FRIENDLY SOCIETIES

Evening Post, Volume CVII, Issue 67, 22 March 1929, Page 16

FRIENDLY SOCIETIES

INCULCATING- THRIFT

POSITION IN BRITAIN

In a year of aeuto industrial depression, with more than one million workers unemployed and many under-em-ployed, the voluntary self-governed friendly societies, have succeeded in making both numerical: and financial progress, writes a correspondent of "The Times." It is a groat achievement, and a remarkable exhibition of those qualities of thrift, self-respect, iind self-dependence which arc the distinguishing characteristics of the British people. When National Health Insurance came into force in 1912, with compulsory insurance against sickness.and disablement, it was generally feared that friendly societies had had their day. They had served a useful purpose, but the State appropriated their experience without compensation. The Manchester Unitey of Oddfellows' sickness and mortality experience of 1893-07, compiled by Mr. (now Sir) Alfred Watson, the Government Actuary, at a cost of thousands of pounds, formed the actuarial basis of the scheme, and politicians considered they had taken over the business.. What has happened? Since the introduction of National Health Insurance the independent membership of friendly societies has grown from 6,709,188 to 7,500,000, and the capital reserves have expanded from £50,488,71-1 t0'£01,333,723, and, with better health conditions during this year, the completed returns will show an aggregate capital of £93,000,000. It has to be admitted that the higher value of money since the war has considerably improved the financial position of all the societies and is giving surpluses which provide additional benefits or remission of contributions in whole or part at 00 or 05 years of age. But, even allowing for this, the continued progress of friendly societies proves incontestably that millions of our • people are imbued with the qualities which laid the foundations of the friendly societies more than a century ago.

It is true that the societies have been forced to adapt their work and benefits to the changed conditions brought about by the incursion of the State into the realm of social insurance by compulsory schemes of old-age pensions, sickness, and disablement insurance, and now widows' and orphans' pensions. The original basis of the friendly societies was a.n all-life sickness and disablement benefit, with a payment at death. Now the leading societies have adopted a system of sickness insurance payable until 70 .years of age, with an endowment insur-

aiicc payable cither at 65 or 70. With the lowering of the pension age to 65 the next change will be making that the ago for ceasing the payment of sickness benefit. If that is done the societies will be in a position further to increase the endowment payment, as the sickness claims between 65 and 69 years of age average 10.59 weeks per annum. It is this adaptation of their work to the changing circumstances of the time which has enabled the societies to maintain their position among the social organisations of the country. VALUABLE SOCIAL WORK. Beside the benefits .which they pay to their members in times of sickness and disablement the friendly sociotcs do a groat social work in training thousands of young men and women in the conduct of public business, in the investment of money on mortgages and other securities when serving as elective officers of their courts and lodges. It is probably within the mark to say that 50,000 young men are continuously passing through these offices. Thou the societies are doing a great social work, never more needed than to-day, in creating a nation of freehold houseowners. Of the aggregate capital reserves at least one-half of the money will have been advanced to members on mortgage to enable them to become their own houseowners, and th> repayments periodically of principal and interest provide a regular flow of money for this purpose. In this part of their work the friendly societies may be said to be doing their members and the State service of the highest value. Beside their voluntary work all the societies act as approved societies for the administration of National Health Insurance, and have altogether about 6,000,000 members. Those who are only State members are being oncour- , aged to attend the lodge and court meetings and take their part in'administration. In this direction the societies are opening avenues to Stateinsured persons which are closed by national approved societies run by insurance companies. An appreciation of the work which tlio friendly societies are doing in this and other directions was made by Sir Walter Kinnear Controller of National Insurance at the National Conference at Scarborough in September. "There never was a period in our national history." he said, "when the inculcation of tho friendly society principles of brotherhood and self-reliance among our people was more needed." The coming into operation of the Contributory Pensions Act on " IK I January has reduced tho pension ago trom 70 to 65 years. As a result no fewer than 882,750 insured persons have received pensions, without any restriction as to means. There are also 274,500 widows and 365,300 children receiving allowances under the Act.