Benefit or Friendly Societies. S07 



The sums in this table, as well as those in the one deduced from the 

 tables of the Highland Society, are necessary for defraying the benefits, 

 without allowing any thing for management. The Committee of the latter 

 body, however, recomragnded that a sum equal to 10 or 12 per cent, on the 

 contributions should be levied, in one way or other, for this purpose ; and Mr 

 Becher states, that, in those societies in which he has been engaged, each mem- 

 ber must be one year in the society before being entitled to benefit, which is 

 equal to about C^ per cent, on the annual contributions; — that the difference 

 between the excess of interest received from government above that calcu- 

 lated in his tables, is equal to a profit of rather more than 1 per cent. ; — that 

 the difference between paying the contribution monthly, and paying it at the 

 conclusion of the year, is equal to about 2| percent; — that in converting deci- 

 mals or other fractions into money a considerable surplus arises, by always 

 making the even sums in favour of the society ; — and, that fines and forfei- 

 tures are considerable sources of emolument. It is therefore assumed, that 

 12^ per cent, computed upon the annual income of such institutions, or 2s. 6d. , 

 in the pound, may be applied by societies, placed in such circumstances, to- 

 wards defraying the expences of management, and medical attendance ; and 

 that should the management exceed that amount, such excess must be de- 

 frayed either by voluntary donations or subscriptions, or by calling upon each 

 member for an additional contribution •. The Committee of 1825, however, 

 consider it as " of some importance, that the addition made for management 

 should not be, as in some instances it is, a per-centage upon the contribution, 

 inasmuch as the expence of management bears a proportion rather to the 

 number of the members than to the amount of their payments "{*•" 



The only other table of Authority for the use of Friendly Societies, is one 

 constructed by Messrs Finlaison and Davies, actuaries. These gentlemen 

 were required, by the Committee of the House of Commons in 1827, to con- 

 struct tables, " shewing the single and monthly payments to be made by males 

 and females respectively, of every age, from 18 to 50, to insure a weekly pay- 

 ment in sickness of 10s. bed-lying pay, and 5s. walking pay ; and to insure 

 also a superannuation allowance of 5s. weekly to commence at 70, at which 

 age the sickness allowance was to cease, as well as the monthly payments of 

 members on account thereof; — also another table, shewing the single and 

 monthly payments to be made till death, by males and females respectively of 

 every age from 18 to 50, to insure a sum of L. 10 on death." This desire 

 . was accordingly complied with, except in so far as regarded a separate table 

 for sums payable at death, the actuaries having conceived it to be more expe- 

 dient that all the three benefits should be combined. 



With reference to the data on which their calculations were founded, those 

 gentlemen remark, that the rate of sickness which they had adopted was a 

 medium of that resulting from the returns made to the Highland Society of 

 Scotland by Friendly Societies, and of that from the Returns made to the 

 A(\jutant General's Office as experienced by the whole Army quartei*ed in 

 England during the years 1823-4. Such a mean exhibits lyVs weeks under 

 the age of 60 ; 2 /jV weeks from 60 to 60 ; and 7iV5 weeks from 60 to 70. 



It will here be observed, that the annual sickness at all ages between 20 and 

 50 is considered to be at the same rate,— Mr Finlaison being of opinion, that 

 * Report of 1827, p. 21. and 121. t Report of 1826, p. 15. 



