cases of eggs that are put in storage during that month, and the price of eggs in January would be higher were it not for the eggs taken out of storage in January. If, however, a "corner" is created in storage eggs, famine prices may be charged for the part of the eggs taken out of storage and much of the supply of storage eggs be permitted to spoil or be sold for other than food purposes. This is uneconomic, but the speculator may be enriched by charging more for a part of the supply than he could get for the entire stock.

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The High Cost of Selling.-Professor Gerstenberg remarks that the cost of selling the world's goods is greater than the cost of producing them. For many goods this is certainly true. In recent years the cost of selling has been rising, because the public now demands more service. Delivery, fancy packages, charge accounts, return of goods, and telephone service cost money. This expense must be met by an increased price. Much of this cost might be lessened, if those who carry goods home were given a discount or those who pay cash received some benefit from such payments. The man who carries home his purchases and pays in cash is obliged to help support an expensive delivery system and must help meet the loss from bad accounts. "The consumer pays for the oil used in the engine, the ink used in printing the invoice, the bookkeeper's pen, the chairman's mahogany desk, the cost of cutting the grass in front of the office, the director's motorcar, the pages' buttons, the firm's subscriptions to charity, the very smoke that floats from the tall chimney; and, finally, the simple or elaborate tomb to mark the last Principles of Business, p. 414.

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resting-place of the body of the man who possessed the requisite genius to make the dream a reality.'

Salesmanship. Many articles sell themselves. One goes to a grocery store and buys potatoes, apples, and flour, but even in such simple purchases some qualities of salesmanship help. Customers prefer to go to a grocery where the clerks are polite, clean, know the stock, and give honest weight.

The selling of many goods, such as stocks and bonds, requires expert knowledge and is almost a profession. Among the qualities of a good salesman must be knowledge of the stock and confidence in it-if he cannot have confidence he should resign-a pleasant manner and tidy appearance and some knowledge of psychology, which latter he may have without knowing the meaning of the word.

The art of selling books has largely passed with the practical disappearance of the old bookstore and its clerks. who knew and loved books. The book department of the average department store is generally conducted without much knowledge of books. The man who asked for a copy of a book by John Stuart Mill and was handed The Mill on the Floss, did not have a unique experience. The automobile salesman, on the contrary, generally knows his business and conducts it upon scientific lines.

Advertising. You may have wondered why a manufacturer or a dealer would pay $15,000 for one page in one issue of a weekly magazine. The answer is that it pays. Advertising is a part of the expense of merchandising, and the cost must be paid by the consumer. This does not

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Derrick, How to Reduce Selling Costs. Quoted by Gerstenberg, Principles of Business, p. 413.

THE "CURB" MARKET ON BROAD STREET, NEW YORK

Here stocks and bonds were marketed which were not listed on the Stock Exchange. On June 27, 1921, the New York Curb Market Association moved into its new building on Trinity Place.

mean that the large advertisers charge higher prices than those who advertise less extensively, for the large advertiser may do so extensive a business as to make the charge against a single article exceedingly small. Advertising renders an economic service in telling where goods may be obtained and in explaining the advantages of certain goods.

Some advertising is merely designed to cause purchasers to get goods from one dealer rather than from another or to cause them to buy one article rather than another. The following advertisement illustrates this:

USE BLANK'S DENTAL CREAM

Why Should You Use An Inferior Article
When You Can Get The Best?

It Costs No More Than The Imitations.

Other advertising creates a new demand. For example, a dental cream might be advertised as follows:

A CLEAN TOOTH NEVER DECAYS

Your Health, Appearance, And Pocketbook
Demand Good Teeth.

Use Blank's Dental Cream And Have Clean Teeth.

The advertising of electric washing-machines is conducted so as to create (1) a desire to possess a washingmachine, (2) a demand for the particular machine. It combines two ideas in one advertisement.

Most advertising is good, though some kinds are better

than others. Advertisements that disfigure works of nature or destroy beauty anywhere are to be condemned. It is doubtful whether such advertising is profitable in any way. It repels more people than it attracts. Fortunately advertising of this nature is on the decline.

The Principle of "Caveat Emptor."-In merchandising, the rule is that the purchaser must be on his guard. After a sale is made, provided there was no misrepresentation, the incident is closed. Misrepresentation may come without any words being spoken. In selling food it is implied that it is fit for human consumption. The purchaser has a certain degree of protection in the desire of the seller to maintain his reputation; he may generally depend upon goods sold under a trade-mark.

The requirement of the government, under the Pure Food Act, that certain food products and drugs must be guaranteed by the packers, further protects the purchaser. Purchasers of stocks in bogus or highly speculative corporations have no adequate protection in most states. no misrepresentation occurred, the sale stands. Stocks and bonds that are sold on the New York Stock Exchange are all genuine securities of reputable corporations; no others can be listed. But stocks of corporations of the most doubtful value are freely sold in most places. A large number of people are always eager to invest in any 'get-rich-quick" concern. A few years ago mining stocks of this nature were being sold. Now oil stocks are more in demand. It is a common saying that some promoters can sell the blue sky. Hence "blue-sky laws" have been passed in some states to prevent the sale of securities of doubtful companies. These "blue-sky laws" require that