WELLINGTON NEWS

Hokitika Guardian, 14 February 1929, Page 3

WELLINGTON NEWS

THE C.O.D. SYSTEM. ; . [Special To The Guardian .] WELLINGTON, February 13. The cash on delivery system is apparently doomed, and many who have been purchasing goods in Britain will he sorry. That it has grown in popularity and that it is of some service to r the people-is shown by the fact that the business has grown rapidly. Figures published recently are to the effect that in 1924 there were received into the Dominion 3500 parcels of a value of £12,100, and in 1027 this had increased to 27,378 parcels oif a value of. £07,324. This proves that tlic system is appreciated by the community and is a convenience to the public, and the convenience of the public should bo paramount to the interests of sections or the vested interests of traders. The objections of the Chambers of Commerce to the system were voiced by Mr H. S. Fairchild, Secretary to the Wellington Chamber of. Commerce, who stated that the chambers have especially stressed the disability suffered by loesil traders; business goes past them that otherwise would he an* assistance to them in meeting overhead charges. This argument is .not convincing. If business goes past .local traders, it is flieir duty to take steps to prevent :that and not expect the Government to do it if or them. One may reasonably inquire if the overhead expenses of local traders is as low as they can be made. Then Mr Fairchild says that these traders emphasise the loss to the country by way of income tax, land tax, loss of reportages within the Dominion, and in other ways that;inust result in a considerable loss to the country. The traders again often emphasis the opportunities for admission of shoddy goods into the country by this- system. One would fancy that traders as a whole were very watchful of the country’s interest, and are anxious that tlie Government should avoid loss of revenue. No one will take the trouble to believe that. And as for the possibility of shoddy goods finding their way through the system is a gratuitous insult to reputable British business houses. That there does not appear to be the least danger of shoddy goods being sent by post from England is proved by the great growth oif the business. Those firms doing this business are not likely to endanger their trade by indulging in a system of fraud. Many big firms in the cities ot New Zealand send parcels by post to country customers, and it is riot an uncommon thing to sec in advertisements “W© pay postage.” The country traders sees the business go past him, and why should he not receive protection from the cutting in ol big firms in the Dominion.

Then Mr Fairchild says that business men object to the system on the ground that the Government acts as a guarantor to firms using the system, guaranteeing them either payment or return of the goods. This objection is fatal to the system, for the Government is interfering or engaging in trade for it acts as a debt collector for the Home firms, and it is not the function oif the Government to engage in such business. It is difficult to see how the system can be abolished. At the most tlie Government can and should refuse to act as a debt collector. Parcels will come from England just the same, and it is a well-known fact that traders get goods out by parcel post. If tlie Government refused to collect the cash, then those who wish to make purchases in England desire to have the goods sent out by parcel post will be under the necessity ol paying for the goods in advance and many buyers do that already, indeed inany oif the firms insist on “cash with order.” It is not unfair trading for an individual to buy goods in England if by doing so he gets the goods at a lower price than he would have to pay locally or if the goods are of a bette.quality and the price no higher than would be demanded locally. That is prudent, sensible buying and traders themselves quite rightly do the same. That is why German, French, and Belgian fabrics, etc., and American footwear and other goods are imported into the country. There are two important points to bear in mind, one is that tlie Government must not interfere in any way with legitimate, honest trade, and tlie other is that the convenience of the general public must not be injured in any way for the benefit of a section. However, the Prime Minister has indicated that tlie importation of goods through the Post Office would be stopped, and no doubt lie will give effect to that promise if it is at all possible.