The Washington times., 1922-04-15
woods ADVISES
ADVERTISING IN
SLUMP PERIODS
Presidents Unemployment Ex-
pert Says Study Of Conditions
viii Accomplish Much.
BY ARTHUR WOODS,

BY ARTHUR WOODS,
Chairman Of Emergency Committee,
Presidents Conference ON Uncm-
pioyment.
ssrvics.J
Business cycles are not merely
something for the "high-brow"
economist to talk about. They are
real factor In the life of men and
women; they constitute serious
problem that must be solved before
Industrial life can go forward in con-
tinuous progress and without sharp
peaks and depressions.
There have been four such bust.
ness cycles within a single genera
tion. The nation is just now emerg-
ing from one. This periodic recur-
renee of hard times has thrown, mil
lions of men out of work, has had
disastrous effect on the business life
OF the country, and has meant a loss
In actual production, through wasted
labor power, of btuions of dollars.
Continuous production, or the
nearest approximation possible, is
cycles recur. Private employers
must cut down the pay roll and
other expenses when their business
begins to lose money. More than
$4,000 business enterprises have
gone into bankruptcy during the
present depression, and thousands
are even now operating at a loss.
Unemployment is a result of de-
preston, and the labor situation
will be considerably improved IL
we can find some means of mini.
MIXING the shocks between alter.
nate periods OF booming and stag
nation.
One suggestion that has been
advanced is that something be
done for industry paralleling the
work of the Federal Reserve Board
for finance. The boards activities
during the past two years have
unquestionably prevented a disas-
trous financial panic, and preven-
tive methods In industry are as
important as in banking.
Prepare for Bad Times.
1t is coming to be the general
opinion that the best way to prevent
overexpansion and thereby to mini.
mize the slump that must follow is
to act fairly early in the progress of
the boom. Many firms have been
able to do something like that for
themselves. They prepare for bad
times in advance for they know that
they must come. ConsequntIy they
are able to go through the severest
crisis without cutting dividends or
even greatly curtailing production.
Statistics furnish the best and a
readily available means OF forecast
ing business conditions. One defect
of Importance which the Presidents q
conference on unemployment found
was that statistical material covering
| transportation, trade, mining, and
quarrying are inadequate.
Information is lacking as TO loss
in wages, and consequently the de-
cline In purchasing power of the
| country during depressions cannot
be suitably estimated.
The most important remedy pro
posed, perhaps, Is the long-range
planning OF construction work in
order that production may be sta.
bilized. Construction has to be
done: II may as well be done when
business is bad in other lines.
Public works can be carried forward
as we'll in dull times as otherwise;
they will cost no more, and they
will tend to stabilize the labor mar
ket. Seasonal employment is like
wise capable OF solution; II has
already been solved in many indus
tries where once solution was de-
clared impossible.
Advertising Is Aid.
Another important method of
bringing better times is to adver-
tise extensively during seasons of
lessened demand. Advertising TO
the consumer in many inktances
has heightened the season for GER
tain products; garment manufac-
turers have created practically a
year-round business through adver-
tising; glass manufacturing, former
ly highly intermittent industry,
has been stabilized to some extent
by lowering prices in slack seasons
and advertising the reductions. Gus
toners take advantage of the cut,
and thus spread work over the
entire year. to the profit of en-
ployers and employees alike.
The really big accomplishment OF
the Presidents conference on unem.
ployment, in my belief. is the study
now being made-and for which priv
ate funds were made available-of
the causes underlying the business
cycle, and the attempt to collect
statistics and other facts as to the
suits of recurring periods OF expan.
sioon and depression. The study
will, believe, be the greatest con.
structive effort in behalf of Amer.
lean business that the Government
has ever sponsored.