THE WAIPA POST. Printed on Tuesdays, Thursdays, and Saturdays. SATURDAY, 30th MAY, 1930. TRADING ON CASH BASIS.

Waipa Post, Volume 42, Issue 3303, 30 May 1931, Page 4

THE WAIPA POST. Printed on Tuesdays, Thursdays, and Saturdays. SATURDAY, 30th MAY, 1930. TRADING ON CASH BASIS.

ONE of the brightest features of a difficult trading period (remarks the Melbourne Argus) is the growing tendency to bring trade back to a cash basis. .Cash orders and time-payment, all the costly adjuncts of a liberal credit system which were typical of the period of prosperity, are being discarded gradually, and traders, particularly those dealing in household goods, are beginning to demand cash. By selling for cash shopkeepers are able to sell more cheaply, and the margin between wholesale and retail prices is slowly being reduced. Steady progress to a reduction in the cost of living is therefore being made. Allied to this development is the decrease in the demand for luxuries, and consumers are beginning to limit their purchases to the goods for which they can pay in full. The era of high prices has passed, and consumers must be given the full benefit of any reduction in the cost of raw materials. After several years of high prices, high wages, and general lavishness in methods of conducting business it is not easy to appreciate the relative importance of small savings when prices are low and the purchasing value of currency must be made to increase. Consumers who | have less to spend will be more discriminating in their purchases, and traders will be forced to make savings in distributing costs to maintain their turnover. One of" the greatest savings to be effected is in the more careful use of credit, and this is now being generally carried out.