LECTURE ON LIFE ASSURANCE.

Poverty Bay Standard, Volume I, Issue 93, 4 October 1873, Page 2

LECTURE ON LIFE ASSURANCE.

Mr. W. A. Thomson, travelling agent and lecturer for the Australian Mutual Provident Society, gave an entertaining and instructive lecture on life assurance at the Music Hull, Gisborne on Monday evening, September 29. The Rev. W. H. Root in the chair. The Chairman, in a short speech, introduced the lecturer. Mr. Thomson, on coining forward, said : Mr. Chairman, ladies and gentlemen—The lecture I shall have the pleasure of giving you this evening is upon life assurance. In doing so I shall endeavor to make popular and understandable much that has been locked in the libraries of the learned, and to rescue from a deluge of mathematical formulae or scientific mystification (totally incomprehensible to the majority of my hearers), gems from the great authors who have raised the science of life assurance to what it is, by explaining those principles which no longer need algebraical demonstration. If I succeed this evening, I shall consider I have done a greater service to the cause I have espouse^'—different in kind truly, but no less important for practical purposes—than if I had written one of the most learned treatises the world had ever welcomed, though failed to understand. By diagram illustrations I shall exhibit to you the progress of this eo-operative society, the “ Australian Mutual Provident,” of its future prospects I want you to be the judges. I feel 1 am bound to approach the subject in a serious mood, for it is of such vital importance to the community. The happiness and welfare of society depends so greatly on its being generallv realised and admitted, that life assurance is almost, a religious obligation, incumbent on every right-minded and right-feeling man —(applause). Mr. Thomson then explained the various diagrams exhibiting the application of the bonus additions, as applied in different ways, firstly, as an addition to the sum assured, in which case the policy had more than doubled in twenty years ; secondly, where such bonus was used for the extinction of annual premiums it liquidated all payment in about 20 years; and thirdly, the bonus could be taken in cash, at the option of the member. Another diagram showed that if the assurer chose (from inability to pay his premiums, or otherwise) to take a full or paid-up policy, one could be obtained for an amount commensurate to, and considerably larger than the amount of premiums paid into the society, such policy could be payable at death, and participate in the bonus additions every five years. The lecturer stated that a policy holder could borrow on his policy, and that this society had lent over £8 >,OOO on such security. This would be found very useful to those who might suffer from any financial difficulty or temporary embarrassment, or might be used as collateral security. Also, that ample time was allowed to pay the premiums, thirty days grace being given, and for a term of twelve months after such grace

the Directors had power to reinstate a lapsed policy without loss to the policy holder. 1 he reversionary bonuses declared by. the society amounted to £485,000, and plainly showed thatlife assurance should be mutual. He advised all intending assurers to see that the compound interest accruing from their premiums paid, returned into their own pockets; it was their inalienable right, for De Morgan, one of the most distinguished contributors to the science of life contingencies, says : — “ No one can possibly understand mutual life assurance who does not consider it a bank yielding interest on interest.” The same author Bays “ that it may safely be said there is nothing in the commercial world which approaches even remotely, to the security of a well-established and prudently managed ( uiutual ) life office.” The accumulative funds of the Australian Mutual Provident Society are over one million sterling, and invested in such reliable securities (including New Zealand Government Debentures ) that there was little or no danger of loss, and that lust year the interest on these accumulated funds produced more than sufficient to pay out the deaths for that year. The revenue derived from the respective colonies is proportionately represented in the statements of assets by investments in the local securities of each, and a guarantee fund of £50,000 bears favorable comparison with the guarantee funds formed by the leading Mutual Assurance Societies in Europe, and it must be with pride that the policy-holders of this large co-operative society learn that the exposition contained in the last quinquennial report, is believed to be more full and complete titan was ever presented to the members of any Assurance Society. It fully and clearly makes known to actuaries and persons skilled in the finance of life assurance what is the condition of the Australian Mutual Provident Society, and what are the prospects of advantage to members in joining it. Only by the publication of such information can the real position of a life assurance institution be made known; and the form in which it has been communicated to the members of this society is in complete accordance with the forms and schedules prepared by the Institution of actuaries, and passed by the Imperial Parliament—(cheers). Mr. Thomson said that the lives of men were more in their own keeping, and with a heavier responsibility than they were willing to admit. Those who have written or thought much on the subject agree, almost to a man, that it is in our own power not only to prolong our days, but also to increase our enjoyment of life. Other diagrams were then referred to, exhibiting the Lombardian system of investment, viz., where the society lent money on mortgage it required interest and principal to be paid by equal payments over the term lent, the society holding the full security until the last payment was made. The measurement of indebtedness was then exhibited, proving that if the reserve funds of the society were religiously conserved at interest, and the mortality table's correct, no trial year existed, and that the bonus struck a correct balance each five years, when, if any member had paid more than was necessary, such sum was returned to him with any interest it might have earned in the interim. The surrender value of policies became a matter of serious importance to policy holders ; at the ago of 25 years, after three years, 55) per cent., was given (bonuses not being drawn) ; 10 years, 70 per cent.; 15 years, 96 per cent. ; 20 years, 146) per cent. ; proving the advisability of adopting the mutual system. (Cheers). Members, not being seafaring men, may, without vitiating their policies, on permission from the society, travel to any part of the world outside the tropics (Asia excepted) ; for residence inside the tropics a small extra rate is charged ; seafaring men in steamers, free. The superannuation table J was fully commented on by the lecturer, and it showed that a sum of money could be received at the ages of 50, 55, or 60, and that should death happen prior, the amount with its accumulations was payable to the representatives of the assured. The society had done the largest business in the world during the last year, and it was the duty of every member to induce his friends and neighbors to join, and so strengthen us al). The lecturer said that the annual report of April 24th shows : — New policies completed 29,286, assuring £1,003,000, and giving a revenue of £42,000. Claims, including bonuses, £51,000. the receipts exceeded the disbursements by £168,000. Accumulated fund, £1,333,000. Gross annual revenue, £282,600. The society had in hand upwards of 83) per cent, of the total premiums reserved on the existing policies, after paying all claims ; or the available balance, if every policy was purchased by the society at its full value, would be a sum of £200,000. The lecturer called the particular attention of his audience to the fact that the special Act of incorporation exempts members from all personal liability, and that the Bankruptcy laws of New Zealand which protected policies against the claims of creditors, were now extended to the “ Mutual.” Mr. Thomson strongly advocated temperance, and exhibited a diagram that should induce everybody to adopt temperate habits. Much had been said with reference to the relative cost of assuring with the Government or this society. Mr. Thomson referred his audience topage 26 of the prospectus, which showed that a person of 35, assuring his life for £I,OOO. and taking the bonus in cash, the policy with the Mutual would have cost him during 20 years 227 Ils 4d, as compared to £465 he would have had to pay the Government during the same period—(Applause). There was one other toric upon which the lecturer wished to say a few words. He was fond of the ladies and generally advocated their cause, but from minute calculations mode by the actuaries of the society, it was found advisable not to “ take t he lives ” of married women. No objection was made to single young ladies or widows over 45; but statistics taught this lesson, that a larger proportion of married women died who held life polices than those who did not. It was an unpleasant fact, but true, nevertheless. Under certain circumstances, a married woman’s life would be accepted, if, for instance, the' husband, instead of having (say) a thousand pounds interest in her death, he would be a loser to that amount on her decease. He would address a word of

advice anti encouragement to all young ladies who are, or may be, contemplating matrimony. They should see well to the future—but usually love makes them so blinl they can see nothing bevond the object of their affections. A young girl should, before accepting the prommissory notes of her suitor, enquire if he has insured his life; — or, (although it might appear mercenary) say “ yes, these are all very well, but show me your policy.” (Cheers). In conclusion the lecturer wished to say a few words on the general principles of life assurance. Of all the ingenious arrangements and plans invented by inan in a state of civilisation, with a view to mutual protection, mutual benefit, or mutual improvement, not one has effectel so much for the solid and lasting welfare of the entire community as the system termed life assurance. By it the effects resulting from the natural precariousness of life have been greatly mitigated, careful habits have been fostered and encouraged, and the natural affections nourished and enlarged. More than this, the occasion it gives for the mind to dwell, not in fear and trepidation, but calmly and meditatively, on the close of our career, has served in many cases as a stepping-stone to a religious life and aim. It is a beneficent arrangement, designed to afford to the man of limited means an opportunity of making a provision for his family, such as without it would only be within the reach of the affluent. If it were universally availed of, there need be no more Borrowing children, stricken down by poverty and dependence. (Applause). Mr. Thomson brought his highly entertaining lecture to a close by thanking his audience for their attendance. Great attention was paid throughout to the lucid explanations given on a very absti use subject. Mr. Buchanan moved a vote of thanks to Mr. Thomson, which was accorded with cheers.

A Cure for Small Pox.—This loathsome disease is liable at any time to break out among us, and we cannot be too careful, and should avail ourselves of all known remedies to effect a cure or prevent our taking it. A correspondent of the Stockton (Cal) Herald gives the following as a cure for small-pox. Cut this out for future reference :—“ I herewith append a receipt which has been used to my knowledge in hundreds of cases. It will prevent or cure small-pox, even though the pittings are filling. When Jenner discovered the cow-pox in England, the world of science hurled an avalanch of fame on his head; but when the most scientific school of medicine in the world—that of Paris —published this receipt as a panacea for small-pox, it passed unheeded. It is unfailing as fate, and conquers in every instance. It is perfectly harmless when taken by a well person. It will also cure scarlet fever. Here is the receipt as I have used it, and cured many children of scarlet fever. Here it is as I have used it to cure small-pox, when learned physicians said the patients must die : — “ Sulphate of zine, one grain ; fox-glove (digitalis), one grain; one-half a teaspoonful of sugar, mix with two tablespoonfuls of water. When the above has been thoroughly mixed add four ounces of water. Take a teaspoonful every hour. Either disease will disappear in twelve hours. For a child, smaller doses according to age. If counties would compel physicians to use this there would be no need of pesthouses. If you value advice and experience, use this for that terrible scourge.”

A correspondent writing to the Post of Sept. 12th, accuses Mr. Fox of being the correspondent of the Wanganui Chronicle, the Southern Cross, and other papers, and of attacking members of the House under the cloak of anonymity. The Omeo. we perceive, from Melbourne, brings 600 tons of cargo for New Zealand ports. A steamer leaves Melbourne every week with a similarly large cargo!

Some five-furrow ploughs have recently been imported into Napier by Messrs. Kinross & Co., and are attracting much attention. These ploughs says the Telegraph are extensively used in the Middle Island, where it is not uncommon to plough up thirty-five acres a week with one of them. It requires ten bullocks to draw one of these ploughs, but the superiority they possess over the old fashioned single plough is so vast, that notwithstanding the slow and ancient method of making oxen draught animals, they must find favor with all agriculturalists whose farming operations are on a large scale.

In the 2). S. Cross of the 15th inst. we find that of the immigrants per Berar there remained on Saturday—24 families and 16 single men unemployed. Major Green, the Immigration Officer, has, in obedience to general instructions from the Colonial Government, stopped the supply of the rations which they had received from the date of their landing. The Deputy-Superintendent, on being informed of the course adopted, promptly telegraphed to Wellington to urge upon the Government the necessity of at once taking steps to keep these poor people from starvation. Major Green, as a better means of informing settlers in outlying districts, of the qualificatious of the immigrants still open for employment, has had a number of circulars printed, containing full particulars as to their respective abilities, 4c. These are to be forwarded to the various postmasters in country settlements, and it is to be hoped they be the means of speedily obtaining suitable situations for the remainder of the late arrivals per Berar.

MARRIAGE WITH A DECEASED WIFE’S SISTER. The Bishop of Melbourne, writing to the Church of England Messenger, states that several clergymen having applied to him for instruction as to the lawfulness of solemnising, under the provisions of the recent Act of the Victorian Legislature, the marriage of a widower with a sister of the deceased wife, he considers it desirable, for the information of his clerical brethren, to publish in the Messenger the following letter, which contains the opinion he has arrived at, after a careful consideration of the subject: — “ Bishopscourt, 23rd July, 1873- My dear ,if I thought that the Act of our colonial Legislature, authorising marriage with the sister of a deceased wife, * set aside’ a restriction which God had by the Scriptures imposed upon us, or that it * ignored ’ a ‘ positive declaration of our great King,’ I should unhesitatingly say that we must obey God rather than man ; or, if there were any law of our Church binding upon us in Victoria which forbade the solemnisation of such marriages, 1 should say that, as clergymen, we must obey that law, and not use the liberty granted to us by the recent Act. But even if the prohibition in Leviticus be understood to refer to the sister of a deceased wife—which is very doubtful (see note on Leviticus xviii, 18, in the Speaker’s Bible) —I do not consider it as obligatory upon the Church of Christ any more than others of the Mosaic code. Nor do I regard the declaration that * a man and his wife are one flesh ’ as placing a sister-in-law in the same relationship with a sister in blood. Again, so far as I know, the prohibition by our Church of marriage with a deceased wife’s sister is contained only in the canon of 1603 (99) — which are certainly not binding upon the Church here—and in the table of degrees * set forth by authority ’ in 1563. I have not been able to ascertain by what authority this table was set forth ; but I conceive that the * admonition ’ contained in it never possessed any legal power, except from 32 Henry VIII., c. 38, and now is in no way obligatory upon the conscience, unless we consider it ( which 1 do not ) as a declaration of the law of God. Such being my opinion upon this vexed question, 1 do not regard a clergyman in Victoria as guiity of any offence against the law of God or of the Church in solemnising such a marriage, which the law of the land now authorises; but as I know that some of my brethren think differently, and feel very strongly upon the subject, 1 consider that they are justified in refusing—indeed, bound in conscience to refuse—to do so. Let every man be fully persuaded in his own mind, and let not one judge another. — Your brother in Christ, —C. Melbourne.”