HIRE PURCHASE SYSTEM

Taranaki Daily News, 17 October 1930, Page 12

HIRE PURCHASE SYSTEM

COMPULSORY REGISTRATION. SUPPORT BY BUSINESS MEN. "Too easy credit is a menace to commerce,” said Mr. L. A. Eady when moving, at a meeting of the Auckland Chamber of Commerce that a proposal for the compulsory registration of hirepurchase agreements should be supported. His motion was carried. The matter arose in consideration of remits from other The Marton chamber suggested that the Government should provide for compulsory registration, owing to the preference given to certain traders under the Chattels Transfer Act, 1924. The Palmerston North chamber urged the abolition of the hire-purchase system, or compulsory registration as an alternative.

Mr. Eady moved that the Auckland chamber support the proposal fox- compulsory registration, but opposed abolition of the system. It was unfortunate that an economically sound system should tend to become discredited, by an extravagant use of it. He believed that in the interests of sound trading it ''Was necessary to curb the tendency toward the selling of all classes of merchandise on very easy terms. Compulsory ■ registration of hire-purchase agreements appeared to be the most effective way of meeting this position. Keen competition fox - the smallex’ volume of business offering to-day had resulted in a lowering of the terms of payment. The hire purchase system had spread over an ever-widening field until the country had arrived at the stage of practically all classes of goods being offered on terms that often were economically unsound. Air. A. A. Ross opposed the motion'as applied to registration on the ground that trade should be allowed to develop free from interference.

Mr. G. Finn supported Mr. Ross’ view, but the other members of the council present approved of Mr. Eady’s motion and it was carried. j