576 



Insurance of Live Stock. 



[NOV., 



to a charge for inspection and marking on entry. This system ' 

 has the advantage of simplicity, but it is open to the objection, 

 particularly in the case of cows and horses, that the owner 

 of a high-priced animal pays no more than the owner of one 

 of less value, though in the event of loss he would receive 

 considerably more from the society's funds. This objection 

 could be removed by the valuation of each animal on entry 

 into the society, and its annual revaluation, with the adoption 

 of a scale of premiums proportionate to the value. On the 

 Continent this system is frequently adopted, and in the event 

 of the accumulation of a large reserve fund the premiums are 

 reduced. From the experience of a large number of societies 

 in Bavaria, insuring in all over half-a-million animals, chiefly 

 cattle, a premium of i J per cent, of the insured value, or 3s. for 

 every £10 , has proved on the average sufficient. 



Reserve Funds. — The Friendly Societies Act requires regis- 

 tered societies to make provision in their rules for the invest- 

 ment of their funds, and it is desirable that the rules of un- 

 registered societies should specify in the same way that funds 

 not w r anted for immediate use, or to meet the usual accruing 

 liabilities, shall be invested by the trustees as the Committee 

 may direct, in the Post Office Savings Bank or in any savings 

 bank certified under the Act of 1863, or with the Commissioners 

 for the reduction of the National Debt, or upon Government or 

 real securities in Great Britain or Ireland. The trustees or 

 treasurers of registered societies may invest any sum of money, 

 the property of the society, without restriction as to the amount, 

 in any savings bank willing to receive their deposits. 



The accumulation of a substantial reserve fund is un- 

 doubtedly desirable as a protection in the event of an epidemic 

 of disease occurring in the neighbourhood, but it is very 

 necessary that suitable provision should be made in the rules 

 for the auditing of accounts, inspection of books, &c. In this 

 connection it may be observed that the registration of a 

 society ensures the proper keeping of the books, as a balance 

 sheet, called the Annual Return, duly audited and signed by 

 the Secretary and Treasurer, has to be sent each year to the 

 Registrar. 



The only criminal remedy against fraud by its members 

 open to an unregistered society is confined to cases of larceny 



