308 Mr W. Fraser on i^ie History and Constitution of 



whether one uniform rate of sickness under 50 be assumed, or a graduated 

 rate, increasing according to age, the result, from the nature of the calcula- 

 tion, will not materially differ, as far as practical purposes are concerned. 

 This rate of sickness under 50 is the same as that assumed for the construc- 

 tion of the Southwell tables; and which rate, as formerly remarked, is double 

 the average of the sickness for those ages reported to the Highland Society. 



The actuaries, although perfectly aware of the difference between the 

 mortality of males and that of females, nevertheless determined, for several 

 reasons, to adopt the average mortality of the two sexes, — Mr Davies taking 

 the Carlisle observations, and Mr Finlaison the mean of what he had ob- 

 served to prevail among the separate sexes of the government annuitants^. 

 They conceived that no practical danger would result from this course of pro- 

 ceeding, as the rates would be sufficient for any society composed of equal 

 numbers of each sex ; and rather more than sufficient in ordinary cases, as 

 in general the males greatly predominate in Friendly Societies. 



The rate of interest calculated upon is not stated, but it is presumed, 

 from a former communication by Mr Finlaison *, to be 3 per cent. In that 

 communication he stated, that, as Friendly Societies are subject to loss by im- 

 position and other disadvantages, it was but proper to secure three chances 

 in their favour. These were, 1st, To assume that money can only be improved 

 at the rate of 3 per cent, per annum, such interest being payable half yearly ; 

 2d, That the decrement of life among Friendly Societies should be taken at 

 the same rate as that which prevails among the Government annuitants, who 

 are aU in the higher or better ranks of life ; and, 3d, That, in calculation, 

 no abatement ought to be made for a reduced allowance, called Walking Pay, 

 during convalescence, or any protracted chronic illness. The savings arising 

 from such sources, Mr Finlaison conceived should be considered as a reserv- 

 ed profit, to stand against imposition, or to counteract any unforeseen disas- 

 ter ; and in this opinion Mr Davies concurs. .. 



Proceeding, then, upon the above data, these gentlemen made their caJU 

 culations separately ; and, upon the results being compared, they were found 

 so nearly to agree, as that if an entrant, at any age between 19 and 41, were 

 charged by Mr Finlaison's tables, according to his age at the last birth- 

 day, and by Mr Davies's tables, according to his age at next birth-day, the 

 rate would be within one farthing of the same sum. A mean was therefore 

 taken of their separate calculations, and the following Rules and Tables are 

 the result. 



" RULES and TABLES recommended hy Messrs Finlaison and Davies, for 

 adoption hy Friendly Societies in general. 



" The Select Committee of the Honourable House of Commons, on Friend- 

 ly Societies, having required us, the undersigned Actuaries, to consult to- 

 gether, and jointly to recommend such a scale of rates as might be sufficient, 

 in practice, to warrant the benefits undermentioned ; we have accordingly, 

 for the reasons set forth in the annexed paper, concurred in recommending 

 the rates comprehended in the following brief rules, which, with ordinary 

 precautions to prevent abuse, will, in cur judgment, be found adequate to in- 

 sure the objects in view. 



" 1. Any Society, formed for the mutual relief of its members, inNgickness 

 * Report in 1825, p. 137- 



