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Taranaki Daily News, Volume LVI, Issue 186, 5 February 1914, Page 4

LAX IiOOK-IvEEPIXG. The remark made by .Mr. Justice Kdwards at the .Supreme Court on Tuesday that it was almost a pity the Legislature had made tho question of keeping books a matter for indictment, whereas in England it was for the judge in bankruptcy to take into consideration when the question of granting a discharge was brought up, points to a .matter upon which there may be a divergence of opinion. That the intention of the Legislature was to punish reckless traders and protect the merchants goes without saying, but everyone will admit there are instances of lax methods in keeping books in which not the slightest suspicion of fraud exists as, indeed, was tho cose before the Court. Jt is a difficult question to decide as to whether the English or the Xew Zealand law is the mora desirable. The former limits the" penalty to the withholding of (he discbarge, while the latter is punitive. Yet experience proves that it is extremely rare for a conviction to be recorded against a New Zealand tinder for this particular offence. Indeed, it is seldom that a prosecution is undertaken, but I when it is, and there is no fraudulent intent alleged, it is certainly a trying ordeal for the debtor to go through, and one that leaves a mark even when an acquittal is recorded. In these days there is no excuse for any trader noi keeping proper books so that he. or anyone' else, can easily ascertain his financial position. There is far too much of tile rough-and-ready methods in vogue, but it must not be forgotten that ail traders are not of the same intellectual sLttus, or possessed of the same qualifi- ; cations for business. There arc cases of quite uneducated men and women possessing excellent business ability, but totally deficient in the all-important work of keeping books. The question is whether it would not be politic to limit prosecutions of this nature to those cases in which there is prima facie evidence of fraud, and to give the official assignees larger powers than they at present possess. The most effectual remedy, however, would bo found in the direction of imposing on (he merchants , and others supplying goods on credit to i traders, the duly of satisfying thenselves that proper books of account are kept. The kaenness of competition that prevails at the present day is largely responsible for many bankruptcies, «, reason of so little care being exercised as to goods sold on credit. The supplier* know the risk ihey run, but seem to be willing to take it in order to swoil their turnover. The misfortune is that they are not the only suil'erers, their action causing loss to many innocent victims. There is abundant room for reform in the prescnt-dar trading methods.