378 



INSURANCE. 



Losses (is shown above , $18.020,000 



By fires that destroyed less than $20,000 each . . . 6,000,000 



Products of Southern plantations burned 10,000,000 



Bridges destroyed 5,000,000 



Vessels burned 8,000,000 



Buildings burned by military orders 2,000,000 



Farm products destroyed 1,000,000 



Total value of property destroyed in 1861. . . $45,020,000 



The following figures show the losses by fires 

 in the United States during the past eight years : 



This, although insured, is a positive destruc- 

 tion and utter loss of so much of the national 

 capital, amounting very nearly to $200,000,000 

 in 8 years, or one half of the value of the gold 

 raised in California in the same period. Under 

 the supposition that the productions of the 

 United States are worth $2,000,000,000, which 

 is the census estimate, and that the dwellings are 

 worth an average of $500 each, the aggregate 

 of goods and dwellings would be $5,000,000,000, 

 and the annual loss by fire would average two- 

 fifths of one per cent. 



The tonnage value of the United States is 

 about $250,000,000, and the loss of vessels 

 is about $13,000,000 per annum, which would 

 be about 5 per cent. 



The marine losses for three years were as 

 follows : 



This immense loss of property in a single 

 year testifies to the abundance of the national 

 wealth, as well as to the risks that are incurred 

 through the elements in the possession, trans- 

 mission, and exchange of property. The agency 

 of the insurance companies is very important 

 in dividing up this loss in such a manner that 



the whole capital of the country bears it rather 

 than individuals. In respect of the fire risks, 

 each State has different laws that govern the 

 companies. In Massachusetts, where the most 

 strict regulations prevail, the mutual principle 

 has been most successful, while in New York 

 the joint stock principle has been most popular. 

 Where the business is skilfully conducted on 

 sound principles, the mutual system seems to 

 offer the most advantages, but each has its 

 partisans, and in different States the local pre- 

 judices decide to some extent. 



The difficulties of the year 1861 have had a 

 marked effect upon Insurance, as upon most 

 other business. The decline in the business for 

 the year, as indicated in the amount of risks, 

 seems to have been about 10 per cent., while 

 the losses have not declined proportionately. 

 Less marine business was done, because our 

 shipping trade was interfered with by the 

 operations of war, and what was done was 

 more hazardous ; and less fire business was 

 done, because merchants held less stock, and 

 people generally had less money to pay for 

 premiums, while the events in the disturbed 

 districts involved greater loss. The Massachu- 

 setts reports for the year 1861, as compared 

 with the year 1860, give results as follows: 



The decrease in marine business was, it ap- 

 pears, $24,000,000, and in fire business $20,- 

 000,000 in these Massaclmsetts companies. The 

 business was divided among the several com- 

 panies of that State as follows: 



Massachusetts Insurance. 



