H.—l

7

Annual Contribution payable by Weekly, Fortnightly, or Monthly Instalments during Life to purchase the Undermentioned Benefits. [New Zealand Friendly Societies' experience, 4 per cent.]

Example. —To find the Annual Contribution at Age 22 to provide £1 per week during first six months' sickness, 10s. per week during second six months' sickness, and ss. per week after twelve months' sickness, with a funeral benefit of £20 at death of member,*and £10 at death of member's first wife : — Age 22— £ s. d. £1 per week, first six months' sickness (as given in the table) .. 019 10 10s. per week, second six months' sickness (one-half the value given in the table) .. .... .... .. ..018 ss. per week, after twelve months' sickness (one-fourth the value given in the table) .. .. .. .. .. ..050 £20 at member's death (twice the value given in the table) ..042 £10 at member's wife's death (as given in the table) .. ..01F Total annual contribution .. .. .. .. £1 12 1 Unsound Schemes. There appears to be a disposition in some of the Dominion friendly societies to adopt the uniform death levy or assessment for high funeral benefits, and in view of the dangers of such schemes it would not be out of place to sound a note of -warning as to the unfinancial character of the system. The United States of America, as in many other experiments, has furnished an illustration of the results oflassessment as applied to friendly societies ; and to the laymen a pound of practical experience is'probably more convincing than a ton of expert opinion. The following quotation is taken from the Philadelphia Intelligence, in a review of " Half a Century of Insurance Experimentation." The term " fraternalism " in the United States is, of course, synonymous with " friendly societies " in New Zealand : — " These local groups in the early days of fraternalism almost entirely eliminated the agent, for the members did their own soliciting, because they were imbued with the beauties of fraternal relations. The expense-item was almost nominal. Hundreds and thousands of men rushed into these orders. Everybody was alike. It was a dollar or dollar-and-a-quarter assessment, with flat rate at a given age. The man who started injat twenty-five paid the same if he lived to be forty. It was ideal in theory, had it not beenjfor thejpersistency of old mortality for recognition. So long as new members

Allowi ice of £1 per week during ineral tonel Member's Age at Admission. First 8ixMoiitliB' SiuknesB. Second Six Months' Sickness. After Twelve Months'Sickness. At Death of Member. At Death of Member , ! First Wife if Member then living. Member's Age at Admission. Iβ 17 18 19 £ b. a. 0 18 4 0 18 7 0 18 10 0 19 0 £ 8. d. 0 2 8 0 2 9 0 2 10 0 2 11 £ b. a. 0 15 4 0 16 0 0 16 9 0 17 6 £ b. d. 0 19 0 1 10 0 1 11 0 1 11 £ s. d. 0 13 0 1 4 0 14 0 14 1G 17 18 19 20 •21 22 23 24 0 19 3 0 19 7 0 19 10 1 0 2 1 0 5 0 3 0 0 3 2 0 3 3 0 3 4 0 3 6 0 18 4 0 19 2 10 1 111 1 2 1 0 2 0 0 2 1 0 2 1 0 2 2 0 2 3 0 15 0 1 5 0 1 5 0 1 6 0 16 20 21 22 23 24 Sβ Sβ 27 Sβ 211 10 9 1 1 2 1 1 7 12 1 12 7 0 3 7 0 3 9 0 3 11 0 4-0 0 4 2 1 3 "2 14 3 1 6 6 16 9 18 2 0 2 4 0 2 5 0 2 5 0 2 6 0 2 8 0 17 0 17 0 18 0 18 0 1 9 25 26 27 28 29 30 81 89 88 M 13 1 13 8 14 2 1 4 10 15 5 0 4 4 0 4 7 0 4 9 0 4 11 0 5 2 19 7 1 11 1 1 12 8 1 14 4 1 16 1 0 2 9 0 2 10 0 2 11 0 3 0 0 3 2 0 1 10 0 1 10 0 1 11 0 2 0 0 2 1 30 31 32 33 34 35 3G 37 38 89 16 1 16 9 1 7 6 18 3 1 9 1 0 5 5 0 5 8 0 5 11 0 6 2 0 6 6 1 18 0 2 0 1 2 2 3 2 4 7 2 7 1 0 3 3 0 3 5 0 3 6 0 3 8 0 3 10 0 2 2 0 2 2 0 2 3 0 2 5 0 2 6 35 36 37 38 39 ■10 41 42 43 44 1 9 11 1 10 9 1 11 8 1 12 7 1 13 6 0 6 10 0 7 2 0 7 6 0 7 10 0 8 2 2 9 8 2 12 6 2 15 6 2 18 8 3 2 0 0 4 0 0 4 2 0 4 5 0 4 7 0 4 10 0 2 7 0 2 8 0 2 10 0 2 11 0 3 1 40 41 42 43 44 45 1 14 5 0 8 7 3 5 7 0 5 1 0 3 2 45