CASH ORDER SYSTEM.
MORRINSVILLE OPPOSITION Protest to be Lodged. A lengthy letter from Mr. A. R. Thomas, secretary of the Auckland cash order companies, submitting arguments justifying the existence of the cash order system, was discussed by the Morrinsville Chamber of Commerce on Thursday. The letter failed to impress the chamber, and a motion was passed protesting against the system. Mr. W. C. Cargill said it was obvious from the letter that the traders were becoming frightened because the chambers of commerce were delv-
ing into the system and had protested strongly against it- The tiaders made 12 & per cent, out of the merchants and 5 per cent, out of the customers. Another point was that it extended the instalment system. The country was only now recovering from the effects of a land boom created by payment of small deposits and overlapping mortgages. If on top of this was to come inflated commercial trading through an instalment system creating the habit of people living above their incomes there would be another crash. If the system brought about a reduction in credit it would have something to commend it. But it was not having this effect and credit was piling up. It was pointed out by Mr. Hetherington that the average interest paid through the instalment payment system was 31 per cent. A point made by Mr. E. McGregor was that the traders got money, out of the public as well. The retailer had to make up the 12J per cent, he was charged, and accordingly he the balance could be raised by tlie
passed it on to those who paid cash. These bona-fide customers were therefore penalised. The effect of the system was to create an undesirable section of middlemen. He thought the chamber should oppose the system.
It was decided to write to the secretary of the Associated Chambers of Commerce stating that the opinion of the Morrinsville chamber was that the cash order system was undesirable and that it was in the interests of the public that it be abolished.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/PUP19290314.2.17
Bibliographic details
Putaruru Press, Volume VII, Issue 279, 14 March 1929, Page 3
Word Count
342CASH ORDER SYSTEM. Putaruru Press, Volume VII, Issue 279, 14 March 1929, Page 3
Using This Item
Stuff Ltd is the copyright owner for the Putaruru Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International licence (CC BY-NC-SA 4.0). This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in