CASH ORDER SYSTEM

Sun (Auckland), Volume III, Issue 621, 25 March 1929, Page 11

CASH ORDER SYSTEM

COMMISSION BEGINS INQUIRY ADVANTAGES OUTLINED The advantages of the cash-order system were outlined by the representatives of four Auckland cashorder concerns to the Government inquiry into the system, which began its work in Auckland this morning. Tho Hon. J. G. Cobbe, Minister of Industries and Commerce, and Mr. J. W. Collins, secretary to the department, comprise the commission. Evidence has already been heard in Wellington, Christchurch and Dunedin. Further statements from provincial centres have been handed in as evidence before the commission. The commission is sitting again this afternoon. It is expected that evidence will be heard from about five retailers in favour of the cash-order system. This morning an official statement issued said that the commission was engaged with the evidence of several of the leading cash-order concerns in the city. A general statement submitted on their behalf showed the policy customarily adopted in Auckland, and the advantages of the system. Advertising and travelling were usually carried out by the concerns using tlie system. The average amount of each order issued was £5, for which a charge of about 10s. was made. Repayments were made at a rate of Is in the pound a week. When orders were paid off the whole was collected. Then there was a small additional instalment. Cash-orders were widely used in providing household necessities, CLOTHING AND FOOTWEAR It was estimated that about 90 per cent, of the orders were for clothing and footwear. Discounts were allowed by retailers on the coupons and these yielded a turnover. Three general advantages were stated to be given by the system. It was said to provide facilities for purchase at the lowest cash price from retailers whose commercial integrity was beyond question. There was a credit instalment account, by which patrons were able to buy at a time advantageous to them. It was further contended that purchasing power was increased. This meant increased production and more opportunities for employment. One statement in favour of the system and its conduct in Auckland bore the names of 900 customers. Mr. Cobbe proposes to obtain details of financial dealings in connection with the system.