Hello XXXXXXXXXXXXXXXXXX,
This is Dr. Christian. What antibiotic is he currently on? When did he eat last? Does he have vomiting or diarrhea too or just the respiratory signs? Is the drainage from his nose bloody and does it come from one nostril or both of them? Are his gums nice and pink?
Okay. It certainly sounds like kennel cough (here's a link: http://www.petplace.com/dogs/infectious-tracheobronchitis-kennel-cough/page1.aspx). You can definitely use a humidifier to help loosen the mucous. Some coughing is okay, it is loosening the mucous and moving it out of the lungs. If you have a suction bulb (those bulbs used to suck fluid out of a baby's nose and mouth) I would recommend using that to clear what you can out of his nostrils. A fan set on low aimed at his head may help his breathing some. Keep doing the warm washcloth cleanings too. Kennel cough can be a pretty serious condition if it progresses and it seems as though this could be the case. It sometimes takes a stronger antibiotic to clear it. I've had better success with doxycycline in these cases. Another possibility is distemper which is a virus and definitely a bad one but much less common. The symptoms fit however. Here's a link about canine distemper: http://www.petplace.com/dogs/canine-distemper/page1.aspx
You might have to change antibiotics again to find the right one to cure this problem. If it is distemper then a wait and treat the symptoms approach is the best you can do. He might need to be hospitalized in order to get fluids and keep him hydrated. Hydration will help him fight infection much better and give him a better chance. Good luck and let me know if you have more questions.
Veterinarian
12 years of veterinary experience in medicine, surgery and behavior with exotics,canines and felines