Wanganui Herald. (PUBLISHED DAILY) SATURDAY, AUGUST 10, 1889. FRIENDLY SOCIETIES.

Wanganui Herald, Volume XXIII, Issue 6877, 10 August 1889, Page 2

Wanganui Herald. (PUBLISHED DAILY) SATURDAY, AUGUST 10, 1889. FRIENDLY SOCIETIES.

The last report on Friendly Societies has been the theme of much debate among members of the various orders throughout the colony, and, generally speaking, there is a conviction that the Registrar is right, and that the safety of those who put their trust in such societies to tide them over limes of adversity, when illnebs or old age overtakes them, rests in a properly graduated scale of contributions. If it is found — as it has been in the experience of lodges in this colony as well as elsewhere — that a uniform and low rate is not sufficient to meet the demands made on the funds, then it iB folly to demur at higher contributions, graduated according to age. The object of all such societies was well set out by Mr Mason, Registrar of Friendly Societies, in an address delivered in Wellington on July Bth. He said :

"Friendly society organisation is one form of co-operation. Out of wages at the lowest rate it is impossible for men to lay by a sum to meet extraordinary expenditure, especially that entailed by the sickness of tho breadwinner,and the only practical means whereby it is possible for this class to combine so as to avert pauperism is that which you havo adopted in your various orders. To quote tho report of an English Parliamentary Committee in 1825 : — 'Whenever thcro is a contingency, the cheapest way of providing against it is by uniting with others, so thot each man may subject himself to a small deprivation in order that uo man may subject himself to a groat loss. Ho upon whom tho contingency does not fall docs not get his money back again, nor does ho got for it any visible or tangible benefit, but ho obtains security against ruin, and consequent peace of mind. He upon whom the contingency does fall gets all that thoso whom fortune has exempted from it have lost in hard money, and is thus enabled to sustain an event that would otherwise overwhelm him. 1

Or, as a recent writer has expressed the same idea : —

'from the day of entrance the member becomes possessed, in some measure, of the advantages of property, not indeed to tho extent of setting hyn tree from tho necessity of labour, but as enabling him to face life with a light heart.'

It is true that he may not finally stand in need of such a provision. Ho may bo successful in business, and, having acquired competency, may t> ithdraw from his society, or ho may remain in it as an honorary member. This contingency, doubtless, accounts in part for the high rate of socession observablo in the statistics of this colony's friendly society experience. Or ho may have been throughout life singularly free from sickness. But, if such has been his favoured lot, should ho rogrot tho method of his thrift? Ought he cot rather to congratulate himself on his successful career or on his comparative immunity from sicknesses tho caso may be ?"

In addition to the sick and funeral assistance hitherto given there is now growing up a desire for further benefits. Says Mr Mason : —

"It has been urged by all oxperts and is generally admitted that to complete and to materially strengthen tho financial position of friendly societies, the establishment of a superannuation fund is necessary, and New Zealand societies have, from time to time, been urged to devote any available surplus to the carrying out of this recommendation. At the instance of the Executive of the Independent Order of Oddfellows a scheme was drafted and submitted to the last biennal meeting of the socioty for the formation of such a fund, there being a surplus in the funeral fund which it was proposed to assign as a nucleus of tho said superannuation fund. I regret to say that a majority of tho delegates not merely voted against tho scheme, but expressed their opposition to the principle. I beg, therefore to ask your attention to a passage on this subject in tho writings of Mr Watson, tho actuary to tho Manchester Unity in England.

' The truo mission of friondly Eociotios is only partly fulfilled whilo superannuation or annuities for aged mombors remain unprovided. Tho sentimental outcry against centralisation will havo .to bo modified. . . ■ If a friendly society is formod, individual interestsare sunk tor a community's good, and centralisation, in a degreo.is established. There can bo no combination for mutual holp without more or less centralisation. The centralisation of such associations as tho Independent Ordor of Oddfollows, the Ancient Ordor of Foresters, and othor large affiliated bodies is consolidation, the moulding into a compact body of the various branches or parts of which each is composed. The central bodies of the large societies have no power beyond that which tho society and the rules give them, and they genorally havo to be re-elected by tho representatives of the whole society, yoar by year.' The abo>e was written about elevon years ago, and sinco then the ( wo societies to which Mr Watson refers by name havo adopted a sehomß of superannuation. It has not, however, found favor as yet with members in England, but I hope that Wow Zealand societies which have a surplus will, before long, coino to regard this method of allooatit as tho moßt Bintablo and effective.

Tho address of tho Grand Mnstor of the Manchester Unity in 1882, tho year in which the superannuation scheme wns introduced into that Ordor, contains thoso words : — ' By your accoptanco of this additional elomont of thrift in tho constitution of this society, you; will . . , havo strengthened the lover w herewith tho bettor to clovato tho working man to tho levol of comparative independonce. 1

Tho objection mado to this form of insurance is that a largo percentage of tho subscribers to tho fund will not live to be recipients of tho benefit. But surely this objection, if it havo any validity, is applieablo in greater ov less degree to tho general principlo of friendly society co-operation, so far at least as relates to the sicknoes benefit. I wish most sincorely that candidates for admission into a friendly society would give to this objection its full weight, so far as unsound societies and branches aro concerned, and be deterred from joining such by tho consideration that thero is very gvent probability that, although they may lire to need tho boncfita promised, they will not enjoy their duo Bhare as offered and contracted for. Thou tho unsound soeietioß would soon cither cease to bo, oi' would put themselves upon a solvont footing, thosouml ones would flourish, and such a etuto of confidence would bo established that their membership w ould bo largely inoi'eusod,and success be crowncd|with success yet greater."

To secure these benefits in old ago it would bo absolutely essential that the fees should be increased. At tho E resent time we happen to know of a »dge that is considered one of tho soundest ja tho colony, which is actually paying out more money in sick and funeral pay than it is receiving in subscriptions, the rents and interest on properties and mortgages

alone keeping it going. This lodge was formed in the early days when there was not as much known about the proper method of working friendly societies as there is to-day, when it has become speciality. Itsyoung members have become middle-aged, its middleaged members old men and pensioners on the lodge for life. Ao long as the I expenditure was only for occasional accidents or illnesses, the society flourished like a green bay tree, but to-day its experienced members recognise that the time has come when higher fees must be charged if the objects of the Order — that proper provision be made for each member in case of sickness or death — aro to be carried out. There is, therefore, great need for the full consideration of the objections raised by the Registrar. He recognises that compulsory legislation in the matter would be a fatal error, members must educate themselves up to it. " Education," he remarks, "is the only possible means whereby to cure the evils that exist, and a system of coercion would necessarily and lamentably fail."