Another Blow Aimed at the Industry.
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TN the Hire-purchase Bill, the second reading -I-of which is fixed for February 20th, our industry has to face a new danger of crippling legislation. The Bill sets out to enforce, in the event of a hire-purchase seizure, a return of part of the instalments paid, to permit the hirer to recover seized goods if, within seven days, he pays all instalments due, and to exempt hire-purchase goods from distress for rent until half their value has been paid.
The question to be asked is whether the amount of cash security (i.e., instalments paid) ever exceeds the amount of depreciation to such an extent that legislation is needed to prevent finance houses or traders from becoming unduly over-secured. Surely the best safeguard of the public lies in the competition between finance concerns.
With regard to the second provision, a seizure 18 such a serious thing from the point of view of the trader that his powers should not be still further curtailed by additional legislation.
As regards distress for rent, the present position by which a landlord may distrain hirepurchase goods is unfortunate for traders, but to postpone the evil day when distraint becomes possible is a poor remedy and one that is not water-tight, for unscrupulous landlords could easily loan tenants money to pay up to 50 per cent. of the instalments, and then immediately distrain.
The fact of the'matter is that prudent finance and the foresight of sound banking supervision are the only safeguards which are of any value, and the less trade is interfered with by legislation, the better it will be for all concerned.