LUXURIES ON CREDIT.

Manawatu Times, Volume LXV, Issue 1881, 28 March 1913, Page 6

LUXURIES ON CREDIT.

TIME-PAYMENT SYSTEM.

THE MOTOR CAR INDUSTRY

"Credits and Terms" was the title of a paper read by Mr J. Bett, of Palmerston North, president of the Master Carriage Builders aud Wheelwrights' Association, to the confer- | ence of delegates at the Wellington Town Hall. Mr Bett stated that the credit ; ostein in New Zealand in the past hstd been fruitful of considerable losses, which not infrequently had brought in their train embarrassment and even disaster to some important and what might otherwise have been flourishing industries. Eagerness to sell and thus produce a larger turnover had been allowed to overshadow the more important consideration of safety. Profits made in this way could not fail to be fictitious, for as often as not they had to be parted with to make good. He was aware that credit in a young and progressive country was essential, but if given indiscriminately the consequences to the giver were invariably attended with bitter regret. DISTRIBUTION.

Mr Bett then asked the delegates to consider the relations between merchant aud distributer. If the distributer or manufacturer gave unlimited credit, he must of necessity be dependent unless he was fortunate enough to be possessed of the powers conferred Mid an by the gods. This someone would either have to be his banker or his merchant. If the former he might at times find the banker a difficult fellow to deal with, as he would undoubtedly do if high water mark was too frequently touched. If ho was obliged to depend on the merchant he would find his profits suffer, for the merchant had to live. In this way discounts were lost and every loss so made left him the poorer. It was therefore good business to buy well and save the discounts, which on some lines at any rate left a good margin of profit, and this could only be done by paying

cash. Briefly put, if credit be given, let it be governed by prudence. Let them look well to the character, the financial standing, or the solvency and the resourcefulness of the obligant, and they would be able to buy well, keep their bankers sweet, and, aftove all, save themselves many a sleepless night. GRAVE CONCERN. were closely allied to credits, and he touched on.a subject—motoi cars—which at the present time was causing the gravest concern to almost every financial house. Most of them were aware of the magnitude this industry had assumed, due in a vast number of instances to the ease with which terms of sale were made. It had been said that the motor car

had come to stay, and he was inclined to think that this was correct, but he had yet to be convinced that more than 50 per cent, of the purchases went to satisfy a genuine want. When he said a genuine want, he meant to earn revenue or expedite business. In his opinion the other 50 per cent, of the cars sold went to gratify the rapidly increasing luxurious habits of the population. He was going to say "want" or "extravagance" of the people, but he would content himself with the former expression. He, however, did not intend to deal with this subject from an economic standpoint. The purchaser sooner or later would probably be called to do some good hard thinking how to meet this coming difficulty, but he held that they could assist materially to bring this view of the case rapidly into prominence. He had said that he believed fully 50 per cent, of the cars sold went to gratify luxurious habits, and in too many instances these sales were effected upon terms calculated to cause thoughtful men to stare in blank amazement. —N. Z. Times.