Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-31
MEN AND MONEY
By NJ. S. Rtikeyser.
(Copyright. 1927

By NJ S. Rukeyser.
| fCopyright 1927
Capital flows rapidly across national
boundary lines to the places where
| II can command the highest rewards.
Labor. is less mobile. Sentiment,
| habit, family obligations. lack Of re-
sources and inertia tend to keep In
/ dividuals at q fixed point, even though
their present habitat may constitute
a less favorable market place for their
| services than a distant city or coun-
! try. And, although this is true, men
/ are tending to move about more rapid
| ~ than in the past. Modern trans
| portation--rail, steamship, motor and
! airplane--is notwithstanding life, and
remaking human habits. The human
race is gradually becoming more
mobile, vet people still move slowly
compared with capital, which tends to
make quicker adjustments to chang
ing conditions.
For the first time the country today
gets authoritative data on the wisdom
with which foreign immigrants took
advantage of prosperous business con-
ditions in this country in finding a
better market place for their services.
Originally the early settlers in Amer
lea came in search of religious free
dom. But for nearly century the
primary motive for migrating to
America was the belief that human
labor was more richly rewarded here
than in Europe.
The flow of the human tide that
sweeps into the United States In boom
times and out during depressions is
not well timed with the fluctuations
n n 0yaf ATGnTn-
ing to DIR. Harry Jerome Of the Ma
tional Bureau of Economic Research.
Industrial Employment Sure.
with the passing of the era of
abundant and fertile free land said
DR.. Jerome, industrial employment,
rather than agricultural opportunity,
has been the lodestone attracting the
foreign worker to our shores. Far
ticuiarly during the last few decades.
the typical immigrant has been
prospective wage Garner seeking EN-
ployment in factory, mine or construc-
ton camp.
"A comparison of the data pertain
ing to male immigration, pig iron
production and factory employment in
the pre-war period reveals the fact
that cyclical fluctuations in male i'm
migration are ordinarily associated
with prior changes in the same direc-
ton in production and employment.
THE influence of a major change
in industrial conditions is usually APP
parent in immigration within less
than half a year.
THE movements in emigration are
inversely correlated with those of i'm.
migration and employment, with large
emigration in depression periods and
f1r i'm
periods.
THE fluctuations of net immigra-
ton exhibit high degree of sensi-
tiveness to employment conditions in
the United States. This is evident
when immigration and emigration are
Jointly considered. either in terms of
the ratio of emigration to immigration
or in terms of the numerical excess
of arrivals over departures or of de-
partures over arrivals.
Economic Effort of Policy.
In discussing the economic effect of
the new policy of restricting immigra-
ton into the United States, which be.
came effective in 1921, DIR. Jerome
said:
This quota law was apparently
due, in part at least, to the fear that
the volume of immigration in 1920
was but an indication of the growing
momentum of a food of Immigrants
which had been damned up by war
conditions and which now, spurred bv
actual or impending economic and
political chaos in Europe, threatened
to inundate this country with an un.
precedented volume OF aliens.
Because the quotas began to be
available in July, and 20 per cent of
the quota or any country could be ad-
mitbed IN a single month, the law
has tended to concentrate the arIi
Vais IN the second half OF the calendar
year, thus creating seasonal move
ment materially different from that
characteristic of the pre-war period,
and obScuring the effects of Industrial
prosperity and depression except for
those countries which were obviously
falling short OF the quota or, like Can.
ada and Mexico, were not subject to
the law"
In the new passion for exact knowl.
edge about the science OF business. ii
is well that the scholars are not over.
looking the place of human beings In
the commercial structure.
Rise to Giant Size.
Americas Industrial history is the
story OF the rise Of infant industries
to giant stature. What industries are
likely to have the largest rate of
growth in the next Ave years? EIec-
trtcal refrigeration is one possibility.
The manufacture Of airplanes is an.
other. There are signs that America
il at last rousing itself from it's leth.
argy In the matter Of the develop
ment OF air travel.
The new plan Of the New York
Stock Exchange to enlist foreign com.
mon stocks in their native dress is
part Of the city's coming OF age in an
economic sense. AS the new world
capital of finance, New York has
found ii necessary gradually to i'm.
prove its financial machinery and to
train a new personnel.
Thus far the colossal foreign financ.
ing has been primarily a question of
floating bonds. The next phase will
no doubt consist OF buying new and
old stock issues, which will give Amer.
lean investors a partnership stake in
FAFRAprN hNfG1