The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, DECEMBER 13, 1930. TRADING SYSTEMS.

Hokitika Guardian, 13 December 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, DECEMBER 13, 1930. TRADING SYSTEMS.

I‘n the past, we have mtu strenuous objections in New Zealand from business peop»e aim communities against tiie time payment system and ado overseas shopping by post. Tile former is still with us, but the latter has been cheeked seriously. Now there is the protest against the coupon system of 'buying or trading. As an exchange remarks, the -protest by recent deputations to the Minister of Internal Affairs against the coupon system as an injurious factor in trading is rendered impressive by the representative character of thei interests in whose behalf it is offered, as, well as front the nature of the arguments advanced on their behalf. IN' ith the coupon system, which is no new thing, the public is fairly well acquainted, and against its -more familiar forms, as for example the issue by a trader of coupons redeemable from his own, stock, objection had not been raised. But the system, is capable of advancement from sweet simplicity to rather intricate development. In a word, it is open to exploitation, and it is on this account, it would appear, that such organisations as the Associated Chambers of Commerce, the Employers’ Federation, the National Dairy Association, and wholesale and retail interests have been moved to present a united front against it. The extent of the concern which a recent development of the system has created in New ’Zealand is reflected in the request that the Government should take action in the matter. The burden of protest, it will be gathered, is particularly against what is termed the universal system, under which a third party steos in, seeing the opportunity of profiting from the disposal of coupons to firms which merely a-ct a<s distributing agents. The coupons or certificates are not necessarily redeemed by the firm itself which issues them,, nor is the prize taken out of its stock—the promoter handles that part of the business. The retailor may not desire to distribute the coupons, hut the pressure' of the argument that, if he do r n not, his- rival across the street will be pleased to do so in the hope of increasing his trade weighs noon him. A little examination will disclose how widespread and far-reaching the system, in this form, may become. That it represents an interference with legitimate trading is sufficiently apparent. The profit which the promoter can evidently depend on reaping lias to he made at somebody else’s expense. There is no philanthropy about the business; it is a matter of hard calpMlatinn for everybody concerned. Apart, from that, unfair elements of cemoetifion are introduced. Legitimate trading is interfered with when a practice is introduced under which retailers distribute coupons redeemable in goods th;it, bear no relation to the commodities which they themselves dispense but are redeemable in such a manner as may aflerd the bi'runess of established traders in such goods. The universal coupon, as light has been thrown upon it by the recpn,f, ..Wit.at.ion. seems to represent, an objectionable development, and clear 1 v a strong case has been made out for Government intervention lor the suv'inrcssion of a practice which is hurtful to legitimate trading and is, in this respect, opposed to the public interest.