“HERE TO STAY.”

Gisborne Times, Volume LXVIII, Issue 10712, 9 October 1928, Page 2

“HERE TO STAY.”

INSTALMENT SYSTEM

PRAISED BY ROTAK.LAN

Contending that Hie instalment system lias made good anu was sound and Satisfactory, Mr, H. j Thomas addressed the Auckland Rotary Club oii Monday oii “The Practical Side of Instalment Selling.” From being confined to such articles as motor-cars and pianos the system had spread through other trades, gaming a tremendous popularity with the buyers, mere was no doubt that it had made good in the face of a bitter Opposition ana was now a sound and satisfactory arrangement from the consumer's point of view. It had come to stay. Instalment selling was now an integral part of the commercial life, and after being condemned on all sides it was now recognised! by economists .as thoroughly sound. The evolution of the system had taken place in the . last tew years and it had not yet shown ahy inherent weaknesses which were hot equally liable .to occur in other forms of credit. The charges .paitsed against it were usually the fault of the trader or the consumer, and the old credit account system had many more serious deficiencies.

CHARGE OF EXTRAVAGANCE.

Arguments were raised against the system that it encouraged the use of luxuries and extravagant buying and it was Stated that the country was passing through a period of extravagance due to tile instalment system. The driving force was the excitement of extravagance, not the instalment system.. , ; ,.‘ it had also been contended that it was impossible to get' at the Actual cpst of the credit given to the ' consumer, but it was really a fair system, the cost Being bom by the user* " It was fill ihcentive to thrift if the instalments; .were kept .within linins and. made for an. orderly budgeting of income aiid expenditure each week. . People had .told him that they could never save before : they had adopted the instalment system. The time-payriienfc tfader was equally as anxious to keep the good-will iff his customers so that the publm tfiust be pleased. The success of the systeih in individual cases would depend on the knowledge and ability of those conducting the service.