The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-28
French LOTTERY
LOAN WILL AFFECT
WORLDS FINANCE
Scheme to Permit Winning Of
Bonus on Bonds Which Will
Lower Rate of Interest and
Keep Money at Home.
BY c. A. EYE.

LONDON, Nov. 2s. (By Reciprocal
News ServiCeD-The French lottery loan
n a matter OF immense Importance to
England and as it seems likely to react
on the finances Of the latter In a phe-
nomenal way, II becomes doubly impor-
tant TO America. America Is, moreover,
likely herself to be affected both direct
ly and indirectly by the developments
IN Arain. Briefly: II France has a
lotsvTy loan England must have one in
self-defense, and II England has one
VIII II force America TO a similar de-
fcnsive2
The French proposal is hailed with
exclamation by all parties In Franc,
Definite authorization of the French
chamber Of equities Is not expected be-
fore early in December but the out
lines are sufficiently plain and are not
likely TO be altered considerably. II is
intended to issue a loan on which little
or no interest will be paid, its attract
iveness depending upon the enormous
number or prizes that will accompany
the drawing Of bonds. Investors can
not lose their money, ii will be repaid
IN M event in fun, and they may win
as much as $3.50, 900 on one bond in ad-
dillon. Wisely handled this sum repre-
SCENTS comfort and independence for life.
Is 1t TO be wondered that the loan Ia
the subject Of conversation everywhere
~ NaiAf NNAAAhA y f'AiA NAV ~ bailANR ~ w.
absolutely inundated witheipquiries from
customers who intend to invest in it.
unless our own goyernment--as in all
probability It will-quiCkly makes up its
mind to follow suit. That 1t is ac-
tually considering such n step shows the
depth OF he feeling in favor of q mod
flied imitation of the French plan, a
feeling that most of the newspapers
are now vOiCinR loudly.
Approved by People.
Popular opinion is almost unqualified
In It's approval Of the idea. The finan-
cial experts, who are awake to the
danger Of permitting the French to
drain away a large proportion of our
invested cash, are seemingly unanimous
In recommending means Of prevention.
however politely they camouflage the
object Of their suggestions In Difference
to the shsceptibiIities Of our valued Gal
lie allies.
Seeing that the last British lottery
was drawn in October, 1926, nearly a
hundred years ago, and that many lead
ing E~nglishmen have in the past de
nounced the immortality of the meth
DDS by which their predecessors raised
money in NapoleOnic times, II Is notable
enough that the opposition so far dis
played Is feeble. The change Is to be
accounted for by the shedding of a
ElNuN Ntdl VI lilhlldI iEHOThIltt as w
the continental improvements Of the old
system Of lotteries. and has been aided
by the craving for the addition Of a lit
tie excitement to'the drudgery of every
day existence which Is one OF the after
effects Of the war. For the time being
the Puritan spirit Is overlaid by IT.
The decline of the middle class with
its peculiarly stringent views on the
respectable" In public finance has
opened the ground to "A more practical
treatment Of the needs Of the moment.
Meaning Of Lottery.
That a nation Keeling from a glgan-
tic struggle beneath on enormous though
not ~unmanageable load OF debt, should
debar Itself from standing comfortably
upright on It's feet for the sake of re-
asserting outworn principles beloved by
n former generation, would. be absurd,
AS absurd as II 1t refused to recognize
the march Of modern science and in
v%ention, Nowadays the favorite meth
COS Of raising money by those who
appeal to the Unborn desire for better
ment, which is equally universal and
legitimate. as well rs to the demand for
an absolutely secure investment, ia by
way OF premium bonds and this is the
method which II is confidently expected
our legislators will prefer.
At present our government has to
pay five per cent on a large proportion
Of the outstanding loans, and is re-
duced to borrowing from the banks by
the sale of treasury bills. The result
of the Victory loan does not warrant
another appeal on similar lines; the sup
port to he expected would be hopelessly
inadequate, But consider the possibili
ties OF an issuS OF premium bonds, Civ
ing n steady t~o<per cent and making
an appeal to every class. In the land
by the offer Of prizes of sufficient mag
nitude to attract, while at the same
time repayment in full Is guaranteed
by a sinking fund. The prizes and
fund together viii cost the state only
w per cent or so extra, or SO per cent
In all Conversion Of existing holdinpN
Of government stock would be encou.
ragged by suitable terms and IN the case
OF individuals there is no doubt of the
response; the holdings OF corporations
are less likely to be affected.
To Lower Debt Basis.
In fairness, comparisons should real
ly be instituted between the present
five per cent basis and the suggested