The San Francisco call., 1898-01-12
HE TRUTH ABOUT TRADING STAMPS,

To the Editor of The Call-Sir: There has been during the past few weeks ar ticles in most of the American papers relative to trading stamps, their origin and the system in general.
 These articles have been, in many cases, either superficial, inaccurate or biased.
 It is a surprising fact that, although We have 157 clearing houses in the East, the plan is very little known on the Pacific Coast, and We take this oppor- tunity of setting before the public the trading stamp system, privileges and advantages so fully recognized in sev- enty of the greatest Eastern cities.
 Divested of all superfluous language the origin of the system and the plan upon which 1t operates is as follows:
 In 1894 l established in Jackson, Mich, plaiI of commission advertising by means of which merchants endeavored to Increase their cash business through the agency of a rebate; the rebate be- ing given by the means of trading stamps, the said stamps being exchang- ed through a clearing house for any article as designated in a catalogue is- sued by me as the agent of the mer- chant who gave his customer the stamps.
 The plan was from the first a great success; it spread to other cities, and early in 1896 I entered into partnership with MT. Sperry, with headquarters at 32O Broadway, New York, and not till May last did the system provoke un- favorable comment.
 The great success of the green trad ing stamp movement raised up imita- tors like mushrooms after rain; many Of these concerns being irrespOnsible and by reason of their irrespOnsjbilitv brought the system in some quarters into disrepute.
 The plan upon which my companv operates is for the retail storekeeper to receive from us our official green trad ing stamp, paying a uniform rate for same when presented for redemption He then (and we in conjunction with him) by means of systematic adyertis ing acquaint the purchasing public that for every ten-cent cash purchase they will receive one green trading stamp.
 These trading stamps are to be col lected and pasted in a book which we furnish to the customer free.
 We maintain in each city as the agents understand, of these storekee,,- CTS, one or more clearing houSes-in oth CT words, one or more stores or ex changes at which the customer pre- sents his or her book filled with green trading stamps, and in exchange for this book is given any article which he or she may select.
 It will be at once apparent that these trading stamps benefit the purchasing public; that is. they are a rebate on cash purchases-they discredit the svs tenn of purchasing on credit: they nrac- tically give the cash purchaser a re- bate which the old system of business could not-or would not-do.
 Now let us glance at the benefit which the storekeeper derives.
 For many years the greatest curse of some of our commercial communities has been the ever-growing tendency to ask fer credit; many otherwise live merchants have had to allow a great deal of this credit.
 Competition has forced them to allow credit: 'tis also true that credit forced them to charge higher prices.
 They had to run long and heavy book debts, they had many losses. tbev and as a matter of fact the cash cus- toner, strange as 1t may seem on first impulse. paid for part of the losses incurred through giving credit.
 With such state of affairs it is not to be wondered at that any syster, that would tend to build up trade on a cash basis was eagerly welcomed.
 The merchant when accepting the system laid down by the Green Trad ing Stamp Company was paying a small percentage in order firstly to in crease his cash sales and, as it has almost universally proved, the system has worked up a vast new trade and materially increased the merchants business who gave these trading stamps away.
 The Trading Stamp Company. in other words. aimed to boom business in general-they have been one of the largest advertisers (for the merchants who dea1 Tn fheir stampsl that fha cop, = mercial world has seen for many years
 They advertise the merchant at a far cheaper rate. in a more extensive way, get better results. than the average merchant can, and practically all this