CASH ORDER TRADING

Evening Star, Issue 20134, 26 March 1929, Page 5

CASH ORDER TRADING

AUCKLAND EVIDENCE [Fcb Darrao Paiss Association.] AUCKLAND, March 24. Tho Commission of Inquiry into tho operation of tho cash order trading system has opened its Auckland sittings, and witnesses representing four of the leading cash order concerns operating in Auckland were heard, a general statement was made on behalf of these concerns showing the generqi policy adopted in Auckland and the advantages of the system. Advertising was done by all four concerns, and travellers wore employed to get business ,Tffo average amount of each order issued was £5, for which a charge, of 10s was made. Repayments were made at tho rtae of one shilling in tho £ ;ier week. When the orders were paid off the balance of the amount was paid off by an ridded instalment of (3d per week. It was stated that the orders were used wisely by the majority of, the customers, approximately 90 per cent ol orders being obtained for clothing and footwear. Tho discounts allowed by retailers to tho cash order concerns on the turnover showed aa average of Hit per cent. It was claimed that die cash order trading system had three advantages. First, it provided facilities for obtaining goods at low prices from retailers whose commercial, integrity was beyond question; secondly, the system provided a credit instalment account whereby its patrons were enabled to purchase their requirements at times most to their advantage; thirdly, it was claimed that the svstem increased the purchasing power of the people, »hereby increasing the sales of goods, and stimulating production, increasing the opportunities for employment, and lowering the cost of living. Witnesses produced statements from customers in which entire satisfaction with the system was expressed, together with satisfaction with tho manner in which the concerns were conducted. One of these statements bore 5£9 signatures, and another over 900 signatures.