CASH ORDER SYSTEM

Hokitika Guardian, 8 January 1929, Page 8

CASH ORDER SYSTEM

IS IT UNDESIRABLE. OFFICIAL INQUIRY PENDING. WELLINGTON, Jan. 4. “ There appears to lie some misunderstanding* nmongs the public, and at least one of the leading newspapers of the Dominion,” said Hon. J. Cobho, Minister of Industries and Commerce. “concerning the particular subject into which inquiries are to \be made by.a commission that will be set up in the near future to consider the cash order trading system. “This trading system seems to have been confused with the cash on delivery (0.0. T).) method of purchasing goods from abroad through the postal department. Actually there is no relation whatever between the two. as the cash order trading system is a class ol time payment used by consumers of goods purchased within the Dominion.

“ Briefly tin* cash order trading system into which (lie inquiry is to he made operates as follows: Ail individ mil or firm holds itself out to the public as being willing to issue to ap proved clients orders which on presentation to one or more traders among a list of traders will he accepted in exchange for goods. The linn issuing the cash order collects the amount of j lie order in instalments Horn the client. The clients pays a commission to tho individual or linn issuing tho order. The retailer who accepts the order, or portion of it, from the client tenders the order in due course to the order-issuing individual or firm and secures payment less an agreed upon discount.

“ Certain features of this system are alleged to be uneconomic and socialß undesirable, and lor this reason tho Government has decided to make an exhaustive inquiry into the operations of this method of encouraging credit, trading.”