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saved $30,000 in one year by this and other, means the movement grew more popular.

Hazen S. Pingree was born at Denmark, Maine, August 30, 1842. At fourteen years of age he went to Hopkinton, Mass., and secured work in a shoe factory.

Here he learned the trade of cutter, at which he worked until August 1, 1862, when he enlisted as a private in Company F, First Massachusetts Regiment of Heavy Artillery. This regiment was assigned to duty in the Twenty-second Army Corps and its first service was rendered in defense of the nation's capital. During General Pope's Virginia campaign the regiment was ordered to the front and participated in the Battle of Bull Run on August 30, 1862. It afterwards returned to duty in defense of Washington and remained there until May 15, 1864, when the time of service of the regiment having expired Mr. Pingree, with enough others, re-enlisted to keep up the organization of the regiment, which was then assigned to the Second Brigade, Third Division, Second Corps of the Army of the Potomac and took part in the battles of Fredericksburg, Harris Farm and Spottsylvania Courthouse, Cold Harbor, North Anne, and South Anne.

At the battle of Spottsylvania Courthouse his regiment opened the engagement and lost 500 men in killed and wounded. On May 25, 1864, Mr. Pingree and a number of his comrades, while reconnoitering, were captured by a squad of men commanded by Colonel Mosby. Mr. Pingree was confined for nearly five months at Andersonville,' and for short periods at Gordonsville, Va.; Salisbury, N. C. and Millen, Ga. At the latter place, in November, 1864, he was exchanged, rejoined his regiment in front of Petersburg, and soon after took part in the expedition to Weldon railroad, and in the battles of Fort Fisher, Boydton Road, Petersburg, Sailor's Creek, Farmville, and Appomattox Courthouse.

From the battle of the Wilderness to the fall of Richmond his regiment lost 1,283 men and thirty-eight officers.

Mr. Pingree was mustered out of service August 16, 1865 and soon afterward went into the boot and shoe business in Detroit.

As

In 1889 he was elected Mayor of Detroit on the Republican ticket, re-elected in 1891 and again elected in 1893 by a very large majority. In 1896 he was elected Governor of Michigan. governor he advocated the equal assessment of corporations and railroads for taxation purposes. He urged the municipal ownership of public utilities such as the supply of water, gas, electric lights, telephone service and street railways.

Mr. Pingree was married in 1872 to Francis A. Gilbert of Mount Pleasant, Mich. They had three children, two daughters and a son.

PRESBYTERIAN GENERAL ASSEMBLY, 1901, THE.-The one hundred and thirteenth General Assembly of the Presbyterian Church in the United States of America, held its sessions in the Calvary Presbyterian Church, Philadelphia, Pa., May 16th to May 28th, 1901. It consisted of nearly 600 Commissioners-Ministers and Ruling Elders-from 232 Presbyteries, and representing over a million communicants.

No General Assembly ever convened under more favorable auspices than this one. Without were bright skies and balmy air, within a vast assembly of devout men, and throngs of the earnest Presbyterian people of Philadelphia who

came to greet the commissioners from far and near to give them hearty welcome, and to join in the devotional services of the opening hour. The Assembly convened at 11 o'clock A. M., May 16th, and was opened with a sermon by the retiring Moderator, Rev. Chas. A. Dickey, D.D., LL.D., from Col. IV: 11.

When the Assembly was duly constituted in the afternoon, the Rev. Henry Collin Minton, D.D., of California, was chosen Moderator, and Revs. A. B. Temple, C. D. Wilson, H. G. Price, and Elder C. T. Thompson, were elected Temporary Clerks. The Moderator afterwards appointed Mr. Robert Pitcairn, one of Pittsburgh's most eminent elders, as Vice Moderator. In the evening the Assembly according to its usual custom, observed the Sacrament of the Lord's Supper. This was a solemn and tender service, and was participated in by the entire body of Commissioners.

Friday, May 17th, was wholly devoted by the Assembly to special exercises in celebration of the advent of the Twentieth Century-a very attractive program had been arranged fitly to commemorate the event. These exercises were held in the Academy of Music, the largest Assembly Hall in the city, which was thronged the entire day by crowds which tested the capacity of the building, audiences characterized by the highest intelligence and the broadest culture. Mr. John H. Converse, of Philadelphia, Ex-Vice Moderator, presided at the morning session; the chair was occupied during the afternoon by Dr. Burkhalter of Iowa, and in the evening Mr. John Wanamaker, another Ex-Vice Moderator, and far famed Philadelphia Ruling Elder, presided. The list of speakers for the day presented a brilliant array of names, well known throughout the church and country as "men of renown.' The opening paper was presented by Prof. Willis G. Craig of McCormick Seminary, Chicago-“A Review of the Nineteenth Century.' Dr. Henry C. McCook spoke of the Progress of the Presbyterian Church in the United States. Dr. George T. Purves of New York had for his theme, "Problems of the Twentieth Century.' Dr. Henry C. Minton, Moderator, spoke of "The Divine Purpose Developed in the Progress of the Times." Dr. Samuel J. Niccolls of St. Louis spoke on the "Opportunity and Duty of the Presbyterian Church in the Twentieth Century," and Dr. Chas. A. Dickey, the retiring Moderator, spoke on the Needs of the Presbyterian Church; and Mr. Robert E. Speer, Secretary of the Foreign Mission Board, made the closing address on "The World's Evangelization."

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In the evening Dr. Brownson read the report on the "Twentieth Century Fund." The committee recommended that the sum of Twenty Million Dollars be aimed at, and Dr. W. H. Roberts reported that the amount already received and subscribed, together reaches almost three and a half million, and the outlook full of promise.

On the same day, so full of precious memories and bright promise, the Assembly, with simple and impressive ceremonies, opened the Historical and Missionary Exhibit, in the Academy of Fine Arts. This event was designed to fit into the day's celebration, by presenting to the commissioners and the public, an illustration of the progress of Presbyterianism from its beginning up to the dawn of the Twentieth Century.

After the great day at the Academy on Friday,

the Assembly got down to business Saturday morning at Calvary Church. The various standing committees having been selected according to the plan known as the "Peoria overture plan,' began the preparation of the various reports which would occupy the time of the Assembly for the rest of its sittings.

The Assembly adjourned at 12 m., to accept the invitation of Provost Harrison, to visit the University of Pennsylvania. It should be remembered here that in the early history of the University the Presbyterian Church had a large interest, as she has ever had, in all schemes for the promotion of education.

On Monday morning the assembly assumed business, and gave close attention to several important reports. Greetings were received from the General Assembly of the Southern Presbyterian Church, and from the General Assembly of the United Presbyterian Church, to which suitable responses were made.

The report on the work of Missions among the Freemen, was read by Dr. Hulbert, and followed by an able address by Dr. Cowan, the efficient Secretary of the board. The receipts of this board for the past year were over $160,000. The report of Ministerial Relief was read by Dr. Mott, and Dr. B. L. Agnew, the Secretary of this board made a most eloquent plea for more ample support and sympathetic care for the veteran servants of the church who were thrown in their old age upon the arms and heart of the church. The report on Education was read by Dr. Benham, and an address was made by Dr. E. B. Hodge, the faithful Secretary of this Board. Following this came the carefully prepared report of the Special Committee on Sabbath Observance, and also the report of the Special Committee on Systematic Benevolence. Dr. Rice read the report of the Special Committee on Judicial Commissions, but its discussions was deferred until a later hour.

The two dominant interests of the church at large center in the work of Home and Foreign Missions. These are counted the Chief Boards, and rally to their support the almost solid force of the whole church-in round numbers about a million dollars are contributed to each of these causes annually by the churches, and the work of each Board is constantly widening.

Tuesday was field day for Home Missions. Both the business meeting and the popular meeting at night were full of interest. Dr. Hugh Walker of California made the report and followed it with a strong speech. Dr. C. L. Thompson, Secretary of the Board roused the Assembly with one of his ringing addresses, and Secretary Dixon and others made splendid short speeches. The work of Home Missions has had an eventful year and full of encouragement, especially in Porto Rico and Alaska. The Board of College Aid made a fine showing through the report of Dr. Ewing, and though the youngest of our agencies, has achieved an enviable place.

The report on Church Erection was presented by Rev. Geo. V. Reichel, and the summary of the year's work made a most satisfactory showing, in the matter of church construction and in the administration of the affairs of the Board.

Wednesday was devoted mainly to Foreign Missions. The report was read by Rev. Dr. Moffat, President of Washington and Jefferson Collegeone of the ablest reports presented to the Assembly-covering the wide field of our mission work in all the world, with a wise and careful review.

The popular meeting in the Academy at night will long be remembered as an eventful one. The array of foreign missionaries, who were present to tell the thrilling story of work, of suffering, and of martyrdom in foreign lands, touched all hearts. The receipts of the Board of Foreign Missions for the past year were $1,300,000—the largest in the history of the Board.

On Thursday morning began one of the most able and intense discussions possibly in the history of the church, during the progress of which not a syllable was uttered in the depreciation of our revered Standards or of the Calvinistic System. All of the speakers, on all sides of the great question voiced the loyalty of our great Church to-day, to the Confession of Faith, the changes suggested being very few indeed, and only for the purpose of emphasizing our testimony before the world. After the reading of the majority report by Dr. C. A. Dickey, the Chairman of the Committee, and the minority report by Dr. McKibbin, a motion was made to adopt the majority report, which was duly seconded. Then followed a motion to amend, by substituting the minority report for the majority report, which was also promptly seconded. Then Dr. Geo. D. Baker of Philadelphia, having obtained the floor, offered a resolution-proposing the dismissal of the whole matter, in the interest, he said, of bringing rest and peace to the Church, and also in the interest of possible union with our brethren of the Southern Church. The Moderator then stated the question, and the debate opened. Addresses were first made by Dr. Dickey, Dr. McKippin and Dr. Baker in support of the three positions respectively, and the general discussion proceeded along these lines, but chiefly for and against the resolution to dismiss, or the last amendment. The discussion continued until Friday evening at 5 o'clock, the Assembly listening with intense interest while the masters of debate presented their arguments. Then the vote was taken on the Second Amendment, viz: "to dismiss the whole matter," which was voted down by an overwhelming majority. The discussion then turned upon the comparative merits of the majority and minority reports. Upon this the battle was waged with unflagging zeal all of the forenoon of Saturday, and when the vote was taken the minority report was also defeated, but by so small a margin as to show that the sentiment of the Assembly was almost equally divided. There was a profound and widespread conviction that something should be done to secure if possible a proposition touching revision which would weld into one the sentiment of the Assembly, and on Monday morning Dr. J. D. Moffat, President of Washington and Jefferson College, who had championed the majority report, and one of the clearest and most convincing debaters in the Assembly, proposed an amendment, which proved acceptable to all parties, and brought about a most happy and harmonious solution of the question, uniting the Assembly at last on the majority report of the Committee on Revision, which, with the slight modification made by the amendment of Dr. Moffat, and with few dissenting voices was adopted amid great enthusiasm.

Thus ended the great debate-in some respects the greatest in the history of the Presbyterian Church.

The recommendations of the report, as amended and finally adopted, are as follows:

"A. We recommend that a committee as provided for by the Form of Government, Chapter XXIII, Section 3, be appointed by this Assembly.

"B. We recommend that this Committee be instructed to prepare and submit to the next General Assembly, for such disposition as may be judged to be wise, a brief statement of the Reformed Faith, expressed so far as possible in untechnical language, the purpose of the statement being to give information and a better understanding of our doctrinal beliefs, and not with a view to its being a substitute for or an alternative of our Confession of Faith.

"C. We further recommend that the Committee be instructed to prepare amendments of Chapter III, Chapter X, Section 3; Chapter XVI, Section 7; Chapter XXII, Section 3; and Chapter XXV, Section 6, of our Confession of Faith, either by modification of the Text or by declaratory statement, but so far as possible by Declaratory Statement, so as more clearly to express the mind of the Church, with additional statement concerning the love of God for all men, Missions, and the Holy Spirit, it being understood that the revision shall in no way impair the integrity of the system of doctrine set forth in our Confession, and taught in the Holy Scriptures."

The members of the former Committee on Revision are to be continued. It is expected that all will serve, except the Rev. Dr. Stephen A. Dana, who has resigned. By a resolution six persons are to be added to the fifteen of the former committee. Dr. Henry C. Minton, the Moderator, was by vote of the Assembly made a member of the committee, and its chairman. Including therefore the vacancy to be filled, Dr. Minton will have the appointment of six members of the new committee of twenty-one.

The Fifth Avenue Presbyterian Church of New York City was chosen as the place for the meeting of the next General Assembly on the third Thursday in May, 1902.

The remaining sessions of the Assembly, until the adjournment Tuesday, May 28th, were taken up with routine matters, and a few reports, discussion on which had been postponed on account of the Revision debate. The Necrological record for the past year was read by the Stated Clerk, Dr. W. H. Roberts. It showed that of 140 ministers who died, six were more than 90 years old; one was 97; 29 were more than 80; 73 more than 70.

A strong committee was appointed for the "Promotion of Evangelistic Work." A keen discussion arose on the question of the Relation of the Christian Endeavor Societies to the General Assembly.

The report on temperance was read, also that on the "Assembly Herald" and both adopted. Then came the end, with a hearty Resolution of Thanks the final Roll Call, and the Apostolic Benediction.

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society. This statement may not appear true at first sight, but as society grows more complicated and the number of processes required to create a product increases the speculator comes to be a necessary agent in regulating the fluctuations that may occur in the passage from raw material to finished product. This point may be illustrated by a brief example: A railroad manager wishes 10,000 tons of steel rails six months from date, can the steel rail manufacturer make a price so far ahead? Upon request the latter sends the railroad man a quotation for future delivery based however upon the iron broker's price for iron delivered five months from date. By this system the three parties to the transaction are assured of a satisfactory future price. The speculator who offers to deliver future goods at a certain price tends to fix the price around that point and in his purchases to meet the future delivery the present price is affected. When engaged in by men of wide knowledge who are able to carefully estimate the available goods of the present and future, speculation is a great factor in securing stability of production and distribution.

All speculation, however, is not what may be called legitimate, some of it partakes of the nature of gambling. The price secured in a gambling contract is a reflection of the true price and no service is rendered to society since there is no delivery of goods. In actual form however no real distinction exists between legitimate and illegitimate transactions. Legitimate transactions are regarded by A. T. Hadley as analogous to insurance, in that society is insured against the losses that may occur without a system of future sales and deliveries. One other distinction might be pointed out that in the case of a legitimate transaction capital is put where it is most needed, while in a gambling transaction it is diverted from the real uses of commerce.

Speculation may be divided into stock and product speculation. The organization of vast corporations has brought into the market large numbers of stocks and bonds which are offered for sale on the stock exchanges. Brokers buying and selling shares for customers find it easier to go into the market and purchase them there at the price quoted. The stocks traded in on the stock exchanges are divided into groups known as the railroad and industrial groups. The first contains the stocks of the Trunk lines, Coalers, Grangers, Pacifics, Southerns and Local Transportations. The industrial includes the Trust stocks, Sugar, Steel, Iron, Tobacco, Gas, Rubber, and Mining Shares. The bond, a form of indebtedness, is also speculated in. These are usually in $1,000 denominations and are called mortgage, equipment, land grant, collateral trust, prior lien, debentures and income bonds. The buying and selling of stocks and bonds take place for speculation, investment, and to secure a voting control of properties.

The growth, production and distribution of products was a simple process in a small community, but a great industrial society demands foresight and careful adjustment in these processes. How much of a product will be needed a year from now is carefully estimated, and men stand ready to supply the amount at a future price. This brings in speculation, in consequence of which we have exchanges engaged in the sale and purchase of wheat, lard, pork, beef, flour, coffee, tea, and other industrial products. Commission firms buy and sell products on "change" with

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the expectation of disposing of them to some middlemen.

Here

In the parlance of speculation are many terms which must be explained for the comprehension of the layman. We may begin with the members of a stock exchange who are of two classes, operators and brokers. The operator deals in stocks and shares as a buyer or seller at market prices, while the broker deals with the former and receives a commission for his work. another classification is made in that operators in the exchange are called "change operators" while those who belong to no exchange are referred to as "curb" operators. They are also divided into groups of bulls and bears the bull is one who buys in order to sell at a higher price, the bear hopes to gain by the reverse movement, selling with the expectation of buying back at a lower price. This operation brings in what is known as the option, which permits the operator to buy or not as he pleases. Three terms are used to define options, first the "straddle," which permits the acceptance or delivery of stock at a fixed price on a future day, a fixed sum being paid down for the privilege. The second, called the "put," permits the person who has paid the money to deliver or not as the price determines a specified amount of stock at a fixed date. The "call," the third form, is the reverse of the second; by it a specified amount of stock may be

claimed, at the option of the purchaser of the call, at any time on or before a future fixed date. Option money is paid at the time the bargain is made by the principal to the broker, when the option expires the person who has paid the money declares whether he buys, sells, or does neither.

In the business of grain and cotton speculation almost all the trading is in futures, which is a method of buying cash grain or cotton and selling a specified amount for future delivery in a general market. Such contracts terminate at some future month, for example in wheat there are September, December, March, May and July days of settlement. Sometimes it happens both in wheat and stock speculation that operators sell "short," in other words more than they have in hand, the expectation being the price will be lower and that they then can buy in and make a profit. "Caught short" is the term used to express the situation in which a "bear" is when he has sold more shares than he can deliver. The object of a corner is to catch the "shorts" in just such a position, compelling them to pay a high price for the stocks needed to make the delivery. When a corner is on the bears are forced to pay a premium for stock. During the Third Avenue bear panic a premium of 4 per cent. or $400 per day was paid to borrow stock.

"Money on call" is a necessary part of the speculative machinery. By the possession of

securities an operator may borrow money from a bank depositing the securities with the bank and agreeing to pay a small rate until the return of the money is demanded, which may be at any time. If he fails to do this the financial institution may sell the securities, and if insufficient to pay the loan call upon the operator for additional amounts. This scheme of "money on call" makes it possible to do business on a smaller capital by using securities as collateral. On the other hand the money deposited with a broker by a customer is called a "margin." Purchases "on margins" are made by putting one cent on each bushel of wheat, ten dollars on the par value of railroad shares and twenty dollars on the par value of industrial stocks. The broker then buys the shares in the market, advancing the difference between the margin and the price paid and charging the customer interest and brokerage upon the transaction.

With the increasing speculation the Stock Exchange Clearing-house has come into existence. Its object is to offset the contracts by one broker to deliver securities, by the contracts made by the same broker to receive securities. Through this method the necessary transfer of securities has been reduced about ninety per cent. The New York Stock Exchange has added to the stock clearing system one of a money clearing, by which the accounts of two brokers are offset. It is estimated that this system saved the drawing of checks to the amount of $400,000,000 in a month. Without this clearing-house system the business of 1898-1899 would have required on the New York Exchange checks amounting to $9,537,000,000. This is the amount of saving in check certificates alone.

The following table indicates the growth of speculation in the New York Stock Exchange which may serve as an indication of the rate of growth throughout the United States in the various Exchanges.

Number of shares traded in 1890-1900:

1890.

1891..

1892.

1893.

1894.

1895.

1896.

1897.

1898.

.1899.

regions traversed by the Burlington. The possession of this road placed the Northern Pacific in a dominating position in the northwest and relegated the Union Pacific to a second place. Kuhn, Loeb & Co., the financial representatives of the latter road recognized the necessity of protecting Union Pacific stockholders. Efforts were made to conciliate the two interests by permitting the Union Pacific to own a part of the Burlington and to divide the traffic with the Northern Pacific, but this was refused. The Union Pacific syndicate then decided it was necessary to obtain by ownership a strong representation on the board of directors of the Northern Pacific. On Friday, May 3, 1901, the Union Pacific interests held $65,000,000 of Northern Pacific stock and then asked for representation, but the owners of the Northern Pacific would not listen to a divided management and at once entered upon the purchase of sufficient stock to gain absolute control. Under the buying the price advanced and stock was sold until the two interests owned every share. The delivery of shares was forced, which placed the shorts in a very difficult position, compelling them to deliver at any cost. This brought on the panic and Northern Pacific went to 1,300. The parties to the corner were unwilling to precipitate any prolonged panic and permitted the shorts to settle at 150. The question of control cannot be finally determined until the meeting of the Board of Directors of the Northern Pacific. Nevertheless large sums of money were lost to many operators and a general slump in stock took place as can be seen by the table shown below.

A statistical review of the transactions in the stock market on May 9, shows that at low water mark of prices forty-one principal stocks had shrunk to the tremendous figures of $698,388,407. This shrinkage, however, is largely offset by the recovery of the market towards the close. Selecting some of the more prominent stocks and applying to them the low price calculation gives the following typical showing:

STOCK

56,126,365

66,045,217

85,875,092

80,977,839

49,075,032

73,000,000

Atchison..

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1900.

173.970,943 .140,350,000

Since January 1, 1901, to May 25th, the number of shares traded in has amounted to 152,294,281. On the one day of April 22 there were 2,400,000 shares bought and sold. This remarkable record has been due to the increase in the number and variety of industrial combinations and the formation of railroad alliances. To this last cause may be attributed one of the most remarkable stock panics known in the history of the United States, the recent Northern Pacific episode.

Community of interest (railroad organization) was the cause of the panic. The Northern Pacific and Great Northern railroads formed an alliance for the purpose of controlling the far eastern trade. It was necessary in the grand scheme of Mr. Hill (namely to exchange the wheat and products of the West for the merchandise of the East) to control the agricultural

Burlington
Rock Island
St. Paul...

Missouri Pacific.
Amalgamated
Copper

Canadian Pacific Delaware & Hud

son.

Union Pacific New York Central..

100,000,000 134

REFERENCES:-Clews, "Thirty Years in Wall Street"; Nelson, "A B C of Wall Street"; Dos Bassos, "Treatise on the Law of Stock Brokers and Stock Exchanges"; Bagehut, "Lombard Street"; Crump, Theory of Stock Speculation”; "Reports of New York Stock Exchange"; Emery, "Speculation on the Stock and Produce Exchanges of the United States.

FRANK L. MCVEY, Professor of Economics, University of Minnesota.

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