This is one reason why the American car could invade England and her dominions beyond the seas, why Ford has factories in the British Isles and Canada, and why our yearly exports of automobiles have increased in the last five years over $100,000,000 in value. Other reasons that make us an exporting country of automobiles through their low prices are our natural resources of iron, steel, lumber, coal and alloys, enabling us, by their plentifulness and accessibility, to manufacture at cheap cost, thus offsetting the higher price we pay for labor in this country than the European manufacturers pay. But the biggest factor in the lead which the United States has taken in the production of automobiles, both for export and consumption within her own borders, is the universal method of standardizing in manufacture, adopted by the automobile producers of the nation. The manufacturers of this country shine in the field of cost production, in the economies of purchase of raw materials, in the method of manufacture, and in marketing their product. ADVERTISING’S HELP IN MAKING THE AUTOMOBILE. The extent to which economic methods of purchase of raw materials—getting the price down—economic standardization of manufacture, inventing short cuts as it were—affects production cost, is shown in the fact that the automobile industry ranks almost at the top in the manufactures of the United States in the per cent of value added by manufacture to the cost of material. The per cent of value added by manufacture to cost of material in automobile production is 71 per cent, against 66 per cent in cotton goods, 55 per cent in iron and steel products, 51 per cent in boots and shoes, 16 per cent in flour and grist mill products, and 12 per cent in slaughtering and meat packing. Strange as it may sound when first stated, advertising is primarily the base of this result. We know that the first principle of lowered cost is buying in quantities; that if we buy for 100, the cost for each is lower than the cost for one; if for 1,000 it is lower than the cost for each of 100, and so on. So, when Ford buys the materials for 533,921 cars, which was the number he sold in 1916, he gets the price of the cost of each of these more than a half million cars down to a less price than if he bought material for 1,708 cars, the number he made in 1904, or even 168,220, the number he made in 1913. This is patent to any one who ever heard of wholesale and retail prices. But how did Ford find a sale for 533,921 cars in 1916? By advertising. The first thing a manufacturer must do to lower the cost of production of the single unit is to make in quantities.