“The Press” In 1864

Press, Volume CIII, Issue 30452, 28 May 1964, Page 14

“The Press” In 1864

May 28. STATE INSURANCE The most important piece, .of information contained in the recent mail from England, so far at all events as relates to Home affairs, is the introduction of a Bill into Parliament by the Chancellor of the Exchequer empowering the Government to occupy the ground now filled by a certain class of Insurance or Friendly Societies. Probably no proposal has created so much discussion or excitement in Parliament and in the country for some years. Mr Gladstone’s scheme, initiated two years ago for connecting savings banks with the post offices all over the country, is admitted on all hands to be a brilliant success-in legislation The poorer classes are everywhere taking advantage of a plan which enables them to lend their money to the Government by depositing it in the Government savings banks, taking the security of the Government for its

safe custody, and receiving a moderate rate of interest for its use. And the omnipresent character of the post office enable's it to place itself within the reach of almost every man in the country. Encouraged by this great achievement Mr Gladstone turns his attention to the question of life insurance as affecting the working classes. The great companies are not concerned. They do not, it appears, give policies on small sums, and their affairs are conducted in a manner to call for no special legislation. But those insurance companies and friendly societies which do business amongst the lower orders, he finds to be to a great extent in a state of rotten-ness Poor men. subscribe for years, and at last the affairs of the company are wound up., and all the savings of the subscribers are lost No less than from 8000 to 9000 friendly societies have failed since the Friendly Society Act came into operation, involving a loss to the

laboring classes, almost incalculable. Mr Gladstone proposes as a remedy that the Government shall establish insurance offices all over the. country giving no policies for -upwards of £lOO, and insuring no lives of children under 16 years of age: doing in short, a business strictly limited, to the wants of the industrial classes. If the working men could insure their lives securely, without the interference of the Government, that would be far better; but if the prudent anxiety of a laboring man for the future is unavoidably liable to be made use for purposes of fradulent speculation by sharpers, and Government can secure to him the option of investing his savings in offices where the credit of the nation is pledged to their safe custody and honest return, it is hard to say that the crude maxims of political economists should frighten Parliament from conferring an obvious benefit on the mass of the people.