EXTENSION OF CREDIT.

Shannon News, 2 September 1927, Page 3

EXTENSION OF CREDIT.

COMMENT MADE, BY JUDGE,

Surprise is expressed in a statement by the Auckland -Chamber of Commerce regarding comments recently made by a Judge of the Supreme Court in Auckland, that due care is not exercised by business men in inquiring into the stability and suitability of customers to be granted credit. Various inquiry agents and credit associations, the chamber points out, are called to the aid of business men for this purpose —years of business training ■ and experience have compelled it. The suggestion that an extra charge is made in regular customers to cover losses made through bankruptcy is scouted. That, the chamber’s announcement states, is an impossibility. “If a considerable increase is made m the stringency of credit arrangements it must react unfavourably on :he business community and the public,” says the chamber. Alleging that } too much sympathy has been wasted an insolvent traders’ or irregular conduct, the chamber suggests such cases should not be dealt- with leniently, but at the same time should not be made the vehicle for criticism reflecting on' the commercial community in one of the most difficult of its functions, the extension. of credit.