Answer to Question 1
True
Answer to Question 2
Users of advertising in the mid-to late 1800s were trying to cultivate markets for growing production in the context of an increasing urban population. A middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. This newly developing population with the economic means to consume was concentrated geographically in cities.
By 1850, circulation of the dailies, as newspapers were then called, was estimated at
1 million copies per day. With the expansion of newspaper circulation fostered by the railroads and growing urban centers, a new era of opportunity emerged for advertising. Further, there were virtually no laws or regulations to restrict advertisers from saying or doing anything they cared to. Advertisers could outright lie, deceive, and otherwise cheat with little or no threat of being punished by government. Many advertisers took advantage of the situation and advertising was commonly considered an embarrassment (or worse) by many segments of society. At one point, firms even risked their credit ratings if they used advertising banks considered the practice a sign of financial weakness.
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