The Birmingham age-herald., 1919-12-14
FRANCES LOTTERY
 MAY DRAW WHOLE WORLD INTO GAMBLE
England Must Have One In Self-Defense - Financier Thinks Fever M ay
 Spread to America

London, December 10.-CReciprocal News Service )-The French lottery loan Is a matter of immense importance to England and as it seems likely to react on the finances of the latter in phe- nomenal way, it becomes doubly impor- tant to America. America is, moreover, likely herself to be affected both directly and indirectly by the developments in train. Briefly: if France has lottery loan England must have one in seK- defense; and if England has one Wll IL force America to a similar defensive.
 The French proposal is hailed with ac- olamation by all parties in France. Deli nite authorization of the French cham Der of deputies is not expected before early in December but the outlines are sufficiently plain and are not likely to be altered considerably. It is intended to issue loan on which little or no inter est will be paid, it's attractiveness de- pending upon the enormous number or prizes that will accompany the drawing of bonds Investors cannot lose their money, it will be repaid in any event III full. and they may win as much as S25o,- 900 on one bond in addition. Wisely handled this sum represents comfort anu independence for life. Is it to be won dered that the loan is the subject of conversation everywhere in this country and that the banks are absolutely inun- dated with inquiries from customers who intend to invest in it, unless our own government-as in all probability it will quickly makes up it's mind to follow suit. That it is actually considering such step shows the depth of the feeling ill favor of a modified imitation of the French plan, a feeling that most of the newspapers are now voicing loudly.
 Popular opinion is almost unqualified in it's approval of the idea. The financial experts who are awake to the danger of permitting the French to drain away. large proportion of our invested cash, are seemingly unanimous in recommending means of prevention however politely they camouflage the object of their sug- gestons in deference to the susceptibili- ties of our valued Gallic allies.
 Seeing that the last British lottery was drawn in October 1S26, nearly a hundred years ago, and that many leading Eng lishmen have in the past denounced the immortality of the methods by which their predecessors raised monye in Napoleonic times, it is notable enough that the op position so far displayed is feeble. The change is to be accounted for by the shedding of great deal of insuiar ig norance as to the continental improve ments of the old system of lotteries, and has been aided by the craving for the addition of a little 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 over laid by it. The decline of the middle class with it's peculiarly stringent views on the respectable" in public finance has opened the ground to a more prac- tical treatment of the needs of the mo- ment
 That g. nation reeiing from gigantic struggle beneath an enormous though not unmanagable load of debt, should debar itself from standing comfortably upright on it's feet for the sake of reas- serting outworn principles beloved by a former generation, would be absurd, as absurd as if it refused to recognize the march of modern science and invention. Nowadays the favorite methods of rais- ing monev by those who appeal to the inborn desire for betterment, which is equally universal and legitimate. as well as to the demand for an absolutely se- cure investment, is by way of premium bonds and this is the method which it is confidently expected our legislators will prefer.
 At present our government has to pay 5 per cent on a large proportion of the outstanding loans, and is reduced to bor-
 
 treasury bills. The result of the victory loan does not warrant another appeal on similar lines: the support to be expected would be hopelessly inadequate. But consider the possibilities of an issue of premium bonds, giving a steady per cent and making an appeal to every class in the land by the offer of prizes of suf- fcient magnitude to attract, while at the same time repayment in full is guaran- teed by a sinking fund. The prizes and fund together will cost the state only 1h per cent or so extra, or 31a per cent in all Conversion of existing holdings of government stock would be encouraged by suitable terms and in the case of in- dividuals there is no doubt of the re- snonse; the holdings of corporations are less likely to be affected
 In fairness, comparisons should really be instituted between the present 5 per cent basis and the suggested per cent plus only whatever is assigned to the prize fund, since redemption by means or a sinking fund is necessity in both cases. Consequently the saving to the exchequer may be as high as per cent on the amount converted. that is to say s20.000,000 on every s1 ,0oO, GOO, 900 of debt
 The French plan of an undiluted lottery loan is worlds removed from the old time lotteries which drew down condem- nation from most thinking people as being perDlclOuS RdfnDitflS, leading to ex- cesses in all directions and alleged to be responsible at one time for ever 100 sui. cides in Paris for one year. This was because there was provision for the return of capital. This outstanding fea- ture of modern lottery issues has con- verted them into an investment which the most prudent may consider. The French loan caters for those to whom in- terest is a matter of indifference com pared with the possibility of winning one of the large and numerous prizes. The suggested English scheme reflects the essential national spirit of compromise and has the advantage of yielding at least some annual interest to investors. It will be interesting to see how the re- spective loans appeal to the inhabitants of Spain, Holland, Switzerland, Scandi- navia and other countries, not forgetting America. which is expected to subscribe R||R Y0||R RACK|