

taxes are usually levied ; the influences exercised upon the morality and 1

prosperity of a community or nation by the various modes and extents of taxation; the effects upon taxation of wars and of standing armies; the extent to which corporations should be encouraged by the State and to what extent they should be taxed as compared with individuals engaged in similar pursuits.

(e) One Professor or Instructor upon Industry, Commerce and Trans­portation, to teach how industries advance in excellence, or decline, and shift •from place to place; how by intelligent industry nations or communities thrive; how by superior skill and diligence some nations grow rich and powerful, and how by idleness or ill-directed industry others become rude and poor; how a great nation should be as far as possible self-sufficient, maintaining a proper balance between agriculture, mining and manufac­tures, and supplying its own wants ; how mutual advantage results from RECIPROCAL exchange of commodities natural to one land for the diverse commodities natural to another, but how by craft in commerce one nation may take the substance of a rival and maintain for itself virtual monopoly of the most profitable and civilizing industries; how by suitable tariff legislation a nation may thwart such designs, may keep its productive in­dustry active, cheapen the cost of commodities, and oblige foreigners tc* sell to it at low prices while contributing largely toward defraying the ex T

peases of its government; also, the nature and origin of money wages; the necessity, for modern industry, of organizing under single leaders and em­ployers great amounts of capital and great numbers of laborers, and qf maintaining discipline among the latter; the proper division of the fruits of organized labor between capitalist, leader, and workman; the nature and prevention of " s tr ikes;" the importance of educating men to com­bine their energies for the accomplishment of any desirable object, and the principles upon which such combinations should be effected.

( / ) One Professor or Instructor upon Elementary and Mercantile Law, to teach the Constitution of the United States and of Pennsylvania; the principal features of the United States law concerning industry, commerce, navigation and land and mining t i t l e s ; the principal features of the laws of Pennsylvania and of other States concerning mercantile affairs, part­nerships and corporations; of so-called international law; of the law of common carriers; the nature and operation of fire, marine and life insur­ance ; the principal features of State law concerning inheritance, convey­ance of land titles, mortgages and l iens; in brief, the history and present status of commercial legislation and the directions in which improvements may be hoped and striven for, particularly as to harmonizing, or unifying under United States laws, the diverse legislation of the several States of this Nation; the manner of conducting stockholders' and directors' meet­ings as well as public meetings, the rules governing parliamentary assem­blies, the routine and forms of legislative bodies.

Elocution should be taught and practiced to the extent of habituating the students t o clear, forcible and unembarrassed utterance before an audi­ence of whatever they may have to say, not in such manner as to promote mere rhetoric or prettiness. Athletic exercise within moderate limits should be encouraged, as tending t o vigor and self-reliance. Latin, Get-

man and French, and sound general knowledge of mathematics, geography, history and other branches of an ordinary good education must be acquired by the students, but these points are not here dwelt upon, because it is de­sired to direct attention to the peculiar features of the School.

This sketch of the instruction to be given in the School is not to be re­garded as precisely defining, mucMessas limiting, that which shall be there undertaken and carried on, but rather as indicating its general scope and tendency; the true intent and meaning being that instruction shall be care­fully provided for and regularly given in this School at least as full and thorough as is above set forth, and substantially as there stated.

All the teaching must be clear, sharp and didactic; not uncertain nor languid. The students must be taught and drilled, not lectured to without care whether or not attention is paid; any lazy or incompetent student must be dismissed.

Though the special Curriculum should probably at first be arranged to occupy three years, as has been suggested above, this term might hereafter be extended, or post-graduate instruction introduced, if experience should so dictate.

The Dean, and Professors or Instructors, are to constitute the Faculty of the School, and are to administer its discipline, as is done by the Dean and Faculty of the other Departments of the University, subject to such general rules as shall from time to t ime be established for the University by the Board of Trustees.

4 . General tendency of Instruction. This should be such as to inculcate and impress upon the students:

(a) The immorality and practical inexpediency of seeking to acquire wealth by winning it from another, rather than by earning it through some sort of service to one's fellow-men.

(b) The necessity of system and accuracy in accounts, of thoroughness in whatever is undertaken, and of strict fidelity in trusts.

(c) Caution in contracting private debt directly or by endorsement, and in incurring obligation of any kind ; punctuality in payment of debt and in performance of engagements. Abhorrence of repudiation of debt, or inconsiderate incurring of public debt.

id) The deep comfort and healthfulness of pecuniary independence, whether the scale of affairs be small or great. The consequent necessity of careful scrutiny of income and outgo, whether private or public, and of such management as will cause the first to exceed, even if but slightly, the second. In national affairs, this applies not only t o the public treasury, but also to the mass of the nation, as shown by the balance of trade.

(e) The necessity of rigorously punishing by legal penalties and by so­cial exclusion those persons who commit frauds, betray trusts, or steal public funds, directly or indirectly. The fatal consequences to a community of any weak toleration of such offenses must be most distinctly pointed out and enforced.

( / ) The fundamental fact that the United States is a nation, composed of populations wedded together for life, with full power to enforce internal obedience, and hot a loose bundle of incoherent communities living t o ­gether temporarily without other bond than the humor of the moment.

(g) The necessity for each nation to care for its own, and to maintain by all suitable means its industrial and financial independence; no apolo­getic or merely defensive style of instruction must be tolerated upon this point, but the right and duty of national self-protection must be firmly as­serted and demonstrated.

$. Theses and Premiums. Each student intending to graduate should prepare an original thesis upon some topic germane to the instruction of the school, such as The great currents of the world's exchanges, past and present; The existing revenue system of Great Britain, France, Mexico, Japan, or some other modern nation ; The revenue system, at some definite period, of Athens, Rome, Venice, or other ancient or mediaeval nat ion; The relative advantages of mono-metallic and of bi-metallic money; The Latin monetary union ; The land-credit banksof Germany; Life insurance, tontines, annuities, and endowments; Reciprocity and commercial trea­ties ; The nature of French Societes generates, anonymes, and en comman­dite ; The banking system past or present, of some specified nation; The advantages and disadvantages of attempts by employers to provide for the wants of their workmen beyond payment of stipulated wages.

In style the theses should be lucid, terse, and sincere, showing mastery of the subject, with appropriate and logical arrangement of parts, leading up to definite statement of conclusions reached. The chirography must be neat and legible.

For the best thesis, and also for the best general proficiency in the studies taught in the School, should be given annually a gold medal weigh­ing about one ounce, to be called respectively " Founder's Thesis Medal," and " Founder's Proficiency Medal," the same to be awarded by the Dean and Professors or Instructors in council.

6. Relations to the University. This school is intended to form an in­tegral part of the University of Pennsylvania, its Dean and Professors or Instructors to be appointed by the Trustees of that University, its func­tions to be exercised under the general oversight of the Provost and Trus­tees, and its specific course of instruction to be determined by them; its diplomas to be countersigned by him ; its funds, however, to be kept abso­lutely distinct from those of the University, and to be kept separately in­vested by the Trustees of the University in the name of this School, to be applied only to its own uses and not encroached upon in any manner for any debt, engagement, need, or purpose of the University.

Since this School will require no house accommodation except for class rooms, the use of which it is expected the University will freely grant, none of its funds must be expended in building or for rent-paying.

7. Financial Prospectus. An endowment capable of yielding $6000 per annum would seem to be necessary and adequate. Forty students, if at $150 per annum each would contribute a similar sum.

From this revenue of $12,000 per annum the Dean might be paid $3000, and each of the five professors or Instructors $1500 per annum, thus con­suming $10,500 and leaving $1500 per annum from which to accumulate gradually a Safety Fund equal to at least one year's expenses, also to buy books and to pay for premiums and for publication of treatises. The interest of this Safety Fund might properly be applied to pay to the Treas-

ury of the School for the tuition of those admitted to free scholarships; the number of which would thus be limited by the amount of such interest, but, besides the other requisites for admission, sound physical health and high probability of life must be indispensable conditions for the enjoyment of a free scholarship.

Before so many as forty students are in attendance the number of in­structors may be reduced by running the subjects together. When more than forty attend, the instruction may be expanded, the salaries advanced, or the Safety Fund increased, as the Trustees may think most expedient. During the first years, before all the classes are under tuition, the in­struction will naturally be condensed, fewer Professors or Instructors per­haps be required, and the Safety Fund thus have opportunity for accumula­tion. It is not expected that the University shall consume its own means for the support of this School, further than to provide class rooms.

The School must exemplify its teachings by always keeping its expenses surely within its income, except that in emergencies it may consume any part of the principal of the Safety Fund, the same to be afterward replaced as soon as practicable.

P R O C E E D I N G S O F T H E A M E R I C A N B A N K E R S ' A S S O C I A T I O N R E L A T I V E T O

A D D R E S S O F P R O F E S S O R J A M E S , A N D U P O N T H E F O U N D I N G O F

SCHOOLS OF F I N A N C E AND E C O N O M Y .

First Day, September Third, Page 42 of " Proceedings."

President C H A R L E S P A R S O N S in the Chair: Mr. B U T T S — B e f o r e we proceed further I desire to state that we have

listened with great pleasure to the able and interesting paper of Professor James, and I think this Convention would do itself justice in tendering to him a vote of thanks and directing that his paper be printed. I make that motion.

Mr. R . M. N E L S O N — I second that motion. Mr. N. B. V A N S L Y K E — I would suggest an amendment, that the Secre­

tary be directed to publish 2 0 0 0 copies of Mr. James' paper for circulation among our members.

Mr. B U T T S — I accept that amendment. Mr. W M . H. R H A W N — I would suggest that there be no restriction

placed upon the Secretary as to the number of copies to be printed. Lei that be left to the judgment of the Executive Council.

Mr. V A N S L Y K E — I have no objection to that, and being located where the State University is situated in Wisconsin, I have presented this same subject there.

The P R E S I D E N T — t h e n the motion is, that the thanks of this Convention be tendered to Professor James for his address, and that the Executive Council be requested to publish a sufficient number of copies not in the regular report for distribution among members.

Mr. R H A W N — I think, in order to make that more complete, that the plan of the Wharton School should be published with the paper.

Mr. B U T T S — I will include that in my motion. The P R E S I D E N T — G e n t l e m e n , you all understand the motion. All in

favor of it will vote Aye. Carried.

Second Day, September Fourth, Pages 6^68 of " Proceedings."

Mr. R H A W N — N o w , if is in order, I would like to offer a resolution to be referred to the Executive Council.

The P R E S I D E N T — I t is riot in regular order, but if there is no objection you may offer it now.

Mr. R H A W N — I take much satisfaction to myself for the appearance of Professor James before the Convention yesterday, inasmuch as I was to some extent instrumental in getting him here; and I was greatly pleased that the Convention should not only have unanimously voted him the thanks of this Association for his admirable address, but ordered it to be printed, with the plan of the Wharton School in 1 separate, pamphlet form, as well as with the regular Proceedings of the Convention, thereby manifest-

ing the deep interest felt in t h e subject by the Associat ion, in regard t o which I desire to offer a couple of resolut ions for reference to t he Execu­t ive Council, prefacing t hem with two paragraphs from t h e closing remarks of Professor J a m e s :

" T h e ideal of t h e Faculty, it may be said, is a great inst i tut ion, com­prising many different courses, one looking t o business, ano ther t o journal­ism, still ano ther to politics, a n o t h e r t o t h e university—all composed al ike of two e l emen t s : a common one, consis t ing of such s tudies as political economy, const i tut ional law, politics, his tory, e t c , ; and a professional one, embracing such special instruct ions as may be of aid in p repa r ing t h e s tu­dents for their part icular careers . T h e business course itself should be subdivided according t o the intent ion of t h e s tudent , and should comprise not merely t h e fundamental branches we now have, but many others , such as rai l roading, commerce , insurance, e t c / ' @

" An inst i tut ion like th is , with a curr iculum based upon a thorough knowledge of our own vernacular , its use, l i terature, history, etc., wi th such o the r languages, ancient o r modern, as t h e s tudent might choose t o take, and all based on a t ho rough elementary t ra in ing in languages, mathemat ics and natural science, would be an addi t ion t o our educat ional system com^ parable in impor tance and influence only t o t h e grea t system of technical schools which in a different field are revolutionizing our American educa^ tion. It would give us also t h e best system of t ra ining for business, jour* nalism, teaching—in a word for cit izenship, which t he world has yet seen. It would make t h e man or men, t h e family o r t h e communi ty who es tab­lished it immorta l in t h e educat ional his tory—not merely in th i s count ry but of t he world. W h o shall be t h e first to utilize th i s magnificent chance? W e have begun t o cul t ivate one corner of t he field in Phi ladelphia , anel shall press forward as rapidly as possible t o its full occupat ion, bu t shall also rejoice in the mean t ime if some o the r place outs t r ips us in t h i s gener* ous race for t h e highest position in th i s great work ."

T h e resolut ions which I wish t o offer a re as follows :

Resolved, " T h a t the American'Bankers' Association most earnestly commends not only to the bankers but to all intelligent and progressive citizens throughout our country the founding of

f schools of finance and economy for the business training of our children, to be established in con­nection with the universities and colleges of the land, upon a hke general plan as that of the Whaiton School of the University of Pennsylvania, so ably set forth by Professor James in his most admirable address before this Association ; and, as was so well stated by Professor James, the establishment of a great institution for the business training and education, such as he most vividly portrayed, would give us the best system of training for business, journalism—in a word, for citizen­ship, which the world has yet seen, and would make the man or the men, the family or community who established it immortal, not merely of this country, but of the world, and, as the founding of such an institution is a work which should peculiarly commend itself to the most serious considera­tion of the American banker, therefore,

Resolved, u T h a t the Execut ive Council is hereby directed to carefully consider and devise a feasible plan whereby this Association may enter upon or promote such work, and report upon the same at the next Convention."

A M E M B E R — I second t h e resolut ion of Mr. Rhawn . T h e P R E S I D E N T — M r . A tk inson is int imately acquain ted wi th th is sub­

ject, and, if agreeable, he will say a word o r t w o about it. Mr. E D W A R D A T K I N S O N — G e n t l e m e n , I am del ighted t o see a move of

th i s sort b rought before you. I desire t o say a word t o sustain it. I have been until t h e present year for more t h a n twen ty years a director in t h e

Massachuset ts Ins t i tu te of Technology. My brother , lately deceased, was the professor of English. I t had been a hobby of ours for many years t o es­tablish a branch of t ra in ing for t h e h igher educat ion of young men for com­mercial 1 ife. W e were qualified, most of us, t o direct t h a t ins t i tu t ion by wha t we did not know more t h a n by what we did, bu t wha t we ought t o have known in order to have been prepared t o conduct our own business. For more than twenty years I have been in correspondence notably with P r o ­

cessor Hodgson , now deceased, of t he Univers i ty of Edinburgh , where they had a dist inct b ranch of th is sort , and wi th o the r p rominen t educators . We have, both in t h e Ins t i tu te of Technology and in t he Harvard College elective courses of ins t ruct ion which have been framed with this mot ive in view. A backbone of science and of languages coupled with inst ruct ion in commercial geography and geology, and in English, wi th lec tures on t h e principles of t h e law of cont rac ts and all t h e prel iminary m e t h o d s of s tud­ies, but they a re as ye t depar tments . There is room and a field for separate schools like t h a t of t h e W h a r t o n School a t t ached t o universit ies, and I am delighted t o see th is movemen t made to ex tend t h e functions of educat ion in the direct ions in which I myself and many of my friends have been work­ing most a rduously for very many years . (Applause.)

Mr. M O R T O N M C M I C H A E L of Ph i l ade lph ia—The Associat ion owes t o t h e good judgment , energy and care of Mr. Rhawn t h e fact t h a t th is m a t t e r of business schools has been b rough t t o its a t t en t ion so clearly, and much is yet to be learned on t h e subject. One point which has no t been al luded to str ikes me as of no small impor tance—tha t is t h e moral effect on the s tudents . Young men carefully t ra ined for years t o look wi th shame and con tempt upon the sl ightest deviat ion from str ict in tegr i ty in any t ransac­t ion would, I believe, acquire a very firm foundat ion of honesty, making t h e m exceptionally t ru s twor thy in posit ions of responsibili ty. T h e lad who en te rs West Po in t is no braver t h a n his fellows, bu t years of cons tant teaching t h a t personal honor is all impor tan t and t h a t i ts h ighest expression is unfaltering courage and unswerving fidelity t o duty , instils into his be­ing a quali ty which makes him a braver man in t h e face of danger, and one more certain t o carry ou t his orders wi thout count ing the cost t o himself.

So, I am satisfied, men educated in such colleges as are proposed would have a greater fund of s t rength t o resist t empta t ions which so often lead t o ruin and disgrace.

< Mr. T H O M P S O N of Tacoma, Wash .—I desire to submit th is proposi t ion. I come from t h e extreme West , from a section which is to be t h e seat of grea t industrial and commercia l activity. I am no t a college m a n . I wish I were. But observat ion has t a u g h t me t h a t in t h e colleges and universi t ies there are vast s tores of knowledge to be obtained, b u t no t t h a t k ind of knowledge which permi ts of appl icat ion t o t h e business affairs of life. If I unders tand t h e object of t h e s e schools, it is t o teach men to apply t h e knowledge they ga the r in t he colleges t o t h e business affairs of life. T h a t is what we need. I t is t h e mak ing of practical men. I thoroughly advo­cate this measure . I would l ike t o see in t h e Sta te of Wash ing ton a school of th is sort become a par t of our S ta te Universi ty, and it shall certainly be­come a par t of my business t o advocate th i s work. I do not believe th i s

Convention can do be t te r t h a n t o t a k e u p subjects of this kind, and I am glad we have had Mr. Atk inson here to-day t o confirm this , as well as P ro ­fessor James yes te rday . I hope the resolution will be carried unanimously, •and that it will not be lost s igh t of in future convent ions .

T h e P K E S T D E N T — G e n t l e m e n , you have heard t h e resolution. All in favor of adopt ion will vo te A y e .

Adopted unanimously .

Third Day, September Fifth, Pages ioj-106 "Proceedings"

Mr. W M . H . R H A W N — 1 have a shor t report from the Execut ive Council , which I will read, as fol lows:

In refereace t o t h e resolution offered by Mr. W m . H . Rhawn, t h e Exec­ut ive Council unanimously recommend the adopt ion of t h e following by the Conven t ion :

Resolved, That the American Bankers' Association most earnestly commends, not only to the bankers, but to all intelligent and progressive citizens throughout the country, the founding o*. Schools of Finance and Economy, for the business training of youth, to be established in connec­tion with the universities and colleges of the land, upon a general plan like that of the WhartQri School of Finance and Economy of the University of Pennsylvania, so ably set forth b y Professor James in his most admirable address before this Convention.

Resolved, That the Executive Council is hereby directed to carefully consider, and, if possible, devise some feasible plan vHereby this Association may encourage or promote the organization <k a School or of Schools of F nance and Economy among our institutions of learning, and report upon the same to the next Convention.

On motion, t he report was adopted.

Committee on Schools of Finance and Economy appointed by Executiik Council.

At a meet ing of t he Executive Council held at t h e close of the Convert tion on September 5, t h e foregoing resolutions were referred to t h e follow­ing named Commit tee , appointed by Mr, Charles Parsons , Chai rman pro-tem., as a Commit tee on Schools of F inance and E c o n o m y : Will iam H, Rhawn, Chairman, Pres ident Nat ional Bank of t h e Republic , Phi lade lphia ; George S. Coe, Pres ident Amer ican Exchange Nat ional Bank, New Y o r k ; Lyman J . Gage, Vice-Pres ident Fi rs t Nat ional Bank, Ch icago ; Mor ton McMichael, Cashier Firs t Nat ional Bank , Ph i l ade lph ia ; and Asa P . P o t t e r President Maverick Nat ional Bank, Bos ton .