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Sustainability in Business
A Financial Economics
Analysis
Sustainability in Business
David Hobson Myers
Sustainability
in Business
A Financial Economics Analysis
David Hobson Myers
D’Amore-McKim School of Business
Northeastern University
Boston, MA, USA
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2020
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Preface
Since the initial draft of this book, the world has been changed by the
COVID-19 crisis. The crisis, however, serves to highlight the choices soci-
eties, businesses, and individuals make. The importance of a clear, concise,
consistent, and convincing decision model is thus that more critical. The
original aim of the book was to provide such a context for understanding
the choices businesses make among their current and future shareholders,
customers, employees, suppliers, and communities. The decision model
structure presented here may help students and researchers make sense of
the world and the choices they now face.
Sustainability is about ethics, philosophy, and social interactions. It is
about how people approach each other and how they approach future
generations. Economics is about choices and scarce resources. Business
necessarily lies across both sustainability and economics. The choices high-
lighted in today’s world of pandemic, geopolitical unrest, and economic
uncertainty make that a very stark reality. The “green” movement has
aimed some of its efforts towards reducing plastics and greenhouse gases.
The pandemic has switched society from moving towards more reusable
cups, grocery bags, and metal straws back to throwaway utensils to
prevent the spread of the virus. On the flip side of the sustainability coin
and the pandemic, we have seen a dramatic decrease in greenhouse gases
due to the slowdown in economic activity. The advantages and disad-
vantages reflected in the response to the pandemic magnify the choices
v
vi PREFACE
among current and future generations. The aim here is to provide a deci-
sion model for those in a business environment to make better informed
choices.
Business and societal choices are about sustainability and the tradeoffs
of current generations versus future generations. The model presented is
based on the economics and finance of discounted cash flows with the
addition of social distance as a discount factor. Social distance may mirror
issues of empathy towards other groups. These measures provide a struc-
ture to understand those tradeoffs. Discount factors based on time and
social distance remind consumers that a dollar tomorrow is less than a
dollar today or a dollar to someone else is less than a dollar to us. How
much less is based on the size of the discount factors.
Businesses and organizations have competing interests of their share-
holders and other stakeholders. The economic foundations of a model
based on social distance and time discounting extend the traditional
discounted cash flow models of net present value to one of sustainable net
present value. Such a structure for decision making provides a framework
for thought and reflection about the business choices today and impacts
those choices have on current and future stakeholders and on profits.
The objective of this book is to provide a text that more firmly roots
the concepts learned in financial economics to the field of sustainability.
Most textbooks in the arena of sustainability for businesses are from the
management perspective and those in the economics literature most often
focus more on macroeconomic goals such as societal goals. The aim here
is to frame a discussion of sustainability for businesses or organizations
and describe how to incorporate financial economic techniques in their
decision-making process.
In the broadest sense, economics is about the allocation of scarce
resources. The allocation of such resources is a question of choices.
Choices of the consumption and allocation of scarce resources are
being made by individuals, businesses, governments, and societies. Those
choices are also central to sustainability. Choices have an impact for
others whether the others are current generations or future. Those choices
impact natural resources, shared resources, public, and private resources
and the allocation of those resources. The framework adopted here
provides a lesson in the concepts of utility maximization for sustainable
businesses. Such lessons will provide researchers with a theoretical basis
to approach research questions on sustainability.
PREFACE vii
Since choices impact others, society and government create norms and
laws to protect members of society from each other. A responsible or
sustainable business may simply be one that rises above the minimum
societal standard. The decision-making process for any individual or orga-
nization becomes the understanding, rationale, and commitment to rise
above those minimum standards. The simple goal to maximize share-
holder wealth and meet all legal standards is a starting point for all busi-
nesses; sustainability is about going beyond. In particular, the next step
is to understand the impacts on stakeholders present and future and the
ethical and moral responsibilities of the organization. The approach neces-
sitates being cross-disciplinary. An approach that will touch on philosophy,
psychology, sociology, and political science in combination with the core
financial economist approaches.
The format for each chapter is begins with an introduction to theo-
retical financial economic approaches that will be useful to creating more
sustainable businesses. Examples of applying these approaches will provide
further understanding of their advantages and disadvantages and the chal-
lenges of sustainable decision making. Each chapter ends with some
discussion of societal and governmental roles within which organizations
must operate.
The book is outlined as follows:
The introductory chapter lays out the case for the approach to sustain-
ability in a financial economics framework. Discussion of different defi-
nitions of sustainability frames how those definitions affect the approach
researchers, students, and business people take in determining their deci-
sion making. The contrast between traditional finance, Friedman’s “Max-
imize Shareholder Wealth”, and sustainability’s double or triple bottom
lines (environmental, social, and governance or profit, people, and planet)
are laid out as the foundation for those discussions.
Chapter 2 introduces utility functions and concentrate on consump-
tion for both the individual and society. Given the contrast between maxi-
mizing shareholder wealth and triple bottom lines, this chapter discusses
utility functions with an emphasis on consumption models. The case for
sustainability relies on social distance measures for the intergenerational
and intragenerational transfers where the utility is a function of time value
of money and social distance (Becker 1968 and Anderson and Myers
2017 and 2020). The discussion of utility is supplemented with discus-
sions of Von Neumann Morgenstern Utility, transitivity, and one period
viii PREFACE
1 Introduction 1
Sustainability and Sustainable Goals 3
Basic Economic Concepts and Their Awesome Power 4
Model for Sustainability with the Concept of Social Distance 6
United Nations Sustainable Development Goals (UN SDGs) 8
Intergenerational and Intragenerational Transforms 10
A Word of Caution on Economic Models 12
Plato’s Allegory of the Cave (A Strange Interpretation) 14
Government’s Role in Defining Limits and Generational
Transfers 16
References 17
2 Economic Models 19
Transitivity and Binary Choices 21
Stated Versus Revealed Preference 23
Portfolio Choice 25
Consumption Utility Model 25
Consumption Utility Model Through Time 28
Fisher Approximation (1930) 29
Sustainability Utility Model 29
Line in the Sand or a Spectrum of Options 31
Binomial Pricing Models for Uncertainty 32
Edgeworth Box and Societal Agreement 34
ix
x CONTENTS
4 Certification of Sustainability 51
Trust and Acceptance in the Certification 52
Measurability of the Certification 53
Relationship of Certification to Social Distance 54
Relationship of Certification to Stakeholders 54
Sustainable Accounting Standards Board (SASB) 56
Governmental Role in Certification 56
Stability and Consistency 57
Reference 59
6 Investment Implementation 85
Theory to Evolution in Practice 86
History of Sustainable Screening 88
Investor Types 91
Individuals 92
Pensions 93
Endowments 93
Foundations 94
Governmental Role 95
Choice of Sustainable Approach 96
Constrained and Unconstrained Portfolios 97
Climate Change Investing and Risk Management 98
Portfolio Creation 99
Other Investment Vehicles 100
References 101
Epilogue 103
Index 105
List of Figures
xiii
List of Tables
xv
CHAPTER 1
Introduction
Abstract The introductory chapter lays out the case for the approach
to sustainability in a financial economics framework. Discussion of
different definitions of sustainability frames how those definitions affect
the approach researchers, students, and business people take in deter-
mining their decision making. The contrast between traditional finance,
Friedman’s “Maximize Shareholder Wealth,” and sustainability’s double
or triple bottom lines (environmental, social, and governance or profit,
people, and planet) are laid out as the foundation for those discussions.
through critical thinking. The approach taken here should serve them
well in all their endeavors.
The ability to create a more sustainable business or organization will
rely on the ability to think beyond just profit and shareholders. It will
require the ability to recognize how sustainability is dependent on the
ability to view the impact of decisions on current and future generations.
Those decisions reflect the economic choices that are made with respect
to the consumption choices of current and future generations. Remem-
bering that economics is the study of the allocation of scarce resources.
The assumption is resources that are scarce today will be even scarcer
in the future. In creating profitable businesses that are also sustainable
will require changing human behavior and corporate behavior. Not an
easy task to take on, but one that appears to be more pressing today
as governments from local to national struggle with issues of climate
change, pollution, and poverty. Remember that businesses, organizations,
and individuals work within the societies that they belong and the rules
and regulations within they reside. With that heady charge, we begin our
journey.
For three days the Pine Croft Ranch was plunged in gloom. In her
room the lady of the ranch lay, fighting back death till her man
should return. She was unwilling to pass out of the world in which
together they had shared so deeply of its joys, without another word
beyond that last spoken between them.
On the third day Paul, with face pale, tense and worn, rode into
the Indian camp to interview the Chief. Straight up he stood, pale,
quivering under the nerve strain, but unafraid.
“Mother is very sick,” he said. “I’m awful afraid she will die. Father
is lost in the woods. She wants him awful bad.”
The chief listened, apparently unmoved.
“Mother kept the little baby from dying.”
The chief glanced sharply at the little lad. “Huh! I go find him,” he
said abruptly. He called his men. Together they consulted,
apparently canvassing the situation and planning the search. Then,
with swift expedition, they prepared for their tramp. In a very few
minutes the chief and one of his men stood ready for their journey,
the other man remaining in camp with the child. Before setting forth,
the chief came to the boy.
“You go mother,” he said. “Good woman! Two day father he come
back. Sure, two day. Tell mother. Good woman. Chief not forget
baby.”
“Oh, thank you, Chief,” said the little boy, impulsively catching his
hand. “I’ll tell Mother. She will be awfully thankful to you. Good-bye.
Everything will be right now.”
“Huh!” grunted the chief, and with a wave of the hand he was
gone.
“Hello, little one,” Paul called, catching sight of the Indian child
standing shyly within the tent door. “Come on over here. Come on
and see my pony.”
The child, with a fearlessness quite unusual among Indian
children, came trotting to him. Paul was delighted to find he was not
forgotten.
“I say, little chap, tell me your name again,” he said, dropping on
his knees beside the youngster. The little chap gurgled a reply.
“What is it?” Again a gurgle. Paul gave an answering gurgle. “Is that
it?”
The stolid face of the Indian standing near suddenly broke into a
grin.
“Him name Peter,” he said, with a struggle.
“Peter,” shouted the boy, with a delighted laugh. “And I’m Paul.
Oh, isn’t that funny? Peter and Paul! Why, we are two Apostles.” He
caught up the little child and danced about with him in high glee,
and the glee of the little one was no less high. Then for half an hour
the grave-faced Indian looked upon a scene that more than once
broke up his gravity. For with all sorts of games and antics the white
boy tumbled the other about upon the grass, driving him into shrieks
of delighted laughter, such as in his rather sombre four years of life
in the wigwam with his stolid seniors he had never been known to
utter. In the full tide of his play Paul remembered his duty.
“Here, Peter, old chap, I must get away home,” he cried, rolling off
from his back the little Indian who had been using him as a pony.
“Good-bye. I’ll see you again soon.”
But a fierce howl of protest brought him back running. It was only
after he had emptied his pockets of his treasures, a top, a knife,
some peppermints, somewhat the worse for wear but none the less
toothsome to Peter, impervious to the microbe terror, that he was
able to make his escape in an atmosphere of smiling serenity.
“Two days!” The chief’s promise he knew would be kept. In two
days his father, whose mysterious absence had wrought such havoc
in the life of home, would be back again, and then the old serene
and happy life would be restored. In two days that dreadful fear
which had been clutching at his heart all yesterday and this morning
and which the memory of his mother’s face even now brought back
to him would be gone. Two days! He let his pony out to his full
speed, eager to bring the great news to his mother.
The “big white house” was overflowing with music, or, rather, with
musical acrobatics. Scales, major and minor, octaves, arpeggios, and
all other musical combinations were madly chasing each other up
and down the keyboard.
“Come on, Paul.” A girl’s black head appeared at the window. The
player merely glanced at her and went on with his fireworks. “Oh,
come on, you lummix! Shut up this row and come on. We’re going
round the ranch and then down the west trail to the river.”
The player’s sole answer was a wave of his left hand, his right still
careering madly up the chromatic scale.
“Aw, Paul, won’t you come?” A little girl whose face was screwed
up in a bewitching pout came to the door.
“Now, Peg, you know I don’t quit till I’m done, and I’ve got half an
hour yet. Come back for me then, Peg.”
She came close to him. “I don’t want to go with Asa and Adelina
without you. They—they—I don’t want to go.”
“Oh, go on, Peg, for a run as far as Pine Croft driveway and back
again. Go! See, the rain is all gone. It’s a lovely day. Run now, that’s
a good girl. I’ll come when I’m through my practice.”
“You’re a mean old thing. You don’t care a bit about me,” said Peg,
bouncing indignantly out of the room.
But the boy paid no heed. He was hard at his scales again with an
enthusiasm which amounted almost to a passion. All else, for the
time being, was as nothing to him. He was at double octaves now,
his fingers roaring up and down the keys. In the full tide of the
uproar Colonel Pelham appeared at the door of the dining room
where his wife was engaged in her domestic activities.
“What a row the chap makes!” he said. “You’d think it was a full
grown man at the thing.”
“He has wonderful fingers,” said his wife, pausing in her work.
“Listen! How, that is really quite unusual work.”
“Is it? You ought to know. It’s all fury and fuss to me. But I like
the way he sticks it. The other youngsters were trying to pull him
away—I saw them at it, but it was no go.”
“He loves his music. He’s quite mad about it,” replied his wife.
“He may be,” said the Colonel, “but it’s not that. It’s a point of
honour with him. He has a kind of feeling his mother would like it.”
“He’s a queer little chap, you know. He has queer ideas about
things.”
“What do you mean exactly?” inquired the Colonel. “Queer in what
sense?”
“Well,” said his wife thoughtfully, “he has queer ideas about God.
He says he sees Him. One day I found him with an intense look
upon his face, and his explanation was that he was listening for
God.”
“‘Speak, Lord, for Thy servant heareth,’” quoted the Colonel to
himself.
“But, my dear,” protested his wife, “you know that sort of thing
was quite all right for those times. But now-a-days, in British
Columbia—well, you know, it’s a little unusual.”
“‘If any man hear My voice and open the door,’” again quoted the
Colonel softly.
“Oh, come now, Edgar. You don’t think those things are to be
taken literally in these days—voices, and all that sort of thing. You’ll
be off into all sorts of Spiritualistic nonsense. He is queer. As a
matter of fact, he is almost uncanny, unreal, unnatural.”
“Unnatural? Unreal? Well, he is a bit of a mystic, I confess. And he
came by that naturally enough; got it from his mother. And not a
bad thing, either, in these materialistic days, and in this country. But
all the same, he’s a real boy, a game sport. He can ride, swim,
shoot, and for a boy of twelve shows an extraordinary sense of
responsibility.”
“Responsibility? He’s as mad as a March hare at times,” said the
Colonel’s wife. “Forgets food, drink, sleep. He has appalling powers
of absorption, of concentration. I know he leads Peg into all sorts of
scrapes.”
“Leads Peg!” exclaimed her husband. “Good Lord! Does any one
lead Peg? He’s a real boy, he gets into scrapes, but I still contend
that he has an extraordinary sense of responsibility. Do you realise
that every day of his life he has a certain routine of study, music,
Catechism, Bible lesson, and that sort of thing, that he has kept up
since his father left him? I believe it was his father—a queer thing
too!—who put it up to him and who made it a matter of loyalty to his
mother.”
“He is certainly devoted to his mother’s memory. But there again
he is queer. He has an idea that his mother knows, hears,
understands all that he does.”
“Why not?” asked the Colonel.
“Oh, I don’t know. I have no use for these spooky things. But the
boy is queer, and he is unpractical.”
“Well, it is hardly to be wondered at. He has his father’s artistic
temperament and his mother’s mysticism. But, after all, is he
unpractical? Don’t you know that once a week, winter and summer,
for the last year and a half, with Indian Tom he has ridden the
marches of the ranch? The Lord knows he’s always reporting fences
broken and cattle and horses straying over to Sleeman’s herd,”
added the Colonel ruefully.
“Sleeman’s herd! My opinion is that the chronic state of disrepair
in those fences can be easily accounted for. I observe that Sleeman’s
calves last year and this year too show a strong Saddle-back strain,
and as for his colts they are all Percheron. I don’t like the man
Sleeman. I don’t trust him.”
“Neither does Paul,” said the Colonel. “Of course, Paul has quite
made up his mind that Sleeman is going to hell, so he doesn’t let his
various iniquities worry him too much. Sleeman will receive a due
reward for his misdeeds. Paul has warmly adopted the Psalmist’s
retribution point of view.”
“What do you mean?” inquired his wife.
“‘Fret not thyself because of evil doers, for they shall soon be cut
down like the grass and wither as the green herb.’ The little beggar
brought me the quotation not long ago with great satisfaction. He
thinks that Asa too is heading toward the same untimely end.”
“Why!” said his wife, “I thought that Paul held a most liberal
doctrine of forgiveness, which practically wiped out hell.”
“Don’t imagine any such thing,” asserted her husband. “I know his
‘seventy times seven’ theory, but he is careful to insist that this is
only for the man who turns and repents. He would be terribly
disappointed, I imagine, if Sleeman should ever show any signs of
repentance. Of course, he doesn’t expect this. Oh, he’s a relentless
little devil in his hatred and his theories of judgment. And with a
fighting strain in him, too.”
“What do you mean?” asked his wife. “Fighting?”
“Why, you remember last autumn when he came to me with the
calm request that I teach him to fight. He had evidently had some
trouble with Asa. When I asked him why he wanted to learn to fight,
his answer was characteristic enough, ‘I don’t want to fight exactly,’
he said, ‘but I don’t want to feel afraid to fight.’ Rather a fine
distinction, I think. And every week since that time the little beggar
insists upon his ‘fighting’ lesson.”
“Well,” said his wife with a slight smile, “he couldn’t have come to
a better master of the art, I fancy, if college rumours mean anything.
Wasn’t it light-weight championship you held for a year at Oxford?”
“Three years, my dear,” modestly corrected the Colonel.
“There is one thing I do like in the boy,” continued Mrs. Pelham,
“and that is his devotion to old Jinny. Of course, Jinny worships the
ground he walks on. She has all that fine old Scotch spirit of
devotion and loyalty to the family that this age and this country
know nothing about. She is an old dear, and immensely helpful
about the house. But I do like Paul’s way with her. I always say that
there is no truer sign of breeding than the way people treat their
servants, and Paul certainly has that fine touch.”
In a pause of the conversation weird sounds were heard coming
from the music room. The musical acrobatics had ceased. Both sat
listening for some moments.
“Now what is he on?” the Colonel inquired. “I don’t know that
thing.”
“Nor I, and I’ve looked over all his father’s things which he is
continually trying. Listen! Sounds like a Chopin Nocturne. But, no!
That’s not Chopin. He must be improvising. He told me one day he
was playing all the things out of doors, a kind of Nature Symphony,
the Pine Croft out of doors, as it were—the stream tumbling down
beside the bungalow, the pines and the poplars and the flowers and
the clouds. He told me he was playing the great yellow splashes of
sunlight on the valley. He kept me an hour that day, fascinated,
playing the different colours in the landscape—blue of the sky, light,
sweet, smooth-flowing, a Handel sort of thing; reds and yellows
were set forth in dashing, smashing chords and runs, a Liszt or
Tschaikowsky effect; then, for sunset gold and saffron he used a
kind of Mozart thing, rich, full, sweet. It was quite marvellous. He is
queer, undoubtedly queer. Why! Do you know he had the audacity to
even play ‘God’ to me that day. He was like an inspired thing. Played
‘God smiling at him from the clouds.’ He protests he sees God, you
know, and hears Him. Oh, he’s quite spooky!”
“Spooky? Nonsense! That’s not the word. There are artistic and
mystic strains in him, that’s all. But all the same, I wonder when his
father is coming back, or if he is coming back at all. That Pine Croft
Ranch is going bad. I simply can’t keep it on.”
“Of course you can’t. You were mad to take it on at first.”
“My dear Augusta, what could I do? The man was distracted,
broken. I was actually afraid for his brain. I really was. You
remember those days. Well—then came his request and the formal
will—by Jove! Now I think of it, it was you who offered to take the
boy.”
“The boy? Yes, I did. But the ranch was a different thing. And that
Sleeman sniffing round, I simply can’t bear him.”
“Sleeman? I don’t much care for him myself. He may be honest
enough, but he’s sharp. Says he holds I O U’s for loans and such like
from Gaspard. True enough, Gaspard was hard up. You know the
Bank had closed down on him. He could get no more extensions.
Frankly, I am worried. The stock is running wild, as you say.”
“Edgar, I forbid you to worry. It’s not worth it. We’ll look after the
boy. The bungalow is closed up, everything all right there; old Tom
looks after it. The ranch and stock must simply take care of
themselves.”
At this point a louder crash than usual on the piano arrested their
attention. A wild whoop followed, and Paul stood in the doorway.
“Oh, Uncle Colonel, where are they? Did you see them go?” he
burst forth.
“Come, Paul,” said the Colonel’s lady severely. “It’s not customary
to rush in upon people like that.” The boy flushed to his hair roots.
“I’m sorry, Aunt Augusta. Awfully sorry, Uncle Colonel. But did you
see them go, sir?”
“Yes, they went up toward Pine Croft Ranch. But you ought to be
able to track them easily, for the rain has softened the trail.”
“Oh, splendid! I’ll do it. I’ll just get Joseph and find them.”
“By the way, what were you playing last, Paul?” asked the Colonel.
The boy flushed.
“Oh, just some nonsense, Uncle Colonel. I was through with my
lesson,” he said apologetically, “and I was just fooling a bit—like
Daddy used to do sometimes—” he paused, “for Mother and me, you
know.” He stood quietly, looking out the door, his eyes on the far
mountains.
“All right, boy. Off you go,” said the Colonel.
“Lunch at one, Paul, remember,” said Mrs. Pelham.
“I’ll try, Aunt Augusta. But it’s awfully hard to remember
sometimes.”
“I want Peg at one,” said Mrs. Pelham firmly. “We have something
on after lunch. I depend upon you, Paul.”
“Oh, all right, then, I’ll have to remember.” He stuck his hand in
his pocket and extracted something which he began to wind around
his finger.
“What’s that, old chap? String, eh?”
“A ’lastic band—to remember me about one o’clock. I hate having
to remember,” he added impatiently.
“Hey day!” exclaimed Mrs. Pelham. “What sort of a boy would you
be if you couldn’t remember?”
“All right, Aunt Augusta, but I hate it all the same.”
“He’ll remember,” said the Colonel. “He feels he’s on his honour.”
“Yes, he’ll remember. He’s a reliable little beggar.”
In a surprisingly short time the lad appeared on his pony, a
beautiful pinto, bred from an Arabian sire out of an Indian pony, a
strain of which his father was inordinately proud and in the breeding
of which he had been unusually successful. The boy went flashing
past the window, riding cowboy fashion, straight leg and with lines
held loosely in his left hand, his cap high in his right, making right
for the bars at the end of the drive.
“What the—— By Jove, he’s done it! Must be quite four feet.”
With never a halt the pony had taken the bars in his stride, and
was off down the road, head down and at racing speed.
“Superb, Augusta! Couldn’t have done it better yourself, what?”
“He can ride,” said his wife. Her eyes were upon the flying figure.
“He is quite without fear and has the true rider’s instinct for what his
mount can do. Wonderful pony of his that. There’s a mate to it in
Gaspard’s bunch I’d like for Peg.”
“Oh, thanks, my dear; Peggy is quite sufficiently well mounted.
Tubby does her quite well. I have no desire to see my daughter
tearing like a mad thing after that race horse.”
“Poor old Tubby! She does her best, but I fear she is a continual
source of humiliation and heartache to her rider when out with the
pinto. Perhaps next year, eh? She will be quite ready to ride with me
by that time.”
“With you? The Lord forbid! You know quite well, my dear, when
once you are astride a horse you are conscious only of one
consuming passion.”
“Well, I like to hear you talk!” And it must be confessed there was
ground for her scorn. For in cross-country work in the Homeland
there was just one place in the hunt that gave any real satisfaction
to the little Colonel, as daring a hunter as ever rode to hounds.
Meantime the pinto and his rider had tracked the others up to the
Pine Croft bungalow, along the upper trail, and down again toward
the big rapid. To Paul, who for the past two years had been trained
in sign reading by Indian Tom, his father’s ancient factotum, the trail
lay plain as the open road. After the first wild gallop he was in no
hurry to catch up. The glory of the early June day filled his world,
right up to the blue sky. With his eyes open to the unending variety
of colour and form in the growing things about him, he cantered
slowly along, his lithe form swaying in unison with every motion of
his pony. He had the make of a rider and his style was a curious
mixture of his father’s and Indian Tom’s. His hands were his father’s;
the easy yielding sway of his body he had from Indian Tom. But,
whatever its source, every movement of every part of his body was
smooth, easy, graceful. As the pinto carried him along in swallow-like
movement, his mind following his eye went first to the pictures that
kept composing and dissolving themselves on either side, and from
them to those pictures which from his earliest years he had watched
his father call into being in his studio. Where was his father now?
For three years there had been silence, from that dreadful day when
his father, gaunt, broken, his great frame heaving with deep-drawn
sobs, had ridden down the Golden trail, followed by Indian Tom,
leaving him with Colonel Pelham. Two words only had his father
spoken, two unforgettable words. “Paul, your mother has gone to
God. Let every morning bring back to you her words.” And the other,
“Some day I will come back to you—point of honour,” using a phrase
common to those three when the word was pledged. Those two
words he carried in his heart. With every opening dawn his first
thoughts went to his mother. He was dismayed to find how few were
his mother’s words that came to him as he sat down deliberately to
recall them. To his delight he stumbled upon a plan. When struggling
with his Catechism—it was a point of honour that he should
complete the task his mother had not seen completed—he found
upon reviewing the questions he had discussed with her that floods
of memories were let loose upon his mind. With painful care, for,
though he had his father’s fingers and was clever with them, he had
made no very great progress with his penmanship, he undertook to
set down, in one of his father’s sketch books, all her sayings that
came back to him. The words associated with the Bible stories were
much easier to recall. The chirography and orthography would have
quite paralysed the intelligence of learned experts, but to himself the
record was perfectly intelligible, and with its increasing volume
became an increasingly precious possession. This record he kept
hidden from mortal eyes, but somehow he had the conviction both
God and his mother knew all about it. The two were very really and
vitally associated in his thought. Indeed, God had come nearer since
his mother had passed out of his sight. His mother, he knew, was
intimately involved in his life, sharing his thoughts, his imaginations,
his dreams. And since she had gone to God, naturally it followed
that God must be somehow, somewhere, quite close at hand. He no
longer saw God’s face up in the blue between the clouds. He was
deeply grieved that he never could visualise that kindly face looking
down, so quiet and so kind, “as if He liked him.” It seemed as if God
had moved much nearer to him, so near that he seemed to be
aware of Him, and by intently “listening with his ears inside,” as he
explained to Indian Tom who seemed to quite understand, he could
“hear God thinking.” “And so,” as he confidently asserted to the
gravely sympathetic Indian, “I always know what He wants me to
know.” Life was a very simple proceeding with Paul. He had only to
listen carefully and, having heard, to give heed.
But where was his father, and when would he come back? The
little Colonel was quite silent upon that question, and upon that
question the boy was equally reserved with the Colonel. With a
maturity ripened by responsibility, the boy had fallen into the habit
of keeping an eye upon the ranch matters. His own observation was
quickened by the rare but penetrating comments of Indian Tom who,
though deficient in initiative and inclined when not impelled to
activity by necessity to a laissez faire attitude towards life, was
nevertheless, when once set upon a trail, tenacious of his quest as a
bloodhound on the scent. It was a remark of Indian Tom’s that gave
the Colonel’s lady the clue as to Sleeman’s Saddle-backs and
Percherons. It was a grunt of Indian Tom’s that had set Paul off one
day on a tour round the ranch, and that first tour with Indian Tom
proved so fascinating that once a week for a year and a half,
through rain or shine, cold or heat, Paul had ridden round the line of
fences of the ranch. He had come to know that things were not
going well, and this knowledge intensified in him the longing for his
father’s return.
The sound of shouting broke the current of his thoughts. He
pulled up his pony and stood listening. “They’re away beyond the big
rapid,” he said to himself. “Must be down by the creek.” Again the
shouting came to him, and in an instant he was off at a gallop. A
short run brought him to the edge of a rapidly flowing stream along
which a cow path ran. Following this path he came upon an open
grassy meadow through which the stream had cut its way between
overhanging banks. At a little distance he saw his friends, and as he
drew near learned the cause of the shouting. The stream had cut a
channel about eight feet wide, through which the water ran, deep
and swift, to a pool some thirty yards farther down, from which it
tumbled over jagged rocks to a bench below. Across this flowing
stream Asa and his sister were jumping their horses in high glee,
and taunting Peg to attempt the same exploit.
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