Atlanta Georgian., 1914-02-20
CAPITAL PRICE IS
DUE To DROP
GRADUALLY
Forbes Says Apex Of Advance Has
Been Reached-Living Cost
Also to Tumble.
BY 3. c. FORBES.

1t takes courage. but, after giving
the matter mature study. am VIII
ing TO 20 on record with this state
ment-sure 10 be widely derided
believe the world has seen the
apex OF the advance In the price 81
capital that has been going on Tor
more than a decade, and that thefc
will now set in very gradual down
ward movement destined to last sew
eral years.
The change in the income yield OBJ
fainable on the best investments ih
not likely TO be appreciable for sew
eral months, owing TO the abnormal
gSvernmental borrowing contem-
Mated abroad and the heavy corpo-
rate demand impending here, but, IN
the absence of any great war "
recession should have MADE cohslu
erable headway before 1919 mas
passed
Thai interest rates will not con
tinue to soar at the pace OF the ny
four years is 10 my mihu, mat''i
permitting of no doubt
This subject Is Of vital importance
NOT less TO the man In the street, 10
the small investor and to the pusi,
ness man than TO the hnanclei, anu
In order to obtain all possible llghl on
Ii / purpose to gather ana present th'
views OF our leading banking an"
economic authorities
The discussion can not tall 70 pe
illuminating. 1t may arord Vaiuaple
guidance for municipalities, rallroads'
Industrial corporations, business men
and others confronted with the quea-
tion whether to pay tho high rehtais
now demanded for money and agree
tn nav IL for long terms, or 10 make
anV Temporary arrangements that
may be necessary until funds can De
raised. on long date securities on
more attractive terms.
Investors of all classes too, musi
he Interested in trying to ascertain
yghether they can do better by buying
securities carrying a fixed rate OF IN
come for many years, or py holulhb
off for a still greater rise in the wages
OF capital
Savings bank depositors will also
be affected by the course money
takes. II competition for funds forces
interest rates. and, consequently, the
tncome derivable from investments
stili higher, the banks VIII be able 70
continue paying at least per cent on
deposits. on the other hand II Dor
rowers can hll their needs on easier
terms than heretofore, the income op-
sainable on savings bank Investment
will decline, and. as a consequence
the 4 per cent payment on deposits
will tend to fall TO IL or even per
cent.
You see now, don't you, that the
subject is not a purely academic one
possessing no concern for ordinary
mortals?
l have already given my opinion
that the wages of capital Will stop dd-
yancing and that the tendency from
now on will be toward an appreeiably
lower level, especially after the eN-
traordinary Balkan demands nave
been filled.
Seeing that ] have embarked on tne
perilous venture of making prophe-
cieS, l am tempted to emit one more
---on a subject about which am often
asked to write;
l believe the cost OF living has also
reached the high water mark, ana
that If ur own and other crops are
reasonably abundant this year, the
trend will be downward within the
next twelve months.
NV reasons for reaching these con-
cnsions must wait for presentation
in another article
The views of others of more weigh,
will also be given on this question OF
such vital moment TO at least 10000.
600 of our nine figure population.