

SOCIAL ECONOMICS OF THE INDUSTRIAL ORDERS. 



insurance to a certain extent on their lives a 

 great advantage to persons of uncertain life- 

 incomes. The table is calculated for 3 per cent, 

 interest on the deposits. Proprietary and mutual 



life-offices add 19-40 per cent to the calculated 

 premiums for profits, expenses, and bonuses ; and 

 Dr Farr proposes to add one-fifth that is, 20 per 

 cent. for a like reason. 



DR PARK'S PLAN TO INSURE THE LIVES AND GRANT PENSIONS TO THE LABOURING-CLASSES. 



A ( Annual Premium to insure the Life 1) To be discontinued 



( Annual Premium to provide a Life-annuity i) at the age of 65. 



The table reads thus : A person commencing 

 at the age of 20, pays 2 a year until he is 64, 

 and then pays the last premium. He will, at the 

 age of 65, having paid 45 premiums, receive 

 .18, 73. 5<I, also the same sum annually for the 

 rest of his life. At his death, his relatives or 

 representatives will be entitled to ^91, us. Should 

 he wish to discontinue the annual premium on the 

 insurance account at any time, the sixth column 

 shews his position from that time ; thus, after the 

 fifteenth premium is paid, his life will stand 

 insured to the amount against 15 in column I 

 namely, ^38, 53. 2d., the amount in deposit at that 

 time being ,16, i6s. 3d., which is the present value 

 of his interest in the scheme, and which he may 

 be allowed to withdraw subject to any conditional 

 by-law of the society. 



In like manner, the annual premium in the 

 annuity account may be discontinued, and the 

 deposit withdrawn. Thus the same member 

 having paid 15 premiums of i, is secured in an 

 annuity of ^10, 2s. 8d. per annum, commencing at 

 the age of 65, as before, the present value thereof 

 in deposit on his account being, per column 4 of 

 table, 20, os. id. 



The importance is evident of commencing the 

 insurance at an early age, and of combining the 

 insurance with a deferred annuity. On both the 

 insurance and annuity account, the premiums 

 may be doubled or trebled, and in that case will 

 provide double or treble the sum insured, as well 

 as double or treble the annuity. With equal 

 premiums, the amount in deposit on the two 

 accounts is little less at the outset than the sum 

 insured, and in a few years exceeds it. Some 

 addition to the premium, as has been before 

 stated, is necessary for the expenses and for a 

 guarantee fund ; the i might be made i, 43., 

 the excess being returned as a bonus at intervals 

 of five years. 



The Edinburgh School of Arts Friendly Society 

 furnishes a fair example of a friendly society with 

 working arrangements of an approved character. 

 It was established above fifty years ago, and 

 possessed, at the commencement of 1873, nearly 



400 members, with funds to the amount of 

 ,15,446. This society, although originating with 

 certain of the members of, and friends to the 

 School of Arts (a species of mechanics' institu- 

 tion), and taking its name, is not otherwise con- 

 nected with that institution, but is open to all 

 persons, male and female, residing in Edinburgh. 

 It has three separate funds or schemes namely, 

 a Sickness Fund, a Deferred Annuity Fund, and 

 a Life-assurance Fund. By the immediate pay- 

 ment of the sum of 11, os. 6|d., or an annual 

 payment of 143. 3d., or a monthly payment of 

 is. 2d. (first month, is. 5d.), a man, aged 30, 

 becomes entitled to los. a week, during sickness, 

 for 52 weeks ; 75. 6d. for the following 52 weeks ; 

 and 53. a week for all future periods of sickness 

 until the age of 60, when payments and benefits 

 cease. A slightly decreased annual or monthly 

 payment entitles the member to continue his pay- 

 ments until the age of 65, of course being entitled 

 to share the benefits until that age. In like 

 manner the payment of a sum of .13, gs. 8^d., or 

 an annual payment of 173. 5d., or a monthly pay- 

 ment of is. sd. (first month, is. iod.), entitles him 

 at the age of 60, when his payments cease, to 

 an annuity of ^8. The immediate payment of 

 ^3, IDS. 6|d., or the payment, until the age of 60, 

 of an annual sum of 45. 6d., or a monthly sum 

 of 4d. (first month, ioid.), entitles his representa- 

 tives to the sum of .10 at his death. All the 

 three benefits can be secured by the payment, 

 until the age of 60, of an annual sum of i, 173. 3d., 

 or a monthly sum of 33. id. The scale is 

 arranged for various ages, from 19 to 50 ; and 

 for payments to continue until the ages of 60 or 

 65, according to the wish of the member on 

 entering. The rates are calculated from the 

 Highland Society's sickness table, increased by 

 50 per cent., which brings them more closely to 

 those computed by Mr Ratcliffe, seeing that only 

 sound healthy men are admitted and a mortality 

 table compounded of the Northampton, Carlisle, 

 and Swedish, assuming the rate of interest at 4 

 per cent, accumulated yearly ; and the only 

 charges for management are 2s. 6d. entry-money 



519 



