A NOVEL SUGGESTION

Manawatu Herald, Volume LI, Issue 4498, 30 August 1930, Page 2

A NOVEL SUGGESTION

FOR, ASSISTING- GOVERNMENT FUNIANCE. PROPOSAL TO BE PLACED BEFORE PRIME MINISTER. A novel suggestion for assisting the Government’s finances was advanced at the monthly meeting of the Foxton Chamber of Commerce, held on Thursday evening, by the Town Clerk, Mr. W. Trueman. iMr. Trueman said that for some time there had been a good deal of controversy in the papers concerning art unions as: a means of raising funds for one thing and another and it could not be denied that, apai't from one or two lucky people few benefited as a result of these projects while large sums of money were tied up in each instance. An art union meant a general loss to the great majority. Slate lotteries had been advocated by some but it had to he recognised that such an undertaking was ( nconraging the gambling evil. Tt remained, therefore, for some one to think' out a scheme whereby gambling could ho converted or modified into a virtue. Tie had given mulch thought to this possibility and had formulated a scheme whereby the Government, through the Post Offices, i-ould set) coupons at 5/<;acli and every three months hold a ballot of the number of tickets sold for certain sums. After participating in four ballots (lie holder of the coupons could receive at any post office a hearer bond to the value of £l, payable five years hence without interest. The Government would have the use of each 5/- for five years free of interest which sum could he used for public works and other purposes for which loans are raised. The investor ori his part, stood a good chance of drawing a substantial prize as he did at present under an ordinary art union but what was stilt more important, he received his money hack intact after live years so that actually lie was no poorer, which could not be said of any other gamble. The gambling instinct which was undoubtedly present in most people, said Mr. Trueman, was -by 'this means diverted into a form of: thrift which was what all modern economists preached. The system was .-•neb as would tend to reduce very considerably the thousands of pounds sent out of the country for gambling purposes from which the great majority received absolutely no. benefit.

As an example of what lfe suggested Mr. Trueman said that supposing SO,OOO 5/- tickets were sold for the firtt ballot. This would provide £20,000. Of this amount £3,000 could 1)0 set aside for prize money leaving a balance of £17,000. .£17,000 at 5 per cent, for five and threc(piartor years would bring in £lBB7l. In the second ballot 80,000 tickets would again he sold, £20,000 would be raised, tlu; same prize money allocated, leaving £17,000 at 5 per cent, for live years this time, which would bring in £4,075 in interest. The third ballot on the same lines would leave £17,000 for live and a quarter years, realising £4,4021 interest. The final ballot would leave £17,000 for five years, interest being £4,250. 'The total amount invested taking I lie ticket sales at 80,000 in the twelve months would he £BO,OOO of which £12,000 would have been distributed in prizes, leaving £OB,OOO invested and showing an amount of £18,275 saved in interest at the end of the five years.

His proposal in sonic degree tended lo convert a vice into a virtue.

■MV. Smith: You assume that each ballot would he fully subscribed? Mr. Trueman: That is only an example. The prize money could be fixed according to the amount subscribed.

Air. Christie said that at the end of the .five years the Government would have to pay out hut M,r. Trueman said that that was what it "as doing now in regard to Joans. 'Mr. Trueman said he thought the scheme could ho operated quite successfully through the Post Others and make one or two more explanations in regard to the sc heme. Members expressed themselves as intrigued with the proposal and it was decided to place the scheme before the Prime Minister.