MR BROWNE'S LECTURE ON LIFE INSURANCE.

Wanganui Chronicle, Volume XXII, Issue 91121, 22 May 1880, Page 2

MR BROWNE'S LECTURE ON LIFE INSURANCE.

Mr T. K. Browne delivered his promised lecture in the Princess Theatre last Irijsl.lt to a numerous and interested audience. His Worship the Mayor occupied the chair, and introduced the lecturer. After some preliminary observations, the lecturer said the subject of life insurance was ono of the most important that could occupy the human mind ; it was indeed the one thing needful for the great majority of mankind for this world, and second only in importance to that other one thing needful for the world beyond. Fire insurance was almost universal. What merchant could sleep soundly if his merchandise, or his ships, or his other forms of perishable property were uncovered by a policy of insurance, and should a fire or a storm at sea sweep away his property, how scant the sympathy if he ventured to neglect so common-sense a precaution P But the life — the life of the bread-win-ner — so much more perishable, so much more important — how many neglected to cover that ? Other forms of property might be replaced, but the life — what can replace that ? All that a man hath will he give for his life. Let me tell you that the risk of human life is precisely eight times greater than the risk of your house or your merchandise being destroyed by fire ; and, of 100 houses in 100 years, 95 will remain, but of 100 human lives in the same period, not one ! Moreover, so careful to provide against such calamities as will inconvenience ourselves is surely a selfish proceeding, and so obstinately to persist, as so many do, in neglecting that upon which the welfare of whole families so depend, is surely, of all forms, a carelessness the most reprehensible and cruel. Life insurance, said the lecturer — what is it? He then explained what it is in the hands of the skilful actuary. In his hands it was a matter of figures, highly complicated and interesting ; tableß of mortality on the one hand and tables of interest in the other. As illustrating the marvellous results o£ interest and compound interest, ho gave some striking examples, and while, said the lecturer, there was nothiug in the universe more uncertain than the duration of a single life, there was nothing at the same time more absolutely certain than the average duration of any large number of lives. As a popular science, life insurance was therefore based upon the uncertainty of human life. It shifted the risk of the single individual, the most uncertain of all things, to the multitude, the most certain of all things. Human life — what is it? A breath, a shadow, the vital spark, a brittle thread. It is, in* deed, the greatest of all mysteries. Upon such a frail foundation what hopes for the future are reared ? Upon what a shadow — the life of the bread-winner — do such multitudes of families exclu-> sively depend ? The breath goes, the shadow vanishes, the vital spark flies, and what poverty, what destitution; alas ! too, how frequently what vice and crime are the consequence. A life policy is the modern invention which enables the providential man to shift such a terrible responsibility from his own uncertain life to the shoulders of the multitude. He takes out a life policy, and thus discounts his whole future ; he substitutes a substantiality for the shadow, so many hundreds of pounds for the vital spark, solid gold for the brittle thread! This is indeed the modern miracle ! A man pays a trifle — a few pounds to a Life Office — and in his domestic economy it is precisely the same as if he had to put bo many hundreds of pounds to his credit in a Bank. If the life of the bread-winner goes, the policy takes its place, and thus from his grave the prudent father fills the cupboard that otherwise might be empty, and covers the table that otherwise might be bare. What else will do this for the vast majority of mankind ? It surpasses all we read in ancient story of the Magician's Wand or the Cap of Fortunatus. The alchemists of old lived laborious days to wring the secrets of transmutation from Nature, but here is something much more marvellous ! Iv any story wo arc told, That Midas' rod tnms cverthing to gold. But a life policy is more wonderful, more real, a miracle within the reach of almost every man, and realising his re-> sponsibilitios how blameworthy, how heartless, how cruel is that man who neglects such an important family provision ? The lecturer then briefly glanced at the history of life insurance, which he said divided itself into both ancient and modern history. It was, however, to Iho modern institution he desired their special attention. It was indeed a dismal aud disheartening history — a history, the sliores of which were strewed with many wrecks. In a little more tuan a single decade, 777 Life Insurances came to grief in England. What a record of mismanagement, the most abominable fraud, and the grossest swindling ? In introducing the Post Office Life Insurance in the British Parliament, the present distinguished Premier in England, in speaking of such companies, said an investigation into their management convinced him that men were being sentenced every day for life at the Old Bailey, who were not half so guilty as many of those who conducted Life Insurance Companies. And still more recently the London Times, on the authority of some of the ablest actuaries of the day, said there are numerous Companies doing a large business in a state of insolvency. Just think of it, doing a large business ! Trading in such an accumulation of human misery. What a trade in sorrowing widows and children crying out for bread. Life insurance, the most benevolent aud beneficient of all modern institutions, became transformed in the hands of such unscrupulous and diabolical schemers into one of the most heart-ri-ndnig instruments of cruelty. The failure of tho City of Glasgow .Bank is alill fresh iv their memories. Tliul

nslitution apparently fulfilled every condition of security. Her balances, how satisfactory, the management was above suspicion ; tho Directors, how imaculate ! But what a huge swindle ! Measure if you can tho wretchedness and misery involved upon thousands in Scotland through that miserable failure, but how much more aggravated when a life office — than which no institution admits of safer management — an institution created for the relief of human misery, becoming in such vile hands itself the instrument of human misery. Mr Brown traced the different successful developments of Life Insurance Companies, and of those the most recent in this colony, was the Accidental Company, .tie spoke not he said, with any feeling of rivalry, but he felt bound to say that in his opinion this latter preyed very much upon the incredulity of mankind. He quoted statistics to prove that the deaths from accidents were only 5 per cent of tho whole. That was the precise risk this Company accepted. The chances were exactly 20 to 1 that you would die a natural death, and yet the rates charged for accepting such a fraction or the risk, was in many cases £1 10s, as against £1 15s 9d for the whole risk in the Government office. He said further, that while the rates in the Government office, — as compared with Home offices — was very much less, the rales in this Accident Company were about three times that charged by similar companies at Home ; moreover, the weekly allowances in this Company, both in duration and amount, are about une-half that granted by accidental companies in England. His objection to all such partial covering of the risk of human life was, chiefly on the ground that — as was so often the case with friendly societies — the less important was so frequently made an excuse for omitting altogether that which was so supremely so. The lecturer then entered upon an elaborate argument, to prove that Life Insurance was such a service as Government alone can render with absolute safety to the people. It differed from all others. JSfohhing in the world resembled it, except marriage — both were for life. A succession of Governments might be trusted, but a succession of directors, having millions of money to handle, over whom you had no control— whe furnished you with arrays of figures sc complicated that you failed to under' stand them — who would trust the future of their families upon such a frail foundation p We regret that our space compels us to omit the rest of the lecturer's arguments, by which he said they arrived at the logical conclusion that life insurance was such a service as Government alone can perform witb safety, and that therefore it became i paramount function of Government Mr Brown said that he observed also in a recent insurance journal, thai Count Von Bismarck proposed to buj up all the companies in Germany, anc limit the business of life insurance, likf the postal service, to the State. Th( lecturer proceeded to address the ladies : young men, and married men with mucl earnestness. He felt the responsibility of addressing the latter. Who Goulc measure it ? In London alone then were 2C0,000 widows, half of them lef , unprovided for. O, the crime of neg lecting timely provision ! With Toe Hood he exclaimed— O ! men with sisters clear, O ! men with niotliors and wives, It is not linou your wearing out, Bat human creatures lives ! At the conclusion a vote of thanks was accorded to the lecturer, and tc the chairman of the meeting.