A NOVEL BORROWING SCHEME.

Hawke's Bay Herald, Volume XXI, Issue 5834, 20 November 1880, Page 3

A NOVEL BORROWING SCHEME.

The writer of " Passing Notes" in tho Otago Witness has the following : — It would appear an exceedingly good j.ke if, in the present uver-borrowed condition of this unfortunate colony, it was suddenly announced that one of the great Powers of Europe had applied to us for a loan. Yet something of the kind has actually happened. The city of Barletta wliich, as.

every one knows, is situated somewhere in Italy (I bave not tho least idea where), wants money — an odd seven hundred thousand pounds sterling — for public works. It gets a Royal decree, whatever that may be, and on the strength of that obtains the money from some Italian Banking-houses. Said Banking-houses, represented by Messrs F. Delfrate and Company, Rome, issued a circular which they send to New Zealand among other places offering 300.000 " obligations," each valued at £4

(100 lire— l hope the word is suggestive of no doubt to the English mind) and these " obligations " can be "obtained for £2 Ss oach. There are sundry drawings, and you must win £4 per obligation, and may win £'SO,OOO or £40.000, down to £2 besides. Or you may go on winning year after year 'as the drawings take place till the tofal sum of £2,552,400 has beon distributed among the holders of the 300.000 obligations. It is comforting to be assured as the circular assures us in largo type (1 have it before me) that the monoy disbursed Oan never, ue lost. I should like to havo some of that coin. I have not yet met with money that could never be lost. I have met with a good deal that cau never be kept, and that would insist ou being lost, and if I could secure a fair supply of that which could never bo lost I would henceforth use no othor. But so says the circular, and it, says a good deal more for which I have no space. The drawing- of the prizes by which the loan is to be repaid, with a sum added equivalent to the interest, will extend over fifty-six years. lam disposed to invest and to get my friends to invest, but would just like a few questions answered, as for instance, who are MM. Delfrate and Company, Rome 1 What do they do with the money that can "never be lost " when they get it ? Where will they be 10, 20, 50 years hence 1 Do tigers and snakes prevail in that country, and is there such a thing as people bankrupting, bursting up. levanting, skedaddling, or whatever other term I may use for total collapse? Are there volcanoes near, or is a revolution possible ? Or suppose all the big prizes were drawn in one year, where would the money come from ? On the whole, I think the idea a grand one, and commend ifc to the consideration of our Harbor Board, City Corporation, impecunious Government, and whosoever wants money. Fancy our issuing a loan for fifty millions or so, promising to pay, not annual interest, but about five hundred millions by lottery drawings extending ovor 56 years. How the world would rush to us with its spare cash ! By-the-by, before I leave the subject there is a small arithmetical problem connected with it. It is this : What rate of interest would Barletta pay fnr her 300,000 obligations at £2 8s each if she paid £2,552,410 in all in equal quarterly instalments extending over 50 years.