NUTS FOR NEW ZEALANDERS.

Lyttelton Times, Volume XI, Issue 696, 9 July 1859, Page 4

NUTS FOR NEW ZEALANDERS.

COLONIAL FIIIBfAJJD LIFE: LNSUKANCK.

" He that embarks oil the voyage of life," s«.Ys Johnson in one of his1 essays," will always wish ** advance rather by the simple impulse of the w1;1' than the strokes of the oar; and many founder if, the passage while thoy lie waiting for the g«"' The great1;, lexicographer 1-as here as elsewhere ff' keii wisely, and enhanced: by his mode of ex}I */ siori/thk truisms that life'-is'uncertain, and vi«- i;' tudes of worldly fortune not, to be aocuriitev^ certainly' anticipated. .We have.been led to^, reflections by some days' think"iug on the siil>j«l insurance, especially in'i'l-Uvtioh to New Z^al:i" and "her;. provinces/aiul by sooing a proposal starting a company in Now Zealand, the l'*l^ quarters of wliir!iwoi;U be Anckland. wo"----seem to: «s in or.vpr.-><■■ pr.t attained P O-""111^' with a healthy and increasing trade both a^ p: (' ; ports and imports,'aiid a vpit ample capital n'll'ted in our agiicnliuve and- pasturage, that it

| time,! tlieppr!^^ barik'7 crisis* ribtwitfi^ standing1; that we Should "tlniilc of ceasing to Week from extrinsic- sources/ at a:saorifice>bothof profit to the colony ami convenience to .ourselves,; the supply of certain wants which there>se.ems:iio difficulty ■in providing format -home; > and one ) of the most obvious of these, -ia. the ; proposed association announced in the 'New Zealander'^a. Colonial and provincial Insurance Com pany. .. ,Ji,, is, perhaps; supererogatory at this time of day to .dwells on the expediency;and advantage .of fprovidingv,security against the deplorable eusuing.so, commonly on unprovided for, accidents whether to life, or.property ; . nevertheless^ wejwouldampress: on ; our readers how sad theseCresuHs.;pftea are, and at any lime may. be, and the prudence against ihCm... -„,■/.-•:!■ r tnfr^v;v^!i;',;t[!:>^..-.;;--. '■"■■■, Few who, have, arrived; Jit; the: ,-yeaw of manhood can fail tp.;havet : knpwn,;instai)ces;r"of'the'husband and father, .whose personal abilities .were thesole or chief means'ofvattaining. a- sufficient and .comfortable inepme for,hia.- t >vife-and.family,/being cut off unexpectedly, even in his prime of life, andithe melancholy consequences .ensuing' on; the bereave--ment —the poverty-stricken home, the cold hearth, the scattered household; nor c?.n tuey be altogether ignoraritjof the. less frequent though .not...rarely ruinous results »of fire and other, accidents. In relation to' thf proposed scheme.we pi-esent tlie. ensuing items pf-iiiformation; I Marine -insurancein Europe appears to have .long, preceded, tliat of either fire or life, dating--from; antiquity. Fire insurance- by existing ddcunients claims a standing of. considerably v over "a ' centuryand a half-airiorigst English institutions; while the 'insurance of life commenced.in the reign of Queen ■Anne,whehtthe first Society, ' Ther Amicable/; for the insurance of lives was established • and frbin I that date,'.through,the reigns of the oarly Georges,! insurance of every kind progressed, though its prin-'i ciples and calculation? were then ill understood, up; to .1775, 'wlien^theifampus I}r. Price* by ;theAeHini-1 nation of guiding, rules,, gaye.spnie method to fits; management. From'the latter date its wide adoption t in Great'Biitain and li;eland especially (for it was; forbidden on the continent) may be said to have: commenced; and front-that time to-the present, its I prosperity and r . . the: multiplication; of' insurance; offices, showing its liicrativeness to speculaitm-s,! have kept,equal pace with the increase of general: intelligence "and culture, which naturally favour! provident habits,rand.also witlvthe development of industry and material wealth^" So highly Valued; at home is the security.:ragainst'loss- by-fir&. andother accidents, that in 1852, the last year for.which; we have seen a/general estimate, insurances stood; effected on property amounting in the gross to the enormous sum of £775,275,000; while insu-; ranees on lives andprovision for annuities reacheda proportionate magriitade.'"', : ; ' ■■-'.: ni -; ; Npristhisl astonishing,* when, we-consider that" for one shilling and sixpence per cent, to the office, and three shillings;;peri cent, -per annum duty-to Government; which,;by the by,;isgustly;considered exorbitant, policies of may be effected onordinary stpneJbuildings and their contents, the: [ latter not being of a-specially combustible or! ' hazardous;nature %or mother vfwprds,.that on such; concerns,, immunity, pn .loss,from fire,"entire or! partial;; to thVSnhiourit" of'£looo,' or any amount; above it M i.thessame'rale,imay;be procured at the! annual :premium,of. J62 *Bs.—we -quote* the; pro-! spectus.-pf^jth,e J l '.*Suu^Office.'^"whiie; the worth of wb6sen Hstriicfui;eV &ridhazardouscohtehts is secured • to their owners at' a; rate? increased with reference "•■ to- the"!^^iiicijeasSd■■mt?i4%rred;; r by: tHe^ insurehi, but still"coinpariatiyely inpbtisiderablef and' beaii ' adequate'rela^ part of proprietors thereb^era^ tectibtfafforded'frbm grievbiifc-injury or total loss.In like. : raanner, when we estimate' the; number of " men of various; grades whose income in whole or great;partVdies^so Jto-ispeaks with them-i selves,, the , ; artisan,;jtlies farmer,: and tradesmanj !;pccasipnally, thephysim . man,s the ,pfficiaL-and .many, pthers^ and ; see at li ow! low a rate.jjf/?. anmim, an !p,nn!uity^^ or,.considerable sum of money may be Secured :tp ; their, survivors, we! only wonder thatj^idely^^pted^ life-assurance has been, it has stopped"shori of beWnirig universal! Looking p'ver th!e"pj;emium ta^ of many English assurance"offices; !we* again select;;<tbat of the Sun for illustration here- and in that^we find that a life insured;at the %ge con"~siderati6n of "the" receipTbf that su^ •&t its-^ termination-thV'sunTMbf £X\7&.' ti&per annum, throughout>exjtetence;?and that a proportionate addition, (founded on elaborate tables as to the probable ''duration ftf [ Hfriit' par titular stages) raising W:^3 |fe.; 6d. at; ;40 ! years, is made gra&atimfdV; insurances' ciDimmencing in every successive intervening yedr'upip that age; and in like propprtipn-'fe^ when-a person-feiffthbjfirst tim^e 'effecting • £ policy pays £7!-;l4s. lid."''' ..Thus; a%arti£ari, say, 'marrying at 21, may for^'the;!weeklyL saying of ;B|'d. y ensure bis widbw and famiiyj'bt^unmarriedVhi.s dependent relatives, fromdestitution at his 'death whenever it may occur'-;and: :oije.insunng!&r the' first time at 40 may effect 'the "same jpurpbse at the increased ' weekly rate of 15|d.~sum's even withbpme wagek easily afforded one week with another. And mv- ] tatu mutandis, the ppsijtipn laid down holds good with regard' to; 'any' larger and every higher social grade, and. "has aisp' modifying rela- . tionsto bonuses or. shares of. tliecompany's; profits cbiiditioniilly given: tp insurers .either in the way of increasing the suniitisured without further expense, or lessening the annual premium. In this colony. and Australia geriCTaUy, even did the premiums in a provincial company reach to.the.same height," it is superfluous to say,'from the wages paid for all descriptions of manual labour arid the remuneration of other occupations, such sums are with prudence utterly'insignificant. - ■ ! On equally moderate terms, proportionately calculated, other advantages of a cognate character m.ay, if preferred,-beenj'oyed-r-such as joint assurances of two lives,'giving, to the survivor, on the death of either, the sum insured; or annuities may be purchased-; or hopeless debts made safe—a ere-• flitor having allegal insurable interest in the life of his debtor >who,ihbugh unable to pay the sum due at once; may be-able; to avoid other consequences, to contrive1 the payment of the annual premium required on life assurance, or if necessary or expedient have ifc-paid for him. But into further detail oh these^heads it. is not our purpose- to' enter here; and, merely adding that stock of every kind' is also an object of insurance, ;and haying shown in ;a popular'way the utility of- such an institution ito every community, \ye will confine;ourselves; to the advantageous pecu^ liarities which would5 mark a colonial or provincial insurance company; ;;with' a coloriiali proprietary. It is perhaps unnecessary; but better for plainness sake, to;' state 'formally that the revenue of an insurance society, arid its guarantee of safety to the j public, arise from its'paid up capital invested fit the highest^ attainable.interest, which is .allowed to become compound, and also - from; the' progressiye investment on the sarae terms of premiums arid profit■-..derived ■ from its-,-busirie.ss^engagements. Any ovei"plus of. gain; superfluous bi- 'unrjeressaiy to the security and;.worldng of the company^being 'divided- at,stated periods among the shareholders, and occasionally fit intervals of five years, according to the constitution; of the society, in due proportion and method, among the insured also. We say, according to _ the constitution of the company; for there are'three leading varieties ,of constitution adopted by life assurance associations. In one the principle of mutual' insurance';is the bass, the proprietary itself forming; the- totality of tlie association; in another the- pi'pprietovs admit, • :; ;'■■■■,. ,■ \:-.ii ii ■'■■■■ ■•' ;- •'■■■ ■

on qertain specified cdnd^ibi^^sc'insurii them' to the a.dvaritivge lof a proportion of'their profits;during life;in. addition/-,to the siim .]iayable \e l decease, applied as-we have iilrcady' siiid either {to increase the sum insured or.tp lessen; the yeai'ly premium ;.,while a .third receives",a certain arinrial sum for guaranteeing a defiried^iimmaiy payment atHlie demise ;bf the irisured, hampering themselves with no;other conditions;: and there are jCompositely, constructed companies : (tlie vast majority) consisting Variously of iill these elements. All tliese varieties;Svheri btlierwise well fourided; have answered very satisfdctbrily the objects both of the public rtnd the^ shareholders. • ; : /

Now, excluding here as;: unnecessary to our purpose everything beyond -a more allusion; to the calculus,pf.probabilities or, .computation of chances, on which actuaries found their calculations for the' guidance of annuity and assurance sbcietii'S in determining premiums,- adjusting bonuses,5 &o!, we may state 'that irito.these calculations, with such calculus bf probabilities, enters aribthereiement Equally important; viz., the rate'at which money can; bp most profitably andlshfely ' invented. In a general way life insurance engagements, examirt'ng a sufficiently comprehensive'"number, may be'saiil to extend over an average period^pf' thirty■- j'ears frour' tlie time they are entered ihtip •• arid in coriaequerice; forthe same, period or somewhat longer, it, is necessary to conipute the .probable : average value of investments, taking "brie fluctuation -with""another. This!in England has by high authorities' been estimated variously. •• Mr. Finlaisou of 'the^atiorikl Debt ofHce.seems to consider 4f"per 'bent tb represent the!»vean;value of money brie year witli another in Great; Britain, through a sequence of '30 or 40 years; 'while other authorities consider that much too liigh'a'figure, at.leasfc for .the fdtui-e; ;-Be-this asuit may, however, the details, of. most of. the ! •English-offices are founded on the assumption.that j Ahzih .or;s per cent, does ( represent the^average I j .intexestpf monies lent on! various securities.; and, ! thatrbeing the ■ case, to show .how .well, at anypf j I'thesfr- rates insurance.' societios- work!, lor! all Icon- ,| cerned,, and.-. from what ; cpinparatjvely : !sm'all and ' .attainable^beginnings gigantic coijceih^ \ arise, we! ;solicit attention tothe prospectus of one now before i /us as; we writfe.. This office is:ri6w in its 23rd' yea V,' having originated ?in 1836; and ■ has tittairieel W the ] ;first class ;as to.magnitude of-funds and extent of! business^ ; Its constitution is, unlimited -liability; of the "shareholders; arid its :prbfe^ed- capital ,£2;000,00p sterling; divided into 10d;0Q0';share^ at £20 each; of these: '94,211! Ha- been''taken up! at the date of i the prospectus (1557), aridibftthat -inurnber 6,707 were issued-so late as the.l year! to which the- prospectus refers (1856-7.) ■■•■-Now;--.;.frdm';-:.'this;--;--prbspectiris; v-nt is Reducible, ;nay,; ;irideed ■ set,5 forward;- that this: office .^business ;long ' all;; the \ proposed^ shares were disposed of; indeed,: per-; hapSjC.when "sufficient. capital .to .open was > collected; and; that from the. day.of its opening ;tbj. the! riot more .than .10. per cent on:thej£2o; shares• lias been.called .for by : .the management-or; paid nip" by: the holders. .Thus its .real, paid-up j - capital, even with the addition of thelately .disposed! of slices, amounts: now to.-£188,422, in its 23rd; yearj-the'£2,ooo,ooo>putl forward existing injposse hot:in esse-; arid on thisramountofpaidTupcapital,! :withoutany necessitj' tocallfor more, and> 4|;Or .5i per' cent:ariterest or/perhaps less'; for--, their :invest- i iraent, this- company, .having ;paid all expensesandl casualties, and shared previous profits periodically,! is lenabled in ;ite23rdtyeiur,to:giantia, ;dividend of 125.. per, free r of income tax, pr in other"words--30 'per cent" on its paid-ifp"capital for tlie twelve' month's -work kst -past.; ; and afterwards to furnish ■ an. account ."of itsi.funtls "as follows: — •*■•■ '.l/Z „!!.'!!!'.!!.-' ".""'~:£"":'"s. i. - The Capital;;."... ..'.... '188,422 0 0 : '■■-. -Eeserved^Furidf =!.; V.i) U; v .The Life Eurid ,ir uA' . ■:•. r. 531^269 IB 10 i v The Fire; lie-assurance Fund 153,710 ;!8> Pi [ ,:' : i^ ;T:l Tptal;;, :" ;£^O88loi8 ; !l3 ' 9 ! —This statement illustrates^the vastly accumula--tive and profitable, character of insurance invest-! merit when honorably and wisely ' iriariaged, even when the value of money ranges'low and much competition is encounteredJ' It; also makes plain that though enormous capitals (of liability ulti-; mately available if necessary.) are emblazoned-on ; every insurance prospectus; still that, such estab-. lishments are and can be worked at starting with a ; small per ceritage paid up ondthe share list •; and that -with^fair, business and ordinaiy'good fortune resources increase so rapidly as soon to render the management quite independent of further calls upon •that source. .:,/•.;-■'.:. ':;-::;,:. >J- ; -,- ..,..; It also follows, from whal we at first premised, that insurance companies acting in good faith are no less an advantage to the public at laige, availing itself of the security they afford, than' tothe: proprietors; and now it remains to apply our predicates to "New Zealand,' in 'whose interest in thismatter we* write.A ;•"' ■ y'-;'^ '■■ '■■■,"^'iy\.::'..- ■,' : ■■/■, In. New; Zealand,', at least in :the Province ;of Canterbury, there isno difficulfc in finding unquestionably, secure investment for money, at rates varying'froiri l2tb 15 per cent;—the! fbrmer on I'first :mo;rtgagoes;;the latter surii on; good seconds or other security,;: arid in New Zealand there surely can be np difficulty-in finding capitalists to originate,' and names to give character to any feasible speculation which can at'the same time subserve their own views and the convenience of the public. The vastly increased rate of interest here, compared with^hat of England, indicates what, with ordinary business and luck, the returns of an- insurance speculation in New, Zealand would be, even with premiums reduced considerably below those of the.ißritish offices. [While the >population!;and necessities'of New Zealand, not just yet requiring ' any establishment of a stupendous magnitude, and, as we have seen, the,absence of any need to.cash up in full at once for shares,taken, the parties holding ■ them being both solvent, and responsible—these facts facilitate much the starting of a Colonial and Provincial Insurance Company with promise bf unusual profit to its proprietary. If, at opening, each holder of scares would either insure himself or procure another, or another with himself, to insure, a nucleus of business would at once be established, and so the affair .set fairly going. So mnch in relation to private interests. „ . : With regard to the colony or province, and public at large, the advantages, of a.colonial company are patent; all its * capital, whether -resulting from shares or business, would be kept at home and there' invested, so far aiding in advancing home and industrial operation's of 'whatever.kind. At present the products of insurance go id England —so much' money leaving the the colony without any material return for the same.. To insurers it would afford the advantages of lower premiums on sums insured, and certain quick payments of losses ; .arid- this is very, desirable, because, though it is proclairiied that large discretionary powers are given to '"the agents of English office's 'doing'business'in the .c olonies, still agents are human, and may occasionally not have funds tp disburse, or may not be themselves . 'oinembarrassecl, or.on discounting terms with the bank ; or other'unpleasant contingencies may occur. They would also probably soon cease to be limited as they are at present by' English companies, with reference to the sum they may wish to insure. The Mitre Hotel, in tlie.town of' Lyttelton, has been sometime, we understand; insured.np to tlie Mllowed;limit, £1000; but, should it happen; to - be"* burned, double th/Tt sum would probably be required to cover loss of property and 10.-s of time in the re-evectiori. "The pretty" generaladoption'pf life ussui-ance, top, would, in all likelihood, be. the.' source of much general social imr

. pvovoriieiit in contvpHing ihto'ih^erancc and exfcravafgance. : When' it is fairly, put before a man 'of the labouring class and impressed!on him viva voce, r for.interest/sake or- philanthropy, that y;ery^ many i great advantages are obtainable in curtailing his. hveekly potations by two or three 'iiobbleVs,' and : otherwise .applying;tlie prwe pr.'them, it is no mi'- : probable , thing; to ssvy tKat ai habit of restripting • these unnecessary^ and; liu^tfurmdul^erices 'mjxy : grow, and 'habits of prudent expenditure or accumulation be engondered, which in tliemsolves would, in colonies especially, be priceless blessings. Life insurari'ce/tb6,;is:''said i ym'la'11gene'j':ai'!^ay to promote, longevity among those ihsured, arid to contribute to the comfort.and,, well-being of their families in many ways even during their.]iv&S' and is so far also conducive to gpod'ehd«. • ,On the .whole, we present ~ this nut toNew.Zea-. • landers'* as ' worthy their' attention' ''when', musing over the propbsalof WCploniaVlnsurance Co>n we;liave v'dQvised' it with a perfect- l'ecollection' that a ;t6o^abrupt^^ bank restriction;! and-perhapi the present season of "the year, : haye comliiiied'to render affairs-for tlief present somewhat dull;;and to depress' public spirit. Thisjr, -however, 1 W a'meve passing evil; there is in this.- colony too inuch^ life and energy and-'resource to belong pnssiv.e. ; uiider pressure; and with goodly hopes' for thes coriiing export season, and anticipations of a more healthy condition of trade 'after this1 .stiprt crisis shall have passed "over, fwe/beg 'to siibmit the': suggestionß-we have herein bfFere<l, and'so for .the present conclude.