CASH ON DELIVERY.

Hauraki Plains Gazette, Volume XXXVI, Issue 4920, 30 December 1925, Page 3

CASH ON DELIVERY.

ENORMOUS GROWTH OF SYSTEM. A BANKER’S ADVICE. “■The cash on delivery sjfstein, commonly kjno.w as the C.O.D. system, is extending in New Zealand,” remarked Sii’ George Elliot at the half-yearly meeting of the Bank of New Zealand at Wellington last week. “This is a sys.tem by which a merchant in England can send goods .through the post office to a customer in New Zealand; the post office officials here collecting from the customer the cost of the goodis, plus Customs duty, and remitting to the merchant, in England the price of the goods, and . to the Customs Department here the duty collected. This system has been in vogue on the Continent of Europe for many years, apparently with satisfactory re suits. To show how it has, grown, it is only necessary to quote two instanceb-. In Germany in 1913, the last year, during which normal conditions prevailed, 74 million C.O.D. parcels were handled by the post office, of an aggregate value of £78,000,000 ; while Denmark in 1924 handled 1% million lt is claimed by wholesale merchants and retailers in New Zealand that if this system assures, proportionately anything like these dimensions it will have a most serious effect on tire wholesale-and retail business of the Dominion. The secretary of the post office in Wellington, replying to objectors, states, that the cash on delivery system is a public convenience, and that .the fact that Belgium, Denmark, France, Norway, Sweden, and Switzerland exchange cash on delivery parcels, with Great Britain is- evidence that the advantages of the system toj countries generally must outweigh any possible disadvantage..” : DANGERS OF THE SYSTEM.

i Proceeding, the chairnaan of. direci tors stated that the C.O.D. system had ? certain dangers. Cut lines, which 1 might come under our anti-dumping ;laws, would possibly not be charged i extra duty if imported in small. quantities by the C-O.D. system. Goods of ■foreign manufacture, if invoiced by a trader, might,, under the C.O.D. system, come in under Empire (preference .duties. Boots and shoes, ivhich must, according to New Zea-, land law, be plainly marked if any material Other thazn leather is- used in their manufacture, would probably escape close examination if imported in a C.O.D. parcel. I.ncome tax is lost tci the Government on all C.O.D. parcels;. ' : §“As yet,” continued Sir George Elliot, “this system in” New Zealand had not grown to large dimensions. Fertile year ended June last 41383 parcels ofj an aggregate value of £12,771 7s. 10jl., an average per parcel, of sliglFlySpver £2 ,18s„ were imported. The s.m>Uer towns imported by far the greatest proportion of these parcels, anil the shopkeepers, of ,those small towns, who deserve all the, protection of’thc State can extend to them ai’e being detrimentally affected. I think ■this system might well be abolished, Itiwould, of course, be unwise to attempt to. stop private peoplexfwm importing - can do so in .the ordinal) but? it is quite another matter for the New Zealand Government to act, to all intents and purposes, as agents for. British , or Continental exporting firitis. Apart from the C.O.D. system, people who desire to do (heir own importing articles if they desire to do iso, wajf by remitting ■ thcj payment for their* purchase by bank draft or post office order, and no trader in the Dominion could possibly take exception to such a course of action.”