Cleghom on Provident Institutions. 331 



is evidently the production of a man of sound sense, enlight- 

 ened views, and a practical knowledge of the state and charac- 

 ter of the people for whose benefit he writes. The table of 

 contents will point out the importance of this pamphlet; viz. 



" Sect. I. Condition of the Working Classes. — II. The Means which 

 they have resorted to, to protect themselves against want, and to improve 

 their Condition. — III. A General Provident Institution, under the 

 Authority of Parliament, suggested. APPENDIX. No. I. Tables and Ex- 

 amples of Contributions and Allowances. — II. Notices of the Acts relating 

 to Friendly Societies and Savings Banks." 



And the following extract will point out the nature and object 

 of the particular plan he recommends : — 



" The business of the institution would thus fall to be arranged under 

 two great departments, viz. the Banking and the Assurance department. 

 Of the former, which should be confined to receiving small sums, improving 

 them at compound interest, and returning them on demand, or after a few 

 days' notice, it is unnecessary to say any thing. But as to the latter, or the 

 Assurance department, the following suggestions may not be unworthy of 

 consideration. 



" 1 st. The first question necessarily is, what are the risks to be covered 

 by the proposed assurance department ? And to this I would answer 

 generally, the risks commonly taken by life-assurance companies at present, 

 with the addition of Health Assurance, or allowances in sickness. A weekly 

 allowance in sickness, an annuity payable weekly in old age, or after 60, 

 and a sum to be paid at death, which, at the pleasure of the contributor, 

 might be converted into a life-annuity to his widow, according to her age 

 at the time, or applied in any other way which he might direct ; — the 

 business of the assurance branch would probably be confined to these. A 

 small payment for the funeral of a wife, or child, might also be assured by 

 itself; but this is evidently of the same nature, and its value, or the annual 

 contribution necessary, would be calculated upon the same principle as the 

 payment at the death of the contributor himself. * 



" 2d. The risks to be covered should have each of them a separate rate 

 of contribution, and not be paid for in one sum, and without distinction, as 

 in Friendly Societies. 



" 3d. Any one risk should be covered by itself; a person, for instance, 

 might purchase an allowance in sickness, or an annuity for old age, or a sum 

 to be paid at death, — any one of these without the other two, or any two 

 of them without the third. 



" 4th. It has been mentioned as a necessary condition, that the institu- 

 tion should be open to all, without distinction of sex, age, employment, or 

 religious denomination ; but in the assurance transactions, an exception 

 must be made of what are deemed bad lives, in the case of allowances in 

 sickness and at death ; and this further exception belongs to the very na- 

 ture of the institution, which is not intended for the middle and higher 

 ranks ; namely, that the sums to be assured shall not exceed what may ap- 

 pear suitable to the condition of the labouring classes. For want of this 

 necessary limitation, the public have been sustaining a considerable loss of 



" * For the method of ascertaining the value of each of these kinds of 

 assurance, according to the Tables of the Highland Society, see the Ex- 

 amples in Appendix, No. I." 



