SOCIAL ECONOMICS OF THE INDUSTRIAL ORDERS. 





to be half a week indisposed per annum ; be- 

 tween thirty and forty, the average was about 

 two-thirds of a week ; at forty-six it became a 

 full week ; at fifty-seven, two weeks ; at seventy, 

 eleven weeks. The society, from taking unsuitable 

 grounds for their calculations, made out the prob- 

 abilities of sickness considerably too low. Vari- 

 ous other partial observations exist, compiled by 

 Mr Ansell, Mr Neison, Mr Finlaison, and other 

 actuaries ; but as it has been found that sickness 

 varies more considerably than mortality with 

 the salubrity of the localities inhabited and the 

 occupations of the members, no absolute reliance 

 can be placed on their results. Perhaps the most 

 valuable tables are those computed by Mr Rat- 

 cliffe, and which are based upon the experiences 

 of the Manchester Unity of Odd-fellows. Previ- 

 ous to their publication, Dr Price assumed, in the 

 absenceiof direct observation, that the numbers sick 

 at each age bear a certain proportion to the prob- 

 ability of life ; and Mr Edmonds followed this up by 

 what is designated by Dr Farr 'a bold and happy 

 hypothesis,' that this proportion is, at every age, 

 simply as two constantly sick to one annual death. 

 The consequence of such a view is consistent with 

 a result in which all observations agree, that in- 

 crease of years is attended by increased liability 

 to sickness. Now, a rightly constituted friendly 

 society is bound to advert to this circumstance. 

 To admit all ages at an equal payment, is clearly 

 making the younger members pay for the elder, 

 who should have entered at an earlier age, and 

 been paying all along. 



Yearly Societies. 



Another great error in the constitution of 

 benefit societies is in making them for a year 

 only. Many of the old friendly societies having 

 ended in disappointment, in consequence of 

 want of right calculations, or bad management, or 

 peculation of the funds, the working-classes have 

 contracted the notion, that there is more safety in 

 a yearly term. The immediate payments are also 

 less than in a well-constituted friendly society. 

 These yearly societies, which are known by differ- 

 ent names in different parts of the country, usually 

 originate with some individual often the keeper 

 of a tavern who advertises that a society will be 

 formed in his house on a particular day. Ap- 

 plicants for admission pay one shilling as entry- 

 money, which goes into the pocket of the orig- 

 inator of the scheme, by way of rent. The objects 

 are generally threefold namely, a fund for sick- 

 ness and funeral expenses, a deposit fund, and 

 a loan bank. Towards the first, there is perhaps 

 a weekly payment of twopence, or more if neces- 

 sary, together with the interest arising from the 

 loan of money to the members. Towards the 

 deposit fund, there is a payment ranging generally 

 from sixpence to two shillings, the accumulations 

 being received back when the society closes. The 

 money deposited is employed in making loans to 

 such of the members as desire such accommoda- 

 tion, within the amount of their several entire 

 deposits for the year, one penny per pound per 

 month being charged by way of interest. The 

 surplus, if any, of the twopences and interest, after 

 sick and funeral money, books, and other neces- 

 saries are paid, is divided amongst those members 

 who may be clear of the books at the close of the 

 society. Some such societies are formed by a 



spontaneous association of persons, who prefer 

 renting a room , for their meetings, and thus 

 escape the temptations of a tavern ; but none of 

 them avoid the errors of an equality of payments 

 for all ages, and the yearly dissolution. The 

 youth of fifteen, who is not liable to half a week's 

 sickness per annum, pays as much as the man of 

 fifty-seven, who is liable to two weeks. Should 

 sickness befall any one towards the close of the 

 year, he is left, when the society dissolves, quite 

 unprovided for, because he cannot enter another 

 society in a state of sickness. Considered as a 

 deposit for savings, the yearly society is strikingly 

 inferior to the savings-bank, in as far as the 

 depositor cannot take out money without paying 

 an exorbitant rate of interest. Finally, these 

 societies are generally under the care of obscure 

 persons, who can give no security for the funds 

 placed in their hands, and who in many instances 

 become bankrupt or abscond before the final 

 reckoning. Yearly societies are, indeed, in every 

 point of view, a most objectionable class of institu- 

 tions, to which working-people would never resort 

 but for their ignorance and unwariness, and the 

 temptations held out to allure them. It is, there- 

 fore, satisfactory to find that in some places 

 these associations are losing much of their popu- 

 larity. 



The strongest plea for the yearly society is its 

 simple construction, involving, as it does, no 

 permanent contract between the fund and the 

 contributor of much longer duration than that be- 

 tween the man and the master. It must, however, 

 be certainly conceded that the invariable annual 

 premium cannot claim this advantage, as in its 

 principle it provides for a surplus in the earlier 

 payments, involving questions of considerable com- 

 plication, when any calculation of the pecuniary 

 interest of the member has to be made. Dr Farr 

 has, however, computed a set of tables which, by 

 adjusting the rate of sickness payment to the 

 increasing age of the member, provides equitably 

 for each contingency, and likewise provides that 

 the connection can at any time be equitably 

 closed. Two specimens of these tables are an- 

 nexed ; the complete tables are to be found in the 

 twelfth annual Report of the Registrar-general for 

 England. The first table may be read thus : A 

 person of the age of 17, or of any age under that 

 Allowing (22), insures, for a premium of 4d. a 

 week sick-pay, at the rate of ^i for every week 

 of sickness, or of 35. 4d. for every day of sickness, 

 except Sunday. 



WEEKLY PREMIUM TO INSURE PAY IN SICKNESS AT THB RATE 

 OF ONE POUND A WEEK. 



