TRADERS AND CONTROLS

Press, Volume LXXXVIII, Issue 26671, 4 March 1952, Page 8

TRADERS AND CONTROLS

VIEWS OF RETAILERS’ PRESIDENT “ DANGER IN TOO MUCH RESTRICTION ” Some system of overseas credit to be given to firms for their buying quotas for each 12 months was suggested by the president of the New Zealand Retailers' Federation <Mr J. W. Wood) in his address To the annual conference at the Chateau Tongariro yesterday. Mr Wood said that if firms were allowed amounts in relation to their turnover or some other fixed form of quota, this would control over-buying and overseas funds, and still allow for freedom of choice of merchandise, which was so essential to the life of business. “Of late we have heard a good deal about credit control, sterling policy, and the screening of bank overdrafts, and while thrift is essential to wellordered living, and also economy is possibly the main requisite of a sound financial structure, be it in government, in business, or in private lives, let us not be too narrow.” said Mr Wood. “At the present time goods have piled up. We all know that. But if we have too much restriction, we shall, as traders, not have enough elbow room to adjust ourselves. “If we are restricted too much, there will be large-scale price cutting and reduced prices. This in turn means less goods purchased from manufacturers. All this will result in a smaller balance at the bottom of the profit and loss account. The Government taxation department knows the result—less income and social security tax.

“It does appear that, while our primary produce and wool remain at the level they are. there is little to fear. Traders, therefore, if given elbow' room, will be able to adjust their own business. Many are in the process of adjustment by virtue of increases in capital. Without too much control from financial institutions, traders will put their own houses in order. We all want to stay in business, not go out of business. “As all who control business know, one of our problems is that replacement cost is now greater in many cases than the total selling price was not so very long ago. Given time, this will come right, as stocks are adjusted. ~ u( -' osts - overheads at a high level in the running of any business and the cost of raw materials, wool, and cottom will be a big problem for all ol us, continued Mr Wood. “They rank next to the tnreat of war. it is also agreed that we ought to find a better method than this periodical wage lift' this new method must be found whateYe.r d might be. because all sections of the community, whether they work in office, shop, or factory, must be protectea. “We as a country will need to cultivate again the will to do a real piece of work,” said Mr Wood. "If every person in every industry gave a full deal for their salary, our .exports would increase, our industries would produce more, and the over-all cost lessen, with a corresponding !>° ,S. ome members of this fair land still think that they can receive 100 per cent, return for 50 per effort and pay 50 per cent, for a cent, article. This will not