The Evening Star TUESDAY, MARCH 7, 1871.

Evening Star, Volume VIII, Issue 2513, 7 March 1871, Page 2

The Evening Star TUESDAY, MARCH 7, 1871.

We are glad to find the subject of Life Assurance attracting so much attention just now. It is one that has claims upon every person who, as Bacon terms it, has given hostages for the future in wife and children. That great philosopher laid it down as a law that those relations, which really impel a man to promote the progress and welfare of society, are impediments to great enterprise. His experience led

him to the conclusion that “ the best “ works, and of greatest merit to the “ public, have proceeded from the un- “ married or childless men,” although he admits that “ those who have chil- “ dren should have greatest care for “ future times, into which they know “ they must transmit their dearest “ pledges.” We need not follow his lordship in his speculative argument, for times are different, and the experience of later days proves that those who have been mankind’s greatest benefactors have been married. The fact is, in his day, although the principle of insurance had been applied to property, its utility in making provision for a family in case of death had not been thought of. Governments had confined their attention to politics, and to this day, in the older States, the masses of the people are held but to be instruments for State purposes, instead of being so many human beings, the moral and material advancement of each of whom should be the chief end and aim of legislation. We are not aware that in any part of the world, excepting New Zealand, any national provision has been made for life insurance. But in this Colony a scheme has been arranged that offers many advantages ; and were there nothing more of which the present Ministry could boast, it would be sufficient to distinguish them in all time for having stepped out of the stereotyped routine of Government to point out and provide the way by which the population of the country may guard themselves, individually and collectively, against the evils of pauperism. We believe there is a very pleasant lecturer going the round of the Colony, and pressing the claims of an insurance company, not a New Zealand institution. We are not of that narrow-minded class who grudge the reward of enterprise to those who propose to benefit themselves by conferring benefits upon others. We know that there are people who look with very suspicions eyes upon anything that emanates from a Government. It is quite sufficient for them that the thing is by law established, to create mental rebellion. It is a feeling that they brought with them from Europe—it may be that induced them to leave Europe. To such it must’ be a blessing that they have their choice, although we have a strong suspicion that the time will come in the history of nations when every citizen will gladly pay a voluntary tax to secure for himself immunity from the consequences of accident or misfortune, and for his family a provision should he die. But that time has not yet arrived, although we have made one step towards it in our Government Insurance and Annuity system. In another direction an agent for this institution is also lecturing, and we hear with gre.it success. It is about twelve months since we brought this subject under notice ; but it ought not to be lost sight of. There can be no greater fallacy than to allow prejudice to interfere with advantageous life insurance. Precisely the same objection to Government supervision was urged against the Government Savings Banks; yet never has any institution proved so advantageous as they have done wherever established. And it must not be overlooked that the security offered is known and can be estimated, while that of the best managed private companies is for the most part secret. We suppose, too, it will generally be conceded that no private association would subscribe capital without some prospect of profit. In fact, their profit depends upon the number of insurers ; for unless they can secure a largo and continuous stream of insurers, their usefulness and their profits cease. It is just possible, .too, that the demands upon their capital might prove greater than it? amount. Such tilings have been before, and such things may be again. We hold this to be an unanswerable argument in favor of a Government system of insurance. The liability cannot he shirked ; the insured has the best possible security—the national capital. Companies may fail, but the Government must meet its engagements, and the whole population are shareholders. There is another point of view which ought not to be lost sight of. Life insurance is a system of accumulation. When a man pays a small annual premium, on the faith that at his death lus family shall receive £IOO, that premium is so much capitalised— so much added to the annual wealth of the community, and to his own individual stock. It is something he can leave to others. Ho must remember his contribution only forms a small part of the annual saving, and the country becomes the richer by the aggregate savings of the insurers. It follows, therefore, that he shaves in the advantage of any profitable investment that may be made of that aggregate capital, and to that extent ho is a sharer in the profits. This is by no moans so small an advantage as it seems, when the large annual increase is considered. At any rate, it is one of the means of keeping capital

in the country, and thus fulfilling rationally what many politicians make a tremendous noise about in reference to subjects not so easy of demonstration. It seems to us that when the Government system is extensively availed of, the light expense at which the plan can be worked, and the fact that no abstraction of interest is necessary for division amongst shareholders, a very few years will enable the Government to reduce the rate of interest very materially. We consider the present rates as merely experimental, and that necessarily the premiums are sufficiently high to cover preliminary risks. But since no Government seeks to gain, in the mercantile sense of the word, while such an institution becomes a national duty, when the Colonial statistics of duration of life and the success of the institution justify such a proceeding, either such reduced rates will be adopted, or such amounts will bo added to the sums assured, as will tend still more to individual advantage. We must leave details to the paid lecturers. Our wish is merely to point out general principles—and unless we do so, we fail in our duty. M'Culloch puts the advantage of insurance forcibly thus;—

All professional persons, or those living on salaries or wages, such as lawyers, physicians, military and naval officers, darks yu public and private offices, &c., who'C incomes terminate with tin ir lives, and a host of ( thcis, who arc either not possessed of capital, or cannot dispose of that capital at pleasure, must naturally he desirous of providing so far as they may he able for the comfortable subsistence of their families in the event of their death. Take, for example, a physician or a lawyer, ■without f ttnne, but m king perhaps £IOOO or £2OOO a year by his business, and suppose he marries and has a family ; if this individual attain to the average duration of human life, he may accumulate such a foitune as will provide for the adequate support of his family at his death. But who can presume to say teat such will he the case ? That he will not be one of the exceptions to the general rule ? And suppose be were hurried to an untimely grave, his family will necessarily he destitute. Now it is against such calamitous contingencies 1 bat life insurance is intended chiefly to provide.

In such a country as this, it becomes every man’s duty, as it is within every man’s power, to make this provision ; for not only professional men, but, except in rare instances, artisans and laborers, earn wages sufficient to render accumulation possible.