PREMIUM BONDS.

Auckland Star, Volume XLIV, Issue 184, 4 August 1913, Page 2

PREMIUM BONDS.

(To the Editor.) Sir,—A noble effort is at present being made in Parliament to forward the inteersts of "'Premium Bonds," and onp of our worthy Prime Minister's reasons for countenancing this legislation is that it will permit the present holders to dispose of their "gilt-edged" securities. If premium bond.-, arc gilt-edged invest menus, why are the holders so anxious to have legislation ' pas.-cd to permit them to sell them? What is the. meaning of the word "premium." and how much of the purchase price is premium, and how much is bond. How much of the premium charged is linding ks way into the pockets of the promoters of the company trading in these securities? Why are these bonds at a premium, seeing that they are as plentiful as rain drops, i with more to come? | If this system of investment if so alluring, would it not he more logical to legalise this class of gamble, and raise money amonjrst ourselvps for our owti municipal works, instead of passing legislation to permit a foreign people to secure -our cash, and to invest it in the development of foreign iritercstii ? Tbe portion of interest now alleged to be allocated by premium bond promoters to form a pri::c could he so allotted in .i local scheme, and no premium charged. | n why should any premium be exacted for the riirht to send money out of the country to secure a doubtful right to participate in a prize where the chances against winning are enormous ? I challenge the advocates of these premium bonds to publish a statement giving the amount of the gross capital subscribed and -the 'premium (.barged to the |purchaser, and to show the investor | what chances are against his winning a prize. ' This proposed legislation :s. I presume, a fair specimen of the reforms promised by the "square deal" Government. — 1 am, etc., ODDS ON.