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1200 0 0
3162 5 %
2246 16 8
800 0 0
700 0 0
57; and the proportion of the expected number by the £
year, the society must be per cent, for one
700, at the end of 4th year, 700, ditto, for 4 years, 621 18 7
500, at the end of 5th year, 500, ditto, for 5 years, 43160
300, at the end of 6th year, 800, ditto, for 6 years, 2515 0
£4225 10 9
This, divided by 46, gives £91, 175. 2d. as the sum
(technically called premium) which each person would THE RATE OF INTEREST,
need to pay in at the foundation of the society. And
version of £100, at the age of 90, according to the
put out to interest, at the end of the first year
the course of the year,
1000 @ 0
1514 8 9
Fund remaining at the commencement of the fifth
Indeed it is not conceivable that the Which, bearing one year's interest, will amount to, £397 1 8
Practically, life-assurance is not effected upon lives
It is common to confine
business to ages under 60; and the great bulk of in-
FORMATION OF RATES.
859 16 8
385 10 5
300 0 0
they profess to do business. In these rates very con- policies. The scales of the various offices may be classed siderable discrepancy exists, for many continue to cal- in three grades or sets, of each of which we shall give a culate mortality according to the Northampton Tables, few examples, endeavouring, at the same time, to show which, as already shown, give the decrement of life too how each particular grade of charges operates in the high; while others proceed upon those more recently realisation of profits and surplusages. formed, which are certainly much nearer the truth; Scales of the first or lowest grade are followed as and some, again, assume interest at only three or three yet by comparatively few offices ; but the number is and a-half per cent., while others deem four not too increasing. We presume that they proceed upon mohigh. There is also an allowance for the expenses of dern tables of mortality, and the expectation of 4 business to be added to the naked sums required by a per cent, at an average, as, with regard to one of the regard to mortality and interest, and here also the following (the Scottish Provident), we have been inminds of parties may differ, some allowing more and formed that it follows the government table of males, some less on this account.
and calculates upon money being improvable at the In most cases the charges for life-assurance are con- above-mentioned rate, adding from 10 to 15 per cent., siderably within the verge of safety. Hence companies according to age, for expenses of management, and generally divide good profits, and societies realise large as a guarantee against any unfavourable fluctuations surplusages, which fall to be divided among the insurers, of mortality and interest. We here, as elsewhere, limit in the form of additions to the sums stated in their ourselves to offices of undoubted probity :
The high premiums borne by the stocks of the two | divides 6 per cent. upon its stock, the £10 shares of above companies, form a tolerably fair evidence (not- which stand at £14, 1ās, in the market. The Scottish withstanding their having also higher scales) that busi- Provident was established in 1837: it has done a large ness can be profitably transacted at these rates. It amount of business, and its experience as yet tends to may likewise be mentioned that the Edinburgh Life- show that the rates are considerably within the verge Assurance Company, which presents a scale nearly the of safety. The following is a selection of respectable same in aggregate amount as the above (£133, 4s.), 1 offices in which somewhat higher rates are charged :
The Economic is a proprietary office, giving three- (the commencement of the society) and 1820, were defourths of the surplusages or profits to the assured. It clared entitled to 2 per cent. for each year of their curwas established in 1823. In 1834 a bonus, amounting rency. In 1832 the same policies received a further to 16 per cent. on the premiums paid, was declared; and addition of 3} per cent.; and at the same time those in 1839 there was a second bonus, amounting to 31 per opened between 1820 and that time, were declared cent, on the premiums paid during the preceding five entitled to additions amounting to l} per cent. per years. The Norwich Union, in 1816, gave a bonus of annum. In 1839 a retrospective bonus of 2 per cent. 20 per cent. on the amount of premiums deposited by per annum was declared on all policies. The effect of the members insured previous to June 1815; a second these additions is, that policies for £1000, opened bonus of 24 per cent. in 1823; and a third of 25 per cent. before 1820, at whatever age, amounted in 1845 to in 1830. The Guardian is a proprietary office, in which £1809, 8s. 7d. In 1841 the Scottish Equitable made its a proportion of profits not stated is given to the assured, first division of surplusages, amounting to 2 per cent. Established in 1821, its first division of profits was made per annum on all policies of above five years' standing; in 1828, and a second in 1835. At each period, the so that the heirs of a person who insured £1000 in 1831 bonuses averaged rather more than 28 per cent. on the (the first year of the society), would, in the event of his amount of the premiums paid thereon during the pre- decease in 1850, realise £1429; and so on in proportion, ceding seven years. The Scottish Widows' Fund and A third class of offices, adopting, like the preceding, Scottish Equitable have both declared large surplusages. the Northampton Tables, and generally of old standing, At the division of the first of these highly prosperous and acting upon old calculations, present higher scales societies in 1825, the policies opened between 1815 / of rates, of which we shall give a few examples:
1 16 11
9 2 6
2 16 8
3 6 6
3 17 8
4 14 2
5 19 11
154 16 6
mixed) Amicable Society
2 10 6
9 17 0
3 18 6
4 16 6
5 18 0
155 3 6
There are a few offices which charge still higher / objections. The high-rate societies, proceeding upon rates. The aggregate premiums of the London Assur- the Northampton Tables, commit a constant injustice to ance and National (mixed offices), are respectively young and middle-aged members in favour of the old, £157, 08.8d., and £158, 3s. The London Life (mutual) | The needless amplitude of their funds tends to occasion is the highest, the aggregate of the scale being £171, 185. a less careful use of them in conducting the concern :
It is clear that, if business can be transacted by a there is, for instance, a greater temptation to give company at a profit on a scale of rates amounting in large commission to persons, who, as it is said, bring the aggregate to £129, 78. 9d. (as in the case of the business; a practice in no respect different in morality Aberdeen Company), the last set of rates ought to give from that of butchers and grocers who bribe cooks and companies very large profits, and societies equally con- butlers to favour them with their masters' custom. But siderable additions to policies. The scale of the Globe the greatest objection to a needlessly high scale is, that is also that of the Rock and Atlas, proprietary offices it must act as an obstruction to the first step in what granting a share of profits to the assured. In the Rock, is generally one of the most important moral acts of a where three-fourths of the profits are divided, policies lifetime—the effecting of a life-assurance. We would opened in 1806 for £1000, at whatever age, were in 1842 | here be understood to draw a broad distinction between £2001, lls. In the Atlas, which has not announced to an unsound low rate and one which is sufficient to the public the share of profits extended to the assured, satisfy a reasonable anxiety for security. Rates much policies for £1000, opened in 1816, ranged in 1837 below the first of the above three scales would be from £1338 to £1789, according to age.
decidedly unsafe, taking all likely contingencies into The high rates are defended on various grounds. A account. On the other hand, it ought certainly to be company making high charges, and consequently good possible to transact perfectly safe business upon a meprofits, may be supposed to have more stability than dium of that scale. Those who, for further caution, one making moderate charges; while, of a society pur- prefer the next scale, must be said to pay highly for it, suing business on the same plan, it may be said that if they resort to a company which gives no share of the overplus becomes a kind of bank deposit, to be profits to the assured: if they become members of a ultimately realised by the depositor. With regard to society, large periodic additions to policies will be no companies, the defence may or may not be sound, ac- more than their due. cording as business is managed discreetly or otherwise In order to convey still more distinct notions respect--and there certainly are offices of that nature, entitled ing rates of life-assurance, we subjoin a scale of those to the most implicit confidence, although they present which are required, exclusive of expense for managemoderate scales. The defence is of greater force with ment, upon the Carlisle Tables, taking money variously regard to societies; but even there it is not free from ai 4 and 3 per cent. :
MORAL DUTY OF LIFE-ASSURANCE.
The rates actually charged by the offices which we have | vide, while he yet lives, for his own: we would say that cited, may easily be compared with these. It will be it is not more his duty to provide for their daily bread found that the additions made for management and the during his life, than it is to provide, as far as he can, security of the concern, even to the 3} per cent. rate, against their being left penniless in the event of his are very considerable. The aggregate of the above death. Indeed between these two duties there is no ages at 3} per cent. is £18, 168. 9d.; that of the same essential distinction, for life-assurance makes the one as ages by the actual rate of the Aberdeen Company is much a matter of current expenditure as the other. £21, 4s. 11d., or nearly 127 per cent. higher; that of the One part of his income can be devoted by a head of a same ages by the Scottish Widows' Fund is £24,7s. 11d., family to the necessities of the present; another may be or 294 per cent, higher; while that of the London Amic- stored up, by means of life-assurance, to provide against able is £25, 11s., or above 354 per cent. higher. the future. And thus he may be said to do the whole
of his duty towards his family, instead of, as is gene
rally the case, only doing the half of it. On this subject we add some remarks from a paper It may be felt by many that, admitting this duty in Chambers's Edinburgh Joumal,' No. 373, First in full, income is nevertheless insufficient to enable Series. They are conveyed in language which is apt to them to spare even the small sum necessary as an appear unmeasured to one who has not given the sub- annual premium for life-assurance. The necessities of ject much consideration--but, we believe, only to him. the present are in their case so great, that they do not
Such being the equitable and beneficial principles see how they can afford it. We believe there can be on which mutual-assurance societies are established, it no obstacle which is apt to appear more real than this, is clear that they present, to men in the enjoyment of where an income is at all limited; and yet it is income, but possessing little property, a most suitable show that no obstacle could be more ideal. It will and favourable means of providing, in a greater or less readily be acknowledged by everybody who has an measure, for the endeared and helpless relatives who income at all, that there must be soine who have smaller may survive them. That only about 80,000 persons in ( incomes. Say, for instance, that any man has £400 the United Kingdom [written in 1839) should have per annum: he cannot doubt that there are some who taken advantage of life-assurance, being but 1 in 62 of have only £350. Now, if these persons live on £350, the supposed number of heads of families, surely affords why may not he do so too, sparing the odd £50 as a a striking view of_shall we call it the improvidence of deposit for life-assurance!' In like manner, he who mankind, or shall we not rather designate it as their has £200 may live as men do who have only £175, culpable selfishness? For what is the predicament of and devote the remaining £25 to have a sum assured that man who, for the gratification of his affections, sur- upon his life : and so on.
It may require an effort rounds himself with a wife and children, and peaceably to accomplish this; but is not the object worthy of an lives in the enjoyment of these valued blessings, with effort? And can any man be held as honest, or any the knowledge that, ere three moments at any time shall way good, who will not make such an effort, rather have passed, the cessation of his existence may throw than be always liable to the risk of leaving in beggary wife and children together into a state of destitution ? the beings whom he most cherishes on earth, and for When the case is fully reflected upon, it must certainly whose support he alone is responsible?' appear as one of gross selfishness, notwithstanding that For a further account of modes of life-assurance, the the world has not been accustomed to regard it in that reader is referred to the following number on THE light. It is unquestionably the duty of every man to pro- SOCIAL ECONOMICS OF THE INDUSTRIOUS ORDERS,
SOCIAL ECONOMICS OF THE INDUSTRIOUS ORDERS.
It is surely a deplorable feature in the condition of a men whose wages range from 185. to 30s. Such factslarge portion of the working-classes in this country, and we believe many of the like nature might be readily that they have little or no provision made against the adduced-seem to prove that the working-classes have necessities which arise to themselves or their families much more in their power for the promotion of their in the event of sickness, a failure of employment, physical and moral wellbeing than is generally supor death. With some this is not the case, but it is posed. Admitting fully that many are ground to the the case with many; and the result is, that these per- dust by poverty, we cannot doubt that a far larger prosons have never more than a thin partition separating portion have all but the will to take the proper means them from the realms of want and dependence. The for preserving their social independence. effect which this is calculated to have need not be We do not profess here to inquire into the primary largely insisted on, for want and dependence are uni- causes of the unendowed condition of the workingversally allowed to be productive of many erils. What classes; but we can readily see various immediate ones is there to be expected from the moral nature of one -as intemperance, and bad management of resources. who is every now and then obliged, perhaps, to ask for The tavern bill of the whole operative class in the gratuitous medicine and medical attendance—to take United Kingdom must be an enormous one. Of above bread from a parish officer or the managers of a charit- thirty-one millions of gallons of spirits prepared in one able subscription—to trust to the pity of neighbours recent year, and for which twenty millions of pounds whenever anything like an exigency arises in his sterling would be received, we cannot assume less than family-in short, is, for the supply of a great part of two-thirds to have been consumed by the workinghis needs, a stipendiary upon his fellow-creatures ? classes. These classes probably expend in this way These things are evidently irreconcilable with true three times the whole cost of the religious establishmanly dignity, with political independence, and with ment of the country. In Glasgow, there was lately a an upright bearing in any of the relations of life. The tavern or spirit-shop for every 14 families; and it was destitution of such individuals is commiserated when calculated that not fewer than 30,000 of the inhabi. it arises-every humane person, who is himself above tants go to bed drunk every Saturday night. In the want, feels bound to contribute to its relief: the claim parish of St David's in Dundee, while there were but from suffering man to him who suffers in the smallest 11 bakers' shops, there were 108 for the sale of liquors. degree less, is irresistible. But while it is allowed that in the parish of Lochwinnoch in Renfrewshire, three the need, when it does exist, must and ought to be or four times more money is said to be spent in this relieved, all must likewise see that, in the effort to way than is required for the support of religion and diminish one immediate and clamant evil, another of education. The value of ardent spirits consumed in a serious nature is introduced. The working-man is the parish of Stevenston in Ayrshire, with a population morally deteriorated by ceasing to be self-dependent. of 3681, exceeded the landed rental by £3836. These Better, clearly, that this portion of the community are startling facts, telling, if they tell anything, that a were to place themselves, by efforts of their own, large portion of the earnings of the working-classes is above all need for such degrading aid.
worse than thrown away. Now, though it is well, cer* But then the working-classes realise such small tainly, to compassionate and relieve the sufferings of gains, that they can spare nothing for this purpose.' all who need, we cannot but be equally sensible that This may be said; but it is at the best only partially it is proper to tell the plain truth, and say that for true. A great portion of the working-classes do most much of this suffering our countrymen have themselves unquestionably, in ordinary times, realise enough to to blame. There has been of late years a hollow kind enable them to spare a little by way of provision for of cajolery practised towards them, discreditable to all the future. Since many, most creditably to themselves, parties, and of a dangerous tendency. We dismiss this make such a provision, it may fairly be presumed that entirely, and conceive it to be both paying them a others, having the same wages, could do so also if they greater compliment and doing them a greater service, were willing. We may still more confidently presume to tell them that the conduct of a large portion of their that when some with comparatively small wages are class is in many respects reprehensible, and to show able to save, those who are better off could save also. them how it might be shaped somewhat better. Now it often happens that the labourers of least skill, We propose, therefore, in the present sheet to treat and who are least liberally remunerated, contribute as of various arrangements or institutions which have largely to savings' banks as their better-paid brethren. been devised for the benefit of the industrious orders, Where this is the case, and the circumstances of the with a view to their inaintaining their independence, men are otherwise equal, we cannot doubt that the or avoiding some of the greater evils which beset them. latter class make a less economical disposal of their One of the most conspicuously valuable is income. Clearly, they have only to imitate the frugal conduct of the small-wage class, in order to have ample
THE SAVINGS' BANK. means for making the provisions in question. On this Previous to the commencement of the present censubject, from various causes, many erroneous notions tury, such of the humbler classes as were given to prevail. When practical men are consulted, we hear saving had no proper place of deposit for their spare of an afflicting number of instances in which the higher- funds, which they were obliged, therefore, to keep in waged workmen are considered as securing little if an unfructifying hoard in their own possession, exposed any more comfort to their families than the other class, to the risk of loss, or had to consign to some neighbour, and perhaps not so much. We have heard masters of who, though deemed safe, might turn out to be much works declare that their men at 258. a week did not, the reverse. At the same time, in the want of a proper as a class, maintain their households, or educate their place for the deposit of spare money, those who might children, so well as those who had little more than half save, but did not, lacked one important requisite to the sum.
In a return from the Savings Bank of Dun- their doing so. About the beginning of this century, dee, it appeared that, while there was £1189 deposited it occurred to some benevolent minds that an important by 108 male weavers, a class whose wages average 8s. benefit would be conferred on these classes if there were weekly, and £425 by 36 hecklers, a class whose average institutions of the character of banks, but on a modest wages are 12s., there was only £637 from 56 mechanics, scale, in which the poor could deposit the smallest No. 84.
sums they could from time to time spare, certain of demand, the money lodged by him, if it do not amount
may judge sufficient. No portion of the funds invested
have been highly successful in their object, and the
, tween this and the rate allowed on the money invested yielding £35,891, and 398 belonging to friendly soby them in government securities being reserved as a cieties, yielding £57,493: in Wales, 220 deposits befund for the payment of the officials of the banks and longing to charitable societies, yielding £13,582, and other necessary expenses. The rate of interest which 465 to friendly societies, amounting to £72,608: in is at present paid by these banks is £2, 178. 9£d.; and Ireland, 669 deposits belonging to charitable sociewhatever remains, after defraying all charges, is allowed ties, worth £41,798, and 405 to friendly societies
equal £21,523. In other words, the amount depo.
Number of Amount of
Depositors. Investments. to deposit the whole of their funds, whatever may be
597,631 their amount. Compound interest is given on the Not exceeding £20,
267,609 8,247,304 bums lodged, the interest being added to the principal
113,727 at the end of each year in some banks, and the end of
37,924 each half-year in others, and interest afterwards al
21,302 Exceeding ...... 200,
3,001 lowed on the whole. Any depositor may receive, on
1,041,194 * Various rules are appointed by the legislature for the for- Charitable Societies,
11,695 mation and management of savings' banks. An association of Friendly Societies,
10,041 persons desirous of forming one in any place are enjoined first to
Number of Accounts,
7,815,347 4,563,790 9,633,971 702,980