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part in it daily as we buy our food, or cloth-
ing, and we do not feel its value.

It is not too much to saj' that but for
Trade, men would never have been civiliz-
ed. The very lowest savages trade little or
none. What they get they keep for them-
selves. When a savage exchanges a spear
for some food, trade has begun, and the
shrewdest trade between expert business
men is only an exchange like that of the

Long before missionaries went into far off
lands to preach their faiths to stranger
ears, traders had broken the paths, and if
traders had not gone first, the work of the
missionaries would have failed utterly.

When stately embassies pass from land

to land, and skilled diplomats weave with
embroidered words, treaties of national
peace, it is only to record on the parchments
what the traders of each land have already
established in fact, i. e., the need of free
and unrestricted trade with each other.

Trade is at first an exchange or barter,
where each man gives the other some arti-
cle of wealth or use. Later, for convenience
men use certain things as " monej'." or a
representative of value. We call money a
" medium of exchange," which isa medium
or means by which we e.xchange things.
When money is used the exchange is called
a " sale," but it is really a double exchange.
A farmer exchanges wheat for money, (1st
exchange.) He next exchanges money for
clothing, ( 2nd exchange.) This is true of



A very important point is often overlook-
ed. In a just exchange or sale, there is not,
and can not be, any profit on either side.
When two men barter with each other fair-
ly, neither expects a profit from the other.
The farmer who swaps wheat for potatoes,
expects to get in potatoes, just what his
trJteat is wortli aud no more. If he can
not exchange his wheat personally with the
man who raises potatoes, he must employ a
middle man to do it, as the storekeeper.
The farmer must pay the storekeeper for
this work by giving him a part of his wheat.
The amount of wheat given to the store-
keeper is determined by the time the store-
keeper spends on that transaction. As the
dealer cannot raise wheat or potatoes, he
must get his living in return for his ser-
vices in exchanging his neighbor's goods.
The proper amount for the dealer is the
amount of wheat or potatoes which he
could raise on a farm in the same time that
he spends in exchange.

The problem of money and exchange is
not easy to explain, in many cases, and
learned writers write learned books there-
on, but the underlying law is clear enough.

A man expects to receive what his work
is worth. If he gets more than his work is
worth, the other man is wronged and de-
frauded, and modern business transactions
are largely of this kind. Cooperative stores
are those where the middleman or store-
keeper is paid for his services, and gets no
profits whatever.

Volumes are written on "profits" alone,
and the writer can not here spare a page
for it. So he tosses a golden apple of dis-
cord before his fellow teachers of econo-
mics for them to discuss, by saying: " In a
fair trade, no profit on either side is possi-
ble," and " Storekeepers have no just right
to profits." Verily, on the soundness of this
opinion, " hang all the law and the profits."


.V fair idea of trade as a science and its
lines of action may be gained as follows:
All the business operations of an industry,
whether productive or commercial, fall into
two classes according to the p7ace of oper-

Productive = 1 Ofiice and 2 Factory.

Commercial =■ 1 Office, and 2 Salesroom
or store, as the brain and the working body
of man.

The office is the brain of the business, the
factory or store is the body.

The human brain has two functions; one
to think aud direct the action of the body,
the other to record in the memory the story
of the actions performed. These memories
are the guides to the future action of the
thinking brain. Without them the " think-
er " would be helpless to direct the body or
" run the business."

The (!)ffice of s business has two depart-

a. The Manager and his aids.

b. The Bookkeeper and his records and

A. The Maiias^er is the thinking hrain.
whether he is owner of the business, pres-
ident of a corporation or hired superinten-
dent. He decides on the policy of the bus-
iness, its lines of action, and its methods.
All responsibility rests on him. and all
parts of the business report to him. Just
as the thinking brain must have the rec-
ords of the memory to guide it, so the
manager is guided in his action by the
records of the business in the bookkeep-
ing department.

What the factory shall make or the store
buy and sell depends, in most cases, on
what the records show to have been suc-
cessful in other cases.

The Manager of a small business does all
the work of his office himself. In a large
concern he has various assistants:

1. Secretary or personal clerk, who opens
his mail and classifies it, and does various

kinds of clerical service. This clerk is
often the

2. SfeaograpAer, who takes in shorthand
the manager's replies to his letters and
directions about the business. This
clerk is also a

3. Typewriter who turns the shorthand
notes into typewritten letters. -\ large
firm has many typewriters.

4. Office boj-s or messengers, to go on

The manager of a modern office has also
many mechanical aids, as the telephone,
business phonograph, copying books,

B. The Bookkeeper and his department is
the meniorj- of the business. He has in
his books a complete record of everything
that the business has done, of the goods
produced, or bought or.sold, of the money
received, paid out. or on hand in the bank,
of the profits and losses of the different
branches of the business. In large busi-
nesses he prepares and lays before the
manager every morning, a balance sheet
of the previous day's business, and the
whole concern. The bookkeeper knows
nothing of the future plans of the busi-
iness. He only records the pasf. He has
various assistants.

1. Assistant bookkeepers, clerks, type-
writers, who help him keep his records.

2. Cashiers, who receive the money from
sales and hand it over to him.

He has also many mechanical aids, as,
card catalogues and ledgers, letter files,
mechanical adding and computing ma-
chines and automatic addressing ma-
chines, etc.

In olden times the head bookkeeper usu-
ally became a member of the firm and
was able to take charge of the business
in case of need. In modern times, the
bookkeeper is rarely given the chance to
rise higher, and knows only what his
books and papers show. He would be
unable to conduct the business,

f^^3Bud/n^U^^fUu:aifr ^

The various heads of departments in the
factory or store consult the manager, and
their reports are recorded by the bookkeep-
er, but beyond this they have nothing to do
with the office.


The many facts about the store, or the
place where goods are sold, fall into four di-

c The Buildings where the goods are


d The men who sell the goods.

c The thinss sold, i. e„ the merchandise.

/ The methods of selling and delivering.

C. Buildings.

The buildings used may be owned by the
firm or rented from others. If rented,
they are usually hired for a number of
years, as it is very expensive to move the
material of a large business. The busi-
ness requires:

1. The salesroom = large room or a series
of rooms where goods can be displayed
and sold.

2. Storas^e rooms, where the unsold sur-
plus stock of goods is kept until needed.
These n\ay be in the same building, but
most great businesses have fire proof
warehouses where they store their sur-
plus goods. The size of these warehouses
and the immense stock of goods carried
is surprising.

D. The men in a mercantile business ( out-
side the office ) are of three classes:

1. Those trho 6mj' the merchandise.

2. Those who sell the goods to the pub-

3. Those who take care of the buildings
and goods.

1. In a small business, the owner or mana-
ger huj-s the goods, just as he does the
other work. In a large concern, a spec-
ial man or buyer is employed, whose
duty it is to keep the store supplied with
sufficient goods, bought at prices that will
yield a good profit. In department stores,
each main department, as clot liing, shoes,
carpets, silk, has its special buyer. The
buyer generally has one or two days in
the week or month when he is at the store,
and can inspect sampie goods shown by
traveling salesmen or drummers. Part of
his stock he may buy in this way. The
rest of his time he is travelingtoother cit-
ies, or to Europe, examining goods at city
warehouses, or the factories where they
are made. The amount of the goods
bought at the store depends largely on the
kind of l>usiness. For example:

The buying of wool in the United States is
chiefly done for the large firms in the lo-
calities where the wool is raised. Many
firms have buyers who spend their whole
time in Europe, and are continally on the
lookout for goods, such as the firm needs.

2. Those who sell the goods are of several

a Superintendents of floors, and assist-
ants, the " floorwalkers."

b The salesmen who stand behind the
counters and sell the goods to customers,
including the " cash " boys and girls.

c The cashiers who take the money paid.

d The inspectors of the various kinds.

e The shippers who send or deliver the

This class includes the packers, like
bundle clerks and the men on delivery

/ The traveling salesmen who solicit or-
ders for goods from smaller stores in va-
rious places. These men have regular
routes which they go over continually,
keeping in touch with the small dealers

and the popular demand for goods. These
salesmen have their expenses paid and
a regular salary, and often an extra
commission on their orders.
g Just as firms have foreign resident
buyers, so they frequently have in va-
rious large cities, selling agents for their
goods, though this is more common
among manufacturers who wish to sell
their products, than among mercantile
men. These agents are mostly commis-
sion merchants or agents, and are paid
on the sales they make.
;t. Those who care for the buildings are
the janitors, sweepers, etc.
Those who care for the goods are stock
clerks by day, and the night-watchmen
after the store closes at night.
E. The things sold are as endless in va-
riety as the needs of men. They are hand-
led according to their nature. They must
be, in all cases alike :

1. Displayed in window, show cases, or
shelves, so as to attract the customer, or
be within his reach for easy inspection
and handling.

Demand for skill in this direction has
developed a special set of clerks called
"window dressers" who arrange win-
dow displays.

2. Advertised by signs on the outside or
inside of the store, by advertisements in
nevi's papers and magazines, by circu-
lars, cards, calendars, free sample goods,
etc. Every large business house has its
special advertising manager, who de-
cides the ways in which the money for
advertising shall be spent. This money
amounts at times to hundreds of thous-
ands of dollars a year for a single firm.
Various skillful ways are devised to tell
if a certain kind of advertising pays its
way. The crowds at bargain counters
or on bargain days proves that some ad-
vertisements are read. A modern form
of advertising is the use of the showy,
electric light signs, which, flashing be-
fore the eyes, insist on being read.
Another common method is to use sign-
boardsin fields beside the railroads, or
signs painted on the roofs and sides of
barns. When the Americans become a
civilized nation, such inartistic and rude
sign boards will no longer spoil the
beauties of the landscape.

F. Methods of selling vary in detail, as
hardware is different from dry goods or
books, and must be described and hand-
led differently. The main lines are the
same of all kinds of goods. Merchandise
is sold in five ways:

1. Orer the counter, or from the floor or

2. To fill orders taken by men, as grocery
clerks who go from house to house to get

3. Mail order business, which sends
goods ordered by mail, from circulars or

Millions of dollars are sent each year liy
purchasers, and to firms in response to
*' ads" for goods to be sent by mail, and
local country stores suff^er froui this
competition. Mail orders are in most
cases honestly filled as ordered and sent

4. GoodH are sold outside the store by
traveling salesmen, as described, or by
teams that carry a stock of goods. The
street peddlers or "fakirs" are either
"outdoor clerks" of firms who supply
them with the goods or "independent
merchants," an example of buyer, trav-
eling salesman and manager in a sin-
gle person.

Methods of selling also include:

5. Finance - the ways in which the mon-
ey received for the goods sold, is
kept and distributed. Goods are sold : a,
For cash, which brings the money at

once, or b, On credit, which brings open
or '* book " accounts or promissory notes
which must be kept in mind and pay-
ment collected when due. Payment is
made in money or checks. 90 per cent.
of the money paid in large cities in the
V. S. is in the form of checks. These
are deposited in banks and new checks
drawn against them. Very few checks
prove to be dishonest or worthless. Bus-
iness paper is the greatest " modern
convenience " in commercial life.
The operations of trade are like a great
circle. There is always a flood of produc
tions from the farms, mines, factories, flow-
ing to the great merchants or wholesalers.
These sell to smaller firms, who sell to
others, and so at last the productions or
merchandise is sold to consumers in far-off
lands, who, weeks or months before, sent
the work of their hands to join the tlood of
products ^vhich reach their unknown
brothers far away.

Trade is the pioneer of civilization. Trade
breaks down the barriers of race, caste, and
religious prejudice in every land. Trade is
the messenger of peace in the world. Na-
tions that have a large and profitable trade
with each other, may quarrel and threaten
each other, but they will not tight. No civ-
ilized nation today would dare to go to war,
if the great bankers of the world, in whose
hantls rests the money of the world's trade,
say "no." The navies of the world are
built now not for conquest but to " protect
the merchant marine" and the ports of
trade and commerce Government owner-
ship and control of railroads is sure to come
that trade may be free.

Men get their first ideas of justice very
largely from trade. A fair trade, and a fair
deal means one where each man gets an
equal share, without profits to either side.
Goods, plans, ideas, men are "weighed in
the scale " of private judgment and popular
favor, and the light weij^ht "kicks the
beam " and loses all regard.

Above many a courthouse stands a figure
of Justice. Not in vain or by accident does
she always hold in her hand a pair of scales,
the enflilem of Trade, as a symbol of Jus-
tice and Law.

Co tbe national Business Ceachers.

Six or seven months is a very short time
in which to prepare an acceptable and satis-
factory program for an organization of such
magnitude and importance as the National
Business Teachers' Association.

The President, ExecutiveConimittee and
Advisory Council therefore desires the
hearty co-operation of all interested com-
mercial teachers, in order that they may ar-
range a program which will be pleasing as
well as profitable to tlie entire member-
ship. We have already secured a number
of able men as leaders for some of the topics
on the next program, however we desire
the assistance of an additional number of
young teachers who will aid us in the dis-
cussion of the various topics which will be
of great service to them, as well as those
whose privilege it will be to attend the
Cleveland meeting.

In order to get our work well under way we
suggest the following outline and plan of
action :

ropics.— We expect to select topics suita-
ble for teachers actively engaged in school-
room work, as well as for principals and

Matter.— It is our desire that the matter
presented under these topics shall contain
statistics, data, and results secured from in-
dividual w^ork and actual experience in the

Leaders.— Out aim is to placeable men as
leaders for each topic, and as far as possi-
ble get their pledge to open the subject as
assigned them.

Time.— Immediately after each subject
has been opened, ample lime will be given
for a full discussion of the subject.

As an additional attraction for the next
meeting, plans are being formula1?ed for one
joint session with the Penmanship Teach-
ers' which we trust will meet with the
hearty approval of every commercial teach-

Hoping that we may receive man> help-
ful suggestions from our excellent mem-
bership, we are fraternally,

J. A. HiNFR, Louisville.
(;. C. Clavbaugh, Chicago, III.
G. W. Weatherly, Waterloo, la.
Fvxecutive Committee.

f^^^ud/neU^^^/iu^i&r ^

Usseeiate Editorial— e«ntitiued from
page 17.

great brokerage houses of Wall
Street, a man not unknown to our
conventions, where he always made a
good impression, entered into a con-
tract to take charge of the commer-
cial department of an excellent New
England School. A week before the
opening of school, he wrote that he
feared his penmanship was not good
enough, and he would better drop
out. The emploj-er remonstrated,
and he concluded to stay. School
was to be opened on Tuesday morning,
and on Saturday afternoon, this bus-
iness teacher, ( rather, this crook )
wired that he had got abetter job and
would not be on hand. The result
was that the commercial work in that
school was practically broken up for
that year, because of the various and
unsatisfactory service that was then
the only service available. The ru-
dimentary conceptions of the value of
a contract, of their pledged word, on
the part of some commercial teachers
amply justify the strictures of respon-
sible business men. Men who are of
this stamp ought to be reported
throughout the profession, so that no
school principal need be imposed
on by the dishonest reprobates. We
shall be glad to do our part whenever
school principals request such infor-
mation as we can give. Dishonest
teachers should be relegated to that
limbo especially reserved for hypo-
critical ministers, quack doctors, and
those who adulterate food and medi-

We present these fugitive thoughts
for the consideration of teachers es-
pecially. This is the last number of
The Business Educator for this
year, and this is the season when
scores of teachers are casting about
to better their positions, financially
and otherwise. We have personally
tramped the hard road of school work
in poorly-equipped institutions, of
small salaries, of infrequent pay-
ments, of cheap courses, evening
teaching, abnormally long days, etc.;
and we can appreciate the

minutiae laudable desire of those
who, finding themselves
laboring under one or more of these
conditions, wish to find another po-
sition. On all these we want to urge
the greatest care in regard to spell-
ing, grammatical construction of let-
ters uniformity of touch in typewritten
work, and finish in pen-written work ;
accuracy and distinctness in copying
testimonials ( it is always better to
have them typewritten,extra copies be-
ing made with carbon paper rather
than with the mimeograph ) ; the selec-
tion of a few important testimonials,
rather than a mass of common ones ;
the sending of a first-class photo-
graph; attention to the most minute
requirements laid down in the request
for an application as one school offi-
cial puts it, " We want to see how
he sets forth his own qualifications,
for if he cannot do it well, we do not
see how he can teach others to do it."
Above all, we urge the exhibition
of some consideration for the in-
terests of the employer, some
sense of the proper relation between
qualifications offered and salary ask-
ed ; in brief, some common sense.

There never has been a time in the
history of commercial education when
the demand for good teachers at
good salaries was so strong as it is
to-day ; and the wise will profit by
this condition of things, for they will
sedulously prune off the " suckers "
and excrescences, and cultivate the
vine that bears fruit.

mathematics — Continued from page 18.

cially to the halves, thirds and fourths.
Here is a portion of a simple ' all-
round ' exercise on one-fourth :
i of 260 = \ of 95 =

lof3= iof.7 =

1 of .064 = J of 85 yd. =

240 increased } = 8.4 increased 3 =
.6 decreased \ ^ } of 2| =

1 of i = i of i =

i time \= \ mult, by ! =

} X S = i X i = } +■ i =

i+l= f+i= i-i=

\-\- i-i= \^\ =

i-i= J-^i= l^\=

U - i = i -14 = } ^ .2 =

i ^ 60 = 6 ^ i =

.3 :- i = 16 = i of

.4 = } of li = 1 of ?,etc. The

work here given should not take more
than six minutes. The complete ex-
ercises should combine ', with whole
numbers, decimals, denominate num-
bers, and with all the other simple
fractions. The other simi)le fractions
should be treated in a similar man-

Among the less common text-book
subjects mentioned in the table of
value, it is well to note the place held
by Billing, Wage Calculation, Weights
and Measures, Averaging, and the
LTseof Calculation Tables. These are
subjects of general value, which are
easily handled in class, and which
offer varied material well calculated
to arouse and hold the interest of the
pupil. Most of these topics require
no special notice, considering my
limited space, but attention should be
called to a marked business tendency
in the use of Weights and Measures.
There is no general business demand
for the metric system, except among
export and import houses, and one
reason for this lies in the fact that
our present standard tables are be-
ing simplified, and, in a sense, deci-
malized. Few if any tables are used
in full in any business of to-day. One
or two distinct measures are taken,
and all quantities are read in terms
of these. For example : Cloth is sold
in yards and fourths, not in yards,
feet and inches. Bushels and small-
er dry measures are being reduced to
a common standard of pounds avoir-
dupois, when used for the measure
of an increasing number of articles.
Engineers measure in hundreds or
thousands of feet, in feet and in dec-
imals of a foot — not in rods, yards,
feet and inches. Numberless other
illustrations might be given, but even
these few teach a lesson. The day
of complicated denominate number
examples has passed. The modern
business example seldom contains
more than two denominations. But
with this simplification of measures
has gone a slightly increasing de-
mand for capacity to express one
measure as a decimal or simple frac-
tion of another.

Aside from subject matter, one is
impressed in any investigation, by
the almost universal demand for ca-
pacity to calculate without paper or
pencil. Now and then, a business
man objects to such work on the
ground' that the danger of error is
too great, but these few men fail to
see that ' paper ' work is in large
measure simply the recording of in-
numerable little sub-examples, which
are, and must be ' done in the head.'
No one thing will prove more helpful,
in the gaining of strength in compli-
cated paper work, than systematic
and constant oral drill.



Commercial Geography

In <!urrent Literature


High School, Beverly, Mass.




Reasons for China's Weakness.
George Kennan. The Outlook, April
7, 1906.

The Grand Canal of China. George
Kennan. The Outlook, March 21, 1906.

A Country That has Used Up its
Coal,— China. Eliot Blackwelder.
The Outlook, March 24, 1906.

The American Manufacturer in
China. Arthur D. Coulter. The
World Today, April, 1906.


The Battle for the World's Markets
— Selling Goods in Central America.
Henry Harrison Lewis. System,
April, 1906.


The Last of the Open Range.
Ralph D. Paine. Outing, April, 1906.


A Ton of Anthracite. Frank Julian
Warne. The Outlook, April 21, 1906>

Miner and Operator — A Study of
Labor Conditions in the Anthracite
Coal Fields. F. J. Warne. The Out-
look, March 24, 1906.

The Coal Trust, the Labor Trust

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