THE HIRE-PURCHASE SYSTEM'

Press, Volume L, Issue 14993, 13 June 1914, Page 12

THE HIRE-PURCHASE SYSTEM'

SUGGESTED COMPULSORY REGISTRATION OF AGREEMENTS. ftfUEU ASBOCTA /lON TKUBGItAtf.) - . AUCKLAND, June 12. ' The merits and demerits of the hirepurchase system and. the question of compulsory registration, of agreements were again discussed by the council of the Auckland Chamber of Commerce at ite meeting to-day. A letter from the Official Assignee in bankruptcy, in reply to a communication from the Chamber, was read. • ■Mr Fishen, in. replying to objections that had been raised against tlie' suggested compulsory registration of hirepurchase agreements, said that if the present expense of registration (7e 6d) was considered, it might be reduced to a nominal amount. As to the objection to registration, on the ground of publicity, he said that particulars were published only in the "Mercantile Gazette," which was read almost exclusively by business men. If a measure was necessary for public protection, undue consideration could not bo given, to the feelings of over-sensitive individuals. The only people who had to fear publicity were those whose financial position was so weak that they could not obtain goods upon credit without giving security. It was doubtful whether the hire-purchase system was at all popular except with vendors who by it secured the advantage of being able to give credit without any risk. ■ / . " ■ ■ ■ The latest development of the eystem, Mr Fisher said, was in connexion with jewellery. "I am informed, ,, he said, 'that servant girls and youths in factories are being canvassed to purchase goods under this system." In conclusion, the Official Assignee summed up the objections to .the present system as follows:— (1) That it is an infringement of the lundamental law of bankruptcy—that at the time that a man becomes bankrupt the whole of his assets shall be available for equal distribution amongst his creditors; (2) that it,is an. incentive $0 false trading, in that it tempts men to purchase chattels when their financial position does not warrant their so doing; (3) that it provides further facilities for committing fraud; and (4) that it jrivcs one portion of the trading community an undue advantage over the other. The president (Mr Bart. Kent) said that the hire-purchase system was a great convenience to many people, and he instanced the case •of pianos, sewing machines and typewriters. Such articles might be permitted to be purchased on the hire-purchase system without registration. It was agreed t<s defer consideration of the matter- until next meeting.