Benefit or T'riendly Societies. 151 



But it has likewise been said, that were a member to fall sick while in ar» 

 I'ear, he might soon draw out from the society a great deal more than his share of 

 the capital This argument, however, might as well be applied to members who 

 are regular as to those who are not regular in their payments. It is the very in- 

 tention and use of such societies, that some members shall receive much more 

 than others ; and it will not surely be pretended, that, without some special 

 agreement, those on whom sickness has fallen would not have the same right, 

 ages and payments alone being considered, to an equal share of the stock, in 

 the event of a subsequent division, as those who had never received a farthing. 

 As all the members, therefore, continue to have an equal right to the capital, 

 <in the old societies at least), so long as they are connected with the insti- 

 tution, and as the managers can always retain payment of all arrears off the 

 allowances in the event of sickness or death, a society, even in this point of 

 view, runs no greater risk with a member in arrear, than with one who is not. 



Every Society, therefore, is greatly benefited by every surrender or forfei- 

 ture that occurs ; and this is so well known by all the higher classes of Mu- 

 tual Assurance Associations, that very considerable benefits are always calcu- 

 lated upon, and do arise, from such forfeitures, although with them no entry- 

 money, and only one year's contribution, is paid in advance. 



But, farther, the practice of retaining all the stock of a member who wishes 

 or is obliged to withdraw, has been even acknowledged by the more respect- 

 able assurance associations to be unjust ; and, accordingly, the greater num- 

 ber of them are now in the habit of purchasing the policies (i. e. returning so 

 much of the past contributions) of such members as may find it inconvenient 

 or unnecessary to remain any longer in the institution. 



In the Report, too, of the Highland Society, while it is stated that forfeitures 

 appear to be indispensable in Friendly Societies, being the only practicable 

 means of enforcing regular payments of small contributions, it is added, " were 

 Friendly Societies once established upon correct principles, and accustomed to 

 ascertain periodically the value of the individual stock of their members, it 

 might deserve consideration whether it would be expedient that the directors 

 should have a discretionary power to purchase up, under some regulated abate- 

 ment, the interest of members who are going abroad, or who have become 

 permanently established at such a distance as renders inconvenient the main- 

 tenance of their accustomed relations with the society. An arrangement of 

 this kind would obviate a general objection which frequently leads young 

 men to postpone to a more advanced age their entering into societies*." 



Several Friendly Societies lately organized have accordingly adopted this 

 regulation. Heriot's Benefit Society, for example, (whose rules were sanc- 

 tioned by the Quarter-Sessions of the Peace for the county of Edinburgh 

 81st November 1826), give a table, shewing the pecuniary interest of each 

 member at every age in the society ; which is for one at thirty L. 3 : 5 : 1 ; 

 at forty, L. 8 : 6 : 5 ; at fifty, L. 14: 16 : 5, &c. ; and, should circumstances ren- 

 der it necessary for any one to leave Scotland, he may either continue a 

 member, or, upon relinquishing all future claim, receive three-fourths of his 

 stock at the time, after deducting all arrears. 



The Edinburgh School of Arts Friendly Society, an institution just esta- 

 blished upon the most accurate and scientific principles, has also stated i|i 

 * Report, p. 89. 



