The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-04-29

A FOOLISH ADVERTISING BILL

Standard Remedies: Unfortu-
nately advertising has no def
nitely and positively established
place in the economics Of bust
ness. Just how much it con-
tributes to the wealth of the
world Is matter of dispute
among economists. Merchant
princes and captains of industry
expend billions on it annually,
yet college professors with i'm
posing alphabetical appendages
sometimes denounce it as a con-
tributor to our economic ills and
an elevator Of living costs.
At present the paper shortage
is causing many publications to
reject much advertising. The
scramble to get in is pretty good
evidence Of what the average
business man thinks of the value
Of paid publicity AS to whether
the successful merchant or
manufacturer or the college pro-
fessor knows more about adver-
Using, each man must judge for
himself. The preponderance Of
evidence is with the advertiser.
AS the grain and livestock ex-
changes, when freed from abuses,
are balance wheels for the farm
ing industry, SO advertising can
be made to function for merchan-
dising. according to the theories
Of certain economists. 1t has been
proposed every business should
build up in flush times an adver-
Using reserve to boom sales in
dull times, and keep the factory
or store running. This reserve,
it is proposed, shall not be re-
garded as profit, and shall be
exempted from federal profits
taxation.
One of the many ways In which
the present economic situation
cannot be helped is that pro
posed by Joseph Thompson, Of
Defiance, Ohio. He has a scheme
ito increase the revenue of the
government of the United States
and to conserve the supply Of
print and other paper by impos-
ing a tax upon advertisers.
A tax on advertisers would cut
down advertising, which would
cut down sales, which would cut
down production, which would
throw labor olt Of employment
and raise prices. 1t is unneces-
sary to raise prices now. They
are high enough. 1t is unneces-
sary to cut production. We
haven't enough. To throw labor
out of employment would solve
no pressing economic question.
Mr.. Thompson Is a representa-
tive in congress, and brings to
his task of lawmaking the bril-
liant commercial and economic
capacity for which the citizenry
of Defiance have always been
famous. His bill provides:
There shall be levied. as
sessed, collected, and paid by
the advertiser upon all advertise
ments in any book, magazine or
newspaper having circulation
OF five thousand or more, PAM
phlet or other publication enter
ing the United States mails a
TAX equivalent 10 ~ per CehLuH
OF the sum usually charged by
the publishers Of such book,
magazine, newspaper or PAM
phIet ors other publication for
such advertising matter"
The bill exempts classified adj
vertisements of lost and found"
articles, help wanted" positions
wanted" and advertising OF live
stock auctions and the sale Of
farming implements. On all ad-
vertising matter other than that
mentioned above tax Of IS per
cent. shall be levied. The tax is
to be collected by the mediums
or firms which receive payments
for the advertising. and is to be
turned over under oath and on
duplicate forms to the collector
Of internal revenue.
In the statement to Printers
Ink Mr.. Thompson is quoted as
saying that while he has no wish
to punish advertisers, whom he
describes as an untapped source
of revenue evidently overlook
ing the fact that they pay heavy