Benefit or Friendly Societies. 135 



strated by the numerous failures of Friendly Societies'* schemes. 

 But as these opinions are from so high authority, and as the 

 failures of Friendly Societies are attended with the most serious 

 consequences both to their members and to the public, we trust 

 to be indulged in entering somewhat fully into a detail of the 

 more obvious errors which have been committed. 



As already stated, Friendly Societies were originally charita- 

 ble institutions. Hence the expenditure was extremely limited, 

 and, consequently, a small contribution would be adequate to de- 

 fray it. In the progress of time, however, when every one be- 

 came entitled to claim the allowances as his right, the same con- 

 tribution could not suffice ; but, as might have been expected, a 

 long time necessarily elapsed before this was perceived, as no so- 

 ciety, which continues to acquire new members, can come to its 

 maximum expenditure for the first 30 years ; and, therefore, the 

 improvement in the principle of benefits, without a corresponding 

 increase of the payments, has certainly been one main cause of 

 the failure of their schemes. 



Societies at their commencement, generally admit members at 

 all ages, for the same rate of entry money, and even afterwards 

 seldom make any difference for those under 36 or 40. A uni- 

 form sick allowance is likewise granted to the whole for the 

 same annual payment, upon the supposition, that the aged of 

 one generation will be provided for by the youth of the next. 

 But, while the demands of youth are no doubt greatly less than 

 those of old age, still the surplus contributions of the young 

 members will be alone very inadequate to defray the allowances 

 of the old ; for, supposing the annual rate of sickness of an in- 

 dividual at SI years of age to be represented by one, the rate 

 of sickness from 60 to 70, on an average, will be represented by 

 ten, and at 70 it will be represented by eighteen. Hence, if 

 members do not enter in youth, and accumulate a sufficient 

 capital, or if it be prematurely expended in defraying the lar- 

 ger demands of those who entered at higher ages, then, when a 

 number of years has passed, the expenditure will come to exceed 

 the income, and a small capital must soon be exhausted. Still, 

 however, if young members can be found, if the contributions be 

 increased, and the allowances reduced, a long period may elapse 

 before the growing evil is fully known, until by the greatly in- 



