New Britain herald., 1926-10-28
HIGH WAGES ARE
 SUBJECT OF TALK
President Thinks Advertising } Helps Maintain Scale

Washington, Oct. 2S OPl - Presi- dent Coolidge feels that advertising has taken a commanding hand in bringing about "our commercial scale of wages" the maintenance of which he believes is paramount to the support of the home mar ket.
 Speaking last night at the annual banquet of the American Associa- ton Of Advertising Agencies, the president held that it would not be remiss 10 describe advertising as the life of trade" and as the foundation for much of the suc- cess of the American industrial system"
 The preeminence of American industry, which has constantly brought about a reduction of costs,' the president asserted, has come very largely through mass produc- ton. Mass production is only pos sible where there is mass demand. Mass demand has been created all most entirely through the develop ment of advertising.
 Tn former days goods were ex- pected to sell themselves. Modern business could neither have been created nor can it be maintained on such q system. It is not enough that goods are made, a demand for them must also be made. It is on this foundation of enlarginG production through the demands created by ad- vertising that that much of the sue cess of the American industrial sys tenn rests.
 High Rate of Wages
 Tt will occur at once that the conditions under which these results have been secured should be main tained. It is our high rate of wages which brings about the greatest dis tribution of wealth that the world has ever seen and provides the enormous capacity for the con- sumption of all kinds of commodi- ties which characterizes our country.
 If We proceed under our present Ss SAtlliy tiNIt NOhlI dplltdI lD Dt little reason to doubt that We can continue to maintain all of these high standards in wages, in output, in consumption indefinitely, and with home markets as a foundation increase our foreign commerce.
 Bus nothing would appear to be plainer than that this all depends upon the maintenance of our American scale of wages, which is the main support of our home market.
 Ads Are Not Waste
 Tt is to be seen that advertising is not an economic waste. It minis ters to the true development of trade"
 Mir. Coolidge held honesty in busi- ness to be the only method of per manent success and declared there can be no permanent basis for ad- vertising except a representation of the exact truth"
 If our commercial life" ne con- tinued, 'is to be clean and whole some and permanent in the last re- sort, 1t will be because those who are engaged in it are determined 10 make it so. The ultimate reformers of business must be the business men themselves My conception of what advertising agencies want is business world in which the stand ards are so high that it- will be necessary for them to tell the truth about 1t.
 "The national government has large interest in all these problems, though many of them are confined in their Jurisdiction to the states The general welfare of the country; it's progress and prosperity are very intimately connected with the commerce that flows from agricul- ture and industry"
 The president said that if this commerce were not in a healthy condition want and distress eventually would creep into the home.
 Country is Prosperous
 The country "in the main" has been and is prosperous, he asserted, and perhaps the most creditable aspect of our present prosperity IS that wages arc high while profits have been moderate"
 From q recent fear of being eX- plotted by large asgrcgations of wealth." he continued, the people of America are learning 10 make such great concerns their most faitllful servants. This problem is