Pueblo chieftain., 1922-01-29
What The Banker Thinks Of Advertising
aga f February

nected with advertising as operating
matters, to be left, as sales policies arc
| left to the company management. The
report that bankers have. to any i'm
portant extent. been hostile to or un-
sympathetic with advertising is a false
| alarm.
| Now. to refer to the exceptional case,
| where 1t does become the bankers duty
| or interest to investigate in detail a
question of advertising. let us suppose
that a largely increased appropriation
is called for, or that a company Is in
financial difficulties. so that Its affairs
are under banking supervision. Under
such circumstances with what attitude
Will the average banker be likely to
| approach the advertising problem?
| 1t cannot be pointed out too often to
| business men. especially those unaccus-
toned to borrow money Of banks. that
the commercial banker is the custo-
dian of funds repayable to depositors
on demand: and that. in consequence,
money loaned by banks to Industry
/ must be loaned on short term. on tho
security of paper covering self-liquida-
| ting transactions. Tho banker gets a
small. fixed fee for his loan. He does
| not participate in the profits of the
business in which the money is used.
| Therefore, he cannot afford to take a
substantial risk Of loss, He cannot say.
| This is a likely business-we will
y taN' - ii'l iol Al Ilt IluSt
say rs this loan sure to be repaid?"
The long chances In the world of busl-
ness must be taken by private in
vcstors with their own funds. II the
banker is not almost always right he
VIII not be successful banker; for
the loss of the principal OF a few loans
VIII more than wipe out the small in
/ tereet return earned on the loans which
are repaid This is a detail of the
banking business which advertising
men should understand thoroly be-
cause 1t gives the key to an attitude
which Is tho rule with lending officers
OF banks. This attitude can hardly be
called either unusually conservative or
In any way unsympathetic. 1t simply
/ evidences a high degree of care in as
Ger tanning the facts and implications
/ in each given case.
| The conclusion from this is that when
/ Il does become necessary for the
banker to pass upon an advertising ap-
preparation. his attitude will bo that
OF the banker and not OF the promoter.
| He must be convinced OF the soundness
o. the unusual advertising appropria-
| tion Just as he seeks to satisfy him
SELF of the soundness of any other
business outlay. II tho company Of
I fetal who does consult his banker
about an advertising appropriation
cannot explain 1t clearly. 1t will doubt
less be cut down or even cut out This
is as it should be. II it IS right to
spend money for advertising in a given
case it should be possible not actually
to provo that commemorate results
VIII be obtained. but certainly to make
straightforward showing. based upon
business experience in analogous cases.
Whom this is done the banker will be
found responsive.
II may be we'll to mention one or
two outstanding instances OF insight
into fundamentals of advertising on the
part of bankers. With many we'll
known concerns. which base their sue
cess upon volume of sales. advertising
appropriations run year after year into
millions of dollars annually. Investi-
"a ton shows that the bankers whose
contact gives them a knowledge OF
these concerns are thoroly convinced
OF the value OF advertising. In Mt least
ono recent case OF nationally dis
tribusted article. where the distribut-
Ing company became involved in fl
nanciaI difficulties. the bankers ad-
vis'ed continuance OF .hc advertising
appropriation on maximum scale. In
this case the bankers committee had,
of course, absolutely final authority Is
TO all expenditures OF this company.
1t is becoming more and more COM
mon for bankers 10 regard n radical
cutting down OF an advertising cxpen-
diture with close attention. The sharp
reduction in the advertising OF nation
ally distributed articles. tho regulations
OF which We're apparently so firmly
established that nothing could affect
them adversely. has been followed no
regularly by a heavy falling off In
sales, that the need for caution In such
cases is widely recognized. The banker
Is coming to realize that public Inter-
css Is not necessarily a permanent pos
session II can be won only by skillful
competition in n world where every
Z 1.Nfg 10 rr1DhflizeJ 10 ,,.i,,
and stimulate the action OF the aver
age man or woman. from the hour OF
rising In the morning till the hohr OF
retiring at night. The morning mail is
fun OF circulars; selling appeal fills
the newspapers and magazines. the
bill-bcar6s, the street cars and the
shop windows as one goes to work and
returns In the evening. To win n place
in the crowded and bcsieEed mind of
tho modern man Is not equivalent to
holding such n place. II is moro like
creating a melody which the prospect
hears, enjoys, and inevitably forgcts.
1t must be played and rc-played. or
other melodies will take it's place. Not
even the greatest corporation or tho
most popular product can hope to
build UP a reputation which will Of its
own force endure. The history OF ad-
vertisirE is filled with striking proofs
OF human forgetfulncss.
IL a further instance Is needed OF the
progress OF the bankers belief In ad-
vcrtising. it is to be found in the great
volume OF advertising placed bt bank
ers purely for purposes of developing
good will. Banks have been among tho
pioneers In this field. Many large
banks. having nothing tangible fyr
sale. find 1t advisable to advertise cx-
tensivcly. Tho aim IL not to secure
direct returns. The object in view is
TO develop the highest type Of national
good Will for an institution doing n
countrywide but at the Same time a
highly specialized business. To under
stand the value of advertising and
early returns In dollars and cents is
simple enough. But when bankers are /
willing to spend substantial sums year
after year for advertising to build |
their standing. and TO keep their good
name continuously before tho forgetful