136 Mr W. Fraser cni the History and Constitution of 



creased claims of the now more numerous and aged members, 

 the society suddenly go to ruin. 



Another important error which societies have committed, is 

 in enlarging their distributions, when their capital has continued 

 progressively to accumulate for a long series of years. This 

 circumstance, however, until its reasons are fully understood, is 

 apt to create a dangerous illusion. Although the annual con- 

 tributions for a number of years at the commencement may be 

 greatly less than is necessary to support the society to the end, 

 yet the capital may for many years continue rapidly to increase. 

 In the early and healthy period of life, the members, even with 

 a very low contribution, will pay more than they receive, but in 

 advanced life they will receive much more than they pay. A 

 society, therefore, for money received, undertakes to pay after- 

 wards a far greater amount; and hence, although possessing a 

 large capital, it may still, in fact, be far below the requisite 

 sum. As has already been remarked, however, an idea has 

 very generally prevailed,, that Friendly Societies have no need 

 of funds, and . that to accumulate capital is merely providing 

 for posterity, since societies have it always in their power either 

 to raise their contributions or lower their allowances, as cir- 

 cumstances may require. But, as was long ago justly remark- 

 ed by Dr Price, all that is given too much to present claim-, 

 ants is so much taken away from future ones ; and if a scheme 

 is very deficient at the beginning, the first claimants may, 

 from the greater part of the members being young and healthy, 

 receive for a number of years so much more than they ought 

 to have done, as to leave little or nothing for those who come 

 after them. Erroneous schemes are therefore attended with 

 peculiar injustice ; and this injustice will be the same, if, in- 

 stead of reducing the allowances, the annual payments should 

 be increased, for the only difference consists in causing the in- 

 justice to fall on future contributors instead of future claimants. 

 In general, however, deficiencies will only be perceived when it 

 is so late that no other alternative remains to save societies from 

 instant destruction, but either to raise the contributions, or re- 

 duce the allowances far below what was originally promised. 

 Members, therefore, entering twenty or thirty years after the 

 commencement, will be called upon to pay larger yearly contri- 



