VALUATION OF FRIENDLY SOCIETIES.

Tuapeka Times, Volume XXIV, Issue 1800, 3 June 1891, Page 6

VALUATION OF FRIENDLY SOCIETIES.

The Government, in the retrenchment of the services, will have in the Friendly Societies' Department, their greatest difficulty to face. This is one in wh eh the saving will probably be regarded as small, but which illustrates all the features connected with economical administration of a department. Under the Friendly Societies Laws Constitution Act of 1882 every friendly society shall, once at least every five yearp, cause a valuation to be made of its assets and liabilities, by a valuer to be appointed by the society and approved by the Governor, who shall send on his report to the registrar, or send to the registiar a return of the benefits and contributions receivable from all the members of the society, and of all its funds, debts, and creditors, accompanied by such evidence thereof as the registrar may prescribe, in which case the registrar shall cause the assets and liabilities of the particular society to be valued and reported upon by some actuary. From the above abridged section (section 12) of the Act it will be observed that in the valuation by a valuer appointed by the society, to be approved by the Governor, no definition is given as to the standing or competency of the valuer. In the second clause the registrar has to submit the returns snpplied to him by the society to an actuary. Some years ago the valuations were made by a Government officer, who was at the time, or has since become, a member of the Institute of Actuaries ; at all events his competence for the duty was never called in question, but there waß an outcry against his valuation. Possibly he did not have regard to some or many particulars which the friendly societies thought should enter into the valuation. They therefore demanded that the valuations should be made outside the Government altogether. It is now said that some of these outside valuations are not satisfactory. There is no doubt, however, these valuations have cost the Government a lot of money. The Government see their way to economise the expenditure under thia head, and to carry out the provisions of the statute under the alternative offered by tha 12bh section, to the effect that a society shall sand into the registrar a return of all funds and effects, the number of assured, and the moneys receivable, with the evidence in support thereof (together with the fee appointed in such cases), and the registrar Bhall cause the same to be, reported upon by some actuary. I should not be surprised to hear that this intention on the part of the Government, if it really exists, should cause a good deal of stir among the authorities of all such societies. I am also informed that opinion is very much divided on this subject. Two things, I suppose, are operating on the mind of the Government in this matter : (1) Economical administration ; (2) the desirability of getting an actuarial certificate in respect to suoh valuations. Ido not know whether the societies have yet been apprised of the intention of tbe Government. I have not been able to asclrtain exactly whether the

savings will be worth the candle, and the probable outcry by this change of front. In any case the proposal, if it shall be earned through, will improve the security of this class of property when it comes to the market.— 'New Zealand Herald* correspondent.