150 Ml* W. Fraser on the History and Constitution of 



piratioii of the stipulated term, all his contributions become the property of the 

 societ}'. It is also agreed, that each member shall be allowed an indulgence 

 of four or five quarters before he can be expelled for non-payment ; and such 

 non-payment has been uniformly the only intimation ever given or required, 

 when any member intended or was obliged to leave the society. These are 

 usually all the stipulations with regard to contributions, resignation, or expul- 

 sion, and of course apply equally to the future as to the original members. 



Before a member, therefore, can become free, or entitled to benefit, he 

 must have paid, besides entry -money, one, two, or three years' contributions 

 in advance ; and it is out of these, that the society afterwards defrays the 

 allowances, in the first place, until they be again replaced, and generally more 

 than replaced, with the interest of the remaining capital, and the future contri- 

 butions as each quarter-day arrives. (See table p. 13G, cols. 13, 14, &c.) Should 

 any member fail to pay regularly, he is charged high interest, in the shape of 

 a fine, for each neglect, until the period of forfeiture ; and should he fall sick 

 or die before forfeiture, the arrears and interest are deducted off the first of 

 his allowances. 



It will thus be seen that no society can ever run any risk of loss by mem- 

 bers in arrear, it being out of the advanced or past contributions that all their 

 claims fall to be defrayed, — that the current contributions, or those in arrear, 

 are deducted by the society off the first of their allowances, should any such 

 be required, — and that, should a member be ultimately expelled for non-pay- 

 ment, the society is much more than repaid, by retaining the whole of his 

 subscribed capital before he became free, together with his share of any accu- 

 mulation which may have afterwards taken place. 



If any farther proof of the accuracy of these remarks were wanting than that 

 afforded by the tables and explanatory observations on p. 136, etseq. we would 

 particularly refer to Mr Cockbum's lucid statement, as quoted on p. 143-4. 



It is said, however, that as a society has the risk of a member's sickness 

 and death during the period he is in arrear, so it is but equity that he should 

 make payment of such arrears, and then, if he chooses, withdraw from the so- 

 ciety. In a proprietory assurance company, where the assured have no inte- 

 rest in the capital, were an insurer indulged with a delay in payment of his 

 premium, at the same time that the company held themselves bound to him 

 during the interval in benefit, such a rule would be just ; but if, on the other 

 hand, this same person held a share in the concern to a far greater amount 

 than the sum he fell in arrear, it would not surely be attempted, upon his 

 ultimate failure in payment, both to seize his capital, and also to prosecute 

 him for his premium. But this is exactly the course which is now proposed 

 to be adopted by Friendly Societies, for as these institutions are mutual as- 

 surance companies, every member has a share in the capital ; and before any 

 one can be entitled to claim benefit, his share must exceed the amount of 

 any arrears which he can ever be due. This stock arises, as before stated, 

 first from his contributions before becoming free, and next from the progres- 

 sive increase of the fund. (Table, p. 136 & 140.) He, therefore, at the be- 

 ginning, advances money on the faith of the society, while the society, on 

 the other hand, allows him to run in arrears on the security of his stock; and, 

 as already mentioned, a forfeiture of such stock is incurred, if these arrears 

 are not paid within a specified time. 



