MANAGEMENT OP AN INSURANCE OFFICE. 279 



case the annual division is unquestionably the more safe ; 

 since it is easier to predict the capabilities of one year 

 than of seven. 



In writing upon any point connected with insurance, 

 the practice of the Equitable Society naturally suggests 

 itself. Nevertheless, I always consider that society as a 

 distinct and anomalous establishment, existing at this 

 moment under circumstances of an unique character. 

 It is the result of an experiment which it was most 

 important to try ; but which having been tried, need not 

 be repeated. Its history is briefly this : The Ami- 

 cable Society, which, in the year 1760, was the only 

 one existing, was originally founded rather on princi- 

 ples of mutual benevolence, than of mutual insurance, 

 as now understood. A certain number of persons (the 

 only restriction being that their ages should be between 

 twelve and forty-five), each paying the same sum 

 yearly, the whole fund of each year (or the greater 

 part) was divided among the representatives of those 

 who died within the year.* The Equitable Society 

 was founded upon the principle of apportioning the 

 payments to the risk of life. The tables were con- 

 structed by Dodson, who, as Mr. Morgan remarks, 

 fe for greater security assumed the probabilities of life 

 in London, during a period of twenty years ; which, 

 including the year 1 740, when the mortality was almost 

 equal to that of a plague, rendered such premiums 

 much higher than they ought to have been, even ac- 

 cording to the ordinary probabilities of life in London 

 itself." The truth of this remark will sufficiently ap- 

 pear, from comparing the average of the present office 

 premiums with the original Equitable premiums, as 

 given in the following table. And even these pre- 

 miums were increased on the most frivolous pretexts. 

 Thus female life and young life were considered as 

 more than usually hazardous, and paid for accordingly. 



*~The Amicable Society now retains only one of its original characters ; 

 namely, that all members, whatever may be their age at death, or the term 

 of their continuance in the society, participate equally in the profits. 

 T 4 



