Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-18
MEN AND MONEY
By M. S. Rukeyser.
Copyright. 1927

The most significant current long
term trend in Wall Street is the con-
tinued decline in the wages of capital.
The movement has been under way
for nearly five years. and gives no evil
dence thus far of having spent itself.
Capital is no longer comma nding IN
fiated wartime wages. The high costs
of borrowing are passing. Corpora
tions which borrowed sums at onerous
terms during the war and shortly
after the signing of the armistice, are
at this time in wholesale numbers
taking advantage of call privileges
and are redeeming their obligations
before maturity, being able to ref.
nance themselves on more attractive
terms.
The recent burst of strength in
United States Government issues.
which leaped to new high levels after
Secretary Mellon announced his new
financing program, was an expression
of the ma jor change which is taking
place in interest rates.
How far will the movement go? Will
the absurdly low returns which capt.
tai received at the beginning of the
present century recur?
Predictions of ga Per Cent Basis.
Predictions that the Government 5
credit. as determined by bond prices,
may be on a ga per cent basis by
September, 1928. have recently been
freely made by bond specialists
Foreign demand for American capt.
tai is likely TO prevent interest rates
touching the abnormally low rates
which prevailed at the beginning OF
the century. After Central and West
ern Europe's needs have been met
Russia, China and South America may
,oIx int -
Wooer5 of the American investor
AleXa nder kerensky, leader of the
Russian Revolution of 1917, who is
now in this country, asserts that
bolshevism IS only a passing phase
of Russian history and that genuine
democratic government will sup
plant it.
"Bolshevism," says Kerensky. in a
special article in the World. has
crippled and perverted all the funda-
mental principles of the greatest po-
litical and social revolutions in his
tory But 1t has not destroyed them.
They rest and are being preserved
iri the soul and mind Of the people
just as the forces of life maintain
themselves and continue to develop
in a growing. but yet immature or
ganism.
'Bolshevism is a child's illness in
the growth Of Russian freedom.
Symptoms of Resurrection.
Il have been following closely from
day to day all that is happening in
Russia under bolshevism. see quite
clearly the, symptoms of the social
and economic resurrection of Russia.
And l see the reawakening of the
political activity of the masses in the
STRUGGLE for liberty
The deep democratic in
stincts of her people will lead her
along the paths followed by this
country"
If Mr.. Kerensky is a competent
witness his prophecy is of immense
Importance to the world OF finance
and trade. although unlikely to affect
next months business.
New York in the future will take
it's place with London as banker for
the rest Of the world. London will
no longer enjoy the undisputed lead
ership which il had before the world.
The dollar and the pound sterling
are the new international currencies.
And vet they are makeshift COM
pared with what the theoretical econ
omist could create in his laboratory.
An International Currency.
One individual Is apparently at
tempting to translate his theory of a
genuinely international currency into
practice. Dreves Uitterdijk of Laren.
Holland, who is the Dutch champion
of Esperanto as an international lam
guage, is sponsoring the spemilo, an
Esperantist currency, free of all ma
tional ties. The unit is worth so cents.
The idea is to circulate the new cur
rency at first among Esperantist pub
fishing houses, and eventually to get
into general acceptance as world cur
rency
If successful, the idea would free
tourists of worries about the complex
tiles of foreign exchange.
1t will probably be many moon be-
fore the innovation will win general
favor-not until after the majority of
peoples give up their national tongues
in favor of Esperanto.
AS Oscar Wilde once pointed out, ma
ture initiates art. In Somerset Maug-
hams novel, 1.-THE Moon and Six
Pence" the central character gave up
a career as a stockbroker to become q
painter.
Business men are, in fact, becoming
increasingly interested in art. as Otto
III. Kahn recently observed. Edmund
Greacen, president of the Grand Cen