Denver labor bulletin., 1918-08-10
TRADE IS GAINED
BY ADVERTISING
Development of Fc-eign Good
Will Declared Due to Pub
licity Work.

The value of advertising in build
ing up business was emphasized by
Roger w. Babson, the statistical ex-
pert now working for the department
Of labor, who has made several trips
to South America for Secretary Nc
Adoo, in testifying before the ways
and means committee of the House.
Recognition of the Importance OF
"good will" in business as derived thru
advertising, even more than thru other
agencies, should be allowed for in tax
ing capital, according to Mr.. Babson's
statement regarding the new war
revenue law.
That employment of money for hir-
ing workmen to beautify a property
in order to make it more attractive to
trade is permitted to be classed as in
vested capital, whereas money spent
for advertising, which does infinitely
more to make the property popular,
cannot be so classified, Mr.. Babson
pointed out. He urged that good will
gained thru advertising should be al
lowed classification as invested capi-
tai and exempt from taxation.
|. Results of Observation.
Calling attention to three trips that
he had made to South America at the
request of Secretary McAdoo to study
the advantages of advertising, trade
marks and brands in the development
of commerce, Mr.. Babson stated that
from his personal observation Ger
many built up its extensive trade in
the South American countries princi-
pally thru advertising.
"If l hire a carpenter to erect q
sign," said Mr.. Babson, illustrating his
IN alu raa vrrxy
business thereon, / can charge the
service of this carpenter and painter
as capital invested. If, however, in
vest the same amount of money in
paper and ink, the government re-
fuses to consider it capital invested.
This is absolutely unjust and a dis
tinct discrimination. The work and
the services of advertising men are
just as valuable to this country as
the services of any mechanic In
many ways the service of the adver-
tising expert are more valuable, be-
cause the demand for goods must
come before goods are manufactured.
"'Trade marks and brands are as
important in developing domestic in
dustry and in standardizing manufac-
turing as are buildings and machin-
cry" continued Mr.. Babson.
Work Is Created.
ITO refuse to consider money spent
upon advertising as capital invested
and TO allow it in the second instance
is distinctly handicapping American
industry. Such discrimination not
only affects the manufacturer and bus
mess man, but the wage Garner as
well. Advertising has done more than
any one other thing to create work
for and help the interests Of the wage
earners Of the United States.
"In the development Of foreign
trade the value Of brands and trade
marks is tremendous. The success Of
German, English and French export
ers has been largely due to the en-
couragement Of the development Of
brands by the representative govern
ment. II the United States govern
ment recognizes the value Of trade
marks to the extent Of protecting
them by legislation, it certainly should
recognize their value in connection
with taxation. The nation which has
the greatest foreign trade after the
war will be the one whose manufac-
turers have the greatest good will.
Certainly Congress should do every
thing to encourage manufacturers in
the development of this good will"
French munition works employ girls
over thirteen wears old