The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-03-26
Production, Buying and Depression

y a
! The industrial depression that seems to date back to
. ast falls stock market crash has not been q very pleas
: mt sequel to the period Of high prosperity that preceded
: {. Efforts to place the blame are nearly as plentiful,
|. nd as contradictory. as efforts to find a remedy; but a
ecent article by Walter j. Munro, Cleveland advertising
nan. seems to US to be worth much consideration.
! Mr.. Munro begins by remarking that there Is no greater
y more common fallacy than the notion that business
!. ecessions are the result Of overproduction in industry
lnce such a notion implies that everyone in the country
. las al the necessaries and comforts Of life that he needs
" wants.
; "Such an idea, Of course. Is preposterous." he writes.
. Just now there are some millions Of persons unem-
oloyed in the country. Obviously these people and their
families are not enjoying an overabundance Of goods.
"Recessions do not come from general industrial over
production, although the economic structure sometimes
is thrown out Of balance by the temporarily excessive
outputs In particular lines. Actually the most charac-
ssteristic symptom Of a business decline Is underconsump-
stion- People from necessity or from reasons of caution
and restraint reduce their purchases.
1T is the curtailment Of normal buying by those whose
purchasing power Is unimpaired that tends to stretch out
the period Of slump and unemployment in times of recess
sion. In advertising. business has an effective remedy
for this condition.
by working together, the newspapers, the merchants
and the manufacturers Of any city have the means ut
hand to do more toward reducing unemployment and
,accelerating sales than any other group.
: oy AsC1euSu& Iue4 ueWSp6pST &OveTt1SUu8 m0luIoCL-
alrers and merchants can do much to stimulate sales. In
this way dealers stocks viii be diminished and factories
VIII be called upon st least to fill current orders.
I Men will be called back to work and once back at work
they win enter the market as buyers, first at the grocer's
and eventually at the jewelers.. When q fair percentage
.of people who can afford new cars, new radio sets and
NEW clothes are led to decide to buy. sales In 1890 can be
caused to equal or surpass sales in 1929.
Newspapers Of the United States are read by mil
lions Of people. These newspapers are in reality simply
strong Transmission lines over which we can transmit
messages concerning the merits Of q product. II the
manufacturer who has q truthful story to tell concern
ing q worthy product win bring it to the attention of
enough people through adequate advertising, the public
viii respond.
additional newspaper advertising Is the one tug best
qualified to break the present ice jam. It is the one tug
that can be depended upon to pull people away from their
lack Of disposition to buy and induce them to enter the
market as buyers.
when 100 national advertisers put 100 tugs to work
they will break through the jam In no time and q re-
vival in buying will put to work a great many. who at
the present time are unemployed in all large cities in
America"