publisher must go to great expense to obtain subscribers in order to give them the pound rate; but the Government is at no such expense. Furthermore, the post-office has taken a critical attitude toward such newspapers and periodicals as go to subscribers who have not paid their subscriptions cash in advance. It is not my province to discuss this topic in detail, but in passing I would point out that here again Government itself is the worst offender. The National Government will not pay for a private periodical in advance, but only at the close of the year, after the goods have been delivered; even then it requires bills in triplicate, and keeps the publisher out of his money thirty or sixty days longer, because of the red tape of Government payments.

A TAX ON AMERICAN ENTERPRISE.

The most often avowed object of increasing the rate on second-class matter is to impose a tax on advertisers; that is, to make advertisers pay the freight." This theory overlooks the stern fact that any increase in cost of production inevitably falls upon the consumer, be it of periodicals, manufactures, or coal or grain. It is an economic fallacy to assume that a higher rate of postage will be borne by the publisher and the advertiser. The publisher will pay it directly, to his great inconvenience, but he will collect it from the consumer. Why? Because he must do this or go into bankruptcy. Two pints make 1 quart you can not get more out of a measure than you put in. The genius of our American business men has perfected a system of delivering manufactures from producer direct to consumer, that is the marvel of the modern world, because of its cheapness, efficiency, and universality. And this in spite of the way in which distribution is still hampered by post-office inefficiency and the faults of other methods of transportation. To impose a higher rate of postage on periodicals, therefore, amounts to an indirect tax in restraint of domestic trade.

No greater economic evil could befall this country than to thus impose additional and unnecessary taxes upon internal trade. Free trade within our own borders should not be limited, restrained, or attacked. On the contrary, it should be encouraged in every legitimate way. Such encouragement is now being afforded, thanks to the wisdom of Congress, as expressed in the laws pertaining to freight rates and pure foods. To add the proposed indirect tax upon advertisers is therefore to go contrary to the entire past and present policy of this

nation.

A STRANGE MISCONCEPTION.

There has come to be a sentiment among a certain type of so-called statesmen that the post-office must pay its way, while countless treasure may be expended upon other Departments of the Government; the post-office must be sternly restricted within self-supporting barriers, but no limit is placed upon the activities or expenditures of other Departments.

This is one of the strangest misconceptions in American Government. No good citizen will criticise a reasonable outlay of money for any of the other Departments of the Government, nor would any citizen too strictly limit their field of endeavor. Yet, at best, these other Departments but indirectly affect the citizen, in some cases so remotely that he can hardly imagine, much less recognize, the benefit

derived therefrom. The postal service, on the contrary, comes into direct and daily contact with every man, woman, and child in a thousand different ways. Let us therefore magnify and build up the constructive-civilizing functions of the Post-Office.

The most directly useful Department of the Government, save only that of Justice, is the Post-Office. Its possibilities of convenience. and profit to our people at home and in their foreign relations are by no means fully realized. Not only that, but the usefulness of the Post-Office is hampered by antiquated methods and moss-covered laws. In numberless ways tradition and rule prevent even the present energetic and broad-minded Postmaster-General from perfecting the comprehensive reforms which he realizes are essential to an ideal administration of the people's department of communication.

There is not even postal currency for remitting by mail fractional parts of a dollar or larger fractional sums. Japan facilitates its people with a fractional postal currency for use in the mails, but America forces its people to remit small sums by mail in the form of postage stamps, to the inconvenience of sender and receiver and to the great detriment of the postal service. The cumbersome postal note is so inconvenient as to give the express companies a large share of the business of transmitting small sums.

The post-office buildings at great centers are miserably inadequate. The structure in this mighty metropolis, for instance, would disgrace an ordinary department store. And in Chicago, where a new postoffice building was recently completed after ten years' work, it proves to be too small, so poorly arranged as to require sidewalks, elevators, or carriers, and is utterly incapable of handling its enormous volume of traffic with largest economy and dispatch.

UNDERLYING PRINCIPLES.

The foregoing details and many others that will be presented in great minutia before this Commission are each and all important. But ignore every one of them, if you please. Let our case stand simply on the underlying principle of a free press. Go further; grant that the press is abused alike by private individual and by Government official. Nay, more; admit, if you please, the most extreme criticisms that can be brought against a free press. Grant the truth of every charge against the press-for the sake of argument acquiesce in every criticism against it-and yet a free people will almost unanimously vote for a free press, unshackled, uncensored, uncontrolled, save by public opinion, and by the adjudication of the

courts.

No censorship of the American press will be submitted to by the American people. No matter how benevolent may be the motive of such censorship its abuse would inevitably result in more harm than its use could result in good. No inquisition of the press, no star chamber" proceedings to deprive the press of its rights.

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Who can measure the educational, social, economic, and political usefulness of a free press? What other power can be depended upon to so efficiently promote the interests, advance the welfare, and further the civilization of a mighty people? What an inspiration here for glowing periods! How illimitable the array of facts and arguments in behalf of a free periodical press as the medium through which the heterogeneous elements of our constantly increasing popu

lation are transformed into one homogeneous people, animated by a common patriotism, governed by a like morality, inspired by a universal hope for larger and better influences here and hereafter!

FREE TRADE IN KNOWLEDGE.

How great the progress of the world since learning was made free of tax! The problem of taxation is complex, the morality or immorality may well be questioned of the different forms of raising revenue, but all will agree that free trade in knowledge is a common right inherent to the humblest individual. Where is the man who, in this twentieth century, will advocate a tax on literature? What argument can support such a tax?

THE DIFFUSION OF KNOWLEDGE.

Wisdom is knowledge and the capacity to use it. The development of such wisdom in each individual is the highest function of society. The diffusion of such knowledge is the basis of personal, corporate, State and national evolution. Far above all other agencies a free periodical press is the universal diffuser of knowledge.

And wisdom is promulgated by the press through so-called adver tisements as well as through editorial, technical, and literary articles or illustrations.

Effective advertising is the keynote to effective progress. The full significance of this profound truth will be more fully appreciated in the future than at present. Advertising is based on the science of mind. This is relatively one of the newest of the sciences. The rapid evolution of this science of mind is the primary cause for the present marvelous era of intellectual, industrial, political, social, and moral expansion and readjustment now going on throughout the civilized world.

How to reach the mind; how to attract attention to the progress of science, invention, art, and ethics; how to transmute thought into action-that is, how to get people to thinking about a thing and then to do it or buy it-such are some of the problems of advertising.

Science is the knowing; art is the doing. The science of advertising is in its infancy; its progress will keep pace with the evolution of the science of mind. The art of advertising is likewise to witness a great development in spite of its present and rapid progress.

Advertising may be direct or indirect, subtle or bold, artistic or inartistic, real or ideal, natural or spiritual. The extent to which principles and purposes are advertised, as well as methods and merchandise, largely govern human development. Publicity is the keynote of democracy, the corner stone of the Republic.

THE FUNDAMENTAL SIGNIFICANCE OF THIS INQUIRY.

The action of Congress in appointing this Commission has a far deeper meaning than appears in the resolution creating it. The fundamental significance of the work of this honorable body lies in this fact: that to do its work thoroughly and well, the Commission must inves tigate into and deliberate upon not only the relatively minor details. of second-class postage, but also upon other more flagrant abuses, inequalities and inefficiencies of the postal service. Still more, this body should weigh well those larger and broader functions of society which the post-office must serve. At the very basis of these functions

lies a free press. And to promote the opportunity and usefulness of the press, to enhance its influence for popular and national welfare, should ever be the animating purpose of this Commission.

Working along these lines, the ultimate result of this inquiry will be such broadened conception of postal problems as to lead the public to demand and Congress to provide facilities for intercommunication commensurate with the most rapid development of the mightiest nation on earth in this golden age of civilization now right at hand. NOTE A.-New York periodicals.

Probably not 2 per cent duplication in these lists. NOTE B.-Competition is probably more terrific in the publishing industry than in any other. By its very nature, the industry is open to one and all. The man without capital, brains, or ability, who employs scissors and paste pot, uses the cheapest paper and prints nasty advertisements, competes for the business of concerns having many thousands or millions invested, the prestige of age and principle. Free trade and the free play of unrestrained competition prevail among publishers. The fake mail-order sheet, teeming with patent medicine announcements and other quack advertisements, enjoys the same second-class rate of postage that is paid by a magazine of the highest character and influence. The daily paper whose reading columns and advertisements pander to the lowest instincts, has equal rights with the daily conducted upon a moral plan.

To show the growth of competition, let us make comparisons derived from the census returns of 1905 and 1900.

Number of printing and publishing establishments increased 4,115 in the last five years, or 18 per cent. In 1905 there was 1 newspaper or periodical for each 3,960 people, compared to 4,200 in 1900. Total value of product, book, job, and publications, increased 43 per cent. Circulation of dailies increased 29 per cent and monthlies 60 per cent, but weeklies declined 10 per cent. The number of different publications increased: Dailies 10 per cent, weeklies 16 per cent, monthlies 37 per cent. During this period population increased about 10 per cent.

NOTE C.-Small profits.-The few brilliant successes obscure the fact that probably 95 per cent of the money and people engaged in newspaper and periodical publishing, aside from printing trade workers, receive an average wage probably less than that in any other industry of like proportions and requiring like abilities. The Federal Census of 1905 for the printing industrybook, job, and publications-shows these averages for each establishment:

Capital ..
Employees

Wages and salaries____

"Value of products is at least 10 per cent above the net price actually received for same. The net receipts per establishment therefore shrink to $16,900. Pay rolls, material, and sundry expenses aggregate $15,000, leaving an apparent gross profit of $1,690 upon a capital of $14,500. From this must be met all bad debts, depreciations, renewals, reserve for contingencies, etc. Then if there remains $900 actual net profit, it is sufficient to yield 6 per cent on the average capital actually invested. And this for a period of rampant prosperity. My judgment is that, year in and year out, the total capital in the American printing industry does not actually net better than an average of 5 per cent annually. If extra profits are made in any line, competition instantly sets in, and reduces that specialty to the general level.

NOTE D.-Advantage all to subscriber.-For instance, the American Agriculturist as a monthly so late as 1892 furnished its subscribers about 776 pages and 500 pictures for the year's subscription of $1. Now, as a weekly, the year's

numbers aggregate some 1,700 pages and 1,200 illustrations, yet the subscription price remains the same as when it was a monthly-$1 a year. In a word, the subscriber receives more than twice as much for a dollar now as formerly. and this although the postage rate is exactly the same now as then.

NOTE F.-Production of newspapers and periodicals.-I have computed the following interesting exhibit from the Federal Census of 1905. The figures of total circulation are the aggregate claimed for a full year by publishers in their returns to the Census Bureau. These figures are inflated, except in relatively few instances. The census makes no attempt to discriminate between the different kinds or qualities of publications. For instance, under monthlies is included those whose subscription price is 10 cents per year, and from that up to $5 a year. The population is that estimated by the United States Treasury Department.

[Farm and Home, Springfield, Mass., and Chicago; 50 cents a year, semimonthly; 425,000

circulation.]

THE PUBLISHERS' PATRONAGE.

In one contest that specially interested its readers this paper received 74,685 postal cards. In other instances it receives 2,500 to 25,000 letters in answer to some one literary competition or similar feature.

It estimates that the postage paid upon first-class mail addressed to itself by its readers in sending in their subscriptions, answers, advertisement, and other communications aggregates at least $12,000 a year, probably more.

Add the $18,426.57 which Farm and Home paid out last year upon first, third. and fourth class matter and we have quite $30,000 high-rate postage paid on mail received and dispatched by this periodical alone. About 80 per cent was for first-class mail. Compare this to the $15,840.01 paid on second class. Each dollar paid at the cent-a-pound rate employed $2 at the higher rates.

HOW ADVERTISERS CREATE POSTAGE.

One advertiser in Farm and Home received 8,764 letters of inquiry; postage on same $175.28. He followed them up with letters and printed matter that cost $538.92 for postage. He traced 2,348 sales, aggregating $7,381.45, and upon such of this merchandise as went by mail he paid in postage $631.74. Here is total postage of $1,346.94 created by one advertiser in this one medium. He etimates that at least 10 or 20 per cent more postage will be used by later business coming in from this medium.

Some large advertisers in this paper create much more postage consumption, others vastly less.

How enormous must be consumption of postage stamps in their dealings with each other by the millions of readers and thousands of advertisers in the course of a year!