Rangitikei Advocate. TUESDAY, MARCH 16, 1909. EDITORIAL NOTES.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9395, 16 March 1909, Page 4

Rangitikei Advocate. TUESDAY, MARCH 16, 1909. EDITORIAL NOTES.

THE political party..who are trying to induce the people of Britain to revert to protection are appealing for “retaliation” against the foreigner who “dumps” his wares on the marker. At first sight it seems that what is called “dumping” may really be injurious to the country in which the goods are placed. But this is not so, as a very little reflection will show. It means that the country as a whole has made a gain, not a loss—a gain in exact proportion to the difference between the cost of production in that country itself and the price asked for the article “dumped.” It means also that the country that produced the “dumped” article has made a loss of the difference between actual value and the price obtained, and also that the people of that country will have to make up that loss. For instance, when American manufacturers “dump” agricultural machinery into New Zealand or Australia at prices far below those charged to the farmers of their own country it s not the manufacturers whti hear the loss. It is the American farmers who are made to pay it, and thus enable the farmers here to reap benefit. It is quite true that “dumping” may have a bad effect on some particular industry in the country in which the “dumped” goods are marketed, but its effect on the country as a whole must be to add to its wealth. For instance if Americans or Germans “dumped” bags of flour or sugar at the doors of every consumer in the the grocers and flonrmillers might have cause of complaint, but the consumers would certainly have cause for thankfalnoss, and the country as a whole would have gained the value represented by the local market price of the “dumped” articles. To put the case in another way we will assume that an additional duty of 60 per cent, on imported hoots and shoes enabled our boot factories to charge New Zealanders 50 per cent more for their footwear. The would then be able to “dump” their surplus on say the Australian market at say 50 per cent less than the price at which Australians could make their own boots. That would be a gain to Australia, hut obviously it would be at the expense of New Zealand consumers. We believe that in spite of the frantic efforts of socalled “tariff reformers” the great majority will "remain true to the principles which have done so much to ensure the supremacy of Britain. Her antagonists who have been trying to fight her by means of bonuses and protective tariffs, and who have thus all the time been injuring themselves, have felt the strain severely, and cannot much longer continue a contest in which they are losing, because the more they extend business on such lines the less the profit to their people as a whole. We believe, indeed, that even the Commonwealth and onr own country will yet realise that the most beneficial policy to pursue is to free trade of all restrictions, and look to the Customs duties for revenue only—not to aid monopoly for the benefit either of individuals or a class. To develop our mercantile fleets and spend huge sums in improving the means of transit and oommnnication, and then erect barriers to shut out trade is surely action which must be condemned by all sane and thongbtfnl persons. When the laws of political economy are more generally understood a majority will he astounded that such folly was ever perpetrated by politicians.

BUSINESS men of fifty years ago would have deemed it incredible that there should arise schools at which the art of advertising would be taught, and that the writing of advertisements would give occupation to many men: But since those days the circulation of newspapers and magazines has so enormously increased, and has given such great opportunity of addressing the public, that business men who wish to succeed find it absolutely necessary to use the means which have bedn placed at their disposal. One of the greatest of the American advertising agencies adopted as its rqotto “Judicious advertising is the keystone of success,” and judging by the fortunes that have been accumulated by large advertisers, it was right. The wise man advertises in times of prosperity to secure his share of trade, and in duller times he advertises with more vigour and persistency to develop business and hold his own. There is not a successful business man who will not ascribe the result as in a large measure due to the effectiveness of his advertising. Of course money may be wasted in advertising, as mere printing of announcements is not advertising. The medium must possess wide circulation to be of value, but notices published in such, if properly worded and well displayed, cannot fail to bring in a return. It is, indeed, on record that some of the largest advertisers in the world have tested its value by reducing their advertising, only to find that business has fallen off in proportion to the reduction. In one case a firm which produces a common article of household use reduced its I

advertising by £BO,OOO for the year, and sales fell short of the previous year’s by over £IOO,OOO. The fact that the article had previously been largely advertised was not sufficient to counterbalance the effect of the reduction, and other advertising firms reaped their harvest during that firm’s inaction. There are many articles on the-market which sell in enormous quantities, not because of any special merit of their own, but because advertising has created a desire for,them or acquainted the pnblio with their existence.