EDUCATION OF BUSINESS MEN.

AN

ADDRESS
BEFORE T H S CONVENTION

OF THE

American Bankers Association
A t Saratoga, September 3,1890,
BY

E D M U N D " J.

JAMES,

Professor of Public Finance and Administration

P h . D.,

in the Wharton School of Finance

and Economy of the University of

Pennsylvania,

Philadelphia.

PLAN OF T H E
WHARTON

SCHOOL

OF

FINANCE

AND

ECONOMY.

PROCEEDINGS O F T H E ASSOCIATION RELATIVE T O T H E ADDRESS
OF

PROFESSOR

JAMES,

A N D UPON T H E FOUNDING

OF SCHOOLS OF FINANCE A N D ECONOMY.

PUBLISHED BY
WILLIAM

B.

GREENE,

N E W

SECRETARY,

YORK.
1891.

COMMITTEE ON SCHOOLS OF FINANCE AND ECONOMY
OF

EXECUTIVE

COUNCIL,

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, N e w 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.
MORTON

McMICHAEL,

Cashier First National Bank, Philadelphia, Penn.
FIRST VICE-PRESIDENT.
RICHARD

M.

NELSON,

President Commercial Bank, Selma, Ala.
TREASURER.
G E O R G E F.

BAKER.

President First National Bank, N e w York City.
SECRETARY.
WILLIAM

B.

GREENE.

128 Broadway, N e w York.

Executive Council.
{For term of two years.)
JOHN JAY KNOX, Chairman,
President National Bank of the Republic, N e w 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 . S T . JOHN,
President Mercantile National Bank, N e w Y o r k City.
J . J . P. ODELL,
President Union National Bank, Chicago, 111.
LOGAN H . ROOTS,
President Arkansas Loan and Trust Company, Little Rock, A r k .
JOSEPH S. CHICK,
President National Bank of Kansas City, Kansas C i t y , M o .
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, C a l .

(For the term of three years,)
GEORGE S. C o s ,
President American Exchange National Bank, N e w York City.
EDWARD B . JUDSON,
President First National Bank, Syracuse, N . Y .
CHARLES PARSONS,
President State Bank, St. Louis. M o .
EDWARD S, BUTTS,
President Vicksburg Bank, Vicksburg, Miss.
GEORGE A . BUTLER,
President National Tradesmen's Bank, N e w 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 R o c k .

California.
E . F . SPBNCE, President First National Bank, L o s 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 & C o . , 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, N e w 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 C o . , Vicksburg.

Missouri.
C. J . W H I T E , 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, L a s 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 L a k e 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 . V A N SLYKE, President First National Bank, Madison.

Wyoming.
HENRY G . H A Y , Cashier Stockgrowers' National Bank, Cheyenne.

EDUCATION OF BUSINESSMEN.
EXECUTIVE COUNCIL,

A M E R I C A N B A N K E R S ' ASSOCIATION.
COMMITTEE ON SCHOOLS OF FINANCE AND ECONOMY

January

/,

1891.

A t a m e e t i n g of t h e E x e c u t i v e Council of t h e A m e r i c a n B a n k e r s '
Association, held in N e w Y o r k City o n O c t o b e r 16, 1889, t h e following
resolution, offered b y Mr. William H . R h a w n , was u n a n i m o u s l y a d o p t e d :
" Resolved, T h a t a c o m m i t t e e of n o t less t h a n t h r e e o r m o r e t h a n five be
a p p o i n t e d by t h e c h a i r m a n , t o w h o m shall b e s u b m i t t e d t h e subject of t h e
preparation o r p r o c u r e m e n t of a paper t o b e read a t t h e n e x t C o n v e n t i o n
of t h e Association, u p o n t h e e s t a b l i s h m e n t of schools in connection with
t h e universities a n d colleges of t h e c o u n t r y , of general scope a n d c h a r a c t e r
like t h a t o f ' T h e W h a r t o n School of F i n a n c e a n d Economy,' connected
with t h e U n i v e r s i t y of P e n n s y l v a n i a ; a n d t h e best m e a n s by which t h e es­
t a b l i s h m e n t a n d e n d o w m e n t of such schools may b e p r o m o t e d a n d fos­
t e r e d by t h e Association."
;
,
^.^x.
T h e C h a i r m a n , H o n . J o h n J a y Knox, a p p p i n t e c L l a s ^ C o m m i t t e e u n d e r
t h e r e s o l u t i o n , M r . William H . R h a w n , Mr. Logan C Murray, a n d Mr.
M o r t o n McMichael.
T h e C o m m i t t e e invited E d m u n d J. J a m e s , P h . D., Professor of Public
F i n a n c e a n d A d m i n i s t r a t i o n in t h e W h a r t o n School of F i n a n c e a n d Econ­
o m y of t h e U n i v e r s i t y of Pennsylvania, P h i l a d e l p h i a , t o p r e p a r e a n d read
t h e p r o p o s e d p a p e r u p o n Schools of F i n a n c e a n d E c o n o m y before t h e next
C o n v e n t i o n , which invitation h e kindly a c c e p t e d .
In a n n o u n c i n g t h e f o r t h c o m i n g p a p e r by Professor J a m e s , t h e C o m m i t t e e
presented t h e general plan of t h e W h a r t o n School, with an i n t r o d u c t o r y
s t a t e m e n t by its beneficent founder, Mr. J o s e p h W h a r t o n , a n d invited ex­
pressions of opinion u p o n t h e subject from b a n k e r s a n d others, in response
t o w h i c h n u m e r o u s l e t t e r s strongly c o m m e n d i n g t h e e s t a b l i s h m e n t of such
schools were received.
Professor J a m e s prepared a n d delivered an instructive a n d scholarly
a d d r e s s before t h e Association, a t t h e C o n v e n t i o n a t Saratoga, on Septem­
ber 3, 1890, a n d t h e C o n v e n t i o n u n a n i m o u s l y v o t e d him t h e t h a n k s of t h e
Association for h i s a d d r e s s , a n d o r d e r e d t h a t it should b e published with
the p r o c e e d i n g s , and also in s e p a r a t e p a m p h l e t form, t o g e t h e r with t h e
plan of t h e W h a r t o n School.
R e s o l u t i o n s relative t o t h e a d d r e s s a n d t o t h e e s t a b l i s h m e n t of School?
:>f F i n a n c e a n d E c o n o m y were s u b m i t t e d t o t h e Convention and after dis^ i o n referred t o t h e E x e c u t i v e Council, which r e p o r t e d back t h e followesolutions, w h i c h were u n a n i m o u s l y a d o p t e d by t h e C o n v e n t i o n :
«v'zsDived, T h a t t h e A m e r i c a n B a n k e r s ' Association m o s t earnestly comdo* not only t o t h e b a n k e r s , b u t t o all intelligent a n d progressive citi& 1 ; \ M r o u g h e s t t h e c o u n t r y , t h e founding of Schools oi binanr*
«n.'

E c o n o m y , for t h e business t r a i n i n g of y o u t h , t o be established in c o n n e c t i o n
with t h e universities and colleges of t h e land, u p o n a general plan like t h a t
of t h e W h a r t o n School of F i n a n c e a n d E c o n o m y of t h e U n i v e r s i t y of
Pennsylvania, so ably set forth by Professor J a m e s in his m o s t a d m i r a b l e
a d d r e s s before t h i s C o n v e n t i o n :
" Resolved, T h a t t h e Executive Council is h e r e b y directed t o carefully
consider and, if possible, devise some feasible plan w h e r e b y t h i s Associa­
tion m a y e n c o u r a g e or p r o m o t e t h e organization of a School o r of Schools
of F i n a n c e a n d E c o n o m y a m o n g o u r institutions of learning, a n d r e p o r t
u p o n t h e same t o t h e next C o n v e n t i o n . "
A t a m e e t i n g of t h e Executive Council, held a t t h e close of t h e C o n v e n ­
tion on S e p t e m b e r 5, t h e foregoing resolutions were referred t o t h e under-?
signed C o m m i t t e e , a p p o i n t e d u n d e r t h e direction of t h e Council by Mr
Charles P a r s o n s , C h a i r m a n p r o tem.> as a C o m m i t t e e on Schools of
Finance and Economy.
In a c c o r d a n c e with t h e several r e s o l u t i o n s of t h e C o n v e n t i o n and of t h e
Executive Council, t h e C o m m i t t e e h e r e p r e s e n t t h e A d d r e s s of Professor
J a m e s a n d t h e P l a n of t h e W h a r t o n School, t o g e t h e r w i t h t h e p r o c e e d i n g s
of t h e C o n v e n t i o n r e l a t i n g t h e r e t o , t o which t h e t h o u g h t f u l a n d serious
consideration of b a n k e r s a n d all o t h e r s i n t e r e s t e d in t h e problem of t h e best
education for t h e c o m i n g business m e n of t h e c o u n t r y , is earnestly invited.
Before e n t e r i n g fully u p o n t h e c o n s i d e r a t i o n of a feasible plan w h e r e b y
t h e A m e r i c a n B a n k e r s ' Association m a y e n c o u r a g e or p r o m o t e t h e organi­
zation of a g r e a t e d u c a t i o n a l i n s t i t u t i o n for t h e t r a i n i n g of y o u t h into
business m e n , such as h a s been so vividly p o r t r a y e d by Professor J a m e s , and
of Schools of F i n a n c e a n d E c o n o m y in c o n n e c t i o n with t h e universities
a n d colleges of t h e land, t h e C o m m i t t e e desires t o receive a n d respectfully
invites, from t h e m e m b e r s of t h e Association a n d b a n k e r s generally, a n d
from all friends of t h e cause of such e d u c a t i o n , expressions of opinion
a n d s u g g e s t i o n s w h i c h may aid t h e C o m m i t t e e in its work, t o b e addressed
t o t h e C h a i r m a n or any of its m e m b e r s , a n d for w h i c h t h e t h a n k s of t h e
C o m m i t t e e are h e r e t e n d e r e d in advance.
0

WILLIAM H.

RHAWN,

G E O R G E S. C O E ,
L Y M A N J. G A G E ,
MORTON
A S A P.

MCMICHAEL,

POTTER.

SCHOOLS OF FINANCE AND
ADDRESS

OF

PROFESSOR

EDMUND

J.

ECONOMY
JAMES,

PH.D.

Professor of Public Finances and Administration,
Wharton School of Fi­
nance and Economy, University of Pennsylvania—before
Convention of
American Bankers' Association, Saratoga, N. Y„ Sept. j , I8QQ<
MEMBERS OF T H E AMERICAN BANKERS' ASSOCIATION:

Y o u r c o m m i t t e e h a v e d o n e m e t h e h o n o r of inviting m e t o a d d r e s s you
u p o n t h e subject of Schools of F i n a n c e a n d E c o n o m y . I respond t o this
invitation with m u c h pleasure. I t is a d e l i g h t t o s p e a k t o an intelligent
a u d i e n c e u p o n a q u e s t i o n of gdneral interest. It is a source of special
pleasure t o p r e s e n t t h e claims of an i m p o r t a n t subject t o a set of m e n
w h o h a v e u n u s u a l m e a n s of influencing public opinion in regard t o it.
T h e r e are few subjects of m o r e g e n e r a l interest t o an A m e r i c a n audi­
ence t h a n t h o s e r e l a t i n g t o e d u c a t i o n . J u s t a t present, moreover, t h e ques­
t i o n s p e r t a i n i n g t o h i g h e r e d u c a t i o n are receiving an unusual share of
a t t e n t i o n . T h e e n o r m o u s expansion in o u r s c h e m e of h i g h e r instruction
which h a s t a k e n place in t h e last t w e n t y years, a n d which has revolution­
ized all o u r l e a d i n g institutions, has b r o u g h t t o t h e front a n u m b e r of
f u n d a m e n t a l q u e s t i o n s w h i c h have n o t yet been fully answered.
U n d e r t h e A m e r i c a n political a n d social system t h e h o p e of general
and rapid progress in a n y line lies chiefly in interesting t h e public at laige
in t h e m a t t e r . I t is n o t possible with us, if an i m p r o v e m e n t is t o be m a d e
in o u r college system, for example, t o present t h e m a t t e r t o a Minister of
E d u c a t i o n w h o , u p o n being convinced of t h e wisdom of a proposed change,
may, by a simple order, revolutionize every college in t h e country. W e
must, on t h e contrary, t r y t o reach t h e public and create a d e m a n d for t h e
c h a n g e ; or p e r s u a d e t h e leading college presidents or leading t r u s t e e s
of o u r g r e a t institutions t o t r y t h e e x p e r i m e n t .
I c o u n t myself happy, therefore, t h a t I have an o p p o r t u n i t y t o present
t h e subject of t h i s p a p e r t o y o u r Association. You are t h e very people w h o
should be i n t e r e s t e d in it for its own sake, a n d whose co-operation would
e n s u r e its p r o m o t i o n . M a n y of you, moreover, a r e t r u s t e e s of colleges
a n d universities a n d from s u c h positions have unusual o p p o r t u n i t i e s t o
affect t h e e d u c a t i o n a l policy of t h e c o u n t r y . I a m addressing, therefore,
n o t merely A m e r i c a n citizens w h o may be p r e s u m e d t o have an interest in
e d u c a t i o n for its own sake ; n o t merely American business men w h o should
h a v e a very special interest in all t h a t relates t o business e d u c a t i o n , but
also in m a n y cases t r u s t e e s of o u r h i g h e r i n s t i t u t i o n s of learning whose
solemn d u t y it is t o seek o u t a n d try all t h i n g s which may help in t h e
a d v a n c e m e n t of o u r h i g h e r i n s t r u c t i o n .
T h e subject of my paper is t h e h i g h e r e d u c a t i o n of the future busi­
ness m a n or, as it may be o t h e r w i s e stated, a college course for t h e future
business m a n ; for t h i s is t h e purpose of t h e Schools of Finance and
E c o n o m y m e n t i o n e d in t h e title of t h e paper. I d o not k n o w how I can
present t h e subject t o y o u r consideration b e t t e r t h a n t o give you s o m e
account of t h e e x p e r i m e n t we are t r y i n g in P h i l a d e l p h i a in t h e W h a r t o n
School of F i n a n c e a n d E c o n o m y , a s u b - d e p a r t m e n t of t h e University of
Pennsylvania. I d o this t h e m o r e readily, as it was t h e success of t h i s
school which first a t t r a c t e d the... a t t e n t i o n , of y o u r C o m m i t t e e t o t h e s u b -

ject, a n d it was rny connection with th6 school which led t h e m t o invite m e
t o deliver t h i s a d d r e s s .
You have all d o u b t l e s s received a c o m m u n i c a t i o n , sent o u t by y o u r C o m ­
m i t t e e o n t h e 15th of N o v e m b e r last, relating t o t h e W h a r t o n School of
Finance a n d Economy. A p p e n d e d t o t h e c o m m u n i c a t i o n was a copy of
th2 original plan or prospectus of t h e school, d r a w n u p by Mr. J o s e p h
\Yaarton a n d s u b m i t t e d t o t h e Board of T r u s t e e s of t h e University of P e n n ­
sylvania as a:i indication of what h e wished t h e school t o be, w h o s e e s t a b ­
l i s h m e n t he secured by t h e gift of $100,000 t o t h e University. In t h a t pros­
pectus a n d ia an a d d r e s s recently delivered before t h e W h a r t o n School
Alumni Association,* Mr. W h a r t o n i n d i c a t e s t h e reasons which led him t o
establish t h i s school. A s t h e y were reasons w h i c h g o t o t h e very root of t h e
matter, a n d involve s o m e of t h e most i m p o r t a n t aspects of o u r whole sys­
tem of h i g h e r e d u c a t i o n , 1 c a n n o t d o b e t t e r t h a n p r e s e n t t h e subject along
t h e lines t h e r e laid down. H i s discussion of t h e subject, t h o u g h brief, is
direct a n d convincing. I t involves t h r e e points : t h e inadequacy of existing
facilities for t h e h i g h e r education of o u r business classes; t h e desirability
of h i v i n g such facilities ; s u g g e s t i o n s as t o w h a t can a n d s h o u l d b e d o n e !
An American y o u t h w h o is l o o k i n g forward t o a business career a n d has
completed t h e o r d i n a r y g r a m m a r school course, s t a n d s face t o face with ah
(interesting a n d i m p o r t a n t problem. Shall I seek a situation in s o m e business
house, closing my school education with what I h a v e now, a n d t r u s t i n g t o t h e
friction of active life for further education, o r shall I g o t o s o m e o t h e r
school a while longer, and t r u s t t o t h e benefits of t h e t r a i n i n g t h e r e t o m a k e
up for t h e g r e a t e r practical k n o w l e d g e which I m i g h t g e t in t h e s a m e
n u m b e r of years in t h e c o u n t i n g house, factory o r bank ? T h e a v e r a g e boy
in o u r A m e r i c a n life decides in lavor of g o i n g into business at once. T h i s
hiay be explained, of course, on t h e g r o u n d t h a t t h e a v e r a g e boy h a s no
m o n e y w i t h which t o p a y his way a t h i g h e r schools. B u t even t h e average
boy whose p a r e n t s can afford t o send h i m longer t o school m a k e s t h e same
c h o i c e ; nay, t h e average son of well-to-do o r wealthy p a r e n t s does t h e same 1
t h i n g . N o w w h y is t h i s ? W h y d o such a large n u m b e r of t h o s e able t o
g e t t h i s h i g h e r t r a i n i n g t u r n aside a n d refuse it ? T h e old answer was t h a t
,they are t o o ignorant or lazy or indifferent. N e i t h e r t h e y nor t h e i r p a r e n t s
h a v e a n y notion of t h e i m m e n s e a d v a n t a g e t h e y would d e r i v e from t h i s
h i g h e r t r a i n i n g . T h e r e is d o u b t l e s s m u c h t r u t h in t h i s reply ; but, perhaps,
it is also t r u e t h a t t h i s so-called h i g h e r e d u c a t i o n appears t o bear b u t little
relation t o t h e i r future w o r k . I t may all be very nice. It m a y belong t o
t h e a c c o m p l i s h m e n t s of life. I t m a k e s d o u b t l e s s a fine d e s s e r t ; b u t it is in
all probability a p u r e article of luxury w h i c h n o e n e r g e t i c a n d v i g o r o u s
person w h o is d e t e r m i n e d t o succeed in t h e fierce conflict of competitive
business can afford t o acquire at t h e cost of years of effort. T h i s is d o u b t ­
less a very material, b u t also a very natural way of viewing t h e problem.
Now, w h a t courses a r e o p e n t o t h e y o u t h w h o d e t e r m i n e s t o g e t s o m e
t h i n g m o r e in t h e way of an education before going i n t o business? H e might
t a k e a medical o r theological c o u r s e ; t h e former would increase h i s knowl*

t k

Is a College Education A d v a n t a g e o u s to a Business M a n ? 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
C l u b , Philadelphia.

edge of facts enormously, t h e l a t t e r would s h a r p e n his logical a c u m e n . Such
a proposition, however, would seem a b s u r d , a n d very few s t u d e n t s would
ever t h i n k of a d o p t i n g t h i s plan. T h e y o u t h m i g h t t a k e a law school c o u r s e ;
h e would find m u c h in t h a t w o r k t o q u i c k e n his faculties a n d s o m e infor­
mation t h a t would be of practical value t o h i m in his business. B u t still, if
t h i s were t h e only o p p o r t u n i t y for h i g h e r e d u c a t i o n it is safe t o say t h a t
b u t few y o u t h s l o o k i n g forward t o a b u s i n e s s career would ever g e t t h i s
h i g h e r t r a i n i n g . W e have n o w also t h e technical schools. O u r y o u t h m i g h t
g r a d u a t e in civil o r m i n i n g engineering, architecture, etc., e t c . In each of
t h e s e a n d similar courses h e would find s o m e t h i n g of value. B u t t h e s a m e
t h i n g applies t o t h e m as t o medicine a n d t h e o l o g y ; b u t few s t u d e n t s would
ever t a k e t h e s e courses unless t h e y i n t e n d e d t o follow t h e c o r r e s p o n d i n g
profession. W h a t t h e n remains ? O n l y t h e so-called Commercial o r Busi­
ness College a n d t h e l i t e r a r y college. I t is safe t o say t h e n as o u r educational
c o n d i t i o n s lie, t h a t t h e only o p p o r t u n i t y for h i g h e r education now open t o
y o u t h s l o o k i n g forward t o a business c a r e e r is t o be found in o n e of t h e s e
institutions.
A s t o t h e so-called Commercial o r Business Colleges, I would n o t will­
ingly d o t h e m a n injustice. I believe t h a t t h e y are a g r e a t a n d p e r m a n e n t con­
s t i t u e n t of o u r e d u c a t i o n a l system. T h e y have d o n e a n d are d o i n g a n d a r e
destined t o c o n t i n u e d o i n g , a g r e a t a n d useful work. B u t t h e t r a i n i n g
which they, with few exceptions, furnish can scarcely be called a h i g h e r
t r a i n i n g a t all. I t h a s t o d o with " facilities "—indeed chiefly w i t h manual
facilities—writing, r e c k o n i n g , etc., t h o s e t h i n g s t h a t g o t o m a k e u p a good
clerk, t h i n g s of great v a l u e in themselves, t h i n g s which every business m a n
would b e t h e b e t t e r for having, a n d y e t t h i n g s which after all are only facilities;
t h e y d o n o t t o u c h t h e essence of successful business m a n a g e m e n t o r t e n d t o
develop t h e h i g h e r sides of business a c t i v i t y ; t h e y bear little o r n o relation
t o t h o s e b r o a d e r views c h a r a c t e r i s t i c of t h e business m a n a g e r as distinct
from t h e business clerk a n d a r e of course next t o useless as a m e a n s of
liberal e d u c a t i o n . T h e k n o w l e d g e w h i c h t h e y impart, however valuable in
itself, " d o e s n o t suffice t o fit a y o u n g m a n for t h e struggle of commercial
life, for wise m a n a g e m e n t of a private estate o r for efficient public service."*
O u r literary colleges, o n t h e o t h e r h a n d , are, t h o u g h in q u i t e a different
way, also incapable of answering this d e m a n d for t h e h i g h e r education a n d
t r a i n i n g of t h e business m a n . T h e average c u r r i c u l u m of t h e American col­
lege is m a d e u p chiefly of Latin, Greek, a n d h i g h e r m a t h e m a t i c s with a d a b
of n a t u r a l science, m o d e r n languages a n d history. I would n o t by a n y m e a n s
u n d e r e s t i m a t e t h e value of such t r a i n i n g viewed from a subjective s t a n d ­
point. A vigorous t r a i n i n g in t h e classics a n d h i g h e r m a t h e m a t i c s undoubt-i
edly s h a r p e n s a man ^ i n t e l l e c t u a l faculties ; it trains his t a s t e s and w i d e n s
his whole m e n t a l horizon ; b u t it also, as t h i n g s g o now, a n d as t h e y probably
will g o for all t i m e t o come, t e n d s t o draw away t h e y o u t h w h o h a s enjoyed
it from a business life ; t e n d s t o fix his mind, t a s t e s , t h o u g h t s upon a very
different class of t h i n g s from t h o s e which m u s t m a k e u p a large p a r t of his
future as a business m a n a n d citizen. T h i s is, of course, within certain
limits an excellent t h i n g . T h e m a n should be m o r e t h a n his calling. W e
;

*Parnphlet of \ m e r i e a n Bankers' Association on Schools of Finance and Economy, November
s 5 188:9, P. 3">

should be men before we a r e a n y t h i n g else. W e should be h u m a n beings
before we are b a n k e r s , or manufacturers or lawyers or physicians, and o u r
e d u c a t i o n a l system should aim t o develop all our power and tastes a n d pos­
sibilities—should increase our capacities for e n j o y m e n t in every direction.
But all t h i s has reached its limit w h e n t h e educational process itself has
so warped individual d e v e l o p m e n t as t o t u r n aside t h e individual from a
calling for which he has special a p t i t u d e t o one for which he is n o t a t all
fitted. Now no one, I think, w h o has been t h r o u g h college himself and h a s
afterwards t a u g h t for years in a college can help a d m i t t i n g t h a t t h e t r a d i ­
tional college curriculum has t u r n e d aside m a n y a boy from a business car
reer in which h e m i g h t have succeeded t o a professional o n e in which h e
failed. O u r college courses as t h e y are at present constituted—considering
t h e p r e p a r a t o r y course as a p a r t of t h e college—holds t h e boy w h o com*pletes it d u r i n g t w o very critical periods : t h e o n e from 12 t o 16 and t h e o t h e r
from 17 t o 21 ; where he passes from c h i l d h o o d t o y o u t h and from y o u t h t o
m a n h o o d . T h a t a course of s t u d y pursued d u r i n g these years—no m a t t e r
how g o o d it may be in itself—may w a r p for h a r m m a n y a boy w h o comes
u n d e r its influence, can be denied, it seems t o me, only by him who t h i n k s
it possible t o devise an absolutely good curriculum which will be suitable t o
all boys—no m a t t e r w h a t t h e i r tastes or abilities. T h e r e are some people
who hold t o t h i s view. T h e y are fortunately, for t h e world, b e c o m i n g fewer
and fewer and losing t h e i r influence steadily.

y

I say t h e s e t h i n g s with a full recognition of t h e fact t h a t m a n y of o u r
m o s t successful business men in all lines of life, b a n k i n g , manufacturing,
merchandising, etc., a r e college bred men, and t h a t t h e y regard themselves
a n d probably with justice as all t h e b e t t e r business men for t h e college e d u ­
cation which t h e y have h a d ; but this fact is, of course, n o answer t o t h e
above propositions since t h e claim is not t h a t a college education, even of
t h e s t r i c t e s t old-fashioned t y p e destroys or even w e a k e n s a m a n ' s business
ability, b u t simply t h a t it t e n d s in m a n y instances t o draw men away from a
business life who are naturally a d a p t e d t o it; and what is of far m o r e im­
p o r t a n c e in t h i s connection, t h e knowledge t h a t such a c o u r s e is all t h e
college has t o offer him d e t e r s t h e y o u t h looking forward t o business from
g o i n g t o college at all—yea—even from considering seriously t h e possible
a d v a n t a g e of a collegiate t r a i n i n g .
However, w h a t e v e r o n e may t h i n k of t h e above views, a n d I a m well
aware t h a t m a n y people, b o t h educationists and others, will t a k e exception t o
t h e m , I d o not tiling t h a t t h e fact ca.i be denied t h a t o u r colleges are n o t e d u c a t i n g o u r business men as a m a t t e r ot fact. T h e case is n o t so bad by any
m e a n s as it was represented s o m e t i m e ago by Mr. Carnegie, w h o declared
t h a t he did n o t kno.v any successful business m e n who a r e college g r a d u ­
ates. O u r larger cities, particularly, show m a n y very successful business
men who are g r a d u a t e s of colleges, a n d white I would not say t h a t t h e woods
are full of t h e m , yet certainly m a n y of o u r W e s t e r n frontier t o w n s can show,
especially a m o n g t h e very y o u n g men, n u m e r o u s e x a m p l e s of collegians suc­
cessful in business. A n d yet, after all, t h e r e is an i m m e n s e a m o u n t of t r u t h
in w h a t Mr. C a r n e g i e says. It may be perfectly t r u e , a s has been c o n t e n d e d
on t h e o t h e r h a n d , t h a t t h e p r o p o r t i o n of college men, who, h a v i n g g o n e
into business, are successful is immensely g r e a t e r t h a n t h e p r o p o r t i o n of

J9
successful m e n a m o n g t h e non-college c l a s s ; a n d yet be also t h e case, as it
u n d o u b t e d l y is, t h a t of t h e successful business m e n in t h i s c o u n t r y b u t very
few are college g r a d u a t e s , /. e,, o u r colleges a r e n o t e d u c a t i n g o u r business
men. I t was shown years a g o t h a t t h e population of t h i s c o u n t r y was grow­
ing faster t h a n t h e n u m b e r of s t u d e n t s in o u r colleges, a n d certainly t h e
business classes have increased in n u m b e r m u c h m o r e rapidly t h a n t h e n u m ­
ber of students^ z. e. t h e r a t i o of college m e n in business t o t h e non-college
men is declining. Even t h e p r o p o r t i o n of college g r a d u a t e s in t h e profes­
sional schools of t h e c o u n t r y h a s n o t been increasing of late, /. e., even t h e
n u m b e r of p h y s i c i a n s a n d lawyers, a n d possibly, clergymen, w h o a r e college
g r a d u a t e s is n o t relatively^ increasing, and indeed may be decreasing, and
yet t h e college is c o n s i d e r e d specially a d a p t e d t o t h e s e classes.
I n o t h e r words, t h e old-fashioned college curriculum may be just t h e
t h i n g for t h e business m a n — m a y be an ideal t r a i n i n g also, for him ; but ifi
so, h e does n o t see it a n d has n o t been persuaded of it, and from all presentindications n e v e r will be. If t h e n , it is desirable for o u r business men t o
have a h i g h e r t r a i n i n g s o m e o t h e r c u r r i c u l u m t h a n t h e old-fashioned one
m u s t be devised—some c o u r s e a r r a n g e d which will appeal t o t h e m .
It was t h e s e considerations, t h e n , t h a t d e t e r m i n e d Mr. W h a r t o n t o es­
tablish t h i s school. F i r s t : t h e belief t h a t t h e business classes of our country
need a h i g h e r t r a i n i n g as m u c h or m o r e t h a n a n y o t h e r c l a s s e s ; second,
t h e view t h a t t h e Commercial or Business College, however valuable its
curriculum, is by its very n a t u r e unable t o give this higher training ; third,
t h e fact t h a t t h e A m e r i c a n college, however real a n d valuable its h i g h e r
t r a i n i n g , d o e s n o t in its p r e s e n t form furnish a kind of h i g h e r training which
appeals t o t h e business s e n t i m e n t of t h e community, as is shown by t h e fact
of t h e small n u m b e r of y o u t h s looking t o business careers w h o e n t e r
college.
T h e result of t h e s e convictions was t h e establishment of t h e W h a r t o n
School of F i n a n c e a n d Economy, an institution t o furnish a higher train^
ing t o t h e business classes of t h e c o m m u n i t y which should be at once liberal
a n d practical.
T h e desirability of such facilities for h i g h e r business education may be
r e g a r d e d from t w o points of v i e w — t h a t of t h e c o m m u n i t y and t h a t of t h e
p e r s o n s m o s t immediately benefited by it. T h e r e can be little d o u b t t h a t
a liberal e d u c a t i o n of t h e business classes lies in t h e interest of t h e c o m ­
munity. O n e of t h e most s t r i k i n g facts of m o d e r n civilization is t h e
rapidly g r o w i n g i m p o r t a n c e of t h e business, as distinct from t h e professional
classes. T h i s is plain e n o u g h even in E u r o p e where it is still kept back by
t h e p r e d o m i n a n c e of t h e court, t h e a r m / a n d t h e c h u r c h a n d where t h e bar
a n d physic still maintain t h e i r high position. It is, however, beyond all
d o u b t t r u e in t h i s c o u n t r y w h e r e t h e g r e a t m e r c h a n t prince, t h e railroad
president, t h e g r e a t manufacturer a n d b a n k e r have succeeded t o t h e place of
power o n c e held by t h e g r e a t orator, statesman, lawyer or clergyman. T h e
professional class is losing g r o u n d , t h e business world gaining it. W h e t h e r
for weal or woe, t h e c o n t r o l of g o v e r n m e n t , of society, of education, of t h e
press, yes, even of t h e c h u r c h is slipping more and m o r e rapidly into t h e
h a n d s of t h e business classes, a n d it is t h i s class which t o an ever increasing
e x t e n t will d o m i n a t e our political a n d social life.
f

T h e question, therefore, w h a t t h e i r e d u c a t i o n shall be is a fundamental
one t o o u r p r o s p e r i t y a n d welfare. If it is an e d u c a t i o n which will b r o a d e n
a n d liberalize t h e m , enlarge t h e i r views, widen t h e i r outlook, q u i c k e n t h e i r
s y m p a t h i e s , beget and increase a public spirit which shall find its g r e a t e s t
happiness in s e e k i n g o u t a n d utilizing m e a n s of p r o m o t i n g t h e c o m m o n
welfare, we may be sure t h a t t h e interests of o u r society a n d civilization will
be in good h a n d s . If it should be t h e reverse of all t h i s , t h e n woe t o us a n d
our posterity!
Now I a m n o t o n e of t h o s e w h o would u n d u l y e x a g g e r a t e t h e tendency
of) a h i g h e r e d u c a t i o n t o p r o d u c e t h o s e a n d similar results. I h a v e met
m a n y m e n w h o h a d h a d t h e best o p p o r t u n i t i e s for a liberal education
afforded by E u r o p e and A m e r i c a a n d w h o h a v e c o m e o u t of it with all t h e
narrowness a n d selfishness of t h e m e a n e s t hayseed of t h e m a l l ; a n d we all
k n o w m a n y m e n , of n o school e d u c a t i o n w o r t h speaking of, w h o were yet
t h e very salt of t h e earth in all m a t t e r s which call for a liberal view, for a
self-sacrificing public spirit. T o t a k e a simple illustration—how m u c h of
t h e educational e n d o w m e n t of t h i s c o u n t r y is o w i n g t o m e n w h o never h a d
a c h a n c e t o g o t o school in t h e i r lives.
A n d yet after m a k i n g all d u e allowance for t h e narrowness of m a n y s o called liberally e d u c a t e d men, a n d for t h e liberality of m a n y so-called u n ­
e d u c a t e d men, it still remains t r u e t h a t t h e h i g h e r aspects of h u m a n society
— t h e liberal support of science and art, t h e intelligent direction of charity
a n d benevolence is t o be expected chiefly from an e d u c a t e d class, and j u s t
in p r o p o r t i o n as o u r ruling sets b e c a m e e d u c a t e d may we expect t o see
t h e s e finer t h i n g s increase a n d multiply.
T h e r e is a n o t h e r aspect t o t h e p r o b l e m . T h e so-called u n e d u c a t e d men
who t h r o u g h their ability, energy, a n d perseverance have accumulated for­
tunes, have found in t h e very necessity of s t i c k i n g t o business early and
late a c o n s e r v a t i v e force w h i c h from b o y h o o d on, s p e a k i n g in a b u s i n e s s
sense, has kept t h e i r feet in t h e way t h a t t h e y should t r e a d . • H a v i n g a c c u m u ­
lated t h i s fortune t h e m s e l v e s t h e y d o n o t care t o p u t t h e i r sons through^
t h e same weary r o u n d . W h e r e shall t h e y find for t h e m t h e saving force
which shall d o for t h e m in t h e g r o w i n g years w h a t hard work did for
t h e i r fathers? It is t o be found chiefly in t h e right sort of higher education
H - a n education t h a t shall fit t h e m t o t a k e u p in t h e right spirit t h e work
t h a t will fall upon t h e i r shoulders, /. e. t h e m a n a g e m e n t of property already
/accumulated o r business already established.
I c a n n o t agree, moreover, with t h o s e w h o believe t h a t it is a good t h i n g
for fortune o n c e a c c u m u l a t e d t o be squandered.
T h r e e generations frcm
s h i r t sleeves t o s h i r t sleeves m a y be an a c c u r a t e description of w h a t occurs
as a m a t t e r of fact. T h a t it should so frequently occur is, however, t o be
deplored. It is possible t h a t c i r c u m s t a n c e s may favor t h e accumulation of
fortunes so g r e a t as t o be a m e n a c e t o t h e welfare c f s o c i e t y ; b u t aside
from this c i r c u m s t a n c e , t h e existence of wealth for jcvcral generations in a
family, if it be kept, n o t by artificial conditions but by t h e existence of
qualities necessary t o a c c u m u l a t e it in h o n e s t wa\ s u n d e r ordinary condi­
tions, may be a g r e a t m e a n s of bringing out t h e finer sides of life, of im­
proving t h e strain of t h e stock, of raising the general level of better quali*
ties in society. I say t h i s with full a c k n o w l e d g m e n t of t h e fact t h a t wealth

1

y

j

p r o d u c e s in m a n y cases t h e very o p p o s i t e of all t h i s ; b u t if so, it is t h e
fault of t h o s e w h 6 h a v e it t o a d m i n i s t e r a n d a r e too s h o r t s i g h t e d and nar­
row t o c o u n t , as S o c r a t e s used t o say, t h e t h i n g s i m p o r t a n t which are imv
portant.
T h e h i g h e r education, t h e n , of t h e business class lies in t h e interest cf
society as a w h o l e . Does it lie in t h e interest of t h e future business man
himself ? L o o k i n g at t h e problem in a broad way, as t o w h e t h e r a higher
education can m a k e life t h e b e t t e r w o r t h living, I s h o u l d say p e r h a p s t h e r e
'would be but little difference of opinion. T h e answer m u s t be in t h e
affirmative. If t h e r e is s o m e t h i n g soul-satisfying in striking off t h e narrow
limitations which h e d g e a b o u t t h e life of t h e c o r n e r g r o c e r y m a n in t h e
b a c k w o o d s village, a n d e x c h a n g i n g such a career for t h a t of t h e wholesale
dealer in t h e large city with all t h a t t h e l a t t e r position implies in larger o p ­
portunities for social intercourse a n d enjoyment, for self-improvement, andfor public service; w h a t shall we say of t h e process which lifts us out of t h e
n a r r o w material r u t s of every-day r o u t i n e and enables us t o s h a r e in t h e
t h o u g h t s a n d feelings of t h e mightiest of e a r t h ' s sages in all d e p a r t m e n t s of
h u m a n science—which fills o u r h e a r t s w i t h e n t h u s i a s m for all t h a t is goodi
and g r e a t in h u m a n history, fits us t o enjoy t h e h i g h e s t pleasures of t h e
h u m a n h e a r t a n d intellect?
1

But can t h i s h i g h e r education serve any practical p u r p o s e ? it may be
asked. W e believe it can, a n d in a small p o r t i o n of t h e field we are trying
a t Philadelphia t o show h o w it can be d o n e .
T o d o it a d e q u a t e l y over a
large field would r e q u i r e t e n or fifteen t i m e s t h e e n d o w m e n t which we
have. B u t we have reason t o be satisfied, a n d indeed t o feel somewhat
p r o u d of t h e results we have t h u s far achieved. W e feel t h a t we have laid
a foundation u p o n which we can build indefinitely, a n d are now in a posi­
tion t o use wisely almost any addition which m a y c o m e t o o u r income.
O u r plan, as outlined in t h e 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 a n d a practical e l e m e n t — t h e
latter also being m a d e u p of two parts, a general and a special. T h e founder
of t h e school h a d in m i n d t w o lines of w o r k which should be pursued sim*
Ultaneously a n d . t o g e t h e r c o n s t i t u t e a h a r m o n i o u s curriculum.
H e wished'
—to use his own w o r d s — t o establish an institution in which should be
t a u g h t t h e principles u n d e r l y i n g successful civil g o v e r n m e n t , and a t r a i n i n g
should be given in t h e m a n a g e m e n t of p r o p e r t y . B o t h t h e s e e n d s were t o
be conceived in a broad spirit. In accordance with t h e s e suggestions, and
following t h e lines indicated in t h e prospectus a b o v e referred to, we have
organized and developed a school which, in o u r opinion, is calculated t o
serve these e n d s .
T h e curriculum as it now s t a n d s is a p p e n d e d t o t h i s p a p e r and it may
n o t be o u t of place t o describe h e r e t h e m o d e of c o n d u c t i n g t h e courses
aiid t h e g r o u n d we aim t o cover. O n e of t h e p r o m i n e n t e l e m e n t s in our
curriculum is a course in A m e r i c a n history by t h e distinguished historian
lohn B. McMaster. T h i s qourse r u n s t h r o u g h t w o years^— t h r e e h o u r s per
we ek the first year and four h o u r s p e r week t h e second. '1 his is no ordi­
nary t e x t b o o k course dealing chiefly w i t h , I n d i a n massacres, battles and
Goigre^sional speeches : while it aims, of course, t o give t h e leading facts
of our p )lr ical d e v e l o p m e n t , of t h e s e i t l e m e n t and g r o w t h of t h e c o l o n i e s ;
;

of t h e W a r of t h e R e v o l u t i o n ; of t h e war with England, with Mexico a n d
t h e war between t h e .States ; yet its chief endeavor is t o discover and lay
bare t h e very heart-springs of o u r national existence. It is not merely
t h e what but t h e why. T h e professor is n o t c o n t e n t with t e a c h i n g what
battles were fought in t h e F r e n c h a n d Indian W a r , for example, a n d by
whom a n d w h e r e : b u t he tries t o show how it was t h a t a F r e n c h and In­
dian war arose at all, and why it h a d t o be c o n d u c t e d as it was a n d how
no o t h e r o u t c o m e was possible. T h i s involves a careful study of t h e eco­
nomic a n d social c o n d i t i o n s of t h e t i m e ; it m a k e s t h e s t u d e n t acquainted
with t h e people as t h e y were at t h a t period ; it leads him t o see t h e enor­
mous difference between our c o u n t r y to-day a n d o u r c o u n t r y t h e n . H e
studies t h e means of c o m m u n i c a t i o n which existed t h e n ; t h e primitive
post-office, t h e system of highways, or rather, lack of h i g h w a y s ; t h e means
of g e t t i n g a b o u t ; t h e system of money, coin and p a p e r ; t h e kind of banks,
and t h e way t h e y were managed, t h e system of agriculture, t h e manufac­
t u r i n g s y s t e m ; t h e p r o d u c t s , raw and manufactured, t h e social habits, t h e
education of t h e paople, etc., etc., in a word, all t h a t is necessary t o recon­
s t r u c t t h a t period in t h e imagination of t h e s t u d e n t a n d m a k e it a p a r t of
his m e n t a l furnishing for all t i m e t o c o m e . A basis is t h u s provided for
comparison and by t h i s c o m p a r a t i v e m e t h o d on t h e o t h e r hand t h e acqui­
sition and retention of t h e facts t h u s presented is m a d e easy.
In t h i s way each subsequent period is t a k e n u p a n d worked over and
when t h e s t u d e n t has c o m p l e t e d his dourse, he is not only familiar with t h e
names of t h e P r e s i d e n t s , of t h e Governors, of t h e o r a t o r s a n d s t a t e s m e n
of t h e R e p u b l i c ; he not only k n o w s when t h e battle of t h e B r a n d y w i n e
was fought and when t h e t r e a t y of peace was signed at t h e close of t h e
Revolution ; b u t he has a tolerably clear notion of t h e course of o u r c o u n ­
try's history in each of t h e g r e a t d e p a r t m e n t s of o u r national life.
H e knows, for example, t h e history of h i g h w a y i m p r o v e m e n t ; how
l o n g it t o o k t h e American people t o appreciate t h e i m p o r t a n c e of good
h i g h w a y s ; t h e g r o w t h of knowledge a n d interest in r o a d - m a k i n g ; t h e t u r n ­
p i k e era, t h e rage for canal building, t h e effects of o u r g r e a t canals on t h e
lines of material development, t h e i m p o r t a n c e of t h e Erie Canal, e c o n o m ­
ically, socially, politically; t h e introduction of t h e railway a n d its effect on
tlhe canal and t u r n p i k e s y s t e m ; why t h e railways followed t h e parallels
tfather t h a n t h e m e r i d i a n s ; t h e effect of t h e railway system on national
industry a n d federal centralization ; t h e reawakened interest in t h e im­
provement of land and water ways, etc., etc.
H e knows s o m e t h i n g of t h e educational history of t h e country. H e
knows w h e n t h e g r e a t colleges t o o k t h e i r r i s e ; what t h e secondary and
p r i m a r y schools were a c e n t u r y a g o ; how bitter was t h e fight for a respect­
able system of school education in nearly every N o r t h e r n S t a t e , t o say
n o t h i n g of t h e States south of Mason a n d Dixon's l i n e ; h o w slowly t h e
conviction g r e w t h a t popular e d u c a t i o n is necessary t o t h e perpetuity of
republican i n s t i t u t i o n s ; a n d how difficult was t h e struggle—by n o m e a n s
finished—to establish as t h e necessary s t a n d a r d of popular e d u c a t i o n s o m e ­
t h i n g more t h a n t h e t h r e e R ' s ; how t h e whole idea of free public educa­
tion so slowly g e r m i n a t i n g , so slowly growing, bore its first g r e a t a n d influ­
ential fruit in t h e magnificent systems of education developed in t h e Mis-

sissippi Valley—more especially in M i c h i g a n ; h o w magnificently private
liberality has c o m e t o t h e aid of t h e S t a t e , c r e a t i n g a n d s u p p o r t i n g such
institutions as H a r v a r d , Yale, Columbia, Cornell, P r i n c e t o n , Pennsylvania,
J o h n s H o p k i n s a n d m a n y o t h e r s ; how t h e Federal G o v e r n m e n t has aided
in this great w o r k — n o t only by its munificent land g r a n t t o w h i c h public
^education in all t h e S t a t e s owes so much, b u t by t h e e s t a b l i s h m e n t of t h o s e
wonderful scientific d e p a r t m e n t s at W a s h i n g t o n which are t h e a d m i r a t i o n
and envy of every foreign country.
T o t a k e a n o t h e r illustration, t h e s t u d e n t has a good view of ounfinan.cial history. T h e revenue system of t h e F e d e r a l G o v e r n m e n t , of t h e S t a t e s
and of t h e c o m m u n i t i e s receives m u c h a t t e n t i o n . T h e s t u d e n t begins with
t h e r e v e n u e system of t h e Confederation, t o which, of course, only brief
a t t e n t i o n is given. F r o m 1789 on, details are carefully studied. T h e vari­
ous tariffs are compared with reference t o t h e rates -of duty, articles taxed,
ffruitfulness of duties, system of a d m i n i s t r a t i o n , m e t h o d of valuation, k i n d s
of duties, ad valorem, specific, combined, etc., etc., in a word, all t h a t is
necessary t o enable t h e s t u d e n t t o get a clear idea of o u r tariff history, t h e
discussions and disputes which have occurred in its course. T h e same t h i n g
is d o n e for t h e internal revenue system, t h e system of direct taxes, etc.
Similar and, indeed, more detailed a t t e n t i o n is given t o t h e history of
money a n d b a n k i n g . A brief s t u d y is m a d e of t h e m o n e y a n d b a n k i n g
system of pre-revolutionary times—a period full of interesting and instructive
e x p e r i m e n t s . A careful s t u d y is m a d e of t h e period from t h e close of t h e
Revolution t o t h e a d o p t i o n of t h e p r e s e n t c o n s t i t u t i o n ; and from t h e
discussions a b o u t t h e first U n i t e d States bank down t o t h e present, a detailed
s t u d y of m o n e y and b a n k i n g is m a d e . T h i s is n o t confined t o t h e considera­
tion of t h e t w o U n i t e d S t a t e s B a n k s , o u r p r e s e n t system of National B a n k s ,
a n d t h e sub-treasury system ; b u t it e x t e n d s t o t h e system of S t a t e b a n k s as
well. It comprises n o t only t h e b a n k s of issue b u t all sorts of banks—every
kind of i n s t i t u t i o n , indeed, t h a t e n t e r s i n t o t h e m o n e y a n d credit system of
t h e c o u n t r y . All this on t h e historical side of t h e c o u r s e ; t h e discussion of
t h e principles of b a n k i n g belongs t o a special course which will be m e n ­
t i o n e d later.

v

A n d so I m i g h t go on a n d t a k e up o t h e r subjects, b u t t h i s is sufficient
t o give you an idea of w h a t is included within t h e course in A m e r i c a n h i s ­
tory. It means, you see, a history of t h e people,,their origin, habits, feelings
and institutions—economic, social a n d religious.
Side by side with t h i s course, r u n s a c o u r s e in t h e g o v e r n m e n t of t h e
United States, which being s o m e w h a t historical in c h a r a c t e r s u p p l e m e n t s
t h e first very fully, t h o u g h its object is n o t so m u c h historical as expository.
It e m b r a c e s a careful s t u d y of t h e Federal G o v e r n m e n t , s u p p l e m e n t e d by
a s t u d y of S t a t e a n d Local g o v e r n m e n t . I t begins with a consideration of
t h e Federal C o n s t i t u t i o n — a r t i c l e by article. M u c h a t t e n t i o n is given t o
t h e discussion of d i s p u t e d q u e s t i o n s with a view of b r i n g i n g o u t t h e princi­
ples underlying o u r system of federal g o v e r n m e n t a n d t r a i n i n g t h e s t u d e n t
to see t h e fine p o i n t s of c o n s t i t u t i o n a l law a t t h e s a m e t i m e t h a t h e grows
familiar w i t h t h e principles of c o n s t i t u t i o n a l i n t e r p r e t a t i o n as laid down by
o u r great jurists. T h i s is followed by a discussion of t h e g o v e r n m e n t a n d
its various d e p a r t m e n t s as t h e y now exist. T h e s a m e t h i n g is t h e n d o n e

for t h e S t a t e a n d Local g o v e r n m e n t t h o u g h in a briefer way. T h e s t u d e n t
is t h u s furnished with a knowledge of his own political institutions a n d
his relation t o t h e g o v e r n m e n t u n d e r which h e lives a n d in which h e should
jtake a part.
• T h e work just described in A m e r i c a n history a n d A m e r i c a n politics is
work which is of value a n d should be of interest t o every A m e r i c a n citizen
and which receives, therefore, a v e r y u n u s u a l a m o u n t of attention in t h e
W h a r t o n School of F i n a n c e a n d E c o n o m y .
! Supplementary t o t h e s e courses a n d a i m i n g t o give a basis of comparison
for careful a n d intelligent s t u d y a r e courses in foreign politics a n d history.
jThe g o v e r n m e n t of o n e or m o r e leading foreign c o u n t r i e s is t a k e n u p and
presented p o i n t by p o i n t in c o m p a r i s o n w i t h o u r own. In t h i s way t h e stu­
d e n t increases his stock of k n o w l e d g e a n d a t t h e s a m e t i m e comes t o
u n d e r s t a n d o u r own political system better, H e learns t o distinguish t h e
essential from t h e a c c i d e n t a l . H e sees t h e weak points of o u r own system
knd t h e s t r o n g points of o t h e r s . H e acquires an inextinguishable interest;
jin our political p r o b l e m s and an earnest ambition t o assist in t h e i r solu­
tion.
Parallel again with t h e s e courses in A m e r i c a n history and politics, runs
a line of w o r k i n t e n d e d t o train t h e s t u d e n t in t h e investigation of t h e u n ­
derlying principles of economic, industrial and political p h e n o m e n a . T h i s
Includes t h e courses in political science, political economy, finance, money
and b a n k i n g . T h e a t t e m p t is m a d e h e r e t o discover and set forth funda­
mental principles. T h e a b s t r a c t questions are discussed, t h e doctrine of,
theory of t h e State, value, rent, population, wages, m o n e y , credit, taxation,
free trade, protection, with t h e infinitude of sub questions related t o t h e m ,
such as paper money, bimetalism, p o o r laws, b a n k s , single tax, e i g h t - h o u r laws,
strikes, etc. T h e s t u d e n t learns in t h i s course t h e various theories in r e ­
gard t o these things, t h e various explanations offered for existing p h e n o m e n a ,
a n d remedies proposed for social defects a n d diseases. It is in t h e s e courses
t h a t t h e s t u d e n t lays t h e foundation for an intelligent a n d i n d e p e n d e n t
opinion on all t h e b u r n i n g q u e s t i o n s of t h e day, w h e t h e r t h e y relate t o his
business in t h e narrow sense of t h e term or t o t h e i m p o r t a n t a n d pressing
questions of public policy in o t h e r directions.
Finally, parallel with t h e s e courses which, as will be seen, are all more or
less g e n e r a l in their n a t u r e , are t h e business courses in t h e narrower sense of
t h e t e r m . T h e s e form a nucleus c o n t a i n i n g w h a t is of interest t o all busi­
ness m e n alike. T h e y consist of t h r e e p a r t s : First, a course in t h e general
t h e o r y of a c c o u n t i n g ; second, in business l a w ; t h i r d , in business practice.
T h e first embraces a careful s t u d y of t h e general principles underlying single
a n d double entry b o o k k e e p i n g , also t h e s t u d y of a dozen or m o r e sets of,
books carefully selected from leading b r a n c h e s of business a n d representing^
t h e best practice of typical houses. A special point is m a d e of developing
t h e general principles a n d t h e n illustrating typical variations or applications,
so t h a t t h e s t u d e n t can u n d e r s t a n d with ease any set of b o o k s h e mighty
have occasion t o examine or use. T h e idea is not so m u c h t o m a k e a n .
expert b o o k k e e p e r in a n y o n e set of books or style of a c c o u n t i n g as t o train
t h e s t u d e n t so t h a t in a s h o r t t i m e h e could become expert in any position
he m i g h t t a k e ; a n d above all so t h a t he can u n d e r s t a n d with facility a n d

unravel with ease any set of a c c o u n t s . A n o t h e r point t o which m u c h at­
t e n t i o n is directed is corporate a n d public accounting. It is h o p e d t h a t in
c o u r s e of t i m e a reasonable system of a c c o u n t i n g can be i n t r o d u c e d into t h e
practice of o u r cities, counties a n d S t a t e g o v e r n m e n t s .
I T h e course in business law is also of a general n a t u r e . It comprises a
s t u d y of t h o s e business forms and acts which a r e c o m m o n t o all business
alike—such as t h e promissory n o t e . T h e idea, of course, is not to m a k e a
lawyer, n o r t o m a k e t h e lawyer indispensable, b u t t o give t h e future business
man knowledge e n o u g h a b o u t such t h i n g s that he may k n o w when he does
need a lawyer, and t o familiarize him with s o m e of t h e more usual forms
c o m m o n t o all b r a n c h e s of business.
T h e course in business practice is intended to be a study of t h e organiza­
tion and m e t h o d s of work characteristic of a few typical lines of business,,
selected not so m u c h with reference t o t h e i r relative money value as t o their
value as specimens or illustrations of t h e business m e t h o d s a n d spirit of t h e
community.
W i t h o u t g o i n g further into detail, e n o u g h has beert said t o give an idea
of he scope a n d a i m s of t h e school. O u r m e t h o d s a r e directed t o produc­
ing so far as college t r a i n i n g can d o it, educated y o u n g men v ith a taste for
business, vigorous, active workers, of s t u r d y c h a r a c t e r a n d i n d e p e n d e n t opin­
ion, having a lofty faith in all t h i n g s good, and able t o give a reason for t h e
faith t h a t is in t h e m . Each s t u d e n t is t r a i n e d t o work and t h i n k for h i m ­
self. H e is put on t h e t r a c k of t h e best t h a t has been w r i t t e n on all sides
of all i m p o r t a n t q u e s t i o n s t h a t fall within t h e range of o u r investigations,
and if h e holds an opinion he is expected t o know on w h a t g r o u n d s , and t o
be able t o express t h e m . I said above—all this, so far as college t r a i n i n g
can d o it. W e m u s t never forget t h a t college g r a d u a t e s are a t best a callow
set a n d n o t h i n g can be more a m u s i n g (except when he is disgusting) t h a n a
y o u t h just o u t of college w h o has " m a t u r e d " opinions on all subjects, and!
one of t h e results of t h e best college t r a i n i n g is a m o d e s t y of opinion, ait
open m i n d e d n e s s which leaves room for future growth.
Let us glance o n e m o m e n t before leaving t h i s for a n o t h e r point, at what
t h e W h a r t o n School of Finance and E c o n o m y can do for t h e higher e d u ­
cation of t h e future banker.
If a y o u n g man co npletes t h e course, h ^ w ll have acquired a fairly
t h o r o u g h knowledge of t h e history and go ••• m e n t of t h e people of t h e
U n i t e d States, with s o m e knowledge of foreign politics and history, and a
general view of t h e principles of accounting, of business laws and practice
He'will also h a v e a p r e t t y t h o r o u g h g r a s p of t h e fundamental principles of
political economy, will have studied with some t h o r o u g h n e s s , as college
Study goes, t h e land question, t h e labor question, t h e railroad question, t h e
ballot reform, civil service reform, congressional reform, prohibition and
m a n y o t h e r similar economic and political topics. H e will have had a
pretty t h o r o u g h course in t h e t h e o r y of money and c r e d i t ; will understand
the a r g u m e n t s pro and con in regard to bimetal ism a n d t o paper money,
and will know o u r own history on t h e s e p o i n t s ; can set forth t h e consider­
ations in favor of and against t h e constitutionality of t h e original United
S t a t e s R a n k ; can explain its organization and give a history of its worktegs and its end. H e is also a c q u a i n t e d with t h e history a n d m e t h o d s of
;

t h e second b a n k a n d of our present National B a n k i n g system. H e will
be able t o explain t h e various functions of a b a n k a n d t h e e c o n o m i c system
of t h e c o u n t r y a n d describe t h e different k i n d s of banks, b o t h here and
abroad, a n d give a fair history of p r i v a t e b a n k s in t h i s country from 1789
t o t h e present. H e will be able t o explain t h e w o r k i n g s of t h e money
m a r k e t , so far as it can be explained ; t h a t is, h e can give t h e various t h e o r i e s
in regard t o it, etc , etc.
All this, of course will not m a k e him a banker. I t may not quicken his
sense for a good security o n e iota or enable him t o devise a new kind of
b a n k which shall m a k e him wealthy. B u t it will c o n t r i b u t e toward m a k i n g
him an e d u c a t e d m a n , k n o w i n g s o m e t h i n g m o r e a b o u t his business t h a n
t h e ordinary h a n d - t o - m o u t h practical m a n , h a v i n g a wide view of t h e rela­
t i o n s of his business t o o t h e r lines of business a n d t o society as a whole,
a n d above all, an intelligent A m e r i c a n citizen, with a quickened interest in
e v e r y t h i n g t h a t concerns his c o u n t r y and his t i m e and an immensely greater
desire a n d ability t o use w h a t he may learn a n d w h a t he may earn in his
business for t h e benefit of his fellow m e n .
It will doubtless have occurred t o you t h a t m o r e instruction in t h e prac­
tical details of t h e b a n k i n g business would be desirable in t h e curriculum.
In t h i s t h e F a c u l t y would doubtless fully concur. W e need very m u c h a
lecturer on b a n k i n g w h o could give his whole t i m e and attention t o t h i s
o n e subject. If we had t h a t t o s u p p l e m e n t present facilities, we should
have an a l m o s t ideal course for a y o u t h who, l o o k i n g forward to a b a n k i n g
career, desired a h i g h e r e d u c a t i o n which should bear s o m e relation to his
future work.
In closing, it is only necessary t o add t h a t t h e W h a r t o n School of Fi­
nance a n d E c o n o m y is an integral p a r t of t h e college d e p a r t m e n t of t h e
University of Pennsylvania. S t u d e n t s w h o h a v e completed t h e first two years
of t h e college course, e i t h e r classical or scientific, are a d m i t t e d t o t h e Whar^
t o n School a n d g r a d u a t e d with t h e Bachelor's degree after two years suc^
cessful study. T h o s e s t u d e n t s w h o have studied Greek five years a n d Latiri
six before e n t e r i n g t h e school with t h e o t h e r studies usually embraced in
t h e classical course t o t h e close of t h e S o p h o m o r e year, receive t h e A. B. d e ­
gree ; other students the Ph. B.
I believe t h a t our experience a t t h e University of P e n n s y l v a n i a amply
proves t h e feasibility of i n t r o d u c i n g into our college curriculum t h e ele­
m e n t s of business, a n d t h a t t h i s feature will popularize w i t h o u t lower­
i n g t h e college, a n d t h u s s t r e n g t h e n its hold on t h e c o m m u n i t y . W h e r e v e r
t h i s sort of course can be i n t r o d u c e d a n d properly equipped, it will benefit
t h e college and public alike.
I t will be seen from t h e above description t h a t t h e bulk of t h e W h a r t o n
School curriculum, aside from t h e business course, consists of courses in his­
t o r y and t h e political and social sciences. T h e s e latter elements are also of
fundamental i m p o r t a n c e in t h e liberal t r a i n i n g of lawyers and in t h e profes­
sional t r a i n i n g of journalists, statesmen a n d college professors in these subjepts. H e n c e it c o m e s t h a t of t h e s t u d e n t s in t h e W h a r t o n School a large
pejr cent, is m a d e u p of t h o s e w h o expect t o e n t e r t h e academic, legal, newsjMjiper or political career.
T h e ideal of t h e Faculty, it may be said, is a g r e a t institution, compris-

ing many different courses, o n e l o o k i n g t o business, a n o t h e r t o journalism,
still a n o t h e r t o politics, a n o t h e r t o t h e university—all c o m p o s e d alike of
t w o e l e m e n t s : a c o m m o n one, consisting of such studies as political econ­
omy, c o n s t i t u t i o n a l law, politics, history, e t c . ; a n d a professional o n e , e m
bracing s u c h special instruction as m a y be of aid t o preparing t h e s t u d e n t s
for t h e i r particular careers. T h e business c o a r s e itself should be s u b d h idep!
a c c o r d i n g t o t h e intention of t h e s t u d e n t , a n d s h o u l d comprise n o t merely
t h e fundamental b r a n c h e s we n o w have, b u t many o t h e r s , such as railroa^r
ing, c o m m e r c e , insurance, etc.
An institution like this, with a curriculum based upon a t h o r o u g h knowlr
edge of o u r own vernacular, its use, literature, history, etc., with s u c h o t h e r
languages, ancient o r m o d e r n , as t h e s t u d e n t m i g h t choose t o t a k e , a n d all
based on a t h o r o u g h elementary t r a i n i n g in languages, m a t h e m a t i c s anrj
natural science, would be a n addition t o o u r educational system compareable in i m p o r t a n c e a n d influence only t o t h e g r e a t system of technical
scliools which in a different field a r e revolutionizing o u r A m e r i c a n educa^t i o n . It would give us also t h e best system of t r a i n i n g for business, jouiv
fialism, teaching—in a word for citizenship, which t h e world h a s y e t seen,
ftjwould m a k e t h e m a n o r men, t h e family o r t h e c o m m u n i t y w h o estab*iislhed it immortal in t h e educational history—not merely of this c o u n t r y
buSt of t h e world. W h o shall be t h e first t o utilize t h i s magnificent c h a n c e ?
W e h a v e begun t o cultivate o n e c o r n e r of t h e field in Philadelphia, a n d
shall press forward a s rapidly as possible t o its full occupation, b u t shall
also rejoice in t h e m e a n t i m e if s o m e o t h e r place o u t s t r i p s us in t h i s g e n e r ­
ous; race for t h e h i g h e s t position in this g r e a t work.
. I would e m p h a s i z e t h e fact t h a t t h e W h a r t o n School of Finance a n d
Economy as it was conceived in a broad way, so w e a r e trying t o m a n a g e
it in a broad a n d liberal spirit—both educationally a n d otherwise. O u r
s t u d e n t s a r e by n o m e a n s confined t o t h e curriculum o r course outlined
above. All t h e studies represented in t h e m o d e r n A m e r i c a n University
of large t y p e a n d e q u i p m e n t a r e open t o t h e m if t h e y c h o o s e t o t a k e t h e m .
T o present t h e subjects t h u s open t o t h e m would be t o repeat t h e catalogue
of t h e University of P e n n s y l v a n i a ; b u t a brief list of s o m e of t h e m o r e i m ­
p o r t a n t will be of interest in t h i s connection. Leaving o u t of view t h e
M e d i c a l , Dental, Veterinary a n d Law Schools, with over 100 professors a n d
^instructors, t h e college d e p a r t m e n t alone, with t h e F a c u l t y of P h i l o s o p h y ,
has over 70 instructors a n d professors, c o n d u c t i n g m o r e t h a n 225 half yearly
courses in some sixty different subjects, a m o n g which m a y be mentioned :
Hebrew ( 2 ) * ; S a n s k r i t ( 2 ) ; Greek ( 7 ) ; Latin (8)); English ( 1 5 ) ; A n g l o S a j o a ( 2 ) ; G o t h i c ( 2 ) ; G e r m a n ( 6 ) ; F r e n c h ( 6 ) ; Italian (2); Spanish ( 1 ) ;
Philosophy ( 6 ) ; Psychology ( 6 ) ; H i s t o r y ( 1 3 ) ; Drawing ( 3 ) ; M a t h e ­
matics ( 2 5 ) ; Physics ( 5 ) ; Chemistry ( 1 6 ) ; Zoology ( 1 1 ) ; B o t a n y (19) j
Physiology ( 1 ) ; Geology ( 5 ) ; Mineralogy (3).; Metallurgy ( 4 ) ; Mining (3) ,
*
Civil E n g i n e e r i n g (28); Mechanical Engineering ( 2 1 ) ; A r c h i t e c t u r e (6) ;
Music ( 3 ) ; e t c .
7

Surely here is range of selection large e n o u g h t o suit m o s t college boys.
T h e possibility of selection is conditioned, of course, b y t h e exigencies of
the; p r o g r a m m e ; b u t a n y of t h e s e subjects m a y b e t a k e n by regular s t u * T h e number m'parenthesis indicates the number of courses in the subject.

dents if t h e h o u r s d o n o t conflict a n d t h e s t u d e n t is physically and mentally
able t o t a k e such extra w o r k ; while special s t u d e n t s can, of course, a d a p t
themselves t o siich h o u r s as t h e y wish.
P e r m i t me, t h e n , m e m b e r s of t h e A m e r i c a n B a n k e r s ' Association, t o
bespeak y o u r i n t e r e s t in 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 ;
b u t still m o r e in t h e great work t o w h i c h it is devoted—viz., t h e develop­
m e n t of a h i g h e r course of s t u d y , a t once liberal a n d practical, which will
appeal t o t h e business s e n t i m e n t of t h e c o m m u n i t y and t h e adoption of such
courses in m o r e and m o r e of o u r colleges a n d universities.
N O T E . — F o r a fuller discussion of s o m e topics connected with this g e n eral subject s e e :
1.

A

SCHOOL OF POLITICAL

Ethical

A N D SOCIAL

SCIENCE.

v

By E . J. J a m e s ,

Record, 1890.

OF POLITICAL A N D SOCIAL SCIENCE.
By E. J. J a m e s .
Publications of P h i l a d e l p h i a Social Science Association. Phila-delphia, 1886.

2. SCHOOLS

,3.

THE STUDY

OF

POLITICS A N D

PENNSYLVANIA.
4.

Is

A COLLEGE

BUSINESS

AT THE

UNIVERSITY

OF

Philadelphia, 1889.

EDUCATION

ADVANTAGEOUS

TO A

BUSINESS

MAN?

By J a s . W h a r t o n , Philadelphia, 1890.

A P P E N D I X .
THE WHARTON

SCHOOL OF

UNIVERSITY

OF

FINANCE

AND

ECONOMY.

PENNSYLVANIA.

T h i s school was founded by Mr. J o s e p h W h a r t o n , of Philadelphia, i n
o r d e r t o provide for y o u n g men special m e a n s of training, and of correct
i n s t r u c t i o n in t h e knowledge and in t h e arts of m o d e r n F i n a n c e and E c o n ­
omy. It serves for t h e U n i v e r s i t y of Pennsylvania t h e same purposes as
a r e served in o t h e r i n s t i t u t i o n s by their D e p a r t m e n t s or Faculties of H i s ­
t o r y and Politics, or by t h e so-called Schools of Political Science. In ad­
dition, however, t o t h e courses usually provided in such d e p a r t m e n t s , this
Institution offers also a course, at o n c e liberal and practical, which is spe­
cially designed for t h o s e w h o intend t o e n t e r u p o n business pursuits.
T h e founder of t h e School expressed t h e desire t h a t it should offer facil­
ities 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 o r d e r t o realize t h e s e objects, courses have been provided in Political
Economy, Social Science, F i n a n c e , Statistics, Political Science, A d m i n i s ­
trative and C o n s t i t u t i o n a l Law of t h e U n i t e d States and of leading foreign
countries, C o m p a r a t i v e Politics, Political and C o n s t i t u t i o n a l History of t h e

U n i t e d S t a t e s , T h e o r y and P r a c t i c e of A c c o u n t i n g , a n d Mercantile Law
and Practice.
I t will b e observed t h a t n e a r l y all t h e c o u r s e s above e n u m e r a t e d are
such as m a y fairly lay claim t o be called liberal b r a n c h e s , a n d such as every
American citizen should p u r s u e in o u t l i n e a t least as a p r e p a r a t i o n for t h e
duties of citizenship.
T h e y a r e , h o w e v e r , also studies w h i c h form a leading c o n s t i t u e n t in t h e
special p r e p a r a t i o n for c e r t a i n callings, s u c h as t h e t e a c h i n g of H i s t o r y a n d
Politics, J o u r n a l i s m , B u s i n e s s , P u b l i c Service a n d Law.
T h e a t t e n t i o n , therefore, of s t u d e n t s w h o a r e l o o k i n g forward t o e n t e r ­
ing u p o n t h e s e or similar lines of work is especially invited t o t h e facilities
of t h i s I n s t i t u t i o n .

C U R R I C U L U M .
JUNIOR

CLASS.

F I R S T TERM.

PUBLIC L A W 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. F A L K N E R .

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 1 1 , 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 Economy and Adam Smith's Wealth of Nations.
Three hours {First Term).
Mon.,
Wed., at 9, Tu. at 10. Professor PATTEN.
ECONOMICS A N D SOCIAL SCIENCE 3.—Social Science. Thompson's Elements of Po­
litical 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.
(Sec­
ond Term).
Tu. at 12. Professor JAMES.
PUBLIC L A W A N D POLITICS 4.—Constitutions of leading foreign countries. Two%
hours {Second Term).
Mon., Th., at 1 1 . Professor JAMES.
PUBLIC LAW A N D POLITICS 2.—State Constitutional Law.
Two hours {Second
Term).
Dr. THORPE.
BUSINESS L A W 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). Lec­
tures, 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
M c M 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.,atq
Tu. at 10. Professor P A T T E N .
PHILOSOPHY 2 . — E t h i c s .
Lectures and Recitations.
Two hours (Second
Term),
Wed. at 12, Fri. at 1 0 . Professor F U L L E R T O N .
f

S E N I O R CLASS.
FIRST

TERM.

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 . — R e v e n u e System in the United States and lead­
ing 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 T H O M P S O N .
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

TERM.

^UBLIC L A W A N D 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 . Pro­
fessor P A T T E N .
ECONOMICS A N D SOCIAL SCIENCE 8 . — H i s t o r y and Theories of Public Finance,, espe­
cially of Taxation.
Two hours (Second Term).
Wed., Fri. at 1 1 . Professor
JAMES.

ECONOMICS AND SOCIAL SCIENCE 9.—Statistics. General Theory. Statistics of Pop­
ulation. 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 .
METHODS OF

WORK.

T h e plan for i n s t r u c t i o n e m b r a c e s r e c i t a t i o n s , l e c t u r e s a n d s e m i n a r i e s ,
T h e e n d e a v o r is m a d e t o t r a i n t h e s t u d e n t s t o t h i n k i n d e p e n d e n t l y on t h e
topics t h a t form t h e subjects of i n s t r u c t i o n .

A n e a r n e s t effort

is m a d e t o

e x c l u d e all d o g m a t i s m in political o r e c o n o m i c t e a c h i n g , t o p r e s e n t fanlj
all a s p e c t s < f d i s p u t e d q u e s t i o n s , a n d t o p u t t h e s t u d e n t s in a position
>
form t h e i r own o p i n i o n s o n intelligent g r o u n d s .

to

T h e a d v a n c e d s t u d e n t s receive special a t t e n t i o n a n d assistance in t h e
seminaries, w h i c h a r e organized t o p r o m o t e correct h a b i t s of w o r k a n d t o
foster a spirit of original investigation.
In o r d e r t o quicken i n t e r e s t in political and economical subjects, a n d t o
encourage a c q u a i n t a n c e with p a r l i a m e n t a r y p r o c e d u r e , a congress h a s been
formed in t h e school, It is divided into S e n a t e a n d H o u s e , a n d a d o p t s
t h e rules of p r o c e d u r e of t h e respective houses, following t h e course of
Congressional d e b a t e a n d action, but confining itself t o a few leading
topics.
FELLOWSHIPS.
Five h o n o r a r y Fellowships, which confer t h e privilege of a t t e n d i n g any
of t h e economic a n d historical c o u r s e s of t h e U n i v e r s i t y free of charge, are
assigned a t t h e b e g i n n i n g of each year. G r a d u a t e s of any A m e r i c a n
college, o r of foreign schools of similar g r a d e , are eligible for a p p o i n t m e n t .
AUXILIARY

FACILITIES.

All t h e courses in t h e o t h e r d e p a r t m e n t s of t h e College, e m b r a c i n g t h o s e
usually found in t h e g r a d u a t e and u n d e r g r a d u a t e c o u r s e s of o u r best U n i ­
versities, are open t o s t u d e n t s of t h e W h a r t o n School w i t h o u t extra c h a r g e
for tuition, so far as t h i s is consistent with their roster of studies in t h e
School.
T h e folio ving courses given in t h e Law School are nf special interest t o
s t u d e n t s in this d e p a r t m e n t :
1. R o m a n Law.
2. Constitutional Law of t h e United S t a t e s .
3. International Law.
4. H i s t o r y of t h e C o m m o n Law.
Besides t h e University Library, which has an unusually valuable collec­
tion of w o r k s on economics a n d statistics, the public libraries of t h e city,
and m a n y of t h e private o n e s also, a g g r e g a t i n g several h u n d r e d t h o u s a n d
volumes, are open t o t h e s t u d e n t s in t h e p u r s u i t of t h e i r University w o r k .

PUBLICATIONS.
A series of occasional publications on Political E c o n o m y a n d P u b l i c
Law and on H i s t o r y will be issued by t h e University, r e p r e s e n t i n g a portion
of t h e work d o n e in t h e s e m i n a r i e s by t h e professors a n d s t u d e n t s . T h e
following n u m b e r s h a v e already a p p e a r e d : — 1 . W h a r t o n School A n n a l s of
Political Science. 2. T h e A n t i - R e n t A g i t a t i o n in N e w Y o r k . 3. G r o u n d
Rents in Philadelphia. 4. C o n s u m p t i o n of W e a l t h . 5. P r i s o n Statistics
in 1888
6. Rational Principles of T a x a t i o n . 7. G e r m a n C o n s t i t u t i o n .
8. Swiss C o n s t i t u t i o n .
LIBRARY.
T h e U n i v e r s i t y possesses a large a n d valuable library of w o r k s relating t o
finance and political economy. T h e foundation was laid by t h e g r e a t
collection of t h e late S t e p h e n Col well, comprising between seven a n d eight

t h o u s a n d volumes, and including nearly every i m p o r t a n t b o o k on t h e s e
subjects in t h e English, F r e n c h , and Italian languages, published before
i860. T h i s collection has been s u p p l e m e n t e d by t h e bequest of t h e library
of t h e late H e n i y C. Carey, which includes m a n y later w o r k s a n d p a m p h l e t s ,
a n d is especially rich in statistical l i t e r a t u r e , E u r o p e a n g o v e r n m e n t reports,
a n d t h e like. I t e m b r a c e s a collection of a b o u t t h r e e t h o u s a n d English
pamphlets, formerly Mr. M c C a l m o n t ' s , c o v e r i n g t h e period from t h e close
of t h e s e v e n t e e n t h c e n t u r y t o o u r own t i m e s , and b o u n d in chronological
order. Mr. J o s e p h W h a r t o n has recently increased his benefactions t o the
School by a gift of twenty-five t h o u s a n d dollars t o establish a fund for t h e
purchase of b o o k s in economics and politics.
Original research by the s t u d e n t s , u n d e r t h e direction of t h e professors,
is a p a r t of t h e w o r k Q.f t h e School.

2J

RESOLUTION

OF

EXECUTIVE

ASSOCIATION,

AT THEIR

COUNCIL

OF

MEETING

NEW

YORK

INTRODUCING

THE

AMERICAN

ON OCTOBER

16, 1889,

BANKERS'
itf

CITY.

PLAN

OF THE

W H A R T O N SCHOOL OF FINANCE AND ECONOMY
OF T H E U N I V E R S I T Y

On m o t i o n of

WILLIAM

H.

OF

RHAWN,

PENNSYLVANIA.

it was

Resolved, T h a t a Committee of not less than three, or more than five, be appointed by the
chairman, to w h o m 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 F i n a n c e and E c o n o m y " connected with the University of Pennsylvania ; and
the best means b y w h i c h the establishment and endowment of such schools m a y be promoted and
fostered b y the Association.

T h e C h a i r m a n , t h e H o n . J O H N J A Y K N O X , a p p o i n t e d on a b o v e C o m ­
m i t t e e , 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 a n d Mr. M O R ­
TON

MCMICHAEL.

T o explain t h e i n t e n t i o n a n d scope of Mr. R h a w n ' s resolution, the
following s t a t e m e n t is m a d e :
In May, 1881, Mr. J o s e p h W h a r t o n , t h e founder of t h e W h a r t o n School'
of F i n a n c e a n d E c o n o m y , sent t o t h e T r u s t e e s of t h e U n i v e r s i t y of P e n n ­
sylvania t h e a d d r e s s and project h e r e t o a t t a c h e d , m a r k e d Plan of t h e
W h a r t o n School.
T h o s e T r u s t e e s h a v i n g decided t o a c c e p t t h e proffered e n d o w m e n t , a n d '
t o establish t h e School, M r . W h a r t o n transferred t o t h e m on J u n e 22, 1881,
t h e fund of $100,000,* a n d a c o n t r a c t w a s executed between h i m a n d t h e
said T r u s t e e s , t o which was a t t a c h e d a copy of t h e a b o v e - m e n t i o n e d a d ­
dress a n d project in o r d e r t o exhibit in full t h e c o n d i t i o n s of t h e e n d o w ­
m e n t . T h a t c o n t r a c t b o u n d t h e University t o carry o u t t h e enterprise on
t h e lines t h u s laid! down, a n d it p r o v i d e d t h a t by Mr. W h a r t o n d u r i n g h i s
lifetime, a n d by t h e J u d g e s of t h e P h i l a d e l p h i a C o u r t s of C o m m o n Pleas
after his d e a t h , a visitor m i g h t be a p p o i n t e d w h o should have a u t h o r i t y t o
inspect t h e w o r k i n g s of t h e School.
W i t h t h e c o m m e n c e m e n t of t h e next t e r m a t t h e University t h i s School
was o p e n e d , a n d was a t first b u t m o d e r a t e l y successful. T h e proposed
course of instruction was novel a n d did n o t a p p a r e n t l y open a n i m m e d i a t e
career t o t h e g r a d u a t e s ; t h e r e q u i r e m e n t s for admission a n d for s t u d y be­
ing at first t h o u g h t easier t h a n in o t h e r d e p a r t m e n t s of t h e U n i v e r s i t y ,
t h o s e o t h e r d e p a r t m e n t s h a d s u p e r i o r a t t r a c t i o n s for t h e m o s t v i g o r o u s
y o u n g m e n ; t h e professors a n d i n s t r u c t o r s m u s t needs feel t h e i r way at
first, and gradually form b o t h t h e m s e l v e s a n d t h e School.
But, by steady perseverance in its task, t h e School h a s constantly im­
proved in t h e t h o r o u g h n e s s of its instruction, and h a s so. d e m o n s t r a t e d its.
* M r . W h a r t o n . Has sin.ee a d d e d $ 50 0 F R a l i b r a r y ,
2,0 O

usefulness t h a t it is now chosen by m a n y of t h e m o s t earnest s t u d e n t s , a n d
ranks as high as a n y o t h e r d e p a r t m e n t in t h e m e n t a l discipline it i m p a r t s .
Its peculiar and special line of w o r k n a t u r a l l y d r a w s t o it s t u d e n t s with
many aims a n d from m a n y q u a r t e r s . J a p a n , for instance, h a s from t h e first
had o n e or m o r e representatives in t h e S c h o o l ; t h e p r e s e n t United S t a t e s
Minister t o Brazil s t u d i e d h e r e .
A l t h o u g h t h e extensive libraries of t h e late H o n . H e n r y C. Carey and
t h e late Hon. S t e p h e n Colwell, as well a s s u n d r y o t h e r valuable c o n t r i b u ­
tions of books, were placed a t t h e disposition of t h i s School, t h e necessity
for c o n t i n u e d accession of new p u b l i c a t i o n s b e c a m e a p p a r e n t , a n d on
October 4, 1889, Mr. W h a r t o n m a d e a further e n d o w m e n t of $25,000—in
six per cent, b o n d s — t o found a library fund. T h e i n c o m e derived from
t h e said b o n d s or from a n y r e i n v e s t m e n t of t h e fund t o be applied t o t h e
purchase of such books, periodicals, d o c u m e n t s or publications as have a
special b e a r i n g on t h e subjects which by t h e deed of gift founding t h e
School a r e t o be t h e r e i n t a u g h t .
As t h e corps of professors a n d instructors has been improved by grad­
ual selection a n d t r a i n i n g i n t o a really capable and efficient Faculty, so has
t h e t o n e of t h e s t u d e n t s been elevated. A t p r e s e n t admission is of t h o s e
who, after passing t w o years in t h e general F r e s h m a n and S o p h o m o r e
classes of t h e University, h a v e elected t o spend their J u n i o r and Senior
t w o years in t h i s S c h o o l .
ft seems r e a s o n a b l e t o e x p e c t n o t only for t h i s School a career of real
service t o t h e c o m m u n i t y , b u t for o t h e r schools t o be established elsewhere
on similar lines, a large p a r t in t h e future education of this c o u n t r y .
Plan
To

of the

Wharton

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

School.
OF

PENNSYLVANIA :

T h e general conviction t h a t college education did little toward fitting
for t h e actual duties of life a n y b u t t h o s e w h o purposed t o become lawyers:
doctors, or clergymen, b r o u g h t a b o u t t h e c r e a t i o n of many excellent t e c h ­
nical a n d scientific schools, whose w o r k is e n r i c h i n g t h e c o u n t r y with a
host of cultivated m i n d s prepared t o o v e r c o m e all sorts of difficulties in
t h e world of m a t t e r .
Those schools, while n o t r e p l a c i n g t h e o u t g r o w n and obsolescent sys­
tem of a p p r e n t i c e s h i p , a c c o m p l i s h a w o r k q u i t e beyond a n y t h i n g t h a t sys­
t e m was capable of. I n s t e a d of t e a c h i n g a n d p e r p e t u a t i n g t h e narrow,
various, a n d empirical routines of certain shops, t h e y base t h e i r instruction
ipon t h e b r o a d principles d e d u c e d from all h u m a n knowledge, and g r o u n d
in science, as well a s in art, pupils w h o a r e t h e r e b y fitted both t o practice
vhat t h e y h a v e l e a r n e d a n d t o b e c o m e t h e m s e l v e s t e a c h e r s and dis­
coverers.
1 1 the m a t t e r of c o m m e r c i a l e d u c a t i o n t h e r e was formerly a system of
m*tr iction practiced in t h e c o u n t i n g - h o u s e s of t h e o l d - t i m e m e r c h a n t s rese n b l i n ^ t h e system of a p p r e n t i c e s h i p t> trades. C o m p a r a t i v e l y few exa noles of t h i s sort of instruction remain, n >r i* their deficiency m a d e good
bv the so-called Commercial Colleges, for however valuable m a y be t h e
knowledge which t h e y impart, it does not stfffi e t > tit a \ 0 1 m g man for t h e

struggle of c o m m e r c i a l life, for wise m a n a g e m e n t oi a private estate, or for
efficient public service.
It is obvious t h a t t r a i n i n g in a c o m m e r c i a l h o u s e n o t of t h e first rank
for m a g n i t u d e a n d intelligence must, like t r a d e apprenticeship, often re­
sult in n a r r o w n e s s a n d empiricism which are n o t c o m p e n s a t e d by t h e hard
a n d practical c e r t a i n t y w i t h i n l i m i t e d b o u n d s derived from t h e r o u t i n e of
t r a d e or business. Since s y s t e m a t i c i n s t r u c t i o n c a n n o t be expected from
t h e o v e r w o r k e d h e a d s of any g r e a t e s t a b l i s h m e n t , t h e novice mostly
d e p e n d s on w h a t h e can g a t h e r from t h e salaried e m p l o y e s of t h e house,
and, instead of being i n s t r u c t e d in t h e v a r i o u s branches, is probably kept
working at s o m e p a r t i c u l a r function for which he has shown a p t i t u d e , or
where his service is m o s t n e e d e d . Besides, o r d i n a r y p r u d e n c e requires
t h a t m a n y t h i n g s indispensable t o mastery of t h e business should be kept
secret from t h e s e novices.
T h e r e is, f u r t h e r m o r e , in this c o u n t r y , an increasing n u m b e r of y o u n g
men possessing, by inheritance, wealth, k e e n n e s s of intellect and latent
power of c o m m a n d o r organization, t o w h o m t h e c h a n n e l s of commercial
education, such as it is, are, by t h e very felicity of t h e i r circumstances,
partly closed, for w h e n t h e y leave college at t h e age of t w e n t y t o twentyfive years t h e y a r e already t o o old t o be desirable beginners in a c o u n t i n g house, or t o descend readily t o its d r u d g e r y .
No c o u n t r y can afford t o h a v e this inherited wealth a n d capacity wasted
for want of t h a t fundamental knowledge which would enable t h e possessors
t o employ t h e m with a d v a n t a g e t o t h e m s e l v e s and t o t h e c o m m u n i t y , yet
h o w n u m e r o u s are t h e instances of speedy ruin t o g r e a t estates, and indo­
lent waste of g r e a t p o w e r s for good simply for want of such knowledge and
of t h e t a s t e s a n d self-reliance which it brings. N o r can any c o u n t r y long
afford t o h a v e its laws m a d e and its g o v e r n m e n t administered by men who
lack such t r a i n i n g as would suffice t o rid t h e i r minds of fallacies, a n d qual­
ify t h e m for t h e solution of t h e social problems incident t o our civilization.
Evidently a g r e a t boon would be bestowed upon t h e nation if its y o u n g
men of inherited intellect, m e a n s and refinement could be m o r e generally
led so t o m a n a g e t h e i r p r o p e r t y as, while h u s b a n d i n g it, t o benefit t h e com­
munity, or could be drawn i n t o careers of unselfish legislation a n d a d m i n ­
istration.
A s t h e possession of any power is usually accompanied by t a s t e for its
exercise, it is reasonable t o expect t h a t a d e q u a t e e d u c a t i o n in t h e princi­
ples u n d e r l y i n g successful business m a n a g e m e n t and civil g o v e r n m e n t
would greatly aid in p r o d u c i n g a class of men likely t o b e c o m e most useful
members of society, w h e t h e r in private or in public life. An o p p o r t u n i t y
for good seems h e r e t o exist similar t o t h a t so largely and profitably availed
of by t h e technical a n d scientific s c h o o l s .
T h e s e considerations, joined t o t h e belief t h a t o n e of t h e existing great
universities, r a t h e r t h a n an institution of lower rank" or a new i n d e p e n d e n t
establishment, should lead in t h e a t t e m p t to supply t h i s i m p o r t a n t defi­
c i e n c y in o u r present s y s t e m of e d u c a t i o n , have led me to suggest t h e pro­
ject h e r e w i t h s u b m i t t e d , for t h e e s t a b l i s h m e n t of a S c h o o l of- F i n a n c e and
E c o n o m y as a D e p a r t m e n t of t h e U n i v c i s i t y which you now control, and
w h i c h s e e m s well suited t o u n d e r t a k e a task so a c c o r d a n t with its general

aims. Iri o r d e r t h a t t h e University may not, by u n d e r t a k i n g it, assume a
pecuniary burden, I hereby propose t o e n d o w t h e S c h o o l with t h e securi­
ties below named, a m o u n t i n g t o $160,000, a n d yielding m o r e t h a n $6000
annual i n t e r e s t ; t h e s e securities n o t t o b e c o n v e r t e d d u r i n g my lifetime
without my assent, a n d no p a r t of t h e e n d o w m e n t t o b e at any t i m e in­
vested in any obligation of t h e University, v i z . :
$50,000 s t o c k in t h e Delaware a n d B o u n d B r o o k Railroad Company.
$5 \ o o o m o r t g a g e bonds, of t h e Schuylkill N a v i g a t i o n Company, d u e
in 1907.
1 am prepared to convey t h e s e securities at t h e o p e n i n g of t h e first t e r m
of t h e School, or at any earlier t i m e when t h e University shall satisfy me
t h a t t h e School will surely be o r g a n i z e d as below stated, a n d o p e n e d at t h e
b g i n n i n g of t h e next t e r m , interest being adjusted t o such t i m e of opening.
The only c o n d i t i o n s which I impose a r e t h a t t h e University shall estab­
lish a n d m a i n t a i n t h e School a c c o r d i n g t o t h e t e n o r of t h e " P r o j e c t "
hereto a p p e n d e d , a n d t h a t if t h e University shall a t any t i m e hereafter, by
its own desire, or by default e s t a b l s h e d in a suitable C o u r t of E q u i t y , cease
so to m a i n t a i n t h e School, or if t h e School shall fail t o a t t r a c t s t u d e n t s
and therefore prove in t h e j u d g m e n t of such C o u r t t o be of inconsiderable
utility, t h e e n d o w m e n t shall forthwith revert t o m e or t o m y heirs, I re­
serving t h e r i g h t d u r i n g m y life t o a m e n d in any way, with t h e assent of t h e
t h e n T r u s t e e s of t h e University, t h e t e r m s of t h e said " P r o j e c t . "
T o c o m m e m o r a t e a family n a m e w h i c h h a s been honorably b o r n e in
this c o m m u n i t y 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 i n a n c e a n d E c o n o m y . "
THE

PROJECT.

1. Vbject. T o provide for y o u n g m e n special m e a n s of t r a i n i n g and of
c o r r e c t i n s t r u c t i o n in t h e k n o w l e d g e a n d in t h e a r t s of m o d e r n F i n a n c e
and E c o n o m y , b o t h public a n d p r i v a t e , in o r d e r t h a t , being well informed
and free from delusions u p o n t h e s e i m p o r t a n t subjects, t h e y m a y either
serve t h e c o m m u n i t y skillfully as well as faithfully in offices of t r u s t , or,
r e m a i n i n g in private life, may p r u d e n t l y m a n a g e t h e i r o w n affairs a n d aid
in m a i n t a i n i n g s o u n d financial m o r a l i t y : in short, t o establish m e a n s for
i m p a r t i n g a liberal e d u c a t i o n in all m a t t e r s c o n c e r n i n g F i n a n c e a n d E c o n ­
omy.
2. Qualifications for Admission.
A s s u m i n g t h a t t h e special instruction
of this School will occupy t h r e e years, which m a y b e called t h e sub-junior,
junior, a n d senior years, t h e g e n e r a l qualifications for admission t o t h e subj u n i o r class should be equal t o t h o s e for t h e c o r r e s p o n d i n g class in t h e
T o w n e Scientific School, b u t different in d e t a i l t o t h e e x t e n t r e q u i r e d by
t h e difference in s t u d i e s t o be t h e n c e f o r w a r d p u r s u e d .
As p r e p a r a t o r y t o a d m i s s i o n t o t h a t class, c a n d i d a t e s m a y a t t h e discre­
tion of t h e T r u s t e e s of t h e University, b e received into e i t h e r of t h e lower
classes of t h e D e p a r t m e n t of A r t s , o r of t h e T o w n e Scientific School, upon
1 he same g e n e r a l c o n d i t i o n s as shall, from t i m e t o t i m e , be established for
admission t o t h o s e classes. T o g u a r d against t h e t o o frequent u n s o u n d ­
ness of preliminary instruction, which is a vice of o u r t i m e , a n d which
affords no proper foundation for a collegiate course, honest fulfillment m u s t

be exacted of t h o s e reasonable detailed c o n d i t i o n s for a d m i s s i o n which
shall, from t i m e t o time, be d e t e r m i n e d u p o n a n d set forth in t h e official
catalogue.
3 . Organization.
T h e School t o be c o n d u c t e d by—
(a) O n e principal or d e a n , t o exercise general c o n t r o l over t h e whole
School and t o give t o n e t o t h e i n s t r u c t i o n . H e should, besides t a k i n g such
part a s may be found e x p e d i e n t in t h e r o u t i n e instruction of t h e various
classes, give s t a t e d a n d formal lectures, c o n s t i t u t i n g a p a r t of t h e i n s t r u c ­
tion of t h e g r a d u a t i n g class, a n d should in each y e a r p r o d u c e for publica­
tion a t r e a t i s e u p o n s o m e t o p i c of c u r r e n t public i n t e r e s t c o n n e c t e d with
t h e lines of s t u d y pursued in t h e School, which treatises s h o u l d b e of such
n a t u r e as t o b r i n g r e p u t a t i o n t o t h e School, and t o possess p e r m a n e n t value
as a series. N o such treatise t o be published until approved by a c o m m i t ­
tee of t h e Board of T r u s t e e s a p p o i n t e d for t h a t p u r p o s e , a certificate of
t h e i r e x a m i n a t i o n a n d approval t o be p r i n t e d at t h e b e g i n n i n g of t h e treatise.
(b) O n e professor o r i n s t r u c t o r of a c c o u n t i n g o r b o o k k e e p i n g , t o t e a c h
t h e simplest a n d m o s t practical forms of b o o k k e e p i n g for housekeepers,
for p r i v a t e individuals, ^or c o m m e r c i a l a n d b a n k i n g firms, for m a n u f a c t u r ­
ing establishments, a n d for b a n k s ; also, t h e m o d e s of k e e p i n g a c c o u n t s by
executors, t r u s t e e s , a n d assignees, by t h e officials of t o w n s a n d cities, as
well as by t h e several d e p a r t m e n t s of a S t a t e o r N a t i o n a l G o v e r n m e n t ; also,
t h e r o u t i n e of business b e t w e e n a b a n k a n d a c u s t o m e r .
(c) O n e professor o r i n s t r u c t o r u p o n m o n e y a n d currency, t o t e a c h t h e
meaning, history, a n d functions of m o n e y a n d currency, s h o w i n g particu­
larly t h e necessity of p e r m a n e n t uniformity or integrity in t h e coin unit
upon w h i c h t h e m o n e y system of a nation is based ; h o w an essential a t t r i ­
bute of m o n e y is t h a t it should be h a r d t o g e t ; t h e n a t u r e of, a n d reasons
for, interest, o r h i r e of money, a n d r e n t s ; t h e a d v a n t a g e s of a n a d e q u a t e
precious-metal fund for settling i n t e r n a t i o n a l balances as well as for regu­
lating a n d c h e c k i n g by r e d e m p t i o n t h e p a p e r m o n e y a n d credits of a
m o d e r n commercial n a t i o n ; h o w s u c h metallic h o a r d s a r e a m a s s e d a n d d e ­
fended ; t h e e x t e r n t o which p a p e r m o n e y m a y be a d v a n t a g e o u s l y e m ­
ployed ; t h e d i s t i n c t i o n s b e t w e e n b a n k - n o t e s and G o v e r n m e n t n o t e s ; t h e
uses a n d abuses of credit, b o t h private a n d public ; t h e uses a n d a b u s e s of
bills of e x c h a n g e , l e t t e r s of credit, a n d p r o m i s s o r y n o t e s ; t h e h i s t o r y of
b a n k i n g , a n d particularly of G o v e r n m e n t b a n k s ; t h e a d v a n t a g e s a n d dan­
gers of b a n k s of issue, b a n k s of deposit a n d savings b a n k s ; h o w t h e func­
tions of different sorts of b a n k s m a y b e c o m b i n e d in o n e , a n d h o w a n y of
t h e n may be b a n k s of d i s c o u n t ; t h e functions of c l e a r i n g - h o u s e s ; t h e
p h e n o m e n a a n d c a u s e s of panics a n d m o n e y c r i s e s ; t h e n a t u r e of pawn
e s t a b l i s h m e n t s a n d of l o t t e r i e s ; t h e n a t u r e of s t o c k s a n d bonds, with t h e
ordinary m o d e s of d e a l i n g t h e r e i n .
(a*) O n e Professor o r I n s t r u c t o r u p o n T a x a t i o n , t o t e a c h t h e h i s t o r y
and practice of m o d e r n t a x a t i o n a s d i s t i n g u i s h e d from t h e p l u n d e r , t r i b u t e ,
or personal service w h i c h it for t h e m o s t p a r t replaces ; t h e p r o p e r objects
and rates of t a x a t i o n for m u n i c i p a l , S t a t e , o r N a t i o n a l purposes ; t h e p u b ­
lic ends for w h i c h m o n e y m a y p r o p e r l y be raised by t a x a t i o n ; t h e n a t u r e
of direct and indirect t a x a t i o n , of excise, of c u s t o m s or import d u t i e s , of
e x p >rt duties, of s t a m p s , of i n c o m e tax ; t h e m o d e r n m e t h o d s by which

taxes are usually levied ; t h e influences exercised upon the morality and
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 t o which corporations should be encouraged by t h e 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 Trans­
portation, to teach how industries advance in excellence, or decline, and shift
•from place t o place; how by intelligent industry nations or communities
t h r i v e ; 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 b e as far as possible self-sufficient,
maintaining a proper balance between agriculture, mining and manufac­
tures, and supplying its own w a n t s ; h o w mutual advantage results from
RECIPROCAL exchange of commodities natural t o o n e land for t h e diverse
commodities natural t o another, but h o w by craft in commerce one nation
may take t h e 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 in­
dustry active, cheapen the cost of commodities, and oblige foreigners tc*
sell t o it at low prices while contributing largely toward defraying the e x
peases of its government; also, t h e nature and origin of money w a g e s ; the
necessity, for modern industry, of organizing under single leaders and em­
ployers 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 w o r k m a n ; t h e nature
and prevention of " s t r i k e s ; " the importance of educating men to c o m ­
bine their energies for the accomplishment of any desirable object, and the
principles upon which such combinations should be effected.
T

( / ) One Professor or Instructor upon Elementary and Mercantile Law,
t o 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, part­
nerships and corporations; of so-called international law; of the law of
common carriers; t h e nature and operation of fire, marine and life insur­
ance ; the principal features of State law concerning inheritance, convey­
ance of land titles, mortgages and l i e n s ; in brief, t h e history and present
status of commercial legislation and the directions in which improvements
may be hoped and striven for, particularly as t o harmonizing, or unifying
under United States laws, t h e diverse legislation of t h e several States of
this Nation; t h e manner of conducting stockholders' and directors' meet­
ings as well as public meetings, t h e rules governing parliamentary assem­
blies, t h e routine and forms of legislative bodies.
Elocution should be taught and practiced t o the extent of habituating
the students t o clear, forcible and unembarrassed utterance before an audi­
ence of whatever they may have t o say, not in such manner as t o promote
mere rhetoric or prettiness. Athletic exercise within moderate limits
should be encouraged, as tending t o vigor and self-reliance. Latin, Get-

1

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 de­
sired t o direct attention t o the peculiar features of t h e School.
This sketch of the instruction t o be given in the School is not to be re­
garded as precisely defining, m u c M e s s a s limiting, that which shall be there
undertaken and carried on, but rather as indicating its general scope and
tendency; t h e true intent and meaning being that instruction shall be care­
fully 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 t o
occupy three years, as has been suggested above, this term might hereafter
be extended, or post-graduate instruction introduced, if experience should
s o 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 t h e University, subject to such
general rules as shall from time t o time be established for the University
by the Board of Trustees.
4 . General tendency of Instruction.
This should be such as t o inculcate
and impress upon the s t u d e n t s :
(a) T h e 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) T h e deep comfort and healthfulness of pecuniary independence,
whether the scale of affairs be small or great. T h e consequent necessity
of careful scrutiny of income and outgo, whether private or public, and of
such management as will cause the first t o exceed, even if but slightly, the
second. In national affairs, this applies not only t o t h e public treasury,
but also t o t h e mass of the nation, as shown by the balance of trade.
(e) The necessity of rigorously punishing by legal penalties and by so­
cial exclusion those persons w h o 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.
( / ) T h e fundamental fact that t h e United States is a nation, composed
of populations wedded together for life, with full power t o enforce internal
obedience, and hot a loose bundle of incoherent communities living t o ­
gether temporarily without other bond than the humor of t h e moment.

(g) The necessity for each nation t o care for its own, and to maintain
by all suitable means its industrial and financial independence; no apolo­
getic or merely defensive style of instruction must be tolerated upon this
point, but the right and duty of national self-protection must be firmly as­
serted and demonstrated.
$. Theses and Premiums.
Each student intending to graduate should
prepare an original thesis upon s o m e topic germane t o the instruction of
the school, such as The great currents of the world's exchanges, past and
present; T h e 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 n a t i o n ;
The relative advantages of mono-metallic and of bi-metallic m o n e y ; T h e
Latin monetary union ; The land-credit banksof Germany; Life insurance,
tontines, annuities, and e n d o w m e n t s ; Reciprocity and commercial trea­
ties ; The nature of French Societes generates, anonymes, and en comman­
dite ; The banking system past or present, of some specified n a t i o n ; T h e
advantages and disadvantages of attempts by employers t o provide for t h e
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. T h e chirography must
be neat and legible.
For the best thesis, and also for the best general proficiency in t h e
studies taught in the School, should be given annually a gold medal weigh­
ing about one ounce, to be called respectively " Founder's Thesis Medal,"
and " Founder's Proficiency Medal," t h e same t o be awarded by t h e Dean
and Professors or Instructors in council.
6. Relations to the University.
This school is intended to form an in­
tegral part of the University of Pennsylvania, its Dean and Professors or
Instructors to be appointed by t h e Trustees of that University, its func­
tions t o be exercised under the general oversight of the Provost and Trus­
tees, and its specific course of instruction t o be determined by t h e m ; its
diplomas to be countersigned by him ; its funds, however, t o be kept abso­
lutely distinct from those of t h e University, and to be kept separately in­
vested by t h e Trustees of the University in the name of this School, t o 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 t h e University will freely grant, none
of its funds must be expended in building or for rent-paying.
7. Financial Prospectus.
A n endowment capable of yielding $6000 per
annum would seem t o 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 con­
suming $10,500 and leaving $1500 per annum from which t o accumulate
gradually a Safety Fund equal to at least one year's expenses, also t o 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 in­
structors may be reduced by running the subjects together. W h e n 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 in­
struction will naturally be condensed, fewer Professors or Instructors per­
haps be required, and the Safety Fund thus have opportunity for accumula­
tion. It is not expected that the University shall consume its own means
for the support of this School, further than to provide class rooms.
T h e 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.

PROCEEDINGS OF T H E AMERICAN B A N K E R S ' ASSOCIATION R E L A T I V E TO
ADDRESS OF PROFESSOR JAMES, A N D UPON

THE FOUNDING

OF

SCHOOLS OF F I N A N C E AND ECONOMY.

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 t o be printed. Lei
that be left t o 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 t h e motion is, that the thanks of this Convention
be tendered t o Professor James for his address, and that the Executive
Council be requested t o 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 t o 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 t o
be referred t o 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 h e r e ; 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 separate, pamphlet form,
as well as with t h e regular Proceedings of the Convention, thereby manifest1

ing t h e d e e p interest felt in t h e subject by t h e Association, in regard t o
which I desire t o offer a couple of r e s o l u t i o n s for reference t o t h e E x e c u ­
tive Council, prefacing t h e m with t w o p a r a g r a p h s from t h e closing r e m a r k s
of Professor J a m e s :
" T h e ideal of t h e Faculty, it m a y be said, is a g r e a t institution, c o m ­
prising m a n y different courses, o n e l o o k i n g t o business, a n o t h e r t o j o u r n a l ­
ism, still a n o t h e r t o politics, a n o t h e r t o t h e university—all composed alike
of t w o e l e m e n t s : a c o m m o n o n e , c o n s i s t i n g of s u c h s t u d i e s a s political
e c o n o m y , c o n s t i t u t i o n a l law, politics, h i s t o r y , e t c , ; a n d a professional one,
e m b r a c i n g such special i n s t r u c t i o n s as m a y b e of aid in p r e p a r i n g t h e s t u ­
d e n t s for t h e i r p a r t i c u l a r c a r e e r s . T h e business course itself should b e
subdivided a c c o r d i n g t o t h e i n t e n t i o n of t h e s t u d e n t , a n d should comprise
n o t merely t h e f u n d a m e n t a l b r a n c h e s we n o w have, b u t m a n y o t h e r s , such
as railroading, c o m m e r c e , insurance, e t c / '
@
" A n institution like t h i s , with a c u r r i c u l u m based upon a t h o r o u g h
knowledge of o u r own vernacular, its use, literature, history, etc., w i t h such
o t h e r languages, a n c i e n t o r m o d e r n , a s t h e s t u d e n t m i g h t c h o o s e t o t a k e ,
a n d all based o n a t h o r o u g h e l e m e n t a r y t r a i n i n g in languages, m a t h e m a t i c s
a n d n a t u r a l science, would b e an a d d i t i o n t o o u r e d u c a t i o n a l system com^
parable in i m p o r t a n c e a n d influence o n l y t o t h e g r e a t system of technical
schools w h i c h in a different field a r e revolutionizing o u r A m e r i c a n educa^
tion. It would give u s also t h e b e s t system of t r a i n i n g for business, jour*
nalism, t e a c h i n g — i n a word for citizenship, which t h e world h a s yet seen.
It would m a k e t h e m a n o r m e n , t h e family o r t h e c o m m u n i t y w h o e s t a b ­
lished it i m m o r t a l in t h e e d u c a t i o n a l h i s t o r y — n o t merely in t h i s c o u n t r y
b u t of t h e world. W h o shall b e t h e first t o utilize t h i s magnificent c h a n c e ?
W e h a v e b e g u n t o c u l t i v a t e o n e c o r n e r of t h e field in P h i l a d e l p h i a , anel
shall press forward as rapidly as possible t o its full o c c u p a t i o n , b u t shall
also rejoice in t h e m e a n t i m e if s o m e o t h e r place o u t s t r i p s u s in t h i s gener*
o u s race for t h e h i g h e s t position in t h i s g r e a t w o r k . "
T h e r e s o l u t i o n s w h i c h I wish t o offer a r e a s 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 con­
nection w i t h the universities and colleges of the land, upon a h k e general plan as that of the
W h a i t o n School of the University of Pennsylvania, so ably set forth b y Professor James in his
most admirable address before this Association ; and, as w a s so well stated b y Professor James, the
establishment of a great institution for the business training and education, such as he most v i v i d l y
portrayed, would g i v e us the best system of training for business, journalism—in a word, for citizen­
ship, w h i c h the world has y e t seen, and would m a k e the man or the men, the family or community
w h o established it immortal, not merely of this country, but of the world, and, as the founding of
such an institution is a work w h i c h should peculiarly commend itself to the most serious considera­
tion of the A m e r i c a n banker, therefore,
u

Resolved,
T h a t the E x e c u t i v e Council is hereby directed to carefully consider and devise a
feasible plan whereby this Association m a y enter upon or promote such work, and report upon
the same at the next C o n v e n t i o n . "

A M E M B E R — I second t h e resolution of M r . R h a w n .
T h e P R E S I D E N T — M r . A t k i n s o n is i n t i m a t e l y a c q u a i n t e d w i t h t h i s s u b ­
ject, a n d , if agreeable, h e will say a w o r d o r t w o a b o u t 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 a m d e l i g h t e d t o see a m o v e of
t h i s sort b r o u g h t before y o u . I desire t o say a w o r d t o sustain it. I h a v e
been until t h e p r e s e n t year for m o r e t h a n t w e n t y y e a r s a d i r e c t o r in t h e

Massachusetts I n s t i t u t e of T e c h n o l o g y . My b r o t h e r , lately deceased, was
t h e professor of English. It h a d been a h o b b y of o u r s for m a n y years t o es­
tablish a branch of t r a i n i n g for t h e h i g h e r e d u c a t i o n of y o u n g m e n for c o m ­
mercial 1 ife. W e were qualified, m o s t of us, t o direct t h a t i n s t i t u t i o n by w h a t
we did n o t k n o w m o r e t h a n by w h a t we did, b u t w h a t we o u g h t t o h a v e
known in o r d e r t o have been prepared t o c o n d u c t o u r own business. F o r
m o r e t h a n twenty years I h a v e been in c o r r e s p o n d e n c e notably with P r o ­
cessor H o d g s o n , n o w deceased, of t h e U n i v e r s i t y of E d i n b u r g h , w h e r e t h e y
had a distinct b r a n c h of t h i s sort, a n d w i t h o t h e r p r o m i n e n t e d u c a t o r s .
W e have, both in t h e I n s t i t u t e of T e c h n o l o g y a n d in t h e H a r v a r d College
elective courses of i n s t r u c t i o n which h a v e been framed with t h i s m o t i v e in
view. A b a c k b o n e of science a n d of languages coupled with instruction in
commercial g e o g r a p h y a n d geology, a n d in English, with l e c t u r e s on t h e
principles of t h e law of c o n t r a c t s a n d all t h e preliminary m e t h o d s of s t u d ­
ies, b u t t h e y a r e as y e t d e p a r t m e n t s . T h e r e is r o o m a n d 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 a c h e d t o universities, a n d I a m
delighted t o see t h i s m o v e m e n t m a d e t o e x t e n d t h e functions of education
in t h e directions in which I myself a n d m a n y of my friends h a v e been work­
ing most a r d u o u s l y for very m a n y years. (Applause.)
Mr. M O R T O N M C M I C H A E L of P h i l a d e l p h i a — T h e Association owes t o
t h e g o o d j u d g m e n t , e n e r g y a n d care of Mr. R h a w n t h e fact t h a t t h i s m a t t e r
of business schools has been b r o u g h t t o its a t t e n t i o n so clearly, a n d m u c h
is yet t o be learned on t h e subject. O n e p o i n t which h a s n o t been a l l u d e d
t o strikes m e as of n o small i m p o r t a n c e — t h a t is t h e m o r a l effect o n t h e
s t u d e n t s . Y o u n g men carefully t r a i n e d for years t o look w i t h s h a m e a n d
c o n t e m p t u p o n t h e slightest deviation from strict i n t e g r i t y in any t r a n s a c ­
tion would, I believe, acquire a very firm f o u n d a t i o n of honesty, m a k i n g
t h e m exceptionally t r u s t w o r t h y in positions of responsibility. T h e lad w h o
e n t e r s W e s t P o i n t is n o b r a v e r t h a n his fellows, b u t years of c o n s t a n t t e a c h i n g
t h a t personal h o n o r is all i m p o r t a n t a n d t h a t its h i g h e s t expression is
unfaltering c o u r a g e a n d u n s w e r v i n g fidelity t o d u t y , instils into his be­
ing a quality which m a k e s him a braver m a n in t h e face of danger, a n d
one m o r e certain t o carry o u t his o r d e r s w i t h o u t c o u n t i n g t h e cost t o
himself.
So, I a m satisfied, men e d u c a t e d in such colleges as a r e p r o p o s e d would
h a v e a g r e a t e r fund of s t r e n g t h t o resist t e m p t a t i o n s which so often lead t o
ruin and disgrace.
< Mr. T H O M P S O N of T a c o m a , W a s h . — I desire t o s u b m i t t h i s p r o p o s i t i o n .
I c o m e from t h e e x t r e m e W e s t , from a section w h i c h is t o b e t h e seat of
g r e a t industrial a n d c o m m e r c i a l activity. I a m n o t a college m a n . I wish
I were. B u t observation h a s t a u g h t m e t h a t in t h e colleges a n d universities
t h e r e a r e vast s t o r e s of k n o w l e d g e t o be o b t a i n e d , b u t n o t t h a t k i n d of
knowledge which p e r m i t s of application t o t h e business affairs of life. If
I u n d e r s t a n d t h e object of t h e s e schools, it is t o t e a c h m e n t o apply t h e
knowledge t h e y g a t h e r in t h e colleges t o t h e business affairs of life. T h a t
is what we need. It is t h e m a k i n g of practical m e n . I t h o r o u g h l y a d v o ­
cate this m e a s u r e . I would like t o see in t h e S t a t e of W a s h i n g t o n a school
of t h i s sort b e c o m e a p a r t of o u r S t a t e University, a n d it shall certainly be­
come a p a r t of my business t o a d v o c a t e t h i s w o r k . I d o n o t believe t h i s

Convention can d o b e t t e r t h a n t o t a k e u p subjects of t h i s kind, a n d I am
g l a d w e h a v e had Mr. A t k i n s o n h e r e t o - d a y t o confirm t h i s , as well as P r o ­
fessor J a m e s y e s t e r d a y . I hope t h e resolution will b e carried unanimously,
•and that it will not be lost s i g h t of in future c o n v e n t i o n s .
T h e P K E S T D E N T — G e n t l e m e n , you have h e a r d t h e resolution. All in
favor of a d o p t i o n will v o t e A y e .
Adopted unanimously.
Third

Day, September Fifth,

Pages ioj-106

"Proceedings"

Mr. W M . H . R H A W N — 1 h a v e a s h o r t report from t h e E x e c u t i v e Council,
w h i c h I will read, as follows:
In refereace t o t h e resolution offered by Mr. W m . H . R h a w n , t h e E x e c ­
u t i v e Council u n a n i m o u s l y r e c o m m e n d t h e a d o p t i o n of t h e following by
the Convention:
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 the country, the founding o*.
Schools of F i n a n c e and E c o n o m y , for the business training of youth, to be established in connec­
tion w i t h the universities and colleges of the land, upon a general plan like that of the WhartQri
School of Finance and E c o n o m y of the University of Pennsylvania, so ably set forth b y Professor
James in his most admirable address before this Convention.
Resolved, T h a t the E x e c u t i v e Council is hereby directed to carefully consider, and, if possible,
devise some feasible plan v H e r e b y this Association m a y encourage or promote the organization <k
a School or of Schools of F nance and E c o n o m y a m o n g our institutions of learning, and report
upon the same to the next Convention.

O n motion, t h e r e p o r t was a d o p t e d .

Committee

on Schools

of Finance

and Economy
Council.

appointed

by

Executiik

A t a m e e t i n g of t h e E x e c u t i v e Council held a t t h e close of t h e Convert
tion on S e p t e m b e r 5, t h e foregoing resolutions w e r e referred t o t h e follow­
ing n a m e d C o m m i t t e e , a p p o i n t e d by Mr, C h a r l e s P a r s o n s , C h a i r m a n p r o tem., as a C o m m i t t e e o n Schools of F i n a n c e a n d E c o n o m y : William H,
Rhawn, Chairman, P r e s i d e n t N a t i o n a l B a n k of t h e Republic, P h i l a d e l p h i a ;
George S. Coe, P r e s i d e n t A m e r i c a n E x c h a n g e N a t i o n a l B a n k , N e w Y o r k ;
Lyman J . Gage, V i c e - P r e s i d e n t F i r s t N a t i o n a l B a n k , C h i c a g o ; M o r t o n
McMichael, Cashier F i r s t N a t i o n a l B a n k , P h i l a d e l p h i a ; a n d A s a P . P o t t e r
P r e s i d e n t Maverick N a t i o n a l B a n k , B o s t o n .