Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-11
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URGED BY BABSON|
Faster Money Turnover Best
Way to Speed Business,
Says Noted Economist.
BY EDWARD C. STONE.


Roger w. Babson, noted statistician
and economist. believes that the need
of the hour in the business world is to
increase the circulation of money. The
economist recently declared that the
four best means of bringing this about
are: Reducing overhead by moving men
from the Office into the field giving
better measure to customers; discover
ing new products and new uses for
present products; spending more money
on advertising. And in simplifying these
four suggestions, Mr.. BabSon said:
Would Reduce Overhead.
81. Reduce overhead. Industry and
merchandising are today handicapped
by useless and unnecessary overhead
expenses, which are a great drag in
the present situation.
y. Give better measure. To slim
ulate consumption it usually is neces-
sary either to reduce the prices or
to increase the value of the products.
49, Increase research work. We all
know how many employees the automo-
bile industry uses today and the various
direct and indirect ways that 1t gives
employment. Every new invention tends
to hasten the circulation of money. The
far more upon the work of research
laboratories than upon the work of
banking institutions. Research work
finds new uses for present products
and new products to supplement pres
ent products.
Urges More Advertising.
40 Advertise more Now is the time
to increase advertising appropriations.
During the past two years l have con-
Sistently refused to recommend in
creased appropriations for advertising.
In taking this stand have incurred the
Ill will Of a few newspapers, magazines
and the outdoor advertising interests.
What, however, was the sense of in
creasing advertising when there was
shortage of goods, a shortage of labor
I. and a shortage of money, when the rail-
roads were damned with traffic, labor
inefficient and money loaning at or 8
per cent? Now, however, the situation
has entirely changed and I feel very
different.
Advertising today is performing a
very important economic function. More
advertising can now render a great and
needed service in connection with
speeding up the circulation of money.
I believe that all business concerns can
help themselves and help the country
as whole by today increasing their adj
vel t1clLlB newspaper dQ-
vertlsing, magazine advertising and out
door advertising can now perform a
very patriotic service from which every
one may benefit. Hence advertising is
the fourth definite suggestion as to how
the circulation of money can be speeded
up and prosperity be brought back.
"Of the four above concrete sugges-
lions, perhaps advertising is the most
important factor of ALL" Mr.. Babson
concludes.
New A. /. b. Enrolment Record.
The Board of Governors of Wash
ington Chapter, American Institute of
Banking, announces a new record for
enrolment for the first semester. A. o.
Dooley. chairman of the Educational
Committee, reports that 361 students
already have registered. compared with
367 at the same time last year. How
ever, IL more already have reserved
places in various classes so that all
former figures viii be surpassed by at
least 5 students.
j. Fred English chairman of the
Membership Committee, also has made
splendid report. He announces log
sustaining memberships and 1854 ac-
tives, making total of 470, In contrast
to October last year. when the number
was $50. This is an increase Of ITO
memberships.
LIE TWO committee reports aroused
much enthusiasm at the board meeting
and show a great deal of hard work.
The executive council of the Ameri-
can Institute Of Banking, which is the
educational section of the American
Bankers Association, has fixed June
6-12. 1881, as the dates for the next
convention of the institute, which will
be held at Pittsburgh, Pa.
Auditors Hold Initial Meeting.
Seventeen Washington banks were
represented at the first meeting Of the
year yesterday of the auditors section
OF the District of Columbia Bankers As
ISOLATION. Chairman Ralph Endicott,
assistant treasurer Of the Washington
Loan g. Trust Co., presided.
The section took action upon three
matters that have been under consider
alton for some time, two Of them of
especial interest.
The first was the adoption of reso-
luton aimed at the prevention of the
use Of cashiers checks. New York drafts
or certificates Of deposit for fraudulent
purposes.
The second was resolution providing
for a study OF the costs and proper
charges to be made for issuing bills Of
exchange, drafts, ETC., for non-custom-
ers.
The third was the appointment Of a
committee to arrange a joint meeting
with the Baltimore Conference Of Bank
Auditors at an early date