LIFE ASSURANCE LECTURE.

Poverty Bay Standard, Volume III, Issue 419, 14 October 1876, Page 2

LIFE ASSURANCE LECTURE.

Mr. W. A. Thomson, drew a very fair audience to the Masonic Hall on Wednes-. day evening last, to hear his lecture on the merits of life assurance generally, and those of the Australian Mutual Provident Society, in particular. The Rev. AV. H. Root occupied the chair, and in a few brief remarks introduced Air Thomson, who said he thought he ought to apologise for the driness of the subject with which he had to deal, but dry though it, undoubtedly, was. he trusted he would be able to place it before his hearers in an interesting form. Mr Thomson then proceeded to pass in review, in a rapid, but well-connected manner, the peculiar, and withal, erroneous ideas that many persons entertain in regard to the principles and necessities of life assurance. So general was this the case, that even here, in the town of Gisborne, he was surprised to find otherwise sensible, and intelligent men, speaking the Queen’s English fluently, but who possessed the most hazy ideas on this all-important subject. Commercial men, as a rule, strange to say, knew positively nothing about it. The most fabulous tales are concocted respecting it, and notwithstanding the fact that there are few things in the world put before the public in so lucid aud comprehensive a form, the greatest delusions, and he (the lecturer) might almost say ignorance, prevailed. But, however, it was his duty to put these matters straight. Air Thomson then quoted largely from Professor de Morgan, and other eminent authorities, in support of the facts aud figures he adduced, to whose stupendous efforts in the past, the present success of institutions, such as the Mutual Provident, is mainly due. Assurance Societies, Mr Thomson said, required no capital to start with; at least, their capital was mostly paper capital, which was never converted into coin. He gave a very amusing instance, by way of illustration, of a society being started with nothing more than a number of cheques, the solo liability of the shareholders being that of drawing them. It was, in fact, a moral support, with a substantial guarantee, but the odds were much in favor of it never being required. The A.M.P. was formed in some such way about 26 years ago, by a few narrow minded persons, whose religious sectarianism, backed by illiberal views regarding the Society,Jjptild havelirought them tos-.-gpaipbnt th'vuhcy were compelled to admit those whom they had, previously, ignored. The consequence was that in the short, space of a quarter of a century an institution had grown up into marvellous proportions, at once the pride aud envy of the time.

Air Thomson then passed on to the diagrams, and explained the various tables, aud peculiar advantages belonging to them ; also illustrating the marvellous results of money placed at compound interest. He also explained, in a very humorous way, the beneficial working of the Bankruptcy Protection Act, under the provisions of which , insolvent policy holders, are protected from the action of their creditors. This Act, passed by New South Wales, was originated by the A.M.P. society, but adopted now by New Zealand ; and he (Mr Thomson) could not help saying a word or two as to the means adopted by the General Government of this colony when it passed this law, and established a life assurance scheme of its own. There were then some 10 or 12 branches of assurance companies doing business in the colony, and Mr Vogel’s first threat was to drive them all away —and he succeeded with all but the A.M.P. Society. Amongst other impositions he inserted a clause in the Act providing a compulsory, permanent, deposit of £20,000 to be made by any society doing business in the colony, after the passing of the Act, as a guarantee of their bona files, together with a yearly gratuity (he could call it nothing else) of £2OO for the privilege of carrying on their operations. This was designed for the purpose of driving away outside competition, so that when the Government had the field all to itself, it would be able to dictate its own terms. But the A.M.P. had frustrated this so far: it had deposited the £2O,(XX) in the debentures of the colony, and con - tinned to pay the £2 K) a year. These impositions being ineffectual, the A.M.P. lecturers were annoyed aud worried by paid Government agents, and in his (Mr Thomson’s) own experience, he could speak of one burly-built fellow, 6ft 2iu, dogging his footsteps at every turn, and threatening to do all and everything but what he did do. At length, finding this course of rough intimidation useless, the Government first of all affected surprise, and ultimately apologised. At the present time the Australian Mutual Provident Society is the only one doing business in New Zealand, besides that of the Colonial Government; and in comparing the two he would throw down the gauntlet to any one who liked to take it up. He challenged any person to come on to that platform, or to meet him elsewhere, before any number of people, to disprove his unqualified assertion that as against the Government scheme that of the A.M.P. Society was preeminently the cheaper and more secure. His Society had this advantage ; they had a high rate of interest, combined with a very low rate of mortality, and they had the field all to themselves—paying, in fact, for the exclusive right of “ taking the lives of the colonists.” In conclusion, Mr Thomson said he would appeal to all young men and women to study their future interests, by insuring before marriage. Mortgagors should insure particularly if their properties were involved, and they did not wish to leave their wives andfamiliesdestitute. He would also appeal forcibly to the intemperate, and referred to what he called the “Good Templar” table, which was arranged, in corresponding terms, to the compound interest table of money. He maintained that alcohol was unnecessary to human economy; and quoted from Professor Thompson (no relation of his own, by the way) to prove that a man has to pay dearly for the privilege, or luxury, of drinking. “ You may drink,” says Professor Thompson, “ but you must pay compound interest on it ; nature demands it, and nature will have it.” And what does “ compound interest,” in such cases, amount to, but a decrease of man’s nerve power ; an undue pressure on the brain ; a diminution of vital energy, and a consequent shortening of life? This is compound interest with a terrible vengeance.

Mr Thomson concluded, with an earnest exhortation, an hour’s most pleasant lecture. Mr Root said Mr Thomson had induced him to insure not only his own life, but those of his children, and recommended all to follow his example. Dr Nesbitt proposed a vote of thanks to Mr Thomson, for his very entertaining lecture. Mr Thomson, in reply, acknowledged the compliment in a becoming manner; and in an eloquent peroration hoped that the benefits he had attempted to depict as arising from life assurance, would be a household word in every home in the colony.