River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-03-17
Business on War Basis
BY p. w. Ramer

| led TIE way 10 throwing competition
into advertising and breaking down
the foundation of political economy.
it is only one phase of our greatest
evil. | viii site one more illustration:
Suppose there are ten general mer
chants or department stores in a town.
We know that hese stores handle
practically the same goods that sell
at practically the same prices, and
comprise the general needs of the
public.
Now suppose they each pay $4,000
year for advertising. They would
be on an equal basis, provided they
were equally celever in the art of adj
vertising, just he same as though
they did not advertise at ALL But
you say their business is greatly m
creased by the Advertising I. that
is true, then people do not supply their
needs unless persuaded to do so by
someone else; or if they buy more
than they need, it is extravaganza and
waste. These merchants know that
| if :. person buys more than lie needs
today, or spends all his motley today,
he will buy less tomorrow, and they
| know that the bulk of their customers
| have limited means. No doubt but
it does develope considerable trade
on the basis of extravaganza and
waste, which is poor economies, for
business basis, but the big object of
the advertising is to get the other fell
lows trade from him rather than in
! creasing public demand.
The real fundamental involved in
this advertising is that the public
must pay 100000 more for the goods.
The press gets 100000 for the adj
vertising and the merchant gets 20
per cent profit on costs. This great
expense for advertising adds no val
ue to the goods. They are not COM
peting on business basis, they are
competing on war basis, for they
are fighting for the other fellows
trade and there is war tax added to
our purchases to buy the ammunition
called advertising.
If advertising was not profitable to
the press, or if the merchant had to
pay for it out of his own pocket they
would discontinue it. If it is profit
able, the public must pay for it. Now
just think of the tons of big daily
newspapers and magazines put upon
the market every month. Think of
the millions of pages of advertising
and how many of them cost thous-
ands of dollars for single page for
single issue. and then try and COM
pute the cost levied upon the consum-
er as purchase tax.
1t costs the consumers of this coun-
try about as much every year for
advertising os it cost to carry on our
great war for year, and it is as de-
structive to economic principles as
war is of property. We speak of the
burden of the war expense being to
great for one generation to pay; still
we pay similar amount for adver-
Using every year. Can this expense
be carried on in the form of pur-
chase tax without widening the gap
between the producer and consumer?
The war debt is a small burden
compared with the advertising ex-
pense, for we can pay off the war
debt and be free of the burden, but
the advertising burden will remain
and grow larger as long as the public
will pay for conducting business on a
war basis-fghting for the other fell
lows trade with advertising and add
ing the cost to our purchases. The
billions of dollars wasted in commerce
ial warfare gives the people moth
ing in return for their money.
i When the cost of the useless waste
in business is added to our purchases
it would of course, add to bank clear
ances which are held out to us as ev-
idence of prosperity, while in reality
it is evidence of a process whereby
the large cities accumulate the wealth
that he country produces. Is it any
;, wonder the the big cities grow SO
rapidly while the small towns in the
very heart of primary wealth produc-
ton stand still? Is it any wonder
! that the boys leave the farm where
wealth is produced and flock to the
! cities where the wealth accumulates
If the boys better understood the
fundamentals they would know be-
forehand that they joined the throng
striving for existence as privates, and
very few of them ever reach the pro-
motion to Captain of Industry" in
these great commercial war centers
where a few men get immensely veal
thy.