1903-4.] THE PRINCIPLES OF INSURANCE. 97 
of their responsibilities will be held by those who may control it. If it is 
to be fraternal, which I favour, every table of rates and every annual state- 
ment should have the certificate of a competent actuary attached, to the 
effect that (1) the rates are sufficient according to the assumptions stated 
and that (2) the balance sheet has been made up in accordance therewith. 
These documents should be filed with the statistical officer of the govern- 
ment, and duly published. Legislation might provide that no society should 
receive contributions unless at a fair current rate of interest they would 
amount to the liabilities of the future. I think the societies should be 
provincial, not Dominion, so far as their organization and business are 
concerned, but Dominion legislation may be required to facilitate the 
transference of members from one province to another, carrying with them 
proper assets and liabilities, from one company to another, in case of per- 
manent removal. 
Savings for sickness or old age made in these societies might be guarded 
against seizure or hypothecation, up to a limited amount. They should 
not be invested, to please the government, in low-interest bonds, but allow- 
ed to earn good interest on sound mortgage security. There is no need 
for the government to have any of their property inits safes. The expenses 
should be controlled by strict rules, and in case of extravagance or failure 
to realize the assumed rate of interest, there should be an automatic method 
of resting all the property in a government commissaire, who should transfer 
the assets and liabilities at a fair rate to another solvent society or compel 
the formation of a new society under different management. The manage- 
ment of the societies has heretofore looked only to the financial conditions 
of their charge. There should be a system of care to prevent and to cure 
disease, and the object should be not to procure medical advice and medicines 
at the cheapest cost but to get the best help, as the most effective. Hospital 
nursing, convalescent homes, and what the Germans call household bar- 
racks, and recreation grounds must be developed, where those suffering 
from asthma, stomach and heart disease, hysteria, anemia or the conse- 
quences of accidents, operations and inflammations may regain health. 
In this, municipalities would aid quite heartily, and so would generous 
individuals, and independence could be preserved by a contribution from 
the society for the cost of food, etc. In time the various needs should be 
met by the same society, or federation of societies, saving trouble and 
consequent expense. Life insurance additional to the funeral benefit 
should by each organization be supplied at cost, and it is not difficult 
to foresee that, by the aid of large accumulated capital, better dwellings 
could be secured for the thrifty mechanic or labourer and a variety of other 
benefits obtained. 
