THE AMERICAN BUSINESS MAN

New Zealand Mail, Issue 1675, 6 April 1904, Page 20

THE AMERICAN BUSINESS MAN

The following address was recently delivered by Mr Dwight M. Lowrey, of the Philadelphia. Bar, before l the Trust. Company Section of the Pennsylvania. Bankers’ Association: — ’Mr Chairman and Gentl'emeh of the Pennsylvania Bankers’ Association, — When with very great, pleasure and satisfaction I received! the compliment of an invitation to appear before yon, I naturally asked (for I have not been accustomed to appear so prominently among the representatives of so great, wealth and such high business prosperity, we lawyers know so little of that} for guidance fipon the subject upon which I might talk, and I was. informed by your Secretary that t hey tried that plan once before, particularly with Mr James-, who very decidedly declined] to subordinate himself, and therefore no subject was assigned to any speaker before this body. Well, I thought it over, and it. seemed to me that, the most interesting thing connected with this Association was the Association itself. Adam Smith once testily observed that it was impossible to hold, a convention of men engaged in the) same kind of

business, without, its resulting in a. com spdracy against the public interest. True enough, business men in convention assembled! Jiave often seemed to be chiefly occupied with schemes for raising prices, limiting production, and excluding competition. For thi.s reason, it is peculiarly refreshing to stand in the presence of an assembly like this, whose object, is not gaiin. but improvement; not proscription, but discussion; whose deliberations aro concerned, first of all, with the problem of greater efficiency of service, in the serene confidence that to them who serve well all things else shall be added. IN THE OLD DAYS,

latherihgs of this sort were, held only ’among professional men. It was supr pcsed that theology, philosophy, medicine. jurisprudence l ,, natural science and • the like, were the only matters! that could bring men together for the interchange of liberal thought i'n connection with the subjects to which tlieir minds and energies were habitually directed,, 'and upon which, their livelihood depended.

The proud advance of our American people in general refinement and in liberal culture is in nothing more l marked than in the ever-increasing number and variety of the assoeiatiohs in which business men, of the l same or kindred occupations, - meet and exchange counsel and reflection upon the topics which lie closest to their observation. It is difficult to over-estimate the broadening alncl elevating influence of such gatherings. They pleasantly interrupt the dull routine of comnie- cial and industrial employment; they embellish a business connection with the graces of social intercourse.; but., more important stilt.-they temper the strife of commerce with the spirit of philosophy, and throw into the somewhat close and selfish atmosphere of the counting room an invigorating draft of free and scientific enquiry. We may congratulate ourselves nor merely that these things are done, but also upon the way in which they are done. The Americans are bringing the shop and the University together. We hear so constant aim! so great a chatter about the intense materialism of our American civilisation. We have been represented abroad, and we have come at homo to believe' ourselves to be exclusively interested in the quest of the almighty djoilar. We are in business, it is true l —and we are ill business for profit—but the American is not sordid. Our success in acquiring wealth is not- due to an extraordinary avarice. it is due rather to extraordinary—not mere money-grab bing power, but wealth-creating wealth. Through the kindness of Mr Stubbs, I have been given the opportunity to study the printed of your previous conventions, as well as the proceedings of the American Bankers’ Association for several years. No one can read these publications without acquiring a profound sense of the great social significance of these Associations. The wide range of subjects treated exhibits a■ discussion which covers questions of ia w, of economics, of administration regulation, of ethical standards of business opportunity, and of business duty; in fact, everything, from the details of practical organisation and accounting to broad generalisations tmon business theory and upon social conditions in this country and abroad, Yvlieu ne remember that these TERSE AND VIGOROUS PAPERS. expressed in correct and often flowing English, touching not rarely on the most intricate problems of economic and "social philosophy, and 'glowing at times with a genuine and. .lofty moral enthusiasm, are the work not of professional writers and investigators,' but of men who stand, as the Germans sav “with their feet in affairs, .we are close to the ! -secret of that wonderful civilisation which is unfolding in the United States. The habit of mind which is illustrated

\ - by this and simlar Associations is the . 'tills explanation of our swift and irresistible advance. We are outstripping bur English cousins, because in > greater desrraa we brine:

to the consideration of business problems the spirit of scientific inquiry. Why not ? The laws of trade and of manufactures; the problems of transportation ; the organisation and direction of labour; the custody and movement of money; the economic aspect of the habits, tastes, necessities and the convenience of men, are subjects of as great, dignity and as great difficulty as are the generation of bacteria, the re lative position of the fixed stars, or tne grandeur and decadence of the Roman Empire.

BUSINESS LIFE IN AMERICA gives ample play for, and indeed constantly displays not mere smartness, but intellect of the highest order. Ours is an English civilisation, it is true, with all the rugged strength and moral purposes which the word English implies but it is something different. We miss the bracing influence of that • calm and unbending patrician Honour, and of that proud and self-controlled patrician Culture, which in the eld Island home is the peculiar heritage of an order, rooted in tne soil, and trained through long generations to social leaderships to arms, and the conduct of public affairs. In the beginning, in New York and in a measure in Pennsylvania, a. deliberate attempt was made to reproduce the Old World conditions of landed proprietorship. It failed. The vast memorial estates are all gone, with nothing to remind ns of them, save Here and there a vexatious irredeemable ground rent. The war of the Rebellion destroyed for ever .the prestige of the Southern planter, even to the South. Jtsut Virginia, through, a century of glorious history, has shown us Here at home what the patrician spirit can do, unto at last, sinking in the death c tiroes of her peculiar social order, her gallant ana indomitable resistance, tlirougn four dark and bloody years, challenged the wonder and admiration of mankind. No, the civilisation of the United States is a business man’s civilisation. American gentlemen are in business, and America’s

BUSINESS MEN ARE GENTLEMEN. They cultivate tlieir minds and tastes. They read, write, and converse well; they endeavour to know something of art and song and music. They send their children to schools and to Universities. and they spare no effort to gain contact with the refinement and polite custom of those whom the longer possession of ample means have permitted to acquire a more pleasing cultivation. They cover the land with colleges, universities, hospitals and homes and retreats for every form of dist-ricess. Not a river can overflow its banks, not a fire burst forth in destructive energy anywhere in the civilised world, but our business men, promptly and without ostentation, contribute of tlieir store to the relief of .suffering. Slowly and surely we are working out a new and strange social order. The lawyer is still a convenient spokesman; the clergyman is still an honoured guide ; but the leadership and relative importance of tnese two professions is gone for ever. They have taken their places in the ranks of tlie social army. The real social leaders are the men of affairs, the banners, the railroad managers, the engineers, the merchants and the manufacturers.

They are not content with owning newspapers; they write cooks and contribute essays to the magazines. They have no need to employ counsel to present- their views and advocate their interests before the public, still less do they confine themselves to the collection of data of clever writers to arrange and exploit; on the contrary, they address societies and conventions, and they go upon the hustings to discuss public affairs, and to influence the expressions of the popular wiii. These things were practically unknown fifty years ago. Previous to the Civil War, the leadership of tins country was in the hands of the lawyers and the newspaper editors, but the sceptre has departed from Judah. TWO BUSINESS MEN are contending to-day for the leadership of the State of Ohio. Both are the possessors of large fortunes, accumulated by tlieir own labour. Both arc experienced and able public debaters They differ in manner and method, but both are vigorous thinkers; and it- is safe to assume tliat in the coining canvass each will say many tilings that his opponent might profitably ponder on. Both are ambitious for wealth and power, but only a narrdyqintelligence will question the genuine, patriotism of either. We have seen business men crowd their way into the United States Senate by the glacier-like force of wealth alone. But the spectacle in Ohio this year is not of that description. it is a contest between two leaders of the new order, in a free and open appeal to the people. A contest so distinctive lias rarely been seen in oiir country before, but we are likely to see it frequently repeated. It is an old adage that “Times change and men change with them” ; it is equally true that men change and times change with them.

How will the new leaders-improve their opportunity and exercise their power ? \ - • _ Sdme persons are seriously uisquieted by wliat they call the growing influence of the money power. To their heated imaginations the time is close at hand when what, they somewhat vaguely style “Capital” will seize the reins of government, and enslave the great body of the people. It would comfort- these fearful souls if they did hut reflect that men of wealth a i-o anl to be p.ndiwjiA -w.-it.li for«iitrht«

otherwise they would not be wealthy. Why should they want to enslave their neighbours? Slaves cannot buy goods. And if the wealthy cannot sell goods, what will become of tlieir wealth? No nation ever yet was corrupted and destroyed by wealth whicli wa s the product of its own honest toil. vi e are not engaged in dividing uic booty of conquered tribes. Our workers and business men create what they enjoy.

A SAGACIOUS WRITER has very justly remarked that men are rarely so innocently and beneficiently employed as when engaged in making mioney. Society nfay sometimes be fretted and annoyed, but it will never bo seriously injured by combinations of capital, however great, which have for tlieir object the production of new wealth, its transportation to distant points, and its distribution among different communities.

The wealthy are not apt to forget, though critics may, that accumulated wealth is useless except for its value in exchange. And the moment exchange begins, its hoarded benefits are quickly and sensibly disseminated among the entire community, aiding and stimulating others to like helprui accumulation and enjoyment. The change which is noticeable in America is manifesting ltscif in the Old World as well. The social and political leadership, which for centuries has belonged to the men who, oy their ownership of the soil ana of natural opportunities. were enabled to lay continuing tribute upon those who produce and distribute wealth, is throughout all Europe now rapidly passing into the hands of men who organise and direct the industrial forces of the world. It is curious to note the frenzied and discordant protest with which tne representatives of the old order attempt to roll back the mighty change. I do not mean the empty babble of the demagogue and tlie penny-a-imer. Wc may rely on the people to deal with them. Our people know that declamation, though it may bewilder, cannot check a social tide.

I mean the well-intentioned protest that comes from the literary and professional classes.

Shall we not then emphatically declare what the American business man really is? I do not mean to sublimate him. .Sometimes, with broken harness and battered snield. he comes, laden with booty, up from the field where he left his honour.

Nevertheless, it may be confidently asserted that there is no great wealth in. this country which if founded solely on fere-o and fraud. The wealth of America is the sure proof of the virtue of America for the production and accumulation of wealth pre-suppose virtue. Honesty in business is not only the best policy; it is the only policy. Men whose long lives of business accomplishment proclaim their general good practice sometimes do things that wiii not stand scrutiny, but no mere Knave ever was or ever can be, a business success. KNAVERY IN BUSINESS is as fatal as cowardice in war.

If our industrial organisations were, as is -often confidently asserted, conceived in fraud, and developed in iniquity, the whole fabric had long since fallen to pieces. Putting aside some special forms cf property, like the ownership cf a corner lot, which sometimes wears the aspect of legalised plunder, and, speaking generally. a man s wealth is the measure of the sorvice lie has rendered his faukind. “Business is business.” This is no mere aphorism ol cynical avarice. On the contrary, it. indicates a pro--Ist ie features.

standards, and methods of business are peculiar to themselves, and social progress demands a strict adherence to the’: requirements. The same thing is true ot war, religion, government, and every other form of human activity. It does not mean that bad methods are good, because they may yield a momentary financial advantage. Still less does it mean that business is robbery, nor that spoliation and chicane are its character• istic fea-utnres. Business does not undermine the character 'of good men: it-.strengthens and establishes it. Thackerav understood this when lie wrote "The Newcomes.” Colonel Newcome is perhaps the finest gentleman on me pages of English fiction, and there is a .text- for ahundred sermons m his sc life qua us remark. “Money is character.” ... . In truth, business is the foundation on which all civilisation rests.’ i-The accumulation of wealth is thefirsipqoudition and pre-requisite in the development of sound knowledge, polite culture and pure religion. And just in proportion as knowledge increases, as manners soften, as in religion superstition gives way to the thirst for righteousness, business broadens lines, extends its sympathies, and elevates its standards, without in tue slightest departing from its essential rule and method,

No thoughtful man supposes that we have attained perfection in business ethics in this country, but every man in this hall over forty years of age can testify from his own experience to constant" improvement. There has been a steady movement in the direction of .better goods, fair prices, ana prompt payment. Lower rates and better service is the watchword. Not as a concession to our poverty, but as the triumphant accomplishment of our increasing wealth. Short weights and cunning are the weapons of the rioor; rising affluence gives us fixed standards and good measure. Tlie term “shoddy,” which was iu every roan’s mouth when

we were boys, lias practically disappeared from riie vernacular. Credit is on a sounder basis that ever before. In 1837, and again in 1857, every, bank in the United States suspended payment. Such a condition of affairs is inconceivable now. Tlie laws have been changed, it is true but the difference is not due to the law. The new laws are due to the rising intelligence and to the hardening moral fibre of the business world. BUSINESS MAKES CIVILISATION, and civilisation re-acts on business, with ample usury. Standards and'methods are improving a-> well as laws. The sense of co-or-dination and inter-d.epenaence is growing. In 1837 aud 1857 the banks of the country stood separate and alone, as Emerson said bis thoughts were, "Each an infinitely repellant article/' During the first nine montas of this year, wiien we were purging ourselves of “undigested securities,” and letting water out of 3 per cent, stocks, the banks stood shoulder to eliqpider. The si)eager helped the weaker, and ail combined to distribute and carry the load of fallen fortune, to the end that the general business -of the country might be sustained. in these days, when so much turgid rhetoric is poured forth over the cornering of money, and the "cross of gold,” it would be well if the true story of that time of stress could be. brought homey to the Amcricaii.public. it would, i believe, convince us all that the American banker ieuds more and more to consider liis position one of public trust. The law says that the bank is only a debtor to his depositions, and that its stock is a commercial venture; but good bankers, and they are the majority, do not stop there. The rise of the trust companies Has, no doubt, contributed to the growth of the new sentiment. These companies, indeed, have a, capital stock on which they hope to earn substantial profit; they receive deposits- for which they are liable only as for debt; and they deal in tlieir own and their depositors’ funds for gain. But they go further. They definitely assume ail the positions of trust- and confidence known to our social needs. They are at tire same time banks aud trustees, and tney have tended powerfully to permeate all tire circles of banking with the rare atmosphere and high standards of the fiduciary relation, the standards aud responsibilities of the trust department- tone up and steady the bank. ALL STANDARDS OF HONOUR arc classed standards, and it takes time for them to grow. it- takes time for the class to crystallise, so as to enforce its- traditions. Banks, as we know them, are hardly more than two hundred years old. But the time is not far distant when no bank president can, without ostracism, aid one set of speculators to get control of a railroad company by suddenly calling tne loans made to rival owners of the stock. The banker of to-day is prudent; tomorrow he will be impartial. It will then be no more possible to use the power of a- bank as a weapon of destruction than it is now to so use tne Treasury of the United States. Such a president will take its place with Benedict Arnold and Marshal Bazaine. No law can reach him. He will die of the contempt of his class This is no new tiro ague to you. Your deliberations have always pointed in that direction. Certain it is that- society will find its best, perhaps its only sure, protection against the maclfnalions of the selfish rich, and the in-sur-gonce of the resentful and uninstvucted poor, in the development and enforcement of your own high principle that banking is a public trust. %