Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-05
BUSINESS FOLLOWS THE FLAG"

To the Editor Of the Evening Ledger:
Sir-I have been asked to state my opn-
ion as to how advertisers will view the war
situation.
/ do not believe we have an advertiser
worthy the name who will permit a situa-
ton in Europe that has existed for nearly
three years to warp his judgment just be-
cause we are little closer to the edge
of It.
] have carefully looked over the financial
retrospects of all great wars and find that
business has invariably been increased
during and for some years after the wars
The expenditure of vast sums of money,
even though large part Is for war pur-
poses, must stimulate business In all lines.
This money is not burned UP or diverted
into closed channels. 1t would be impossi-
BILE to prevent 1T from percolating through
every avenue of approach to the public,
and stimulating In turn its reinvestment or
responding. In times of stress the public
leans more and more upon standardized
goods, especially those that give comfort
and convenience. Tobaccos automobiles,
food products and similar lines should be
stimulated rather than retarded in their
sales by the war situation.
Now as to taxes, II large sums are i'm
posed upon special industries, no doubt
these will be, in turn, passed to the con-
sumers in the form of the small additional
charges necessary to cover the increased
cost to the manufacturer. No one believes
il Is the intention Of the Government to
tax initiative out of existence or to burden
American business with unnecessary handi-
caps. The persons who use the taxed goods
are the ones who are to be reached, and the
division of the taxes among millions means
very little to the public, but a great deal
were it to be confined to the manufacturers.
Furthermore. IL the Government is to i'm
pose a large tax upon so-called excess
ha ady vii ha 10 tfar
Of the argument In contrast to the nom
advertiser.
Advertising is a legitimate part of manu-
featuring and selling expense. Goods that
are sold through advertising are provedly
lower in maintained price than nonadver-
tised goods. This is benefit to the pub
lic and continuance of advertising with
its correlated enlargement of output Is a
public safeguard against increased prices
Both the advertiser and the public benefit
But there is still another side to 1t. II
the Government is to tax profits above a
certain percentage, large net profits will be
large net profits in name only, and the de-
velopment of goodwill through advertising
| expenditure will be of more value than
surpluses that will meet double and treble
| taxation.
In other words, advertisers who cut out
| their normal expenditures will not be bene.
| ftng either themselves or their stock.
| holders. but will only falsely add to the in.
| comes, at the same time handicapping the
| growth Of their business.
| Should we consider patriotism in con,
| nection with business? IT has been said
| that the patriotism of America exists In It.
| pocketbook.. i do not believe this is true
| Wall street sometimes runs at any sign OF
alarm, but the business of America. as 6
| whole, will not strike its colors to German
aggression or German underhandedness. (!
believe American business will 60 forward
as II has been going for some years past
believe it will prove to its own satisfaction
and that Of the community at large tina
| business follows the flag"
| RICHARD A. FOLEY.
| philadelphia, May 4.