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Table showing the Total Worth of the SicK and Funeral Funds of 500 Lodges as on the 1st January, 1906, and the 31st December, 1906, inclusive of the Accumulations held by the Central Bodies; also the Amount and Average Rate of Interest earned.

In my last report I drew attention to the importance of the close investment of funds, and in this connection an improvement might readily be effected by reducing amounts held on current account. In some districts and lodges the sums so held are out of all proportion to requirements, and, seeing that the Post-Office Savings-Bank is available on special terms for societies, it does not reflect much credit on the part of those responsible that the funds should be deprived of the interest-earnings so necessary to insure future benefits to members. I cannot but reiterate the desirability of establishing centralised investment funds, the benefits of which in those districts where they have been set up are constantly coming under the notice of the Department.

The table I append below illustrates two important improvements in the management of societies —(1) the increasing proportion of funds invested on mortgage and at interest; (2) the decreasing proportion sunk in halls.

Valuations. This branch of the Department oompleted a very heavy year'sjjwork, many large valuations which had been outstanding for some years having received attention, and the staff is now in a position to attack current work. In 1907 there wen' LSI lodges veined, representing a membership of 13,151, thf heaviest output of valuation-work on record. The usual tables will be found in the appendices, and I also attach the Actuary's report on the valuations he has completed during the year. Membership and Benefits. Although tli" rate "I increase in the membership ol friendly societies in New Zealand hu not so l,ii- fallen off, it is noticed that in the United Kingdom the increase in the large affiliated orders does not keep pice with the increase in population, and.it would appear that unless societies meet modern demands by adapting their business to present-day requirements they will find it difficult to maintain the splendid position they now occupy. That the failure to proportionately increase membership in tk' United Kingdom is not due to a decrease ill the thrift ol the people is evidenced by the great increase in the business of industrial and life insurance, savings-banks, and building societies, and the inference is that the friendly society run on the old lines is unable to hold its own among the institutions which cater lor the worker. The low rates at which friendly societies in New Zealand caii offer death benefits compared with the rates asked by institutions doing industrial insurance is not. I think, quite realised by members of societies themselves, and a study of such comparison should set Iriendly-society leaders as to the practicability of a scheme whereby the economy of their organizations can be utilised to meet com-

Total Worth of Sick and Funeral Fund as on— Name of Society. Amount of Interest. Average Kate per Cent. January 1,1906. December 31,1906. M.U.I.O.O.F. I.O.O.F. .. N.I.O.O.F. .. B.U.O.O.F. .. A.O.F A.O.S. U.A.O.D. .. I.O.R. S.D.T. H.A.C.B.S. .. P.A.F.3.A. .. R.E.B.S. .. £ £ 425,748 451,616 45,586 49,465 4,576 4,488 1,772 1,960 242,055 257,107 1,146 1,157 81,683 91,796 46,880 49,838 12,608 18,232 8,647 8,998 13,096 13,710 3,022 2,914 £ 425,748 45,586 4,576 1,772 242,055 1,146 81,683 46,880 12,608 8,647 13,096 3,022 £ 21,033 2,145 196 97 11,517 67 4,100 2,444 591 356 609 • 122 £ ■ 4-91 4-62 4-42 5-34 4-72 5-99 4-84 518 4-68 4-14 4-65 4-20 Total 886,819 946,281 43,279 4-84

How iuvested. 1H96. 1897. 1898. I 1899. 1900. 1901. 1902. 1903. 1904. 1905. 1906. 1907. atio to total assets (per cent.) of— 1. Investments at interest 2. Value of land and buildings 3. Gash not bearing interest .. 4. Value of goods, &o. 5. Other assets 74-49 19-48 407 1-7-2 0-24 75-45 18-45 416 1-67 0-27 76-49 17-65 3-93 1-66 0-27 77-57 77-98 16-74 15-87 3-91 4-29 1-54 1-47 0-24 0-39 77-95 1615 3-98 1-42 0-50 78-68 15-27 3-89 1-26 0-90 78-94 14-80 4-17 118 0-91 78-89 1417 4-58 1-20 116 80-29 80-53 13-66 ! 13-48 3-90 400 116 112 0-99 C-87 81-62 12-83 3-74 103 0-78