FALLACY OF LOTTERIES AS A MEANS OF REVENUE.
We are indebted for the following exposition to our moral friend, Capt. John Maginn, of New York city.
"Although they may produce, by the various deceptive allurements which they hold forth, a temporary influx into the treasury of the state, yet the prostration of industry, the formation of idle habits, intemperance and various other vices, have invariably been the consequences wherever they have been introduced. No farther evidence of this position is requisite than the fact that in England, where many of the common necessaries of life are heavily taxed, it has been satisfactorily ascertained from observation, that for several days preceding the drawing of a lottery, the consumption of such articles was very materially diminished. It is moreover equally true, that a very small proportion of the tax actually paid, through the purchase of lottery tickets, is available to the state: by far the greater part being absorbed in the expenses, profits, &c., of managers and venders."
As the system of insuring numbers is at present practised to a fearful extent in this city, and as its votaries are mostly the ignorant and unthinking portion of the community, we proceed to give a plain matter-of-fact investigation of the chances.
There being on the day of drawing a certain number of tickets in the wheel, out of which a particular number of them are to be drawn, it follows that there are so many chances to one against a given number being drawn as the number which are to be drawn are contained in the entire number of tickets in the wheel. To illustrate this practically, suppose you would insure the payment of $100 upon the event of a certain number being drawn from the lottery wheel to-day; suppose it is a 78 number lottery, and that 12 ballots are to be drawn; the chance then is evidently 78/12, or 6.5 to 1 that you lose: accordingly, in order to make the chances equal, you must pay 100/6.5, or $15.38, for insurance: if therefore the insurer should ask $32, there would be about $16 fraud: in other words, you would have to contend against about 100 per cent. The only inducement for the insurer to pursue this vile practice, in defiance of constitutions and laws, is a liberal per centage. This varies from 30 to 70, and even 125 per cent. Under circumstances like these, when the chances of gain are obviously so remote, it would seem incredible that any one endowed with even ordinary sagacity could be so deluded--so desperate--as to adventure; though, sad to relate, hundreds and hundreds in this city daily spend their little all in effecting insurance on numbers, and that, too, at the sacrifice of the common necessaries of life.