CREDIT TRADING

Evening Post, Volume CVI, Issue 44, 30 August 1928, Page 8

CREDIT TRADING

NOT'UNSOTJjH);. : TIME-PAYMENT SYSTEM The growth in the time-payment system, also the system of hire-purchase, is dealt with in the annual report of tho Industries and Commerce Department. "The attitude of tho various ,• sections' of the trading community appears to bo influenced very greatly by the class of goods in; : which those traders aro interested,': and, 'while sellers of foodstuffs, ■clothing; and similar articles object most -strongly to time-payment or; hire-purchase methods, dealers in automobiles, musical in-, struments, furniture, and.cortain classes: of machinery at.6; equally emphatic in their support of-:the virtues of the system," says the report. " ; ; :._ "It appears to-be true iii this, as in" other; instances, that, it...is ..the excessive and extravagant adoption of tho principle of deferred payment which constitutes the only serious objection to a system of business which m certain respects has decided economic benefits. The time-paymen system may claim to be an influence towards thrift as much as a cause of extravagance, and. a means of enabling produeei-s to use modern appliances or, machines earlier than they would .otherwise find- posSl"Th< purchase of goods on a defer-red-payment basis undoubtedly influences tho direction in which the income of large sections of the community is spent, and in of this some classes" of goods may, to the disadvantage of other goods, secure a sale far greater than, would be. possible if cash trading were^stnetly adhered to"Credit trading is clearly not to be regarded as unsound or undesirable rfding, and, provided that the buyer <s reasonably .able to meet his credit obligations, the main factor for considefation is the'nature of the £oods sold on credit and the use which the purchaser intends-to make ot them.