GOVERNMENT ANNUITIES.

Otago Witness, Issue 930, 25 September 1869, Page 1

GOVERNMENT ANNUITIES.

From recent reports it appears probable that little time will be lost by the Colonial Treasurer in bringing into active operation the provisions of the Govern* ment Annuities and Life Assurances Act, which has been passed during the late session. It is as well that the initiation of the system should be in the hands of one to whom we are indebted for tho promptitude with which New Zealand has, in this matter, followed in the wake of the mother country. Without according to the Treasurer any greater merit than that of being the first to take up a subject which, sooner or later, must have forced itself upon the attention of the Legislature, we are not disposed to underrate the task which he kid upon himself. The duty which he undertook, while immersed in the party strife which absorbs so much of the energies of our leading politicians, was one which could bring no immediate politioal profit of the kind to which the leaders of parliamentary parlies are so acutely alive. As a rule, they will oxpend neither time not pains on those subjects from which they do not expect to reap a purely political harvest. From some of those gentlemen who delight to call themselves 'independent mombers,' we might perhaps havo expected a discourse such as that with which tho present Treasurer introducod this subject to the Rouse at tho opening of the sossion. Unfortunately, our independent members are, for the most part, independenfe raerely becauso they havo not even tho now to be partisans. little that is worth recording has over originated with any of them. It wiu* loft to one <loei»l> intent on tho more vulgar object of storming tho citadel of office to give his attention to a subject of great prac ticnl importance, which might otherwise have remained untouched toy. years.

Thore aro persons whoso mental poculiaritioH lead them to carp at every thing, aud a few ore to ba 'found who ■ peak contemptuously of the icheme of which we we ww ijpe&kipg, The Go*

'' verntneht, they^lfflfi 'i^^|^^^ its way to interfere" >^tnl|the^ejKrfi|iijitl business ' of pri^l^soy^S3 objection -^^daiw^vfm^^^SfSw answer, because it can^arise^onT^ from! a totaltignorance of - almost all' the facts 11 of the case. < We . have nothing, t6 Say against the individual private Asspciar tions whose cause these persons desire to champion; l Some of these ' Associations 'are perfect 'in- organization, and" are under the management of "men of high integrity and of undoubted ability! Yet within the 1 last quarter; of a century these Institutions, taken 'as ■a ' Wholes have succeeded by their own" exploits in materially shaking public confidence in the system off private association for Life -Insurance purposes.' Therehas been a great weeding out of Insurance Offices during the past twenty years.' What that may mean in the way of loss^ discomfort, and miseiy to thousand? who have trusted in the offices which have collapsed, bur readers will perhaps be able td divine. It is nofy however, in the Specific losses 1 which have been sustained by individuals that we • see the widest extent of the harm thus done. Any thing which casts a slur upon the beneficent system 1 of Life ' Insurance does a great injury— an injury which cannot be measured — to the community among which it 'operates. The only efficient remedy for the mischief which has in this manner been done, lies in State provision for Provident Investments. It is simply impossible for the majority" of persons to discriminate between'a sound' Insurance Office and an unsound one. Men of business are able to form some opinion on such a subject — although we may safely assume that they, like others, are usually guided by their personal knowledge of individuals connected with the Institution they place confidence in. But with the working classes and those engaged in country pursuits, such discrimination is, as a rule, impossible. They can neither investigate the constitution and history of an Insurance Office, 1 nor are the names of its managers or representatives known to them even by repute. Nothing less than a State security will prove a temptation to the members of these large classes of persons. 'As far as the working classes are concerned — as far as the great bulk of the people are concerned — the only hope of making Insurance general is by ihe State undertaking it.' In saying this, the Treasurer echoed the statesman whose great work he was imitating. More than that, he gave expression to a feeling widely prevalent throughout all British communities — to an opinion founded on a wide range of observation extended over a long course of years. Provident Institutions of every class, without the guarantee of State liability for their engagements, have proved fatal snai'es to thousands of unwaiy persons. It has been so even with the Savings Banks, although never founded for purposes of profit to their promoters j and the Post-office Savings Banks have already, in Great Britain, almost everywhere superseded the older institutions. When addressing the House of Commons in 1864, Mr Gladstone was able to point to a striking instance of tho preference of the populace for a State security, when nuulo easily available, ovor tho best of private ones, even when great inducements in tho way of profit on investments nvo offered. At a time when tho rates of dweount in London were so high as 8 per cent, nnd when Joint Stock Banking Companies of tho highest standing were offering 5 per cont, and even higher rates, for money at call, tho trustees of tho Birmingham Saving Bunk determined to close that establishment. Tho Post-offico Savings Banks which had jiwt been established wore paying only 2& per cent, interest to depositors ; yet, out of 35,000 depositors in the old Savings Bank, twothirds of tho whole, holding a proportionate amount of tho deposited capital, removed thoir moneys to tho Government Institutions. If this has boon tho case with Bank deposits on whioli the difference of profit on an investment could bo so easily undorHfoiod, how much more will it be so with more complicated transaction^ ouch as Life Jmurunoe*, Aanuitl^ Deferred En-

j^inSlftt,, byf VhMl, ,s«^WicaviUerf I'jit1 'jit p&he sys,tem\s 'we haVe^aUudedsto^naf' $|V answered. As it appears to us, it ifjSe'di'dnly to J be stated to "command , acceptance— j.t is entirely and rests upon facts which are patent to all. j