INSURANCE OF FISHING-BOATS. 125 



knows that such a system must be highly advantageous to 

 all persons, especially to those who are not overburdened 

 with this world's wealth. Some gentlemen are in favour of 

 holding a heavy reserve fund in hand, but I cannot see any 

 advantage in such a course. A call for what money may 

 be required can be made and collected in a few weeks, and 

 in my opinion it is far better that moneys which are not 

 needed immediately, should remain fructifying in the 

 pockets of the shareholders, than that they should be 

 placed in a fund from which little or no benefit would 

 result, even to the company. 



Average and total loss insurance. A feature, and a 

 very proper feature, of Mutual Marine Insurance, is that 

 no vessel shall be insured for its full value except as 

 against total loss. Such a rule is a great safeguard against 

 fraud, because, as the owner has to underwrite himself to a 

 certain extent, he is specially interested in keeping his 

 vessel and her stores in sea-going trim, and, in the event 

 of damage being done to her hull or stores, in seeing that 

 such damage is properly and effectually repaired at the 

 lowest possible cost. 



All damage should be paid for. I have already pointed 

 out that the rules of ordinary underwriting are made for 

 the primary and special benefit of the underwriter, and the 

 regulation which provides that no damage shall be paid 

 for unless it amount to a certain sum, proves this state- 

 ment to be correct. I am of opinion that all real damage, 

 as distinguished from wear and tear, should be paid (or. 

 According to the ordinary rule, if the limit were fixed at 

 50 the underwriter would not contribute a penny-piece 

 towards the repair of any damage, the cost of repairing 

 which would be below that sum ; if the repairs amounted 

 even 10^49 195-. \\d., the underwriter would be exempted 



