Benefit or Friendly Socklks. 



S&5 



other. This hypothesis atlvances the annual payments of the Scotch Tables for sickness higher 

 than they ought to stand, and consequently raises the amount nearer to the Southwell Tables." • 



It thus appears that the difference in the annual contribution is no leas 

 than 42 per cent. The tables of the Southwell Society, too, are only gra- 

 duated quinquennially, while those of the Highland Society are graduated 

 annually ; that is, by the quinquennial scale, one person entering at 30 years 

 of age, and another at 34, would both pay the same sum for the same benefit ; 

 while, by the annual scale, the payments are either increased, or the allowan- 

 ces diminished, for each year an entrant is older than the minimum age for 

 entry. In this respect, therefore, the Southwell tables are certainly defec- 

 tive. One of the peculiarities of Mr Becher's system, however, and worthy of 

 being imitated by such societies as combine all their payments, is, that " the 

 tables of calculations are so framed, that whoever makes an assurance in sickness 

 (which terminates at 65) must, at the same time, assure an annuity after 05, 

 and a payment on death, which combination has been devised, with an inten.. 

 tion of preventing imposition or inequality. Thus, were a sickly person to 

 effect an assurance, what was gained in sickness would be lost in the annuity. 

 On the other hand, should the healthy members receive but a small portion 

 of the pay in sickness, there is a greater probability of their living to enjoy 

 the annuities. By a similar arrangement, the annuities and the assurances 

 on death reciprocally co-operate. If the member dies prematurely, the con- 

 tributions on account of the annuity become available towards discharging the 

 payment on death ; but if the life be prolonged, the assurances on death, after 

 a certain period, may be regarded as applicable towards the annuity. So that, 

 by introducing a system of balanced interests, it seems scarcely possible to de- 

 fraud the institution, or to preclude the attainment of its benevolent objects "f." 



Since the institution of the society at Southwell, several other societies 

 have been formed in the neighbouring counties, upon a very extensive scale, 

 and all of whom have adopted the Southwell tables. Mr Becher was 

 very minutely examined by the Committee of the House of Commons in 

 1 825, with regard to the calculations of these tables, and the data on which 

 they were founded. Several objections were stated to them by some of the 

 other gentlemen examined, particularly as to the rate of mortality and intew 

 rest Mr Becher had assumed ; in which objections the Committee ultimately 

 concurred, but approved of the rate of sickness. He was again examined in 

 1827, and his evidence, together with the opinion of the Committee, respect- 

 ing the rate of mortality, will be found in the former number of this 

 Journal Mr Becher subsequently communicated a set of tables to the Com- 

 mittee, which he had furnished to a society in Dorsetshire, and from which 

 the following table is extracted. 



With reference to this table, Mr Becher remarks, that the contributions 

 are to be invariable, and payable once in every calendar month, till the age of 

 65, when the contributions for the whole benefits, as well as the allowances 

 during sickness, are to cease. The table is founded upon the same principles 

 as the Southwell tables, except that in this table an annual graduation of ages, 

 and interest at the rate of 3^ per cent, have been adopted. Although the 

 Northampton rate of mortality has still been taken, it is said that the adop- 

 tion of 3^ per cent, interest, raises the contributions for sickness and annui- 



* Obsarvations on the Report of the Sdect Committee of th« House of Comnoons on the hvm 



of Friendly Societies in 1825. Newark 1826. 4s. „ . . , .-,-,.- , ll .. -^-}-, - , '- [ 



t Parliamentary Report in 1825, p. 176. 



