FRIENDLY SOCIETIES.

New Zealand Times, Volume XXX, Issue 4368, 20 March 1875, Page 1 (Supplement)

FRIENDLY SOCIETIES.

(From the Melbourne Argus, Feb. 23.) The statistics of the friendly societies of Victoria are of an important and valuable character. They are so not merely because of the information actually afforded by them, but also because they forcibly indicate the necessity of such further details being procured as shall enable an actuarial examination to be made, in order definitely to determine whether these societies, or how many of them, are in a solvent position. For this purpose the statistics given are extremely deficient, but sufficient can be gathered from them to create a feeling of very great uneasiness and disquietude. Thus we find that in 1864 the number of members enrolled in the various friendly societies of "Victoria which furnished returns was 16,438, the income of these societies was £48,054, and the expenditure £33,032. In 1873 the number of members in the societies furnishing returns had increased to 50,318, the income of the societies to £151,602, and the expenditure to £132,765. Analysing these figures, we arrive at the following rather startling result : —ln 1864, the income was £2 19s. 2d. per member, and the expenditure £2 os. 2d.; whilst in 1873, the income was £3 os. 3d. per member, and the expenditure £2 10s. 9d., so that whilst in 1864 there was a difference between the revenues of these societies and their expenditure, to the credit of the former, of 19s. per member, there was in 1874 a difference of only 9s. 6d. In other words, whilst during the ten years under review the income of these societies has only increased Is. Id. per head, the expenditure has increased 10s. 7d. per head. Nor can we hope that this increase in the expenditure has yet reached its maximum. A reference to the table of the comparative ages of members shows more than a fair proportional increase in the number of those between those ages when they are most likely to become chargeable to the sick and funeral funds. Thus, whilst the increase from 1872 to 1873 in the number of members under the age of twenty was only 352 ; between the age of twenty and twenty-five, 211 ; between twenty-five and thirty, 148 ; and whilst there was an actual decrease in the members between thirty and forty of 405, there was an increase in the numbers between forty and forty-five of 448, between forty-five and fifty of 842, between fifty and fifty-five of 320, and between fifty-five and sixty of 75. This all indicates a ' probable and gradual increase of expenditure for some years to come. From these facts it will be seen how necessary it is that such an investigation should be made as will show the actual position of these societies with regard to their members. The liabilities, as published, merely indicate what the few debts actually owing to outside parties amount to, and an actuarial analysis, showing the proportion the assets of the societies bear to the probable prospective demands of the present members, is absolutely required for the public information and safety. Upon this question the Government statist remarks : "They," the present forms, "do not, however, even yet provide for obtaining all the materials necessary to enable the true position of the societies to be ascertained, nor to afford a basis for actuarial investigation respecting the sufficiency of the rates of contribution made by members. With the view of devising means for procuring more complete returns, the Government statist was directed a short time since to confer with the actuary of friendly socities ; and those two officers have been able to plan and mutually to agree upon a set of forms for submission to the Government, which will, I believe, be found to meet all the purposes for which they are required." It is to be hoped the Government will, at the very earliest opportunity, not only insist upon these forms being adopted, but that in the alteration of the Friendly Societies Act which has been so long promised the societies will be compelled, under heavy penalties, to furnish returns. It may not, perhaps, bo advisable to determine by law the rates which should be paid by members, but it is unquestionably the duty of the Government to furnish such information as will enable those who trust to these societies for assistance to themselves and families in times of sickness, &c, to determine whether the fees charged or proposed to be charged by any society are such as to afford_ a fair guarantee that it will be able to meet its engagements. The statistics show that it has been the constant practice of a number of these societies to borrow from the sick and funeral funds in order to meet the expenses of management. As we have before pointed out, this course is altogether illegal. The 28th clause of the Friendly Societies Act provides for the keeping of a separate and distinct account for each class of benefit, and expressly states that " the moneys belonging to one benefit or fund shall not be used in any manner for the advantage or otherwise of any other benefit or fund." The expedient of borrowing in no way gets over this difficulty, for the 17th section of the Act specifies the various ways in which moneys shall alone be invested. These are—in savings banks, public funds, Government securities, mortgage on leasehold or freehold property, or on loan to members, provided such loan is covered by a policy of insurance of the value of the loan. All those who have, as office-bearers or otherwise, been engaged in transference of money from one fund to another are by the 36th clause liable to prosecution, and on conviction, to the repayment of double the amount so misapplied, or, in default, to imprisonment, with hard labor, for any period not exceeding three months. No one, however, has yet seen fit to take cognisance of the repeated violations of the Act, upon the principle, it may be supposed, that what is everybody's business is nobody's business. In any amendment of the Act, some officer should be appointed to see that the returns are properly sent in, and to initiate such prosecutions as may be necessary. The sums that are borrowed are as a rule recouped by special levies, and this is manifestly unfair, because a man thus finds himself suddenly called upon to pay sums which ho never calculated upon when joining the society, and if he neglects to do so ho forfeits all claim to the advantages which he fondly hoped he had previously secured. Talcing the statistics and the report as a whole, they fully justify the criticisms which from time to time have appeared in the Aryus upon the management of these societies, and of tho necessity for further light being thnwn upon, their proceedings,