THE New Zealand Herald AND DAILY SOUTHERN CROSS. MONDAY, JULY 23, 1900.

New Zealand Herald, Volume XXXVII, Issue 11431, 23 July 1900, Page 4

THE New Zealand Herald AND DAILY SOUTHERN CROSS. MONDAY, JULY 23, 1900.

The Friendly Societies are anions the most important of our social institutions, not the less so because their beneficent working is so unobtrusive as to be hardly known outside their immediate circles. To the thrifty and industrious mechanic and labourer, who constitute the great bulk of their various memberships, they afford a security against the inevitable risks of civilised life, the value of which cannot be overestimated, doing so in that truly cooperative spirit which bases collective strength upon individual patience and foresight. When we bethink us that they number on their rolls no less than 35,000 members in our own. country alone—mostly heads of families, almost wholly wageearners—and thus affect for good quite 200,000 persons, or a quarter of our entire population, we begin to have an idea of. what they mean to the State. The custom of organised effort which, they engender,.

a/id the habit of self-reliance which 'they foster, are as moral; influences .as advantageous. to the community at large as' is the great material aid they render to such a large and important section of . the industrial classes. The sick and injured workman who shrinks from "charity" as an insult to his manhood, relies upon them not only to provide him with medical care and comforts, but to make him sufficient money payment, to keep the wolf from His door. More than this, his wife and children at need are treated by'the society doctor; funeral expenses of member and wife are likewise provided for; widows and orphans are not left penniless. All this noble work is done by the voluntary cooperation of the working classes, who, without a pennyweight of artificial compulsion, have built up and maintain, with their weekly silver, this huge and praiseworthy system of organisation. Such weaknesses as the system has are entirely incidental, and not fundamental. While every effort should be made to rectify any serious weakness—and there is ono —any public or private action which touches the Friendly Societies should be considered beforehand with meticulous care.

The yearly report for 1899 of our Registrar of Friendly Societies contains, amid its maze of figures, some interesting information. It is rather unfortunate, by the way, that the fountains, of knowledge are usually found in dry and arid places; authors of light literature need never fear that the publication of' such reports, will injure their sales. Remembering how common and worldwide is the most cerious actuarial criticism that the Friendly Societies arc not really solvent, we turn anxiously to the tabular analysis, which shows how the various societies and their branches stand. While it is regrettable to see a marked deficiency in the funds of many lodges, courts, and tents, it is nevertheless encouraging to find very many officially recognised as in a thoroughly sound financial condition, and to see how greatly the resources of the New Zealand societies exceed those of all other Australasian colonies. The latest Friendly Societies' returns, our own dating on December 31, 1898, show the following memberships''and funds: —

The'liabilities being averagely much the same in all the* colonies, it will be seen from this that our island societies are considerably removed from the sweeping criticism which has been officially made on the other side of the waster. This superior financial position is possibly largely due to one very important order having early established tho graduated scale of payment, based on age at joining, j/n place of the old method of one payment regardless of age, with other sound reforms ; the same Older, in Australia, lingered long before amending, and suffers accordingly. But in spite of New Zealand's superior position, it cannot be considered satisfactory. Roughly speaking, the lodges which show solvent, balance-sheets do so because of very profitable investments made in their early clays, and not because their members have paid sufficient to render* them solvent by ordinary actuarial calculations. For instance, we are reliably informed that the richest and most substantial lodge in Auckland pays 30s per annum for " management," that term including doctor's allowance; a member only pays it 26s yearly for " management.' 1 There can bo no doubt whatever that most Friendly Societies ought to raise their payments. Their best men are unanimous in agreeing upon this. We most sincerely hope that they will bring aboul such reform without being required by law.

Vi 7 e might expect the new State pension system to have some effect upon the benefit societies. But nome of the New Zealand societies, art far as we can gather, have hitherto Sit in motion the superannuation machinery which their rules optionally provide for. Naturally, they will not do so in the- face of the provision of our State pension lawproviding that any personal income is deductible from the amount paid by the State. What this means is shown by the superannuation benefit tables: a payment of 8d per month from the early age of one to the superannuating age of 65 is necessaiy to secure them the weekly 7s which the Government gives freely to all who have not thus provided for themselves. We believe that we voice the unanimous opinion of the Friendly Societies in stating that while not in any way opposed to the State pension law, but generally warmly approving it, they record the provision referred to as decidedly calculated to handicap thrift and discourage personal saving for comfort in old age. The British Friendly Societies, whose superannuation benefits are largely availed of by their members, have unanimously resolved in favour of the coming ; State pension being, paid without deduction for other income; such a change must be made in the NewZealand pension system before the local Friendly Societies can expand to their full and legitimate extent. Speaking of expansion, the abovegiven table shows that in this colony, (hough societies are very populai, the proportion of membership to population is low as compared to the Australian showing. South Alls- ' tralia, with less thanshalf our population, has more societies-men. All the colonies proportionately exceed us. We take it that the great reason for this is to be found in the greater development of New Zealand country life, both in the matter of agricultural and of semi-agricul-tural settlement. Our towns are smaller in size and) our town-popu-lations smaller in general proportion than on the other side. The benefit society is essentially a town institution, which never established itself among those whose crops are growing and cows milking, and hens laying in times of sickness as in times of health.

Number | Amount Capital Colony. of j of pur Members, j Fundi. Member. £ £ s. (1. Victoria .. .. 88,728 1,220,270 13 15 1 New South Walfld.. 09,121 608,403 8 12 V Smith Australia .. 42.70:1 475.0M 11 2 9 New Zealand .. 35,801 07S,74tl 10 i 'I Queensland .. 27,1% 201,830 7 8 0 Tasmania .. .. 11,£71 U.'.,'2fl2 8 (I ft We»l. Australia .. 4,'43 I «5,40fl I 7 ID 11