PREMIUM BONDS.

Taranaki Daily News, Volume LIV, Issue 23, 21 July 1911, Page 4

PREMIUM BONDS.

To tile Editor, Sir, —When writing on the question of "Premium Bonds" I had no intention of being involved da a lengthy correspondence for which I regret 1 luivo not tune, but Mr. Burton's courteous letter deserves a reply. The, whole question appears to mc to be largely one of degree, the element of chance entering into the whole of our bujiiiosii stcuctmre. Some gambling or taking of chances aire innocent, other forms are just the reverse, but there atre such essential differences between totalis&tor gambling and investment in "Premium Bonds" that I should have thought they would have been apparent to Mr. Burton, i-urelj -there ia a wide diiFeraiw on iHm o«e part between inducing a man to save his money by investing in "Premium Bonds," anil, on the other part, in giving him facilities to lose it no in the totalizator. Bond» encourage a man to invest 1» money safely, but the investment of a pound in the totalizator, whether lie loses or wins, induces hiii, in Ahe flret case, to plunge again to recover his loss, and, in the second case, dstzzlel or excited by his success, to hazard w still larger sum than he did ut first, and so the appetite grows. He next becomes -that fool called a backer, and where the booker eventually lands is a mathematical certainty. Further, do we ■ever hear of men robbing their employers to invest in any security, but how often, unfortunately, have we heard of late of embezzlements* due to cards and betting? The danger of these forms of gambling is, t'lie craving that a first dip creates to try your nick again, and the fascination that there is. to the human imind, as at present constituted, in chajuce,

The evil! of gambling in cords one betting is largely in what tihey lead to. There is - nothing inherently evil in b> man risking .what he can afford to lose. The act in itself does no injury to anyone and does not contravene any moral law, but wo regard gambling as «n evil because it is seldom that a man only risks what lie oan afford to lose, and- it also brings him companionships and associations that are calculated to degrade' rather than elevate. Now, investment in "Premium Bonds" cannot lead to ainy of these evils, but, on the contrary,, as I have pointed out in my previous letter, they stimulate thrift and the making of provision for those who are dependent on us. If investment in bonds taught men to gamble, then 1 would agree with Mr. Burton that they are pernicious l , strong as the word is, but we know absolutely that they are exercising tbe opposite effect, as they satisfy in a legitimate wpy the more or lesa strong tendency to gamble that exists in nearly all the human race. To acquire bonds by thrift and setf-detiial cannot be pernicious, and surely thrift and gambling are not related. I feel certain that no independent judgment will class bonds with the totalisator or any other form of gambling referred to* by Mr. Burton. These remarks answer, I t'hank, Mr. Burton's question as to what is the difference between foregoing 2 per cent, in, "Premium Bonds" and putting half the interest, from, a mortgage on Tattersal!'*. Tbe principle or theory may have some analogy to Mr. Burton 1 , but the practice is as wide apart as the poles. Now, with regard to life insurance, Mr. Burton is considerably wide of Uie mark when he states that the result is determined by mathematical principles. Life insurances is not the result of a mathematical deduction, but, like every business,, is subject to chance, and the actuarial calculations which are designed to eliminate chnnco as far as possible are subject to being and are upset by all sorts of gambles or chances. Bod times may suddenly reduce revenue by surrenders or failure to secure new business, an epidemic may cause an undue proportion of deaths, bad investments are made, and dishonest, or incapable management result in heavy Mr. Burton is no doubt aware Ufa insurance does not return eurTehV'lntcrest. We gamble from his !*m of view, whatever the deficiency against the expectancy of the bonus, the amount of which, Mr. Burton must Snow, varies very lately in different companies. Even life insurance is a gamble, as the history of the powerful companies thnt have failed to make good have proved,

Holding the views thai I do, I regret that I cannot fall in with Mt. Burton's suggestion to discontinue my comieetion -with "Premium Bonds," as I hold that they, will exercise the name influence for good, now that they have been introduced to the Dominion, that they have done on the Continent, and, further, I ain not aware of any business tihat is not more or less of a gamble. I regret also that I cannot follow Mr. Burton into such Utopian regions as aiming at the total elimination of the gambling spirit in all forms from the Dominion. I prefer to work for improvement 'that my reason tells me is practicable, and I feel strongly that reformers often do not assist, but rather hinder progress, by attempting wlrnt at the time is impracticable from being too for in advance of public opinion. Reforms to be permanent must lie gradual.

This must close this correspondence as far as T aim concerned, as the subject is one of such infinite extension and diversity of opinion that to pursue the subject furtheil would entail more time than I can give Jo it. Tliojiking you for the space afforded me.—l sum, etc. WALTER BEWLEY.

To the Editor. Sir.—T was pleased indeed to sen that the Rev. Burton attacked this form of gambling, as gambling it undoubtedly is; otherwise, why did the Now Zealand Government, by notice in the N.Z. Gazette of April 1, 1001) (page 81)7). forbid the forwarding of any money order or postal packet to a firm in Paris whoso sole.business is the handling of these premium bonds? The Postmaster-Gen-eral exercised his authority under Section 28 of the Post and Telegraph Act, 1008, on the grounds that the above firm were engaged in promoting or carrying out a lottery or scheme of chance. However, the most perplexing point to me is why he has not continued to exercise that authority against every person in New Zealand advertising this form of lotterv.—l am, etc., LEGITIMATE INVESTMENT.