Financial Self-help

Dominion, Volume 25, Issue 169, 13 April 1932, Page 11

Financial Self-help

Sir, —The time seems opportune to revive the proposals made a year ago for the raising of money at small cost to the State by means of a thrift scheme, operated on a somewhat similar basis to that of the co-operative building and loan societies. The objection to a straightout lottery scheme is that the pure and simple gambling spirit is fostered, and its appeal is not to the whole community. Such a scheme as 1 have in mind would encourage thrift of the right sort, namely, providing a fund for later years or for the next generation. At the same time, this scheme would have the widest possible appeal to those who like a gentle “flutter” —and who does not. Briefly, my suggestion is that the Government. through tile Post Office, issue non-interest-bearing bonds of small denomination. say 5/-. maturing in say five years. Each bond participates in a drawing for prizes in the Shape of ordinary Government bonds to the value (total value of all prizes) of. say, 1 per cent, of the total subscriptions. Thus, if a drawing look place for each issue of prize bonds to the value of £1.000,009, the prizes (1 tier cent, of £1,000.000, for live years) would total £50,000. The prizes might work out as follow:— 1 prize of £20.000 20.000 1 prize of £lO,OOO 10,WO 1 prize of £5OOO 5,W0 5 prizes of £lOOO 5,000 10 prizes ol £5OO 5,000 20 prizes of £lOO 2,000 50 prizes of £5O 2,500 100 prizes of £5 500 ~188 £50,000 Of course, the prizes could be made more numerous, and the big ones not so big. The points about a prize scheme of this sort is that no one loses his contribution. It is not gambling in the ordinary sense. In fact, it is not gambling at all: it: is thrift and patrot ism of a practical sort, inasmuch as every contributor is lending to Hie State free of interest, ami stands to lose nothing except interest. We hoar a lot about every citizen being a shareholder in lhe State, but is he? Is it not a fact; that most of the “shareholders” are overseas financiers? Would not some such scheme as I have outlined tend toward making all New Zealanders real shareholders in their own country, while also encouraging thrift and securing cheap money for the Stale? Il would he interesting to know what objections can be raised against Ibis proposal.-—I am. etc., ALEX. SCOTT. Wellington. April ?• <