WELLINGTON NEWS

Hokitika Guardian, 26 August 1927, Page 4

WELLINGTON NEWS

“ FiXAXT K AXI) BAXKIXG. | (Special to •• Guaiiiiait.") | \VKWJ.\GTOX. A is-. - I. | One «*« ilic nio.-.t ieiiiaikaMc (ievoiupS incuts oi i In* po.-r-wnr pi'i io'l lias lic»en * the cra/.c lor Intyiu— quails ou (In- lime--2 pavniciii >ystcm or liii e-p-i:a Ic - • ;. !aii, | :md a -caul many |:cu(i!t* aiv undo-- me imp.VKsion (!i;il t!ii> cl:is> *.*l liieiuos i- confined in lhe pm chime <•! nmior fi ears, -rnmoplmncs an i wisvir-.s sets, $ hill (Ills i> not corrcci. in ' iinaada;. s a it <o\cr> nu».*t commodities, ojiceiidiy $ furnil ,ure. lut* coats and el' if eJnthcs. !n lhi* old d.ns many | wires secured theii mai:-leniiu-crs, | sewin'.; machine*, and pianos on she j: Unto payment sy*t(»n‘. and many J pensive hooks, such as «m velonodh | \n-ir obtained in tins manner. iJiit he » business nmv i- on an e.\tensive scale, 3 and a vast number oi’ pcepie buy -nods \ in tliis way. I ft is the extra valance nl the war period carried into peace times, hut s whatever the cause, the system exists 5 and has to he laced. The average 1 business house cannot do a large busig ness on the hire-purcfiase pVan without 3 reeling the punch of’ finance, and some \ means of relieving the pressure on the 2 business had lo he found. The result 2 has been the formation of linaine ma?i panics or guarantee corporations. The * sale of half a dozen motor cars by a firm on the instalment plan involves the locking up of a good deal of money, hut relief is obtained through the finance companies. When a sale is made the seller secures a hire-purchase agreement signed by the buyer, who therein agrees to pay a certain sum wccklv or monthly until the whole amount is paid off. the goods in the meanwhile being the property of the vendor who can. in the case of default of ihe slipuftued payments at any time, seize the whole of the goods. The vendor when seeking relief goes to the finance company which accepts a promissory note for the amount aOvan cod and the hire-purchase agreement on which the advance is made-. T! io company Xin 11 !•'«fu-rIy mile poxitiou. tor it holds its security ihe promissory note which, if unpaid on due .da to would min the credit oi" (po maker of tlic noto. It also Im>!<dm biro-purchase agreement. which would entitle it to receive tile instalment payments, :iml filially it has tin l security of the Moods sold, whatever ibev may dr. The business of die fmanre <cm;>:iny m a safe iiinl lucrative one. especially u care is taken in the choice of business. Finance companies for the handling of all such business are springing ;* j» i n the Dominion. There are .nine yiliPauies deni'ing only v.idi mei"'-ea a business, odicrs again It;; 11 >.11• • wiivlc»< and gramophones. one company in Wellington dr-counts die paper ol funiiin.ro dealers who do a linr-puii ha e bu-b----ncss. Th'-ic is another concern dial, deals diicct villi id,. f . 11 ; iill • • a suit of clot lie .. A • nmiug dm; Hohinsou wan;' a suit cast; i'g -.'lll I ’-. |:e goes'to A and jp;!>. dm oosition <.< h;m. .HoVnsoii huniis o-. ;■ I'., pi ,\ who furnisht « th > I'.iroa :• re order on the tailor ~-ti-, 1 by limit; ,on. The latter pays A Iks p s -f week until dm kit) I 1::; are ;•..i; 1. A also oh;:;ins a discount from ;'i • u . . • dial the profits are I;>lyiyre. hut on the oiler hand die ri-.k is cavai. This is rather in die nature (.-I persoi-al and differs entirely from die operations o! the finance companies. '1 lies-- liuan'-o compawe- lind no di.T- ---' I’lry i!i o'ltadiiic; rd 1 the cap 1 :.*! they "o'piu'e, and so ibny as iacir business does not impinge on that of legitimate hiiliking no fault cm ho found, on dm contrary they may he said to he said to he filling a " long-felt want.'’ lint when these concerns attempt r* al banking business, such as receiving deposits. (liseonnttM— hills ami nmkin- advance;;, dun they should he comitcllcd to pubh’sh (|uarierlv reltirns like the tradin-; hulks, and tin's should he done for dm Protection of the public. The instalment niaa as a i'ipa;is of ai'f|iiirin<.c luxuries ha;, come to stav. hut it is not a system of hnsines.s that slioui'd rcec ivc cncm i r,> t/e m cut.