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New Zealand Herald, Volume XXVII, Issue 8376, 2 October 1890, Page 4

We have several times of late referred to the unsatisfactory position of many of our friendly societies. The annual report of the Registrar of Friendly Societies showed conclusively that many of these societies which contain numbers of the very best, because the most provident, of the working men, had not made sufficient provision, by their rates of contributions, to pay the sums promised. They were therefore rapidly drifting into an insolvent position. The subject was revived when it appeared that in several cases the funds had suffered through the misconduct oi the treasurers. In one case a society lost a sum of £400 or £500, and it was clear therefore that that society could not, in the ordinary course of things, fulfil its pledges. Some of the members of these societies have been considering the subject, but so far as we are aware nothing has been done. In the House of Representatives, on August 14, Mr. Goldie asked the Premier whether, in view of the serious defalcations that have from time to time been discovered in the accounts of friendly societies, he will take steps to give effect to a desire on the part of many members of such societies to have their accounts audited by the Audit Department. He pointed out that in two cases in Auckland treasurers had made default to the extent of some £700. He understood that as the law now stood the societies could, if they liked, ask that a Government auditor should audit the accounts, but tlu opinion seemed to be that a Government audit should be made compulsory. Mr. Mitchelson's reply was that defalcations had taken place in various parts of the country, but that the Audit Department could not undertake the work of dealing with the accounts of friendly societies. Mr. Fish also pressed that there should be a compulsory audit by a Government auditor, but the Government would not make any promise. The theory of the Government is that the friendly societies should do their own work, with such guidance as they receive from the valuers and the report; of the registrar. And this is quite right. It is a wretched policy always to run to the Government. If these societies, composed of intelligent men, cannot take care of their own affairs, then they had better cease to exist. Aα opportunity now offers for the Auckland societies to obtain the most competent advice. Mr. Mason, the llegistrar of Friendly Societies, is now in Auckiand, and for the remainder of this week may be seen between ten and twelve at his office in the Supreme Court building. Mr. Mason is an enthusiast in his work, and is most anxious to be of as much use as possible to the societies. We would suggest that while he is here, there might ue assembled a conference of officers of the friendly societies to determine how best to keep a complete check over their funds, and also to ascertain how those societies which are not financially sound may place themselves in an unexceptionable position,