HIRE-PURCHASE.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 12

HIRE-PURCHASE.

LEGISLATION WANTED. LIMITATION OF THE SYSTEML From an application to sewing machines, pianos, and farm implements, the hire-purchase Bystem has been extended to motor-cars, house furniture, and scores of other commodities. Even suits of clothes are now acquired in this manner, as was pointed put to members by Mr J. MacGibbo® at last evening's meeting of the Council of the Canterbury Chamber of Commerce. The Marton Chamber of Commerce conveyed the text of a resolution passed in regard to hire-purchase agreements. This was as follows:—That owing to the undue preference givem to certain traders under Section 57 of the Chattels Transfer Act, 1924, representations be made to the Government as follows: That Section 57, sob-clause 0, of the Chattels Transfer Act, 1924, whereby the Governor-General by Order-in-Council may add to the class of chattels defined in the seventh schedule to the Act, be repealed. That the seventh schedule to the Chattels Transfer Aet, 1924, be purged of items of luxury. That a jopy of the foregoing resolution be forwarded to the Minister for Industries and Commerce and to all Chambers of Commerce, and that the support of the latter be solicited. The covering letter stated that since the passing of the Chattels Transfer Act, 1924, the hire-purchase system had grown to such an extent that it had become alarming, and had more far-reaching effects than was contemplated at the time the measure was introduced into Parliament; and the Chamber considered that some action by the business people was now warranted. In soliciting the support of the Chambers of Commerce in the Dominion in the direction of making representations to Parliament on tho lines of the resolution passed, the Chamber earneetly believed that the present unsatisfactory financial position was to a large extent due to the hirepurchase system.

Consuming Assets. Mr F. E. Jones said the matter wai extremely important. At one time hirepurchase agreements wore limited to sewing machines and be argued that they were undiminishing assets, but the system had been applied to consuming and wasting assets. He moved that a committee consisting of Mr A. F. Wright, the representative on the Council of the Canterbury A. and P. Association (Mr W. H. Nicholson), the representative on the Council of the Canterbury Automobile Association (Mr W. E. Carey), Mr A. C. Bretherton, the president (Mr Norton Francis), and the mover, be appointed to examine the question. Mr W. K. Carey, in seconding the motion, said he thought that if a very substantial deposit was insisted upon before any transaction took place, there would not be so much cause for complaint. Mr C. H. Hewlett (chairman) said the committee would have a very big undertaking. Mr F. W. Hobbs said it might be wasting its time, as the practice was almost universal. It might be kicking against a brick wall. Mr Mac Gibbon said the evil ct tho- system - was. .obvious, but it wai growing from .day to day. Even suits of clothes were bought on the hirepurchase system now. It was impossible to stop it. People looked for it, and traders who did not want it had to follow the others. Tho motion was carried.