CASH-ORDER BUSINESS

Sun (Auckland), Volume II, Issue 611, 13 March 1929, Page 10

CASH-ORDER BUSINESS

NEED FOR REGULATION SOME DUNEDIN VIEWPOINTS (Special to THE SUN) DUNEDIN, Tuesday. KK'S’SHfSSS s K ,P- vl^nce Of two married women Both oi£ nSr J, y favour of the system would evide P ce voluntarily. They le&l , et dn y interference by legisthe svstem°a J ernme TL relation with ~,S ste “ as operated in Dunedin. The president of the Dunedin ber?of r his A , SS ° Cl ' a V° n sald that memuers of his association in Dunedin eonaidered that the system of cash trading fn^in ld n b ® controlled by regulation. The that into tS i h ? wished to stress were that interest at a rate not exceeding 5 pei cent, should be charged to the person receiving the order, and that the discount should be limited to 5 per cent E 1 "® 2^,? er cent .’ Under proper regula'-’ association could see some benefits to the section of the communWh ° Se - ''veekly income was limited. Ihe association viewed with apprehensyrten cons i t^era t , lo expansion of the

Another witness, head of a large drapery firm, contended (1) that the system was contrary to legitimate trading, it was a social evil, encouras-ISriff-TuT 5 an ? was opposed to tlnift, (3) it created a class of middlemen who made large profits at the expense of legitimate trading; (4) it was a money lending business and the interest obtained was in keeping witli such concerns; (5) it tended to induce ciedit customers to go over to the cash order trade for the sake of extended payments, thus increasing the cash order trading customers, and reducing the number of the traders’ direct customers; (6) cash order trading did not increase the purchasing power of the public; (7) it increased prices; (8) it created an extravagant mind. The system should be abolished or placed under proper control. The discount allowed should be a fixed amount and should not exceed 5 per cent., plus possibly 21 per cent.

The commission, after hearing further evidence in Wellington next week, will proceed to Auckland to sit for five days in that city.