142 Mr W. Fraser on the History and Constitution of' 



or the latter reduced, as the members advance in age. Let it be particularly 

 remembered, that, if a society's weekly sick allowance were the same sum as 

 the annual contribution, the amount that would be annually required by all the 

 sick members between 50 and 60 years of age, would be the same as if each mem- 

 ber in the society between those ages were to receive nearly double the amount 

 of his yearly contribution ; from 60 to 70 it would be the same as if each were to 

 receive somewhat more than Jive times the amount ; and above ^0 it would be 

 the same as if each of the members of that class were to receive more than six- 

 teen times the amount of his annual payment. This will shew the fallacy of the 

 opinion always hitherto held, that as one member became old another young one 

 would enter, and in this way the allowances to the former would be defrayed by 

 the contributions of the latter. It will be seen from the above averages, that 

 neither Jive nor ten members of the classes below 40 years of age, can support 

 one member of each of the classes from 50 to above ^0 years of age ; for, as 

 the average annual sickness of the whole members between 20 and 30 years of 

 age is equal to 4 days 3 hours to each, and the average annual sickness of 

 those between 30 and 40 years of age is equal to 4 days 19 hours to each, there 

 <;an only remain a balance of the yearly contributions of each of the former 

 class equal to 2 days 21 hours' sick-money, and a balance of the contributions 

 of each of the latter class equal to 2 days 5 hours' sick money. How, then, 

 can these small balances defray the sick allowances of one week, five weeks, 

 and sixteen weeks, required by each of the members in the three classes above 

 60 years of age ? It will thus be seen how societies who had accumulated 

 little or no capital have gone so rapidly to ruin whenever they came to have 

 a number of old members, and ceased to obtain young entrants. To ascer- 

 tain what the accumulation should be, it is only necessary, with the standard 

 age at entry ^ either to Jix the rate of contribution, or the rate of allowance, which 

 the society wishes to establish, and to calculate whether these will be equi- 

 valent to each other during the whole of life ; the standard rate of sickness 

 being taken, or any other rate which experience may have shewn to be ap- 

 plicable to their own circumstances. It will thus be known what balance of 

 stock each member at every age should have in the society ; and by calcula- 

 ting every three, five, or seven years, what the total of these balances should 

 amount to, and comparing them with the society*8 actual funds in possession, 

 it would always be accurately known how far the stock was keeping pace with 

 the number and ages of the members. The importance and method of per- 

 forming such an investigation we shall now attempt briefly to explain. 



Balance of a Friendly Society's Affairs. 



It is well known to be indispensably necessary that proper books should be 

 kept by every individual or company carrying on business, for recording their 

 transactions, and periodically ascertaining the state of their affairs. Without 

 such books no degree of accuracy or chance of success can be expected by those 

 embarked in even the most ordinary mercantile transactions, and as little, if 

 not even less, by a company engaged in the traffic of life, sickness, and death. 

 Such a company is a Friendly Society, and its business must be conducted on 

 the same general principles as those of any other concern ; that is to say, first, 

 the true value of the commodities which are to be purchased and sold proper- 



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