Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-10
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LOOKER-ON IN IOWA.
OBSERVATION-DISCLOSURES:
Tor theTimes- Republican.


Rolfe, Dec. 9.-More than one mer-
chant in Iowa has discussed the trad
ing stamp question with the writer. In
all cases the point under discussion
was how to avoid using 1t, and but one
answer seemed to be the correct one.
Il must use 1t as long as my COM
petitor does" That the system is a
straight tax on the merchant, no one
now denies. Perhaps it was not, when
certain merchants in a town had the
monopoly of it, but now with so gen.
eral a use, the trading stamp means a
tax of per cent on gross cash re-
ceipts. Some merchants go farther
and claim it is in many cases a tax
of per cent on profits. There is a
little trade journal called Brains that
in recent issue had what follows OH
this subject, and it handles the subject
so thoroughly it is given here in full:
Is the trading stamp system help
or hindrance.
We say it's an unnecessary evil and
we can back up our statement with
good argument.
When we get through talking, we
will give the floor to any who wish
to talk in favor of this system.
First, the trading stamp Is an evil
to the consumer.
Next, it is a hindrance to the mer-
chant.
The consumer gets a stamp pasted
in book for every cash purchase she
makes. She can get these stamps from
a dozen different merchants in the same
line of business. She can get stamps
from the butcher, the baker and the
boot and shoe maker. She would have
to buy from these merchants anyway,
because they sell the necessities of life
These stamps cost the merchant just
s cents for every dollar he takes, be-
cause he is compelled by contract to
give them with every cash purchase.
The dealer can not afford to give S
per cent away with every purchase.
He must add this to his prices 1t Is
for this reason that the customer SUI
fers.
To be sure, she gets something for
this per cent extra which she pays,
but she does not get her per cent
worth.
Let US say that she collected 5000
worth of stamps. For these stamps the
merchants from whom she has collected
them have paid $40. For the 5000 she
gets q premium valued at 3 per cent of
this amount, or So. AS general prop
osition the premium Is not worth this
much. The customer, you see. gets
stuck, because IL she paid per cent
less for her necessities, she could save
at least 2 per cent of her money and
still have the money left with which
to buy from local merchant the
premium which she is given.
This is not all.
Let us assume that the merchant
gets 5 per cent extra for his goods.
Some may argue that this per cent
extra which he spends brings a cash
trade and prevents loss from bad book
accounts These people only look upon
the surface OF things. They do not go
deep ough.
ThestustOmers who are good and do
pay their bills are the ones who will
use the stamps. The dead beats will
not attempt to collect the stamps be-
cause they have no money with which
to pay cash, or else they have no in
clination to pay their bills. The stamps
are not even an incentive to these peo-
pie to pay cash.
Then again the merchant gets the
dirty end of the stick. because among
his customers there will be many who
will start in collecting stamps and then
stop. In all schemes of this sort there
is large percentage OF stamps which
are unredeemed. The merchant must
a., 49,
neither he nor his customer receives
anything in return for them.
The trading stamp system soon
ceases to carry it's original purpose,
since some merchant, rather than lose
a good customer who pays by the week,
gives stamps to her. The rival mer-
chant, to Guido his competitor gives
them with monthly accounts. and so on.
until the method resolves itself to the
point where the merchants ostensibly
give per cent of their gross receipts.
This no man in the retail business can
do. consequently the consumer is the
loser.
Perhaps some merchants will say
that they do not raise the selling price
of their goods when they give trading
stamps. Very well. Then this per
cent they spend for stamps is an adj
vertising proposition. Well, this is too
large in itself and to it must be added
one or two per cent for the little extras
in advertising, such as little space in
the papers now and then, circulars once
in while, etc. This makes the mer-
chant spend just about double what
he should for his advertising. Does 1t
pay? Well, we guess not
In the general assembly at Provi-
dence, r. l., has been introduced an act
|declaring giving trading stamps to be
unlawful.
Recently hearing was given the
stamp question and it was largely at
tended by many merchants. Every
merchant, excepting one, at the hearing
denounced the trading stamp system
as an evil and one which should be
checked.
1t seems that wherever the system is
in force, it is strongly denounced by
the very ones who use it. But how
are we to break away?" they ask them
selves. There are only two answers
to this question.
First. the merchants should "get to-
gether" and then simply stop-a de-
cisive stop. They have run up against
a stone wall and there is no sense in
battering the profits out Of their busi-
ness trying to buck the wall over
The other solution to the puzzle Is
that the assistance Of the city coun-
Gil, or the state assembly be enlisted
to provide laws which would force the
trading stamp people out.