TRADING ON CREDIT.

Grey River Argus, 25 September 1928, Page 3

TRADING ON CREDIT.

CASH ORDER SYSTEM. WELLINGTON, Sept 2>. . The decision of the IGovcrnmeat to appoin. a. Royal Commission Io inquirt into the. operation of the eash ordci sy. tom in New Zealand, ha-; been :»‘r m.unced by the Prime Minister. Mi Coati s isaid. that his attention had recently been drawn to the growth of the system of ca:h order . raiung in the Dumihion. The g'dicra; effect of ea» h order trailing wjts to enable intending pure las' rs of co.tain clauses of goods to secure them by means of orders issued by firms wii.’ -h uuderV'un to pay the purchase price to th? lo.'ail. supplier, subsequently coif ding the amount of the order in instalments fru.lll their clients. The cash order company in pi acl icallv al.' instances charged its c. tents a premium on the amount of the order ami also seemed a. relatively suil.stan.iai di. count from the retaii< r. Cvrkr.a featuied of this system were albgcd to bo uneconomic and socially un.ic sirable, and the Governmi nt had been z ur£ dto take action against the unrestricted devekjpmen: of this method of encouraging credit trading. Strong criticism of the system had been vtired in thp Commonwealth of Australia where it had '•<‘c- nt-y t liown a marked growth. The Prime Minister siaicil tha\ at the direction of the Minister cd »n--dustries and Cuir.nierre (Mr A. D. McLeod) sqmc inquiries had ah< ady been made both in the Dominion and Australia. The Government con iderthat the facts already elicited justified sv close- consideration of tht' cyjtern—me extent to which it was at present or is like y to become prevalent, and its social and economic me. its cr evils. Th Government therefore proposed to appoint at an early date a commission under the Commissions of Inquiry Act, 1908, make a (full investigation ‘into thio 1 matter and to report as to any legislative or other action which might bo considered'necessary.