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Financial Markets
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Eighth Edition
 The Pearson Series in Finance
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Financial Markets
and Institutions
Eighth Edition

Frederic S. Mishkin
Graduate School of Business, Columbia University

Stanley G. Eakins
East Carolina University

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Cataloging-in-Publication Data is on file at the Library of Congress

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-342362-X

ISBN 13: 978-0-13-342362-4
To My Dad
—F. S. M.

To My Wife, Laurie
—S. G. E.
This page intentionally left blank
 Contents in Brief

Contents in Detail ix
Contents on the Web xxvii
Preface xxxi
About the Authors xxxix

part one Introduction 1

1 Why Study Financial Markets and Institutions? 1
2 Overview of the Financial System 15

part two Fundamentals of Financial Markets 36

3 What Do Interest Rates Mean and What Is Their Role in Valuation? 36
4 Why Do Interest Rates Change? 64
5 How Do Risk and Term Structure Affect Interest Rates? 87
6 Are Financial Markets Efficient? 115

part three Fundamentals of Financial Institutions 133

7 Why Do Financial Institutions Exist? 133
8 Why Do Financial Crises Occur and Why Are They So
Damaging to the Economy? 164

part four Central Banking and the Conduct of Monetary Policy 183
9 Central Banks and the Federal Reserve System 183
10 Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics 206

part five Financial Markets 250

11 The Money Markets 250
12 The Bond Market 273
13 The Stock Market 297
14 The Mortgage Markets 318
15 The Foreign Exchange Market 339
16 The International Financial System 367

part six The Financial Institutions Industry 391

17 Banking and the Management of Financial Institutions 391
18 Financial Regulation 418
19 Banking Industry: Structure and Competition 448
20 The Mutual Fund Industry 483
21 Insurance Companies and Pension Funds 508
22 Investment Banks, Security Brokers and Dealers, and Venture Capital Firms 538

vii
viii Contents in Brief

part seven The Management of Financial Institutions 562

23 Risk Management in Financial Institutions 562
24 Hedging with Financial Derivatives 583

Glossary G-1

Index
I-1

Chapters on the Web

25 Financial Crises in Emerging Market Economies W-1
26 Savings Associations and Credit Unions W-22
27 Finance Companies W-48
 Contents in Detail

Contents on the Web xxvii

Preface xxxi
About the Authors xxxix

part one Introduction

Chapter 1 Why Study Financial Markets and Institutions? 1
Preview 1
Why Study Financial Markets? 2
Debt Markets and Interest Rates 2
The Stock Market 3
The Foreign Exchange Market 5
Why Study Financial Institutions? 6
Structure of the Financial System 6
Financial Crises 6
Central Banks and the Conduct of Monetary Policy 7
The International Financial System 7
Banks and Other Financial Institutions 7
Financial Innovation 7
Managing Risk in Financial Institutions 8
Applied Managerial Perspective 8
How We Will Study Financial Markets and Institutions 9
Exploring the Web 9
Collecting and Graphing Data 10
Web Exercise 10
Concluding Remarks 12
Summary 12
Key Terms 13
Questions 13
Quantitative Problems 13
Web Exercises 14

Chapter 2 Overview of the Financial System 15

Preview 15
Function of Financial Markets 16
Structure of Financial Markets 18
Debt and Equity Markets 18
Primary and Secondary Markets 18
Exchanges and Over-the-Counter Markets 19
Money and Capital Markets 20
ix
x Contents in Detail

Internationalization of Financial Markets 20

International Bond Market, Eurobonds, and Eurocurrencies 20
Global Are U.S. Capital Markets Losing Their Edge? 21
World Stock Markets 22
Function of Financial Intermediaries: Indirect Finance 22
Transaction Costs 23
Following the Financial News  Foreign Stock Market Indexes 23
Global The Importance of Financial Intermediaries Relative to Securities
Markets: An International Comparison 24
Risk Sharing 24
Asymmetric Information: Adverse Selection and Moral Hazard 25
Economies of Scope and Conflicts of Interest 26
Types of Financial Intermediaries 27
Depository Institutions 28
Contractual Savings Institutions 29
Investment Intermediaries 29
Regulation of the Financial System 30
Increasing Information Available to Investors 30
Ensuring the Soundness of Financial Intermediaries 32
Financial Regulation Abroad 33
Summary 34
Key Terms 34
Questions 35
Web Exercises 35

part two Fundamentals of Financial Markets

Chapter 3 What Do Interest Rates Mean and What Is Their
Role in Valuation? 36
Preview 36
Measuring Interest Rates 37
Present Value 37
Four Types of Credit Market Instruments 39
Yield to Maturity 40
The Distinction Between Real and Nominal Interest Rates 46
Global Negative T-Bill Rates? It Can Happen 47
The Distinction Between Interest Rates and Returns 50
Mini-Case  With TIPS, Real Interest Rates Have Become
Observable in the United States 50
Maturity and the Volatility of Bond Returns: Interest-Rate Risk 53
Reinvestment Risk 53
Summary 54
Mini-Case  Helping Investors Select Desired Interest-Rate Risk 54
the practicing manager Calculating Duration to Measure Interest-Rate Risk 55
Calculating Duration 56
Duration and Interest-Rate Risk 59
Summary 61
Key Terms 61
 Contents in Detail xi

Questions 62
Quantitative Problems 62
Web Exercises 63

Chapter 4 Why Do Interest Rates Change? 64

Preview 64
Determinants of Asset Demand 65
Wealth 65
Expected Returns 65
Risk 66
Liquidity 68
Theory of Portfolio Choice 68
Supply and Demand in the Bond Market 68
Demand Curve 69
Supply Curve 70
Market Equilibrium 71
Supply-and-Demand Analysis 72
Changes in Equilibrium Interest Rates 72
Shifts in the Demand for Bonds 73
Shifts in the Supply of Bonds 76
case Changes in the Interest Rate Due to Expected Inflation: The Fisher Effect 78
case Changes in the Interest Rate Due to a Business Cycle Expansion 79
case Explaining Low Japanese Interest Rates 81
The Practicing Manager Profiting from Interest-Rate Forecasts 82
Following the Financial News Forecasting Interest Rates 83
Summary 84
Key Terms 84
Questions 84
Quantitative Problems 85
Web Exercises 86
Web Appendices 86

Chapter 5 How Do Risk and Term Structure Affect Interest Rates? 87

Preview 87
Risk Structure of Interest Rates 88
Default Risk 88
Liquidity 91
case The Global Financial Crisis and the Baa-Treasury Spread 91
Income Tax Considerations 92
Summary 93
case Effects of the Bush Tax Cut and the Obama Tax Increase on Bond Interest Rates 94
Term Structure of Interest Rates 95
Following the Financial News Yield Curves 96
Expectations Theory 97
Market Segmentation Theory 101
Liquidity Premium Theory 102
Evidence on the Term Structure 105
Summary 105
xii Contents in Detail

Mini-Case  The Yield Curve as a Forecasting Tool for Inflation

and the Business Cycle 107
case Interpreting Yield Curves, 1980–2013 107
The Practicing Manager Using the Term Structure to Forecast Interest Rates 108
Summary 111
Key Terms 112
Questions 112
Quantitative Problems 113
Web Exercises 114

Chapter 6 Are Financial Markets Efficient? 115

Preview 115
The Efficient Market Hypothesis 116
Rationale Behind the Hypothesis 118
Evidence on the Efficient Market Hypothesis 119
Evidence in Favor of Market Efficiency 119
Mini-Case  An Exception That Proves the Rule: Raj Rajaratnam and Galleon 120
case Should Foreign Exchange Rates Follow a Random Walk? 122
Evidence Against Market Efficiency 123
Overview of the Evidence on the Efficient Market Hypothesis 125
The Practicing Manager Practical Guide to Investing in the Stock Market 125
How Valuable Are Published Reports by Investment Advisers? 125
Mini-Case  Should You Hire an Ape as Your Investment Adviser? 126
Should You Be Skeptical of Hot Tips? 126
Do Stock Prices Always Rise When There Is Good News? 127
Efficient Markets Prescription for the Investor 127
Why the Efficient Market Hypothesis Does Not Imply That Financial Markets
Are Efficient 128
case What Do the Stock Market Crashes Tell Us About the Efficient
Market Hypothesis? 129
Behavioral Finance 129
Summary 130
Key Terms 131
Questions 131
Quantitative Problems 132
Web Exercises 132

part three Fundamentals of Financial Institutions

Chapter 7 Why Do Financial Institutions Exist? 133
Preview 133
Basic Facts About Financial Structure Throughout the World 134
Transaction Costs 137
How Transaction Costs Influence Financial Structure 137
How Financial Intermediaries Reduce Transaction Costs 137
Asymmetric Information: Adverse Selection and Moral Hazard 138
The Lemons Problem: How Adverse Selection Influences Financial Structure 139
Lemons in the Stock and Bond Markets 140
 Contents in Detail xiii

Tools to Help Solve Adverse Selection Problems 140

Mini-Case The Enron Implosion 142
How Moral Hazard Affects the Choice Between Debt and Equity Contracts 145
Moral Hazard in Equity Contracts: The Principal–Agent Problem 145
Tools to Help Solve the Principal–Agent Problem 146
How Moral Hazard Influences Financial Structure in Debt Markets 148
Tools to Help Solve Moral Hazard in Debt Contracts 148
Summary 150
CASE Financial Development and Economic Growth 152
Mini-Case Should We Kill All the Lawyers? 153
CASE Is China a Counter-Example to the Importance of Financial Development? 154
Conflicts of Interest 155
What Are Conflicts of Interest and Why Do We Care? 155
Why Do Conflicts of Interest Arise? 155
Mini-Case The Demise of Arthur Andersen 157
Mini-Case Credit Rating Agencies and the 2007–2009 Financial Crisis 158
What Has Been Done to Remedy Conflicts of Interest? 158
Mini-Case Has Sarbanes-Oxley Led to a Decline in U.S. Capital Markets? 160
Summary 160
Key Terms 161
Questions 161
Quantitative Problems 162
Web Exercises 163

Chapter 8 Why Do Financial Crises Occur and Why Are

They So Damaging to the Economy? 164
Preview 164
What Is a Financial Crisis? 165
Agency Theory and the Definition of a Financial Crisis 165
Dynamics of Financial Crises in Advanced Economies 165
Stage One: Initiation of Financial Crisis 165
Stage Two: Banking Crisis 168
Stage Three: Debt Deflation 168
CASE The Mother of All Financial Crises: The Great Depression 169
Stock Market Crash 169
Bank Panics 169
Continuing Decline in Stock Prices 170
Debt Deflation 171
International Dimensions 171
CASE The Global Financial Crisis of 2007–2009 172
Causes of the 2007–2009 Financial Crisis 172
Mini-Case Collateralized Debt Obligations (CDOs) 173
Effects of the 2007–2009 Financial Crisis 174
Inside the Fed Was the Fed to Blame for the Housing Price Bubble? 175
Global The European Sovereign Debt Crisis 178
Height of the 2007–2009 Financial Crisis 179
xiv Contents in Detail

Summary 180
Key Terms 181
Questions 181
Web Exercises 181
Web References 182

part FOUR Central Banking and the Conduct of Monetary Policy

Chapter 9 Central Banks and the Federal Reserve System 183
Preview 183
Origins of the Federal Reserve System 184
Inside the Fed The Political Genius of the Founders of the Federal
Reserve System 184
Structure of the Federal Reserve System 185
Federal Reserve Banks 186
Inside the Fed The Special Role of the Federal Reserve
Bank of New York 187
Member Banks 188
Board of Governors of the Federal Reserve System 189
Inside the Fed The Role of the Research Staff 190
Federal Open Market Committee (FOMC) 191
Why the Chair of the Board of Governors Really Runs the Show 191
Inside the Fed The FOMC Meeting 192
Inside the Fed Green, Blue, Teal, and Beige: What Do These
Colors Mean at the Fed? 193
Inside the Fed How Bernanke’s Style Differs from Greenspan’s 193
How Independent Is the Fed? 194
Should the Fed Be Independent? 196
The Case for Independence 196
The Case Against Independence 197
Central Bank Independence and Macroeconomic
Performance Throughout the World 198
Explaining Central Bank Behavior 198
Inside the Fed The Evolution of the Fed’s Communication Strategy 199
Structure and Independence of the European Central Bank 200
Differences Between the European System of Central Banks
and the Federal Reserve System 200
Governing Council 200
How Independent Is the ECB? 201
Structure and Independence of Other Foreign Central Banks 202
Bank of Canada 202
Bank of England 202
Bank of Japan 203
The Trend Toward Greater Independence 203
Summary 204
Key Terms 204
Questions 204
Web Exercises 205
 Contents in Detail xv

Chapter 10 Conduct of Monetary Policy: Tools, Goals, Strategy,

and Tactics 206
Preview 206
The Federal Reserve’s Balance Sheet 207
Liabilities 207
Assets 208
Open Market Operations 209
Discount Lending 210
The Market for Reserves and the Federal Funds Rate 210
Demand and Supply in the Market for Reserves 210
How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate 212
CASE How the Federal Reserve’s Operating Procedures Limit Fluctuations in the
Federal Funds Rate 216
Conventional Monetary Policy Tools 217
Open Market Operations 217
Discount Policy and the Lender of Last Resort 218
Inside the Fed A Day at the Trading Desk 218
Reserve Requirements 221
Interest on Reserves 221
Nonconventional Monetary Policy Tools and Quantitative Easing 221
Liquidity Provision 222
Inside the Fed Fed Lending Facilities During the Global Financial Crisis 223
Asset Purchases 224
Quantitative Easing Versus Credit Easing 224
Management of Expectations: Commitment to Future Policy Actions 226
Monetary Policy Tools of the European Central Bank 227
Open Market Operations 227
Lending to Banks 228
Reserve Requirements 228
The Price Stability Goal and the Nominal Anchor 228
The Role of a Nominal Anchor 229
The Time-Inconsistency Problem 229
Other Goals of Monetary Policy 230
High Employment and Output Stability 230
Economic Growth 231
Stability of Financial Markets 231
Interest-Rate Stability 232
Stability in Foreign Exchange Markets 232
Should Price Stability Be the Primary Goal of Monetary Policy? 232
Hierarchical vs. Dual Mandates 233
Price Stability as the Primary, Long-Run Goal of Monetary Policy 233
Inflation Targeting 234
Advantages of Inflation Targeting 234
Disadvantages of Inflation Targeting 235
Global The European Central Bank’s Monetary Policy Strategy 235
Inside the Fed Ben Bernanke and the Federal Reserve Adoption
of Inflation Targeting 236
xvi Contents in Detail

Should Central Banks Respond to Asset-Price Bubbles? Lessons from the

Global Financial Crisis 237
Two Types of Asset-Price Bubbles 238
The Debate over Whether Central Banks Should Try to Pop Bubbles 239
Tactics: Choosing the Policy Instrument 241
Criteria for Choosing the Policy Instrument 243
The practicing manager Using a Fed Watcher 244
Summary 246
Key Terms 247
Questions 247
Quantitative Problems 248
Web Exercises 249
Web Appendices 249

part five Financial Markets

Chapter 11 The Money Markets 250
Preview 250
The Money Markets Defined 251
Why Do We Need the Money Markets? 251
Money Market Cost Advantages 252
The Purpose of the Money Markets 253
Who Participates in the Money Markets? 254
U.S. Treasury Department 255
Federal Reserve System 255
Commercial Banks 255
Businesses 255
Investment and Securities Firms 255
Individuals 256
Money Market Instruments 256
Treasury Bills 256
Case Discounting the Price of Treasury Securities to Pay the Interest 257
Mini-Case Treasury Bill Auctions Go Haywire 260
Federal Funds 260
Repurchase Agreements 261
Negotiable Certificates of Deposit 263
Commercial Paper 263
Banker’s Acceptances 267
Eurodollars 267
Global Ironic Birth of the Eurodollar Market 268
Comparing Money Market Securities 268
Interest Rates 268
Liquidity 269
How Money Market Securities Are Valued 270
Summary 271
Key Terms 271
Questions 271
 Contents in Detail xvii

Quantitative Problems 271

Web Exercises 272

Chapter 12 The Bond Market 273

Preview 273
Purpose of the Capital Market 274
Capital Market Participants 274
Capital Market Trading 275
Types of Bonds 275
Treasury Notes and Bonds 275
Treasury Bond Interest Rates 276
Treasury Inflation-Protected Securities (TIPS) 278
Treasury STRIPS 278
Agency Bonds 278
CASE The 2007–2009 Financial Crisis and the Bailout of Fannie
Mae and Freddie Mac 279
Municipal Bonds 280
Risk in the Municipal Bond Market 281
Corporate Bonds 282
Characteristics of Corporate Bonds 283
Types of Corporate Bonds 285
Financial Guarantees for Bonds 287
Current Yield Calculation 288
Current Yield 288
Finding the Value of Coupon Bonds 290
Finding the Price of Semiannual Bonds 290
Investing in Bonds 293
Summary 294
Key Terms 294
Questions 294
Quantitative Problems 295
Web Exercises 296

Chapter 13 The Stock Market 297

Preview 297
Investing in Stocks 298
Common Stock vs. Preferred Stock 298
How Stocks Are Sold 299
Computing the Price of Common Stock 302
The One-Period Valuation Model 303
The Generalized Dividend Valuation Model 304
The Gordon Growth Model 304
Price Earnings Valuation Method 306
How the Market Sets Security Prices 307
Errors in Valuation 308
Problems with Estimating Growth 308
Problems with Estimating Risk 309
xviii Contents in Detail

Problems with Forecasting Dividends 309

Case The 2007–2009 Financial Crisis and the Stock Market 310
Case The September 11 Terrorist Attack, the Enron Scandal, and the Stock Market 310
Stock Market Indexes 311
Mini-Case History of the Dow Jones Industrial Average 311
Buying Foreign Stocks 314
Regulation of the Stock Market 314
The Securities and Exchange Commission 314
Summary 315
Key Terms 316
Questions 316
Quantitative Problems 316
Web Exercises 317

Chapter 14 The Mortgage Markets 318

Preview 318
What Are Mortgages? 319
Characteristics of the Residential Mortgage 320
Mortgage Interest Rates 320
Case The Discount Point Decision 321
Loan Terms 322
Mortgage Loan Amortization 324
Types of Mortgage Loans 325
Insured and Conventional Mortgages 325
Fixed- and Adjustable-Rate Mortgages 325
Other Types of Mortgages 326
Mortgage-Lending Institutions 327
Loan Servicing 328
E-Finance Borrowers Shop the Web for Mortgages 330
Secondary Mortgage Market 330
Securitization of Mortgages 331
What Is a Mortgage-Backed Security? 331
Types of Pass-Through Securities 332
Subprime Mortgages and CDOs 333
The Real Estate Bubble 334
Summary 335
Key Terms 336
Questions 336
Quantitative Problems 336
Web Exercises 338

Chapter 15 The Foreign Exchange Market 339

Preview 339
Foreign Exchange Market 340
What Are Foreign Exchange Rates? 341
Why Are Exchange Rates Important? 341
How Is Foreign Exchange Traded? 342
 Contents in Detail xix

Exchange Rates in the Long Run 342

Following the Financial News Foreign Exchange Rates 342
Law of One Price 343
Theory of Purchasing Power Parity 343
Why the Theory of Purchasing Power Parity Cannot Fully Explain Exchange Rates 345
Factors That Affect Exchange Rates in the Long Run 345
Exchange Rates in the Short Run: A Supply and Demand Analysis 347
Supply Curve for Domestic Assets 347
Demand Curve for Domestic Assets 348
Equilibrium in the Foreign Exchange Market 349
Explaining Changes in Exchange Rates 349
Shifts in the Demand for Domestic Assets 349
Recap: Factors That Change the Exchange Rate 352
Case  Effects of Changes in Interest Rates on the Equilibrium Exchange Rate 354
Case  Why Are Exchange Rates So Volatile? 356
Case  The Dollar and Interest Rates 356
Case  The Global Financial Crisis and the Dollar 358
The practicing manager Profiting from Foreign Exchange Forecasts 359
Summary 360
Key Terms 360
Questions 360
Quantitative Problems 361
Web Exercises 362

Chapter 15 Appendix The Interest Parity Condition 363

Comparing Expected Returns on Domestic and Foreign Assets 363
Interest Parity Condition 365

Chapter 16 The International Financial System 367

Preview 367
Intervention in the Foreign Exchange Market 368
Foreign Exchange Intervention and the Money Supply 368
Inside the Fed A Day at the Federal Reserve Bank of New York’s
Foreign Exchange Desk 369
Unsterilized Intervention 370
Sterilized Intervention 371
Balance of Payments 372
Global Why the Large U.S. Current Account Deficit Worries Economists 374
Exchange Rate Regimes in the International Financial System 374
Fixed Exchange Rate Regimes 374
How a Fixed Exchange Rate Regime Works 375
The Policy Trilemma 377
Monetary Unions 377
Mini-Case Will the Euro Survive? 378
Currency Boards and Dollarization 379
Global Argentina’s Currency Board 379
Speculative Attacks 380
Managed Float 380
Another random document with
no related content on Scribd:
 CHAPTER VII ⬩ DUTIES OF
SERVANTS ❧ ❧ ❧

York Harbor, September 30.

My dear Penelope:
Since my last letter to you Eloise has begged me to write out the
duties of three servants,—chambermaid, waitress and cook,—for a
very inexperienced friend of hers, Hope Conroy, who is well off and
expects to begin housekeeping soon; so you see what trouble my
letters to you have brought on me! It occurred to me that you might
like to have these notes for future reference when Tom has reached
that pinnacle of success which we all predict for him, so I am
enclosing a copy of them in this letter. You don’t need them now, but
why not tie all my letters on this subject together and make a book
to keep, for easy reference, in a convenient place,—that top bureau
drawer, for instance?
You remember meeting Hope Conroy, I am sure, when you were
visiting us last year, and have probably heard that she is to be
married next month. It has made Eloise, who is practical, and who
simply adores her, quite unhappy that Hope seems to think it so
amusing that she knows nothing about housekeeping. With all
Eloise’s brothers she has had a chance to understand men pretty
well, and she thinks, with me, that there would be fewer divorces if
young girls only knew how much a man cares for his comfort. So, in
view of this, I felt I must yield to Eloise’s request despite the amount
of writing it entailed at a time when I was quite busy with other
things. I think I have just barely alluded, in some of my letters to
you, to my method of recording the servants’ duties, but I know I
haven’t explained it at all so I will now give you just what I wrote to
Hope without any further comment:
Extract from my letter to Hope on the duties of three
servants

It was after I had been married for several years and had become weary of
recalling afresh for each new servant the details of her work in order to train her
into my ways of doing it, that I decided to write a small blank book for each one of
them, containing her daily duties, her weekly duties, the arrangement for her
Sundays and her afternoons out—something that I could keep permanently and
thus save myself much trouble. If you dislike detail as much as I do these books
will help you too. When the servants first came I read them to each one letting
each keep her own while she was with me and taking the precaution to have a
copy of them all in my housekeeping book in case any misunderstanding should
arise.
Realizing that much of the general duties must be different in every household,
according to the number of the family and the number and arrangement of rooms,
and whether they live in an apartment house or not, I shall only attempt to give
you an idea of how these books were written, just enough to help you make out
your own books to suit the requirements of your family. This is the reason I
describe the general duties only in a general way, and the daily duties (where the
manner of doing the work is practically always the same) I describe in detail,
addressing the maids directly as I did in the books which I made for my own
servants. Although the instructions to the maids are in some cases identical, yet,
in order to make them clear, I repeat them in each case, even though it seems
unnecessary. It would be my advice to you in making your book to arrange the
daily duties of the servants so as to insure the early starting of the household. For
instance, let the chambermaid wake you on her way downstairs at a specified
hour, and, at the same time, let the waitress come to get the silver. If you have a
safe for your silver, you could leave out just enough for your breakfast and have it
brought to your room at night so that she would stop and get it in the morning.
It is also a good plan to let the servants have their breakfast before the family
except in the case of a maid of all work, when this is almost impossible to arrange.
Then, about their Sundays, I think that church can’t do us much good if we
don’t give the servants an opportunity to go, too, if they want to, or if we make it
a hard day for them. Though it requires special arrangement, their Sundays should
be made a day to look forward to with pleasure when each one can be sure of
getting out, at some part of the day, to church, or to see her friends. The Sunday
morning that the cook goes out, the lunch should be one that can be quickly
cooked or her outing would be too short. In the case of the waitress and
chambermaid, if, on their Sunday morning out, they waited to finish their work,
they would get out so late, in most places, that it wouldn’t be worth while to go at
all. This explains why, in the plan that I shall give you, it is arranged that, on their
Sunday mornings out, the chambermaid and waitress stop whatever work they are
doing promptly at 10 A.M., and get ready to go out, the one who is in taking the
work up where the other one has left it and finishing it in addition to her own. You
will also see that, with the following plan, you can take your choice of having late
dinner every other Sunday (when the cook is at home) or every Sunday if your
waitress is sufficiently expert and your cook prepares some of the dinner dishes
before going out. Sometimes it is the chambermaid and sometimes the waitress
that can cook best and likes the afternoon all to herself. It doesn’t matter which
you choose for that duty; you simply use tact in this as in all your housekeeping.
As for giving them any freedom in the evenings I think you will find it a good
plan to let the chambermaid and waitress alternate in going out, provided their
services are not required; this insures one always being in the house so that the
cook never has to go to the door. It is rather an understood thing that the cook
can go out any evening after her regular work is done, of course, if her services
are not required.
With regard to the cook’s weekly duties I have never found that they could be
laid down as definitely as those of the other servants on account of dinners and
lunches coming in, when all her time has to be devoted to the cooking. Therefore
the washing and ironing (if it is done in the house), the weekly cleaning of the
kitchen, the hall steps, etc., semiweekly cleaning of refrigerator and keeping the
shelves and closets clean, all have to be fitted in when she can manage them. On
this very account the mistress, in her morning visits to the kitchen, should look
around carefully to be sure that nothing is neglected, for everything about a
kitchen should be very clean if you want it to be sanitary.
Description of the chambermaid’s book—Her general
work
Under this head was told, in paragraphs, thus dividing the subjects so that they
could be more easily seen and understood, what rooms, halls, stairs, etc., she had
charge of, whether she made up the rooms of the other servants, washed her own
clothes, bed-linen, etc., or had any of the duties of a lady’s maid, such as
mending, brushing, and taking out or putting away her master’s and mistress’s
clothes, or washing their brushes and combs (which she can do if the family is
small), or polishing her mistress’s boots. As to her neatness,—what she was
expected to wear, and what her mistress provided her with, and about asking her
mistress for anything needed in order to do her work well. The same instructions
were given her about waiting on the door that were given the waitress, telling her
that when workmen, inspectors, and such people had any work to do in her part
of the house, she should accompany them around wherever they went.
Doing her work quietly and noiselessly was emphasized, especially the opening
and shutting of blinds, windows, and doors, and just how a window should be
opened top and bottom when airing a room, so that the hot air could go out above
and the fresh cold air come in below, thus insuring good ventilation. It was
impressed upon her that the doors of a room should be shut while the windows
were open so as not to chill the rest of the house.
Her duty with regard to trays was described,—that when any member of the
family was unable to come down to a meal she would be expected to take the tray
up so that the meal of the family would not be disturbed by the waitress leaving
the table to do this; also that she would prepare and bring up breakfast trays
where needed and that she should always hand anything on a tray, even if it were
only a paper of pins. Her duty on the arrival of guests was explained: that she
should be ready to carry their bags upstairs, but that she should not unpack their
bags without asking if it was desired. It was made clearly understood that, when
her mistress had guests to dinner, she was to assist in the pantry, and when there
were many, she was to help in the dining-room and also to help departing guests
on with their wraps when they left the house. That she was to do the duties of the
waitress when the waitress was out was explained to her, so that she would
perform them without awkwardness.
 Her daily work
Be up early, throw mattress and bedclothes over the foot of your bed to air.
After dressing, open windows top and bottom in your room, put pillows near
window to air, closing the door of your room and always of any room you are
airing (if the family is up) so as not to chill the rest of the house.
On your way downstairs open the windows in your halls top and bottom to air. If
desired, wake your mistress at the time specified. Have your own breakfast.
If none of the family rooms are vacated when you have finished your breakfast,
brush down the stairs and do up your own room; otherwise put all the family
rooms to air, ending with guest room so that you can go right on with that room
and finish it first.
When beginning a room draw back the curtains, pull the shades up to the top,
open the windows top and bottom. Open closet doors and keep them open while
room airs so that they won’t get stuffy.
Shake pillows and put them near the window, but so they won’t show from the
street.
Put two chairs at foot of bed, draw blankets and sheets over them, turn the
mattress over the foot of the bed so that the air can go over and under it.
Put soiled clothing in bag or basket provided for it.
Hang or fold and put away clothing or dresses.
If there has been a coal fire remove ashes, make fire up ready to light, wipe
hearth; if a wood fire, leave the ashes.
Empty slops, if there is a wash-basin in the room, clean bathroom, washing tub
and basin with hot water and soap or a cleanser, such as Dutch Cleanser, and dry
them with a soft cloth.
Wash out soap-dish and other crockery and always see that there is soap in the
dish. Wash bowl of w.c. with a stiff brush that comes for the purpose.
Dust chair and woodwork and see that there are no spots on the mirror. Remove
soiled towels putting clean ones in their place. Take great care not to let anything
go down the pipes that would clog them.
The bed having now had a chance to air, turn mattress over and make up bed.
 If there are any scraps on the carpet, brush them up with dust pan and brush or
carpet sweeper.
Dust furniture.
Empty scrap basket and put contents in bag to carry downstairs.
Shut windows, draw shades down half-way, and arrange curtains to hang
smooth; then go to next room.
After the bedrooms are finished, begin the special weekly morning work for that
day, sweeping rooms or cleaning bedrooms, silver, or brasses, or whatever it may
be.
After the morning work is over, make yourself neat and be ready to assist at
lunch table, if there are guests, or to go to the front door while waitress is serving
lunch or dressing for the afternoon or is out or serving dinner.
In arranging the rooms for the night, first close the blinds, if desired, then draw
down the shades, put soiled clothes in hamper, hanging up clothing in closets,
putting back in its place anything that has been disarranged and leaving the room
in order.
If there is a washstand in the room, remove waste water and fill pitchers.
If night pillows are used, remove day pillows and shams; if same pillows as day,
take off shams, fold them carefully in their creases, and lay them where they will
not get tumbled.
Remove bedspread, fold smooth. Open bed-clothing, turning down the corner
on one side, for one person or on both sides for two.
Lay night-clothes neatly folded on the turned-down corner, placing wrapper at
the foot with slippers by it.
If there is company be ready to assist the waitress.
The weekly duties in detail, such as the thorough cleaning of each room,
bathroom, halls, bedrooms, silver and brasses, also the Sunday arrangements and
afternoons and evenings out, should appear here at the end of the chambermaid’s
book, but I cannot put it in for you, as it varies in different households and
localities.
Description of the waitress’s book—Her general work
Under this head she was told what rooms, halls, stairs, etc., she had charge of
(so that there could be no discussion between the maids); also, if the vestibule
was under her charge, she was reminded that, as the entrance is the first
impression people get of a house, nothing will make them think the waitress
incompetent so quickly as an untidy vestibule and front hall, and that every
morning the doormat should be shaken, the floor brushed clean, and the
woodwork dusted; also the brasses rubbed up if they have become dull in
between the weekly cleanings. It was made clear to her whether she made up her
own room, washed her own clothes and bed-linen or aprons, or had any part in
the family washing and ironing. Neatness in her work and person was spoken of—
wearing checked gingham apron over her white one when doing such work as
cleaning brasses and silver, so that if she had to go to the front door or answer
any bell, she could slip it off easily and appear properly dressed with clean white
apron; how necessary it was to have clean hands when waiting on the table and
handling food; also about what she was expected to wear and what her mistress
provided for her, and about asking her mistress for anything that she needed to do
her work well.
Doing her work noiselessly was emphasized, especially opening and shutting
blinds, windows, and doors, and how the windows should be opened top and
bottom when airing to insure good ventilation, and that the door of the room
should be kept closed during this airing in order not to chill the rest of the house.
She was reminded that the dining-room needed more airing than any other room
and should be aired a few moments after every meal, and also that the crumbs
under the table should be brushed up after each meal.
The use of a tray was explained to her: that only small articles should be
handed and removed on a tray when waiting on the table, and that at other times
she should always hand things on a tray, if it were only a paper of pins. That
promptness was necessary in answering bells, especially the front doorbell,
cautioning her as to whom she should let in and who should wait outside the door,
and that when any workmen, inspectors, and such people had any work to do in
the house she should accompany them around wherever they go in her part of the
house, and if they should go to other parts of the house call the chambermaid or
cook to accompany them; also that she should not allow anything to be taken out
of the house unless she had been told to do so by some member of the family.
It was impressed on her that she must find out, before going to the door,
whether her mistress was in or out, so as never to keep any one waiting, and that
she should open the door wide to let visitors in and then stand back to allow them
to precede her, carrying a tray to the door for the cards, and, if they have no
cards, offering a pencil and pad, which should always be kept in the front hall, for
name or message.
It was also impressed upon her that when waiting on the table she should not
speak unless spoken to, except when having a message to deliver; and in case of
an accident, such as dropping a knife, fork, or plate, she should pick it up and take
it into the pantry, immediately replacing it with a fresh one. She was directed,
should anything be dropped on the carpet to wipe it up at once, or if water or
wine should be spilled on tablecloth, to dry it without a word, covering the spot
with a fresh napkin. She was told that in case of a wine or fruit stain on tablecloth
or napkins she should draw the spot tightly over a bowl, as soon after the meal as
possible, while the stain was fresh, and pour boiling water through it and thus
remove the stain at once, and that the water must be really boiling, as hot water
would only set the stain. She was also told how particular she should be when
setting the table not to get finger marks on china, silver, or glass, and that if she
should see holes in tablecloth or napkins she should call her mistress’s attention to
it before letting them go to the wash; that when the table was set she should see
that no drawers or doors of sideboard or china closet were left open, to look
disorderly, and also that it was her duty to see that the carving-knife was sharp
and that plates used for a hot course should be warm, and for a cold course, cold.
Leaving her pantry in nice order after every meal was mentioned, and that she
should not let soiled towels collect there, but every day wash out the towels, dish
cloths, and mop and hang them up to dry, once a week thoroughly washing,
scalding, and ironing them, always keeping fresh ones on hand to take the place
of soiled ones.
The importance of letting the chambermaid know when she went upstairs to get
dressed for the afternoon or to go out, and also of telling her at the same time
what message was to be given at the door, so as not to keep any one waiting, was
impressed on her.
She was told that she should rise when spoken to by any of the family or
guests; also it was explained to her that she was to do the duties of the
chambermaid when the chambermaid was out.
 Her daily work
Be up early, throw mattress and bedclothes over the foot of your bed to air.
After dressing, open windows top and bottom in your room, put pillows near
window to air, closing the door of your room and always of any room you are
airing (if the family is up), so as not to chill the rest of the house.
On your way downstairs open windows top and bottom in the part of the house
which is in your charge, closing them after your breakfast in time for the dining-
room to get warm for the family breakfast.
Your breakfast being over, set the family breakfast table, and if there is not time
for dusting before their breakfast, quickly put back into place anything that has
been put out of order the night before and make the room look comfortable.
If there has been a fire the night before, lay a fresh one ready to light and
brush up the hearth.
Set the breakfast table, announce breakfast at the specified hour, and serve it.
When breakfast is over, wash all breakfast things and leave the pantry in perfect
order.
Then begin the care of the rooms under your charge.
Pick up any scraps on carpet with carpet sweeper and go over the wooden floor
with a dustless mop.
Dust window sills and all pieces of furniture, using two dust cloths, one to hold
the furniture so that your hand will not leave a mark on it, and the other to dust
with.
Empty scrap baskets and take contents downstairs.
If there are lamps, trim and clean them, wiping carefully the outside of the lamp
and burner with damp cloth so that no oil will be left to make it smell.
Brush down stairs, holding dustpan under each step and wiping woodwork
carefully.
Then begin the special morning work for that day, such as cleaning parlor,
dining-room and pantry, silver, halls and library, or brasses.
This work should be accomplished in plenty of time to set the lunch table
without hurry.
 Announce lunch at the usual hour, and after it has been served and you have
had your own and washed the lunch things, dress yourself for the afternoon in a
neat black dress with fresh white apron and plain linen collar and be ready at
three-thirty to wait on the door.
If you haven’t had a chance before this, polish the steel knives with knife polish
and board that comes for the purpose so that they will be bright for dinner.
Be ready to serve tea promptly in the afternoon if desired by your mistress.
As it gets dark, draw down the shades, light the regular lights that your mistress
has specified, and set the table for dinner in time to do it nicely, announcing it at
the appointed hour, waiting on it, and then taking your own dinner. After your
dinner, remove whatever is left on the table; take off, fold up, and put away
tablecloth; wash the dishes, and leave pantry in nice order.
If there are no guests, take in the doormat, close and lock front door and any
windows desired by your mistress, at the hour appointed by her.
Miscellaneous notes for the waitress Washing dishes,
etc.
In washing the dishes, always do the cleanest things first, in this order; glass,
silver; then cups and saucers, plates, and other dishes. Empty every glass and
cup, and scrape clean every plate or dish (with a plate scraper, that comes with a
rubber edge and is consequently noiseless), before putting them in the water.
Don’t let pitchers or glasses stand with milk in them, but rinse them at once
before putting them in the water so that it will be easy to wash them. Don’t put
many things into the water at a time or different kinds of things, such as teapot,
sauce boat, and dinner plates; for the water will cool too quickly when so full and
the plates will get chipped and spouts broken. Change the water frequently. When
washing the silver, always include trays in daily use even if they do not seem
soiled. Use plenty of fresh very hot suds, and, after washing the silver well, put it
on the drainer and pour boiling hot water over it. This heat will almost dry it, then
rub quickly with clean dish-cloth and put all the pieces at once where they belong
before they can get spattered; setting them down with a dish towel to prevent
finger marks. This will keep the silver so bright that the weekly cleaning is a much
easier matter. The china should be rinsed just as you have the silver, only not
using such very hot water. Remember that silver and brasses cannot be made
bright by slow rubbing, but that you must rub them briskly.
 Care of the dining-table
If the dining-table has a high polish, be careful always to put a tile or tray or a
linen mat lined with asbestos under anything that is hot, otherwise a bad spot will
be made. If the table has an oil finish heat will not injure it and a damp cloth will
remove any spot. Two or three times a week such a dining-table should be rubbed
over well with a soft cloth on which two or three drops of boiled linseed oil have
been put. Too much oil will only make the table sticky and in condition to catch
dust. But just a very little, rubbed in well, will, in time, give it a high polish of
which you will be proud. These oiled rags are very dangerous to keep in the
house, as they catch fire of themselves without any flame coming near them.
Either keep them hanging on a clothes-line in the yard or else indoors in a metal
box.

The weekly duties in detail, such as the thorough cleaning of dining-room,

parlor, pantry, halls, silver, brasses, etc., and the Sunday arrangements and
afternoons and evenings out, should appear here at the end of the waitress’s
book, but, as I said before, I cannot put it in for you because that is something
you have to arrange for yourself.
 Description of the cook’s book
Her general work
Under this head the cook was told definitely just what rooms, closets, halls,
steps, etc., she was expected to clean; whether she was expected to put any coal
on the furnace or look after its drafts between the visits of the furnace man;
whether she had any washing and ironing to do; how careful she should be to
scrub out every part of the refrigerator once or twice a week with soda and hot
water, household ammonia, or some such thing, airing it well afterwards and
taking the opportunity before a fresh piece of ice was put in thoroughly to clean
out the ice compartment; also the drain pipe for that compartment with a brush
that comes especially for this; also that she should be careful to empty the pan
under the refrigerator frequently to prevent its overflowing and rotting the floor;
that the milk and butter should be kept in a compartment by themselves, and no
food with strong odor, such as pineapples or melons, be put in the refrigerator
with it as their flavor would be absorbed by the milk and butter which would taste
bad in consequence; also that no hot food or articles wrapped in paper should be
put into the refrigerator. She was cautioned not to let any scraps get into the sink
pipes, but to scrape clean all plates, pots, or dishes after each meal, into a strainer
kept for the purpose in the corner of the sink and frequently emptied into the
garbage, and that once a week she should wash down the pipes with boiling water
and lye. She was reminded that the kitchen towels should be washed in hot suds
every day and thoroughly boiled once a week; that the pudding-bags or any
straining-cloths should be washed after each using and put away dry and clean.
It was especially impressed upon her to keep the dumb waiter shut and any
door that would allow the kitchen odors to get into the house.
The signals to the waitress during the serving of the meals were explained to
her (for instance, one bell for taking course off the range, two bells to send to
pantry) to prevent delay between courses; also she was told that hot food should
be served on a warm platter and cold food on a cold one. In order to serve the
meals promptly on time, she was reminded to see every day whether her clock
agreed with her master’s. The fact that the ovens would not bake well unless the
flues of the range were cleared at least once a week of all ashes, and that this
should be done in the morning before the range fire was hot, was explained to
her; also that when a hot fire was not needed for immediate use the dampers and
drafts should be closed to prevent waste of coal and kindlings. She was cautioned
not to waste anything, but to lay aside all left-over food for her mistress to see
and decide about; also not to use the nice china when putting food away in the
refrigerator, for fear it might get broken. The importance of being neat and clean
both in her cooking and person, washing her hands before handling food, and
wearing neat cotton aprons and dresses was emphasized. She was told that no
visitors should be allowed in the kitchen during meals and that she should not let
workmen, etc., go into the house except by permission of her mistress and
accompanied by one of the other maids whom she should notify; also that the
responsibility of keeping the outside kitchen door and gate locked was hers as well
as the locking-up of her department at night.
 Her daily work
On getting up, throw mattress and bedclothes over the foot of your bed to air.
After dressing, open windows top and bottom in your room, putting pillows near
window to air and closing the door of your room so as not to chill the house.
Have the range fire going in time to have plenty of hot water for the family
baths.
The range fire burning brightly, prepare the maids’ breakfast (if that comes first)
and put the family cereal on to cook during your meal and anything else that
requires long cooking.
Cook the family breakfast.
After both breakfasts are over, put the kitchen in order and be ready to take
your mistress’s orders for the day, going with her to the ice-chest and showing her
the left-overs there and in the wire safe.
When your mistress comes into the kitchen, rise and remain standing while she
is there.
When her visit is over, make your first duty the preparing and serving of food
well and on time, the other duties being fitted in between, till the last meal is over
and the time has come to arrange the kitchen for the night, when you should put
away all food in the refrigerator or wire safe, wipe the tables off, brush up the
hearth, and leave nothing to attract mice or water-bugs or near enough the stove
to catch fire.
If the range fire is made new every day, place kindlings, coal, and paper in a
convenient place ready for use before going to bed, to avoid delay in the morning,
and before leaving the kitchen see that all windows, doors, and gates in your
department are securely locked.
 Miscellaneous notes for cook—Making the range fire
if it is never allowed to go out
About half an hour before leaving the kitchen for the night, put coal on, open
the drafts, and, when the fire is hot, fill up well with coal, then check the drafts
and leave them checked so that the fire will smoulder all night. In the morning,
open the drafts, shake down the grate, put on a little kindling and fresh coal, and
the fire will burn brightly in a short time.
 Making the range fire if started fresh every morning
Shake the ashes out thoroughly, picking out pieces of coal only partly burned to
be used again and putting ashes in ash can to be taken away. Put loose rolls of
paper in, then kindlings laid crosswise and far enough apart for a draft of air to go
through freely, then light the papers, turning the dampers to make a draft. When
the kindlings are burning well, put the coal on in small quantities at first, adding
more when this is well started.
Before starting the first fire after the house has been closed, burn newspapers
in the range to warm the chimney and thus prevent its smoking by starting an
upward draft.
Sunday arrangements, also afternoons and evenings out in detail, should come
here.
 Suggestion for Arrangement of Servants’ Sundays
First Sunday—Morning
Cook is in, gets lunch and prepares as much of the dinner as she can.
Waitress is out from 10 A.M. till time to wash lunch dishes.
Chambermaid is in and in addition to her own work does any of the waitress’s
work that is left unfinished after 10 A.M. and serves lunch.
Afternoon
Cook is out, after she has washed up lunch things, till 11 P.M.

Waitress is in, prepares and serves dinner.

Chambermaid is out, after she has served lunch, till 11 P.M.

Second Sunday—Morning
Cook is out, after washing up breakfast things, till time to cook lunch.
Waitress is in, and in addition to her own work, does any chamberwork left
unfinished after 10 A.M.
Chambermaid is out after 10 A.M. till her lunch time.

Afternoon
Cook is in. Cooks dinner.
Waitress is out, after she has washed lunch dishes, till 11 P.M.

Chambermaid is in and serves dinner.

The third Sunday is like the first.
The fourth Sunday is like the second.
And so it goes on in twos, each servant having every other Sunday morning out
and every other Sunday afternoon and evening out.

Well, Penelope dear, I had almost forgotten I was writing to you,

these extracts from my letter to Hope have become so voluminous!
It is fortunate that they need no comment, for I could not write
another line, since it is the middle of the night and I am perfectly
exhausted and disgracefully sleepy.
Very affectionately your devoted friend,
Jane Prince.
 CHAPTER VIII ⬩ BEHIND THE
SCENES AT A DINNER ❧

York Harbor, October 15.

Penelope Pennington!
What is this that you tell me! You are to have charge of a formal
dinner for your Aunt Sally! How perfectly dear it is of her to give one
to Mr. and Mrs. Winslow in appreciation of Tom’s promotion. I have
been to many of your aunt’s dinners in the past and know how
smoothly she will want everything to go, so I am not surprised at
your excitement at the thought of making all the arrangements for
her, and I am very glad that she feels strong enough to be present
herself. I understand from your letter that you do not wish for a
menu, as you want to choose that yourself, or for any directions
about wines, as you can find all that in cookery books, but you do
want to know about preparations “behind the scenes,” as it were, to
make everything go like clockwork. First, foremost, and last I am
evidently to drop everything and write you at once! Do you realize,
dear child, that I am off, in a few days, on that motor trip through
the Berkshires about which I wrote you? But since it is for you, I will
stop my preparations for a little and write this if it takes me all night!
To set a household like your aunt’s going for such an affair, after it
has been shut off from social life for so long, is almost like starting
with untrained servants, so I shall give you directions in minute
detail. Since you can’t tell yet whether it is to be a dinner of eight or
twelve, I will write a description for one of eight complete and then
describe in general terms the difference between the two.
 It will be delightful to engineer the dinner without a moment’s
worry about expense, knowing that your aunt is so perfectly well
able to afford it. People who make such attempts when they cannot
afford it deserve all the worry that they suffer. Others always know
that they are attempting something beyond their means and they
lose, in a measure, the respect of the very people whom they have
tried to impress. About the only difference from one’s everyday
dinner is that nothing is served on the table and the courses are
more in number, and it is well to impress this on the minds of your
aunt’s servants. Don’t let the thought of a dinner mean only hard
work to them, but let them feel sure of having plenty of ice-cream,
cake, candy, etc., afterwards, so that there can be a festive feeling
downstairs as well as up. There is a good deal of extra work, and
also late hours, in connection with a dinner of this kind and the
servants deserve some encouragement and reward.
Several days before the dinner make out the menu from the
dishes that the cook makes the best, not attempting anything new.
Give her confidence by consulting her a little, and also encourage
her by praising the way she cooks these special dishes, at the same
time cautioning her on the necessity of great care on such an
occasion and of keeping her reputation up. See that she has the
proper kitchen utensils needed in good order for use. Then go over
each dish in a good receipt book putting down on a writing-pad
exactly what is needed for each course, how much milk, butter,
eggs, cream, seasoning, vegetables, meat, etc.
Your menu having been decided upon with the cook, then go over,
with the waitress, the china, glass, silver, etc., to see if there are
eight of everything unbroken for each course. Jot down on a
memorandum what broken pieces, if any, have to be replaced. Go
over the silver and decide how you will use that. Don’t make a great
undertaking of this, but do it quickly. It won’t take long. Decide, at
this time, what flowers you will have and what color scheme, and
see if the candle shades are in good order and that there are
enough candles. Once having done all this, should your aunt want
you to take charge of a dinner for her again, the waitress, if she is
reliable, can do this part herself and report to you if anything is
needed. See that the broken china and glass are replaced several
days before the dinner.
Now that you have decided on the menu, and what china, glass,
silver, and candle shades you intend using, you can write out the
directions for the waitress for serving the dinner, putting opposite
each course what plates and platters you want used for that course
and have these directions ready to pin up in the pantry. I cannot say
too much about getting everything off your mind that you can the
day before the dinner. On this day, in order to keep the cook calm,
see for yourself that all the necessary articles, except very perishable
ones, are in the house, and have her prepare the clear soup and
anything else that she can on that day. Take this time to tell her (or
to show her pictures from cookery books) how you like to have the
dishes decorated, and also remind her that one signal (or bell) from
the pantry means to dish up and keep a course hot, and two signals
(or bells) to send it up to the pantry, and caution her how a few
minutes’ delay in the kitchen seems a long time in the dining-room,
so she has to be quick. Write out the menu very clearly for her and
pin it up in the kitchen, and then decide on the platters and dishes
to be used. In fact, have all your conversation with her about the
dinner the day before. Write the place cards. (Plain blank cards are
dignified and answer the purpose just as well as fancy, elaborate
ones which are expensive, and the money saved can go toward
pretty flowers that will really add to the beauty of the table and the
pleasure of the guests.) Find out the day before the dinner just how
your aunt wishes the guests to be seated and write this down, so
that it will only take a moment when the table is set to put the cards
at their proper places. (Of course Mr. and Mrs. Winslow being the
guests of honor, Tom will take in Mrs. Winslow, who will sit at his
right, and Mr. Winslow will take your aunt in and sit at her right.) At
the same time address the little envelopes that come for the
purpose, one for each man guest, and slip into them the card with
the name of the lady he is to take in to dinner. Keep all these things
in a sideboard drawer to be on hand when you want them.
 In the case of this first formal dinner with your aunt’s present
servants, you will have to be on the spot most of the morning if you
want to take a rest in the afternoon. You can give the dining-room
up to the dinner that day and lunch at a side-table or in the library.
After your short interview of encouragement with the cook, you read
to the waitress and chambermaid the directions for serving the
dinner and see that they understand their parts in it, and try to
make them ambitious that everything should go well and be a credit
to them. You then pin these directions up in the pantry. These
directions can be used for many dinners until they are worn out.
After this you superintend putting on the under-pad and then the
tablecloth which must be very smooth. The chambermaid must help
the waitress, as it takes two to put on a large cloth without mussing
it. Watch the waitress put the eight plates around the table, to be
sure they are evenly spaced (two on each side, if the table is wide
enough; otherwise with eight there must be a gentleman at the
head and another at the foot in order not to have two gentlemen or
two ladies side by side). Next have the waitress set one place
completely, under your directions, with small silver, glasses, and
napkins as in the family dinner (only more, as the courses require[1]),
so that she can set all the places like it without your being there to
direct her. Leave her to put fresh candles in the candlesticks, and a
final polish on the china, silver, and glass that are to be used during
the dinner, while you arrange the flowers. No matter how nicely any
one keeps house, there is a great deal for the servants to think of
for a dinner, and as they have never served one for you before,
should you get the impression in the morning that things are not
going on very well, you will have to be in the dining-room a good
deal, quietly seeing that no time is lost.

1. If you don’t like so many forks and knives on the table at once, put
enough for the first three courses and have the others brought on with
the plates of each course as in the case of dessert.

After the lunch things have been cleared off and the servants have had their
lunch, you superintend the setting of the side-table with the extra things that will
be needed during the dinner, such as the plates for cold courses, any small silver
that may be needed, a plate for the extra bread and rolls, and all the plates for the
last course, on each of which is a doily, and a finger bowl one third full of water.
All these things should be prettily arranged in a symmetrical manner, and if there
isn’t room on the side-table some can go on the sideboard, as they must all be
convenient.
After the side-table is set, you can go with the waitress into the pantry and have
her send down to the kitchen all platters, dishes, etc., that are to be served from
there and arrange, in a corner of the pantry out of the way and in piles, the plates
for the different courses, putting on each pile a slip of paper telling what course it
is for, so that the servants won’t get confused. See that the tray of after-dinner
coffee-cups is arranged in the pantry with a spoon on each saucer, and with the
sugar tongs on the bowl of sugar. Then go and rest and come down later when
the waitress reports to you that she has finished setting the dining-table. You will
probably find that it doesn’t look to your satisfaction, but don’t put the servants
out of temper with criticisms. Take it for granted that they have done their best,
speak well of what is right, and straighten out what is wrong with explanations,
giving the finishing touches yourself. Then should your aunt give any more dinners
under your supervision, her servants could do most of this themselves. After the
dinner is over, and the guests are gone, be generous in your praise to the servants
of everything that went well and wait for another time to show how to correct any
mistakes that were made. They will probably go to bed very tired that night, but
happy because they have pleased you.
Here are the details for the dinner:—
When you post your written directions in the pantry, it is well to underline the
waitress’s with red pencil, the chambermaid’s with blue, so that each can see at a
glance where her duty comes in.
The signals to be used to send the courses up at a dinner have to be carefully
understood beforehand between the servants in the dining-room and kitchen.
Generally it gives the cook about the right time if, when the first guest has
finished, the chambermaid rings one bell for her to dish and keep the course hot,
and when more than half the guests have finished, two bells to send to the pantry.
This depends, however, so much on the quickness of the servants, etc., that they
have to learn gradually, by experience, the proper time interval between bells. The
standard of perfection to aspire to, is no waiting between courses and no hurrying
during courses.
After the first two courses I will give you but few details, because in serving
every course the following general method is to be observed:—
The same signs and signals are passed at the proper time between waitress,
chambermaid, and cook for removing and bringing on every course.
 In every course where there is a main dish and two other dishes, the
chambermaid (after having taken all the soiled plates from the waitress and in
return given her all the fresh ones) gives the main dish to the waitress and then
follows her all around the table with a dish in each hand offering first one, then
the other, to every guest.
Soiled plates are always replaced with fresh ones from the right side of each
person, and all foods are always offered on the left side. The lady on the right of
the host is served first.
During every course, where there is but one thing to pass, the chambermaid
remains in the pantry, handing out and taking in plates and keeping the pantry in
order.
One course is always entirely removed into the pantry before another course is
brought on.
Let us take the following dinner as an example:—

First course, canapé.

Second course, soup.
Third course, fish.
Fourth course, entrée.
Fifth course, roast and two vegetables.
Sixth course, salad, etc.
Seventh course, ices and cakes.
Eighth course, candies.
Ninth course, coffee.

You can omit either canapé or entrée or both if you prefer.

 Dinner of Eight served by Three Servants
Directions for the two dining-room servants

Fifteen minutes before the hour for dinner, the chambermaid, in neat black
dress, with cap, plain white collar and cuffs, and apron, all immaculately clean and
fresh, sees that the lights are lighted in the dressing-room, and stands ready to
help the ladies off with their wraps. When they have all arrived and have left the
dressing-room, she turns down the light and goes right to the dining-room ready
to help the waitress.
Fifteen minutes before the hour for dinner, the waitress, after having lighted the
lights on the parlor floor and in the front hall stands at the front door watching to
open it promptly to prevent any guest from having to ring the bell. She helps the
gentlemen off with their coats, hangs up their hats, places their canes in the rack,
and hands them the tray on which the card envelopes have been placed. When all
the guests have arrived, the chambermaid signals the cook this fact, then fills the
glasses with iced water, while the waitress lights the candles on the dining-table.
Then both bring in quickly the plates of canapé, placing them on the serving
plates already at each place.
The chambermaid then goes into the pantry. When this is done, the waitress
gives a last look to see that nothing has been forgotten and that the candles are
all burning well, and goes quietly into the parlor and says in a low voice, “Dinner is
served, Mrs. ——.”
First course—canapé[2]

2. This can be brought in after the guests are seated, like the other
courses, if preferred.

which is on the table when the guests come into the dining-room. When the first
guest has finished this course, the waitress makes a silent sign to the
chambermaid, who is in the pantry, and she signals to the cook (one bell), which
means that the next course is to be dished up and kept hot. When more than half
of the guests have finished, the waitress makes a silent sign to the chambermaid
again, who signals (two bells) to the cook, which means to send up the

Second course—soup
When the soup comes into the pantry the chambermaid fills all the plates half full
and hands a plate to the waitress, who comes to the pantry door for it. The
waitress takes the plate in her right hand and goes to the right side of the lady on
the right of the host,[3] and picking up the used canapé plate with her left hand,
replaces it, on the serving plate, with the plate of soup. She then watches and, as
each guest finishes, she replaces the canapé plate with a plate of soup, the
chambermaid standing inside the pantry door ready to take the used plate and to
hand her the soup plate. As soon as all have soup, the waitress passes any
accompaniment, on a small tray, all around the table, while the chambermaid
remains in the pantry to straighten and keep it in order.

3. Many people have everything passed first to the hostess. This is a

matter of taste.

Third course—fish in ramekins on individual plates

This is brought on and served the same as the soup, but in removing it the
waitress replaces each fish plate with an empty hot plate, and then the
Fourth course—the entrée
is brought on by the waitress who holds the casserole or platter with both hands
under it and passes it in regular order all around the table. This course having
been removed and fresh hot plates having replaced the used ones, the

Fifth course—the roast

is brought on. The waitress passes the roast all around the table and the
chambermaid follows with a dish of vegetables in each hand, which she offers on
the left side of each person in turn till all have been served. Anything else in this
course is passed all around in the same way by the chambermaid. If the dish is
large, it should be carried in her hands; if small, on a tray. The waitress then
watches to fill glasses and pass rolls. Having done this, the chambermaid returns
to the pantry and when the roast course has been removed and fresh plates have
been substituted for used ones, she hands the waitress the

Sixth course—the salad

following her all around the table with whatever accompaniment there may be and
then returning to the pantry. In removing this course the waitress takes two plates
at a time, one in each hand (never on top of each other), and does not replace
them with other plates. When this course is completely removed, the waitress
brings a tray and, going around the table, takes off peppers and salts and any
small silver or knives that are left there, and takes them to the pantry, being very
careful not to make the slightest noise. The chambermaid follows with a folded
napkin and silver tray and removes the crumbs. Then the chambermaid returns to
the pantry, and the waitress, bringing in each hand a dessert plate with fork and
spoon on it; places them in turn before each person, setting them down from the
right side. She then takes the dessert platter from the chambermaid in the pantry
and brings on the

Seventh course—dessert

and passes it all around the table, the chambermaid following with cake. When
this course is removed and the dessert plates are replaced by plates with finger
bowls, the waitress passes the

Eighth course—candy

placing the little dishes of different kinds on a tray. While the guests are at this
course the chambermaid sees that the fire in the parlor burns brightly and the
lights are all turned up, and when all have finished dinner and have gone into the
parlor, she passes the coffee and cigars to the gentlemen in the dining-room or
library, while the waitress passes the coffee to the ladies in the parlor. When the
gentlemen, after smoking, join the ladies in the parlor, the waitress passes, on a
tray, glasses which she fills with ice-cold Apollinaris or White Rock, and offers to
each guest. When the guests are about to leave, the waitress, on the first signal of
the parlor bell, goes to the front door to help the gentlemen on with their coats,
hand them their canes and hats, and open the front door, while the chambermaid
is in the dressing-room ready to help the ladies on with their wraps.

Special notes for chambermaid at dinner of eight

After having helped the waitress put the canapé on the table, return to the
pantry, where your duties are:
To signal the cook when signed by the waitress to do so.
To keep the pantry from getting into confusion, by piling used plates out of the
way and sending platters down to the kitchen.
To be ready to take used plates from the waitress instantly and hand her the
ones for the next course, and where there is more than one dish served at a
course to hand the main dish to the waitress and follow her into the dining-room
with the lesser dishes, passing them around just after the waitress and then
returning to the pantry.
To see that the plates are warm for hot courses and cold for cold ones.