TIME-PAYMENT DEFENDED

Sun (Auckland), Volume IV, Issue 1054, 19 August 1930, Page 10

TIME-PAYMENT DEFENDED

ADVERTISING CLUB DISCUSSION

REAL SERVICE TO PUBLIC The time-payment system wet fully justified at the Auckland Advertising Club’s luncheon looV v/hen an open forum was held te discuss the system. At a recent club luncheon a leadinz Auckland barrister stated, during the course of an address, that the “timepayment system is one of the curse* of trading.” Today’s discussion was largely a reply by businessmen to thi* statement. The subject was introduced by Mr. W. H. V. Taine. who covered severs! of the arguments used by the opponents of the system. It was regarded by many as an over-grown America*i baby which opposed the oncourag*ment of ordinary thrift and selfdenial: it allowed the sale of unessentials, charging of rates of intern; which were extortionate when viewed through the average businessmans eyes; the system traded on the traits of covetousness and extravagance ia a certain section of the community. Mr. Robt. Laidlaw was a strong supporter of the system: he quoted figures showing that working expenses in well-managed firms were lower where the time-payment system wa* used, than where cash and carry tradwas specialised in. The time-paymen* sj-stem, by increasing the turnover of many goods, had made a lower cash price possible. This had been proved time and time again in many industries, where it was solely due to increased production that the cost to the consumer had been brought down. It was a much better system than open credit for the buyer generally thought twice before signing up to pay so much a week. The system leads to systematic saving on the part of the community. His firm’s experience had been that people got into the habit of putting so much away each week, and bough: durable and serviceable goods with money which would otherwise have been frittered away. It had been found in countries where the system had been well established that it led to a more satisfied community for no man or woman who was obtaining mor of the amenities of life per medium of the time-payment system desired to risk losing them by going out on sink* or risking his position in any way. It was an effective check on Socialism. “The time-payment system gives a very real service to the community stated Mr. Laidlaw. inasmuch that it helps to even out the bumps o: trade cycles. When times are good merchants preferred to deal for cash when times were bad. however, they are prepared to give the consumer extended credit to help him along. If the financial institutions of this country would adopt the same tactics they would be giving a very real service to the community. LOWER EXPENSES Dr. E. P. Neale stated that business could be transacted on a lower margin, for expenses under time-payment were lower than under a system of loose credit. The system had allowed a big section of the community to secure mv.y of the amenities of life much earlier than would otherwise have been the case. It had been said that high interest charges were made under timepayment. but it had to be remembered that this was not all interest, a* book-keeping and cheeking expenses had to come out of that. Many of tfcj criticisms which had been levelled against time-payment were applicable more to the way it was administered i than to the system. Carried out on j right lines it rendered a real service. 1 Mr. P. Free said that it was essenj ital that the seller received sufficient m cash to cover the initial depreciat:ionBecause many firms administered -r----system badly it did not follow that tn system was bad.