Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-21
MEN AND MONEY
By vi. S. Rukeyser.
tCopyright. 1877

America Is today experiencing
golden age In business management.
Responsible managers Of important
enterprises are better versed i'm the
fundamentals Of business science than
their predecessors. In assaying trade
prospects, many are falling to allow
for the new factor of the growing
economic culture in the United States.
Frank A. Vanderlip, former presi-
dent of the National City Bank, in
speech In Chicago in 1916, complained
that America was a Nation of "eco-
nomic iliterates" The phrase be-
came n part of the language of the
Nation--and was perhaps more fire.
quently quoted than any other ob.
servation concerning the financial be-
havior of Americans.
Mr.. Vanderlip revealed new view
point in an interview granted the
writer late last week
America" he told me, lis no long
er a Nation of economic illiterates.
There has been q, marked rise in the
average of financial knowledge and
Intelligence on the part of business
managers and bankers. The general
public. too, has widened its scope of
information on economic subjects as
result of the popularization of the
habit of investment. Before the war
here were fewer than 100000 bond
buyers in the United States. The
Liberty loan campaigns taught 20
100 600 individuals what bonds We're,
md many of these have continued as
,acurity buyers. The widespread prac-
Ice of thrift, which is facilitated by
current high wage, Is an important
influence in the unprecedented flow
Of funds TO the investment market.
Management More Scientific.
II think that. In judging business
prospects allowance should be made
for the better grasp of managers of
economic principles. Business man
agement is more scientific than IN
he past. Therefore, observers of the
business situation, who are looking at
charts. measuring the fiuctuating
curves of the past, and who believe
that the current prosperity must short
ly be followed by a depression may be
wrong.
II think it wholly possible that we
are in for a prolonged period Of rather
good times, although perhaps we are
at the peak in respect to volume and
profits for time
Mr.. Vanderlip, who in 1919, after
pessimistic view of the outlook in Eu-
rope, now sees signs of substantial re-
coveries. He is particularly impressed
with the renaissance of economic ener-
gy and power in Germany.
/ asked Mr.. Vanderlip whether he
thought that Europe would be able to
compete with us in our own spe-
cialty-mass production. European
neutrality-suspicious. from Germany
have been coming to this country
in large numbers TO study American
industrial methods in recent months.
Market of Magnitude.
Mr.. Vanderlip asserted his conf
dence that America would remain pre-
eminent in mass production. because
of the fact that it's factories can rely
on mass consumption, which must go
hand In hand with mass production.
No other country, he pointed out, has
a home market of comparable magni-
tude. Without assured volume the in
yestment in expensive machinery
might not be attractive. Volume, of
course, reduces the overhead cost of
the investment in machinery for each
product.
Unauestionably. the more progress
sive European nations will turn in
creasingly to labor saving machinery.
In England. this development was
delayed by the general strike and the
coal strike. which We're looked
Inon by employers as turning points
II labor policy. American manufac-
turers of coal-mining machinery report
'Seen interest from British sources in
heir products.
1t will be good news to Mr.. Wander
lips friends throughout the country
that he has completely recovered from
his recent serious illness and looks
more vigorous than he has in years.
Although only s. years old, Mr.. Van
derlip has long had white hair. He
has vivacious blue eyes and a rudy
complexion.
Mr. Vanderlip was one of the few
individuals who were able to rise to
the top in private enterprise in Wall
Street without losing his public view
point. He regards banking and trade
developments from the standpoint of
their social importance-as we'll as
from the narrower standpoint of pub
lie gain.
Brings Craftsmanship to Street.
Mr.. Vanderlip brought to the f1nan-
ciai district craftsmanship and the
courage to criticize.
Having recently returned from his
ranch in California, Mr.. Vanderlip is
enjoying his leisure. "After 80 years
residence here" he said. II am just
beginning to learn about New York
Formerly, ! shuttled from my office to
my home. Now have time to stroll
leisurely about, and really learn the
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