BAD DEBTS.

Hawera Star, Volume XLV, 19 March 1926, Page 5

BAD DEBTS.

mOiBILEM .FOR, DUISLNES^MEIN.

RESTR.ICmON OF CREDIT PRO-

POSED

(BY TELEGRAPH PRESS ASSOCIATION.) DUNEDIN, March 18. The bad debit problem was discussed this morning at the conference of grocers. A paper was read by Mr. Robert Burley, of Wellington, who stated that tlie law afforded little protection t.o traders, placing the onus on. the creditor of proving that a debtor was in a position to pay. The present condition, he siaid, tended to encourage dishonesty, and a percentage of the people practically lived at the expense of the shopkeeper. The remedy lay in the' amendment of The present complex process for the recovery of bad debts. He claimed that no other place in the Empire placed such obstacles in the way of bad debt recovery. The law should) be made more severe against persons who obtained credit by misreprleisentation. Another paper, given by Mr Lux,ford, of Wanganui, expressed the opinion that city grocers in a central position should not give credit. As to others, credit should be limited! to a week where the debtor received a weekly solary, and to two weeks where the debtor was paid fortnightly. Restriction oi credit in the country was more difficult. Farmers were accustomed to unlimited credit and it would take time to educate them to make more use of the banks and less of the trader. In England credit was never given for groceries. Speaking of the stricture® passed by magistrates against storekeepers giving credit Mr. Henderson, the president. «aid:: “I think the magisterial attitude is unreasonable. The whole system, of business is based on credit and they forget that.”