THE COUPON SYSTEM.

New Zealand Herald, Volume LXIII, Issue 19417, 27 August 1926, Page 9

THE COUPON SYSTEM.

OPPOSITION IN AUSTRALIA. PROTESTS BY RETAILERS. DEPUTATION TC MINISTER. Strong apposition to the coupon system of retail trading was voiced in Sydney lately-by a deputation from tho New South Wales Traders' Protection Association and/kindred organisations to the Minister of Justice, Mr. W. J. Mc'Kell, to urge the introduction of legislation to abolish the system. Mr. E. J. Ellis, secretary of the association, said that the deputation represented thousands of traders desirous of abolishing the system of coupons and trading stamps. The system, ho said, was a pernicious one, and a serious interference with the retail traders' business. . It afforded no equity of trade, and gave, as for example in one suburb, a particular advantage to the one trader using tho system over the rests The system meant that either the quality of goods would have to be reduced or prices increased, and thus tho consumer suffered. Members of the grocery trade had been forced, out of business through tho unfair competition created by the coupon system. Ninety per cent, of the traders wero anxious to have it abolished, including many who wero now. giving coupons. Tho system had been abolished in tho other States, and it. was desirable that it should fee removed from Now South Wales. Mr. J. H King (Country Traders' Association) representing 1300 country storekeepers, said that up to about 13 months ago the country traders had been free from the coupon system. Since then it had invaded tho country districts, and was causing, grave concern. It was absolutely superfluous from a trading point of view, and placed traders in an unfair position through tho absolute monopoly which it gave to those using the system, and a grave jinjustice was done to those who decided on principle not to use it. Coupon Company's Profits. Mr. King said.! that the coupon company made large profits. Another eivil of tbe system was the manner in which it took trade out of a* town. It forced itself upon a town, and through fear of losing a certain amount of trade, many tradet'3 succumbed to it Mr. J. -Shand (Retail Butchers' Association) stated that the system constituted a need!eaa intervention of a third party in trading transactions. A trader often took on tha coupon business, with a resulting great loss of money. Paying enormous prices,; l for the ase of coupons, 'he 'was paying more than tnoir value, tho goods offered in exchange for coupons being often less; than ono-third of tho sum paid for their uso. Hiu association desired the. abolition of the system. Mr. Youngberry (Newcastlo Association) gave figures illustrating tho pric* of coupons and the profits made by selling them to traders. They wore sold at £l' 4s per 1000, or, to those traders doing big business, and buying more than 5000 a week, at'£l 2a 6d.p~er 1000 He estimated the prpfit of the coupon company, allowing, for' aß,the coupons being redeemed, ~vit .oyer,soo per .couC ~At least 30. per cent, of the coupons, were never redeemed at all. a • . " Currency Within a Currency." Mr. Reed (Master Bakers' Association) supporting the deputation's request, pointed out that in the matter of prices tho public was suffering an imposition on the cost of living of 2£ per cent. Mr. Grierson (Co-operative Wholosala Society) said ho objected to tho coupon system on the grounds that it was a currency within a currency. ' It reduced tho spending power of every sixpence by a farthing. ■■''J/':'" Mr. W. P. Webb (Central ( Western Division) said ho bought a business and property for £4500 a few months ago, and, finding the coupon system operating with it, he continued the system. After his first half-year he found that he had made £l5B profit, £144 of which went to the coupon .company. As a result.he had increased the price, of every article that would stand &n increase. The, Minister thanked the deputation for its information, and promised to place their request, before the Premier and Cabinet.