Perth Amboy evening news., 1923-06-09

Roger W. Babson guest of the Assoc
lated Advertising Clubs of the World
in convention addressed the main
body of the meeting on Wednesday
and Thursday. Mr.. Babson Is much
interested in the latent power of ad-
vertising both in connection with the
distribution of goods and as a factor
in studying business conditions.
when the Associated Advertising
Clubs of the World was formed,
there was a great need for systematic
vigilance and guidance" says Mr..
Babson. 1.-THE condition of the ad-
vertising world was far below aver
age business in usefulness and moral
ity. Advertising was largely confined
to patent medicine manufacturers,
theatrical troops, and bogus stock
promoters. Advertising was consid-
cred a gamblers game. The old say
ing Everything is fair in war and
love was extended to read Every
thing is fair in war, love and ad-
vertising.'
THE first task of the new organic
alton was to form vigilance COM
mittees and bringing about honest
advertising. It deserves the greatest
credit for the work it has done and
10 oOliiS diOli6 Ills lAS
There are, however, other things
which are equally important, and
prehaps more important when all
possibilities are considered. II one
looks ahead to the future of adj
vertising he sees three additional
fields of development.
THE leading advertisers are each
year giving more thought to the
question of competitive advertising.
By competitive advertising I mean
advertising which does not benefit
the country as a whole There is
nothing dishonest in both the Stan
dard Oil Company and the Texas
Company erecting large sign boards
at the same point on a country road.
Moreover, l am not criticising either
company for doing this. II n COM
pany does it, 1t is perhaps necessary
for the other company to do 1t. /,
however, am sure that these signs
do not increase the sale, OF use of
gasoline and in no way benefit the
country as a whole.
1.-THE cost of such competitive adj
vertising is ultimately borne by the
consumers. From an economic point
of view such advertising is a direct
loss to the nation as a whole. The
people of a country are best off when
they get the largest mount OF goods
for the least amount of labor. There
fore. we all should strive to elimi-
nate, so far as possible, unnecessary
Ia bor and to use our labor for the
actual production and distribution OF
goods. Instead of erecting COMPETE
tive sign boards, carpenters should
be building houses O working men;
instead of using electric power for
competitive advertising, 1t should
be used for productive industrial
purposes; instead of wasting news
print on competitive advertising, the
same space should be used for con-
structive advertising.
Every sensible mar recognizes
the value of constructive adVertls-
ing. Statistics show clearly that most
goods can be sold more cheaply and
effectively thru advertising than in
any other form. Advertising. when
properly used, is considerably cheap
er than selling thru statesmen n
clerks. Not only is the cost per sale
less, but when selling thru the news
papers or the mails the maker knows
lust what he promises. The firm,
however, who depends upon a crew
of statesmen does not always know
what the statesmen promise. There
are many other economic advan-
tageS gained thru Intelligent USE VI
constructive advertising.
FINALLY we shall have what l like
to call ultimate advertising. The
history of the advertising agent will
be similar to the history of the
banker. Banking as YOU know star
ted with the pawn shop. The loan
ing of money in its early stages was
looked upon as a most illegitlmate
business and carried on under cover
by questionable people. Usury was
not only banned by the church, but
by legislation. It was only compare
lively a few years ago. considering
history as a whole, when banking
was recognized as a legitimate busi-
ness.
During the past hundred years
banking has gone thru various
stages. The first campaign was to
eliminate dishonest banking; the
next step was to eliminate competi-
tive banking; and the present gen
Grafton has been engaged in con-
structive banking. The country is
now learning, however, that the
banker has a great opportunity in
steadying business conditions.
thereby eliminating reckless booms
and preventing needless panics. 1t
has been learned that by increasing
the bank rate, during periods OF
over expansion. a panic a be pre-
vented. Then by lowering the rate