The Hawera Star. THURSDAY, FEBRUARY 19, 1931. STATE LOTTERIES.

Hawera Star, Volume L, 19 February 1931, Page 4

The Hawera Star.

THURSDAY, FEBRUARY 19, 1931. STATE LOTTERIES.

.Delivered every evening by 5 o'olook in liawera, Manaia Kaupokonui, Otakeho. Oeo, Pihama, Opunake, Normanby, Okaiawa, Eltham, Rgaere, Mangatoki, Kaponga, Awatuna, Te Kiri. Mahoe, Lowgarth, Manutahi, Kakaramea, Alton, Hurleyville, Patea, Whenuakura, Waverley, Mokoia, Whakamara. Obangai, Meremerc, Fraser Road, and Ararata.

Mr Harold Cox contributes to the January number of the “Nineteenth Century” an article in w'hiclt lie proposes the issue of lottery bonds by the State, for the particular purpose of reducing the interest burden of the National Debt. This purpose he recommends, because he sees no other hope of economy on a large scale in present conditions. The debt stood at £7,469,000,000 on March 31st, 1930, having been reduced by only £36,000,000 a year in ten years; and the annual cost of interest and management, at that figure, was £307,252)000, more than a third of the national expenditure. Substantially to reduce this charge, therefore, w'ould be to give considerable relief. Mr Cox proposes to convert debt bearing interest at 5 per cent, into debt at 24 per cent., and finds a wide field in the 5 per cent. War Loan issue of £2,184,000,- ( 000. The conversion of this,would save £50,000,000 v a year; but he suggests first an experiment on a parcel of it, say, £20,000,000. The aim w'ould be to turn this into the same amount of 2A per cent. Consols, plus 10 per cent, more for prizes, so that the success of the scheme would change £20,000,000 of debt at 5 per cent, into £22,000,000 at 21 per cent, and save the Exchequer £450,000 a year. War Loan stockholders w’illing to convert W'ould receive for each £IOO of stock a certificate for £IOO of Consols and a ticket entitling the holder to a chance in the draw' for the £2,000,000 worth of prizes in Consols, which, Mr Cox thinks, might consist of 10 at £50,000, 100 of £SOOO, 500 of £IOOO, and 500 of £100; and War Loan , would also be bought by new investors anxious to share in the sw'ecp. If the. experiment succeeded ,it could be re- ] peated and extended until finally the < whole of the War Loan and most other high interest debt would be converted, ( “with an annual saving to the taxpayer 1 of at least £60,000,000.” This is so ; very attractive a scheme that it is disappointing to remember how many conscientious objectors w'ould denounce it. It is too much to hope that they w'ould bo reassured and silenced if they were told, as Mr Cox says, that one of the j three managers and trustees of the lot- 1 tery organised to establish the British Museum was the Archbishop of Can- t terbury. c