Evening star., 1926-10-30
MEN AND MONEY
BY NJ. S. Rukeyser
(Copyright. I926)

There has been considerable specu-
lation as to whether Queen Marie S
visit to the United States will pave
the way for the flotation of Ru-
manian bond issue in this market.
UnQuestionably the STABILITY of Ru-
manian bonds has been heightened
by the publicity in connection with
the Queens travels. Obligations OF
we'll known countries and corporations
are more readily absorbed than those
Of borrowers not so well press agent
ed, but 1t is we'll to remember that
the extent to which a seeker of funds
is known to the populace does not
alter it's capacity to discharge it's
debts.
The price of securities sometimes
reflects little more than public pref
erences, and investment tastes are
not always based on sound analysis.
For example, the extraordinary pop
ularity in the British market of home
railroad shares before the war was
shown not to be justified by Subse-
Quent events. In 1916, moreover. the
old cZarist government in Russia was
able to sell per cent bonds to the
investment public. The moral of all
this to the investor is that he can
frequently get larger return on his
ment Of safety if he will take the
trouble to seek out less well known,
neglected securities.
Bankers Stress Service.
It Is fashionable nowadays for
bankers to stress service, but most Of
them are still swayed by the money
making motive.
John Whalen holds the distinction
OF having served for 25 years as
president Of a successful bank with
out having accepted l cent of sal
ary. That record ought to be suffi-
cient to induce VIII Rogers to char.
acterize Mr.. Whalen as the most
generous Shylock he has ever known.
The Bank of Washington Heights.
neighborhood bank in upper New
York, with two branches, is this week
celebrating it's silver anniversary. In
most respects the bank resembles
other neighborhood financial institu.
tions.
The salaryless president has derived
his income as a lawyer and real es
tate operator. He founded a bank
ana served as its executive head
without direct remuneration because
ne felt he would like to render sery
Ice to the community in which he was
porn and reared. Active bank presi
DENTS who serve without pay NAV
oe common enough in the smaller
cues, out MT. Nhalen plays a unique
role In the shadow of Wall Street
There are other signs thar Mr.
Whalen is somewhat out Of tune with
the conventional type of MANY presi.
dent. HE still lives in a frame house
the only one which has survived in
his neighborhood. Moreover. he is ono
OF the relatively few leading New
workers. who were born in New York.
Mr.. Whalen, who is now in his
7Sd year. has served as corporation
counsel, tax commissioner, commits.
eioner on the Board Of Education and
dean OF the Fordham University Law
School
Tariff Elimination Issue.
The administration at Washington
has taken the position that the elimi-
nation of tariff barriers, as recon-.
mended in the recent manifesto of
bankers. may be good policy for
Europe, but should not affect the GUS
toms policy Of the United States
Many bankers are of the opinion,
however, that Americas new creditor
position makes the continuance of
high tariff less justified than in pre-
war times.
Apart from the doctrinaire merits
Of the dispute. there are two facts in
the present situation which have not
been duly stressed.
First. until France. Belgium, Italy
and other European countries return
to a gold basis, il will not be possible
for the rest of the world to consider
the tariff question on its abstract
merits. for it is possible for countries
with deprecated currencies TO give
unfair competition in world markets
through reducing costs by underpay-
ing home labor through currency in
f1ation AS result Of this situation
business men in England Germany,
Austria and other European countries,
which now have staple currenCieS
are more eager to see France stabilize
its currency than the French.
Factories Shut on.
Secondly, present high tariff bar
r1ers in Europe are interfering with
the movement OF goods through the
normal trade channels. Factories
which were built In Vienna, for ex-
ample, before the war TO serve all
parts OF the former Austro- Hungarian
Empre are now shut off by tariffs
fror -eCession states. AS a result
som : of the continent are over
eQu., ndustrially and other parts
are undersupplied. Europe is a close
ly knit economic unity, and tariffs
dam up the trade current and cause
serious dislocations. On the other
hand, Irrespective Of the merits of
a protective tariff. the Eest Of the