ON TIME PAYMENT.

Pukekohe & Waiuku Times, Volume 3, Issue 206, 23 June 1914, Page 4

ON TIME PAYMENT.

A Debatable System. Official Assignee's Views. As a result of difficulties experienced in estate where goeds had been purchased on the hire system, noiably a case where a piece of agricultural machinery thought to belong to the barkrupt wai sucsequently found to have Leen purchased on the time-payment system, the Oliicial Assignee Mr W. S Fisher, recently wi\,te to tlia Auckland Chamber of Commerce asking its co-opeia'ion in getting the law amended so as to ensure all hire-purchase agreements being registered. At Wednesday's meeting of the Cornel a further c mmunlcation was received frcm Mr Fisher in reply to (trlain objections that had Leen raised to his proposal-. He said in his letter that if the present expense of registration (7s (id) was considered, it might be reduced to a tominal amount. As to the objection of registration on the ground of publicity, the particulars were published only in tie "Mercantile Gazette," which was read almost exclusively by business men. If a measure was necessary for the public protection, undue consideration could not be given to the feelings of ever-sensitive individuals. The only people who had to tear publicity were these whose financial position was so weak that they could not obtain gcods on credit without giving security. It was doubtful whether the hire-purchase system was at all popular except with the vendors, who, by it, secured the advantage of being able to give credit without any risk. It was certainy not popular with the average storekeepers, who complained that payment to them for goods was often postponed until arrears for the hire of goeds under the ay-tern in question had been satisfied. He had beeu approached by many business men expressing strorg opinions upon the necessity for compulsory registration. The hire-purchase system encouraged the financially weak man to purchase goods which he could net afford, and which in many cases ha could do without. When default was made in payment of the periodical instalments, the goods were seized by the vendor and the amount paid was lost to the purchaser and to the unfortunate storekeeper who had been maintaining him and his family. The lastest development of the system, Mr Fisher said, was in connectnn with jewellery. He was irformed that servant girls and youths in factories were biiig canvassed to purchase goods uncUr this system. Mr Fisher summed up his objections to the hire-purchase system as follows :-(l That it is an infringement cf the fundamental law of bankruptcy that at the time that a man becomes bankrupt the whole of his assets will be available for equal distribution amongst his creditors; v 2) it is an incentive to false trading, in that it tempts men to purcha e chattels when their financial position does not warrant their so doing; '3) it provides further facilities for committing fraud; (4) it gives one portion of the trading community an undue advantage over the other.

Mr Bart Kent, president, thouzht that in some cases the hire-purchase system was a convenience, and instanced pianos, typewriters and sewing machines. In the case of such articles there was nn need for registration.

In the discussion which took place the opinion seemed to be general that the system was a convenience in many cases. It was felt that if an attempt were made to distinguish between articles in respect of which the transaction should be registered and thoae in which there was no necessity frr registration the matter would be a mo3t diflicult one. hventuslly it was agreed to postpone further consideration of the htter until r.cxt meeting,