THE CASH SYSTEM.

Gisborne Times, Volume XXVI, Issue 2167, 16 April 1908, Page 2

THE CASH SYSTEM.

HOW THE NEW PLAN WORKS IN; GISBORNE. THE “NO TICK” SCHEME MEETS WITH GENERAL APPROVAL MAY BE EXTENDED TO OTHER TRADES. It is now about ton weeks since tho bakers’ system of cash doaling was introduced into Gisborne and m view of tho fact that reports of its alleged success hove reached other centres and are inducing similar action thero, a “Times” reporter mado a number of calls during, tho past low days to ascertain precisely how the now motliod of dealing is view by thoso directly concerned. It should lirst be made clear that as from January 1, according to public announcement, the bakers of Gisborne mutually bound themselves over by heavy .penalties not to give credit to any customer. Thero was. to bo no preference shown to anyone, rich or poor, and those who were not ready with cash each day were to bo left without -my bread. To meet the convenience of those who objected to the necessity of always having change available each day, a coupon system system was ulso initiated, by which customers could purchase a number of coupons in advance, and give out one or more as might bo needed for each day’s requirements. The price of bread was fixed at 3jd per loaf. A few weeks later the butchers met to consider the same question, but appeared to find it impossible to exactly copy the bakers, and they decided to give a minimum of ten days’ credit, which was to bo rigidly enforced. It was to learn exactly how these experiments tvero working out, that the “Times reportor made inquires from butchers, bakers, grocers, coal merchants, and milk vendors, and, on the other hand, from a number of house wifes and boarding-house keepers, who were only too willing to give their respective opinions on tho now order of things. BAKERS’ VIEWS.

Interviewed, one of the largest bakers in the town said that bo welcomed tho ss’stem and hoped that he would never have need to revert to giving credit. Insisting on cash had done away with nearly all boolring, and had greatly facilitated matters in checking the supplies sent out in the carts. “Look at it this way,” ho continued, “I have to pay the millers spot cash or lose tho discount. I have to pay wages on the Saturday whether the accounts came in or not, and a man in business in >a small town cannot afford to have hundreds of pounds upon bis hooks, lying idle, and doubtful when they will be paid. The working man gets his money every week as soon as ho lias done his work, and I don’t see why he cannot pay for what lie buys with tho same promptness as he expects to be paid for his labor. The custom has a tendency to encourage thrift, and to make _ a man and his wife to live within his means. How often havo I seen my own customers occupying the best seats at tho theatre, big bills standing against them for -bread. A man in the bread business has many experiences ,and I know it is the custom among many women to spend money on luxuries and let the baker and the butcher wait. Tho rule now applies to all good and bad marks alike, and I can safely say I have not lost a customer through insisting on cash.” Another baker on being asked to give his opinion on the system expressed similar views. “Of course, he added, “we hear a little grumbling at first, but when householders found the rule applied all round, they soon settled down, and now I never hear a complaint.” Asked if the rule was broken under any circumstances, or if the cart was driven away if the cash was not forthcoming, the baker “said: “The rule is not, and never was intended to he tyrannical, and each man can uso his own discretion in supplying customers for a day or two; but,” he explained,’:“we generally leave that to tho carter who keeps a note in Lis delivery book, and so do away with any need of bookkeeping. There are, sometimes, people who cannot conveniently pay to-day and are able to pay to-morrow, and it would bo decided-, ly bad business to offend a good customer by an unreasonable action. Still I almost insist upon what can be termed cash, although a day’s credit might be given, but there is now no -bookkeeping and no rendering of accounts in my business.” “You see,” lie remarked incidently, “thero is a large floating population here, people move about so much that a baker has to lie careful. Wo cannot go to a lot of expense in chasing a man for a pound or two, and if we lose on some customers, the good payers have to make up for tho bad. Then the bakers and carters are talking of going to the Arbitration Court for more wages, and to bo honest, the master baker lias to get bis money in.” MR. CORSON’S VIEWS.

In a talk on the subject Mr. T. Corson, secretary t|o tlie Master Bakers’ Association, said t-liat, as far as -lie could learn, both traders and customers had now settled down to the new system and very little complaint was heard. “Tlie bakers will,” lie explained, “take one another’s coupons almost without exeeption, and householders find no difficulty 'll! getting bread ip exchange f-or a coupon from any baker’s cart that might bo passing even though another baker was calling regularly. The system, he continued, tended towards providing bread, for although flour had risen in price the bakers had not raised their prices, but are selling at under rates at present. Flour is now £l2 10s per toil, , and bread should be 8d the, 41b loaf on that price quotation, but tlicro was no talk of an increase unless there was a further riso .in the flour market.” “I am satisfied,” said Mr. Coreon, “that the system will continue to work with good results, for tlio results so far have been so beneficial that other trades are talking of coming into line, but there are disadvantages against enforcing a strictly cash rule by drapers and tailors and jewellers, who do a big country trade, and in many cases old luxuries which would not ho taken by the customer unless a ledger was kept. Under the cash system tlie provider for the house must leave so much for the week’s provisions, and not, as in the past when the money was often spent before it was earned. Tlie publican will suffer most,” said the speaker in conclusion, “for a man will find that he can’t ‘blue’ all his money at tlie bar.and live all the next week on tick.” THE BUTCHER S VIEWS.

“The cash system in the butchering trade cannot bo enforced so rigidly as in tlio bakery bueiness,” said one of the leading butchers when questioned on the subject. “You can understand that in my business it is impossible to cut a joint to exact weight and children are continually sent for small goods, so that cash on the nail cannot ho demanded. The butchers have to keen books, and render accounts as before, bub the accounts for the previous week are due not later than the following Wednesday. 1 find the money comes in more regularly than before, and it has entirely broken the habit of somo people to pay only a portion of the accounts -111(1 leave the balance oil the bo;V j'iiat is so much against a credit trade. We have to settle our accounts promptly or pay interest, whereas wo cannot charge interest on small outstanding accounts, and many we never see at all. I don’t think customers look upon the weekly payments as a hardship,” lie replied, in answer to a question, “and I believe there are many who would not go hack to credit payments if they had the chance.” THE CONSUMER’S VIEW With the object of learning tlio other side of the question the reporter called upon a number of boarding liouso proprietors, and private householders. One lady who accommodates a largo number of boarders said slio preferred tlio cash to tlio credit system as it allowed her a better onnortuuity to provide the daily needs of

the establishment and make up the accounts each week. “My boarders pay promptly,” sbo explained, “and m my incomo is certain I see no advantage in getting credit. I nay cash as far as possible and find it hotter to take discounts than to havo outstanding bills. I uso about twelve loaves of bread each day and pay tho money to tho carter rather than bother with coupons, but if -I havo found it inconvenient to hand over the cash at onco there is no suggestion that I am not to bo supplied. I think that as wo all expect to bo paid for what we do, wo should also bo propared to pay for what wo got.” A lady whose, husband is paid monthly took quite a different view of the situation, and described the system as “nonsense, got up merely to give annoyance to honest people.” “I get my money every month,” she explained, “and I always -find it handiest to pay onco a month. To pay cash is not so easy as 6omo bakers seem to think, especially when there »ro children to be kept well dressed, because there are expenses that don’t come around in others, and it might bo necessary to let a small account run on. I used to get a discount when I paid monthly; but thero is no discount now, but cask on tho nail for everything.” Another mother of a family whoso husband is a tradesman, said she had no fault to find with the system. “I can toll pretty well,” she said, “each week what I want for the house, and I keep enough monoy by to pay with. I have been dealing with the earn® butcher and baker for years and have always found them fair and reasonable. If I don’t pay the very day I get tho bread I am never refused, and if I don’t pay the butcher on tho Wednesday, but go along and settle upon the Saturday there is no difference. The cash system is a good ono because it makes some iieople, who won’t pay if they can help it, be honest.

The views of the housewives of smaller cottages varied. One woman, on being asked to express her opinion said that she had never heard of such injustice before. “My husband is a laborer,” she told the reporter, “and of course loses time in wet weather, and has to do with short pay. Somo weeks I have more money to spare than others, and with everything wanting in a house it is not so easy for the poor people to pay cash as somo people might think. Of course, as I havo got to pay the butcher and baker cash now, I do 60 • but I very often go without other tilings so as to always havo the money when tho baker calls. I pay every day, because I don’t want to be refused, and I am told that if you get a bad name for booking bread that other bakers will refuse to call. It takes a poor man all his time to keep out of debt, especially in tho winter, when there are so many wet da vs and so much work is lost. I don’t' know how I would get on at all if I have cash for everything. I simply could not do it, and some weeks the bouse would have to go short, but when I get credit I always pay up when the money comes in, and I have no trouble with tho grocer if I ! owe him a little.” “These are only two of us,” said jSfe r V< c m rV on boin S interviewJuL 1 tFt ! fc Casy to P a y cas h ev ' '-rydaj . If I have not got the rnoniy on . hand at the time, the cart r alls. I might leave paying for a :oaf or two over till- the next day; out prefer to -pay cash. I do the lame with the butcher; ever since ho isked for cash he has got it: because finYft ver ? Httle me & and I don’t ffrin th nf rU ° to C , ash al ‘y tardilnp. Of course, I don’t know how it 1 -'vf a , f . ami] y *o look uter, she said laughingly, “but I nipposo it would be different then ” the next woman called unou eyed 1, 6 reporter very suspiciously. “I thought, when you first told me what eont a w 5, r * w* y 0" TS hfc be aa f' f ?F the bakers, she said in .xplanation, ‘because I know they io report people who might chance ;.o owe them a shilling or two I ; iave only my two boys to keep the come going, and I find it-har'd en>ugh to pay cash, but I have to do it ir go without.” “Have you,ever been •el used, because you had not got the cady money ?” the pressman inquired. les I have,” continued the Aomau. I owed one baker two or miee shillings, and lie refused to *' ■ er ye me any more. I called another :ait, paid cash, and told him to call -'very day, but- he drove past, as if ie diet not want my custom, and I ;iave had to go out to get -bread. I ia\e been in this place for vears ind it seems hard that- when people ire honest they can’t be trusted for i shilling or two.” OTHER TRADES, ike wood and coal merchants and dairymen, who as yet have not adop.ed the system, were also sounded 1 as , * K '. Jr vl ows. The coal merchants 'tie very cautious in expressing any ip.nion but admitted that the® subject had been discussed among them ind an association might bo fodned jefpre tho winter sets in, and a cash radmg system adopted. The rnilk,;l - present insist upon prompt oi fa£ wlthout an Y l»rd oi rast m.e. There are not heavy .credits in our business.” said one venof >r tb«' aild bad <lebts afc 1116 end sum ” ye3r d ° U fc amount a- large

. Some years ago a strictly cash busmess was tried by a Gisborne grocer, it through .other houses giving cr @_ Sii? forced, to fall into line 1 riuetty cash business is looked upon trade? 03 * ,mpoS6l ’ ble in the provision