The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, MAY 22, 1926. INSTALMENT BUYING.

Hokitika Guardian, 22 May 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, MAY 22, 1926. INSTALMENT BUYING.

The use of credit by means of instalment buying or deferred payments, lias long been in practice, but of late exception is being taken to the pioccdure as tending towards undue cxtravngan. e. It is difficult to define where the system begins or ends, for the average trader buys on terms, and but for the credit he enjoys in this respect, many would have a difficulty in maintaining their stocks al_ all

equably. The wholesaler therefore begins the practice, and it is passed on to the retailer, who in turn gives his customers the benefit of the system also. It is part and parcel ot the credit system, and is recognised by the hanking institutions which in granting loans accept terms of settlement covering deferred payments at regular intervals. The plan of course stimulates business, and safeguarded as it should be by sound judgment, will be a success. In the attack on the instalment system the principal objection by financiers is to the retail credit brought about by forceful salesman, pushing trade to such an extent that good folk often find themselves landed with a debt or liability their income will not permit of ready discharge. This class of business is unsound, but it is not the system of credit which is had. rather is it a misjudgmeiit of the salesman ovei eager to do business at any cost. Many expensive articles purchased nowadays are bought on the instalment plan. Such articles as phonographs, motor ears, vacuum cleaners, machines of various kinds, are all

brought to some households solely by the credit system to he derived from monthly or deferred payments. It is probably the most expensive form of credit the buyer can adopt, but where needs must, necessity accepts the position. "This system in one form or another has been going on for years. Many homes have boon acquired l>y

means of instalment payments, and expenditure in that direction is of course wise, and virtually a, saving for the property is there for all time as a capital credit. With many of (he modern articles purchased by the system of deferred‘payments there is not the utility value that there is to the land and the homo placed upon it by the aid of easy regular payments. The present day pleasures are so varied that votaries are attracted in some direction or another, and where income is over mortgaged for the future as affecting these enjoyments, the economic work of the system comes into doubt. It then becomes a question of not going beyond the safelv-line—of overstepping resources and undertaking responsibilities if is not possible to meet. In that event the system breaks down, and the buyer is in difficulties. The volume of trade done does not increase the buyers’ ability to pay. That ability is governed solely by actual income, though it is possible often to increase income by the purchase of articles or material which in turn may be used to monetary advantage for tlie benefit of the buyer. At the same time where a buyer honestly concentrates on paying for an article purchased on deferred payment there is less waste in other buying, and a certain amount of thrift practiced in so conserving and utilising income that it is applied to the discharge of the obligations as they fall due. That is the ideal use of the credit—saving to buy—for as lias been well said, it is everybody’s privilege to choose how to economise and how to spend, and it is never to he forgotten that it is the csire to have the things we want which stimulates the ambitions abd energies of the people and constantly raises the standard of living. If the privilege is honestly used and not abused, not only is the standard of living raised, but also the standard of the whole community is advanced by sound legitimate trading.