Benefit or Friendly Societies. 133 



the Highland Society of Scotland in calculating tables for 

 Friendly Societies. Having already given some of these tables, 

 we shall now proceed to illustrate more fully the principles up- 

 on which they were framed, and the mode of using them, for 

 the purpose of investigating the state of societies'* affairs. 



As before frequently observed, it is essential to the permanence of every 

 society, that there should be calculated at the commencement, the amount of 

 contribution which will be required to defray the contemplated benefits, so 

 that all the members, the last as well as the first, shall be insured of al- 

 lowances corresponding to their payments, and to their ages at entry. At 

 first sight such a calculation may appear very difficult, if not altogether im- 

 practicable, owing to a Friendly Society being a body consisting of all ages, 

 varying in numbers from time to time, and the demands for sickness and death 

 also varying in proportion to the number and ages of the members. But, to 

 simplify the process, instead of viewing a society some time after its com- 

 mencement, let one be supposed to have just commenced, and to be composed 

 of individuals either of the same or of various ages, Avho are to contribute cer- 

 tain sums annually on the one hand, and to receive certain allowances on the 

 other, till a hi^er age, or till all are dead. Were the progress of such a so- 

 ciety to be traced, and a distinct account kept of the contributions and allow- 

 ances of the original members till all had died ; and were it found, that all 

 they had paid in during life, with accruing interest, was equivalent to the 

 whole they had drawn out, also with interest, it might be inferred, that, so far 

 as these persons were concerned, their contributions and allowances had been 

 properly adapted to each other. Were the progress of a second, a third, and 

 a fourth body of members to be noted, and the same results obtained, it might 

 then be safely concluded, that that society was established upon secure prin- 

 ciples. There would thus be ascertained. Is/, the total amount of contribu- 

 tions; 2d, the rate or number of weeks' sickness which had occurred at each 

 age, and for which allowances had been paid; 3</, the number of deaths, the 

 ages at which they had occurred, and the disbursements on their account; 4<A, 

 the interest which had been received for the capital; bth^ the interest which 

 had been lost on the allowances; and, lastly., the total amount of the expendi- 

 ture. 



Again, were a number of societies to be conducted in the same way, and 

 their whole results found to lead, although not exactly, to the same general 

 conclusions, an average of the whole could be taken, and such an average 

 might with safety be adopted as a standard for the guidance of societies in 

 future. It may be observed, that it would not be even necessary for all 

 these societies to have had the same rates of contributions and benefits. The 

 only things requisite to be ascertained, would be the number of weeks' sick- 

 ness, and the number of deaths that had happened at each age or class of 

 ages ; for these being known, any given contribution could be accurately cal- 

 culated for any specified allowance. 



Now, although Friendly Societies, so far as is known, have never kept any 

 such records of their transactions as are here alluded to, yet the results of the 



