We apply recent constructions of free Baxter algebras to thc study of the u
mbral calculus. We give a characterization of the umbral calculus in terms
of the Baxter algebra. This characterization leads to a natural generalizat
ion of the umbral calculus that includes the classical umbral calculus in a
family of A-umbral calculi parameterized by A in the base ring. (C) 2001 A
cademic Press.