SYDNEY SKETCHES.

Waikato Times, Volume XXII, Issue 1800, 19 January 1884, Page 2 (Supplement)

SYDNEY SKETCHES.

By Harold W. 11. Si'iii'UiiN

THK MUTUAL LIFE ASSOCIATION. Tun material prosperity of a country is in the main dependent upon the industry and provident habits of its inhabitants. This is an axiom -which there is no gainsaying, for a glance at the world's history will prove its truth at once. We see how nations have risen from obscurity by the practice of frugality and industry ; and how, when they had attained the pinnacle of their greatness, and the exercise of such virtues seemed to be no longer necessary, they began a downward career, which ended, in many cases, in annihilation. The wiser amongst the ancient Romans, foreseeing the fate which must inevitably overtake a too prosperous people, found occupation for them in war — with the j beginning of peace began the" downfall of the ! great Eoman empire. Natural advantages ate, too generally, but disadvantages. An equable salubrious cli-mate—-a fertile soil, which needs hardly any cultivation to produce- abundantly— these

good gifta are often ruinous, inasmuch as they paralyse the energies of the people, and render them extravagant in the present, and oareleas of the future. It speaks well for the inhabitants of Australia, that, whilst enjoying these advantages (which have so often proved to be the contrary) their habits are, on the whole, as provident as if they had to fight the hard battle with the sterile soil and cruel climates of lessfavored regions. And the more, because hero we have been used to see fortunes made in a day, and the poorest amongst us elevated to wealth at a bound. Let us not forget, however, that we are but at the commencement of our cfcreer, and that our workers have still the blood of the " hardy Norseman " coursing in their veins, uncontaminated by the enervating influences of long-continued prosperity. New Soutli Wales has been especially fortunoto of late yeara. And the great progress has been chielly within the last decade. Doubtless the slow, steady-gom^, ha"bifcs of the older inhabitants laid a sound foundation ; but it is undeniable that the impetus came fiom without. The influx of settlers, owing to the liberality of the land laws, brought much money into the country, and now blood aLso. Business men found that, if they would hold their own with those who came to start in opposition to them, they must abandon much of their old policy, and maich with the times, seeking business, instead of contenting themselves with letting it come to them. Fifteen years ago, the mines of the country owed little of the,ir development to the money of the wealthy classes : now almost every merchant in the land has some more or less of his capital invested in shares. The result i 3 that the mining industry has become almost as important a factor 'in the general progress of the colony ,%« i§ has been in Victoria. la the direction of building, the advance h&3 betsa even more rapid, and more extraordinary. Every week Avitnes^es the opening of borne new magnificent store or shop, and the palaces of twenty yeais ago are dwarfed into insignificance. But i'll this may be going on, ami still the community may be rotten at the core. That this is not the case is evidenced very emphatically by the report? of those societies which have xcgaxd more to the future than the present. Theie can be no doubt of the soundness of a people who invest a good portion of their earnings in making provision for the future. The fouiteenth annual meeting of the Mutual Life Association of Australasia has ]ust been held, and some of the fact 1 * then sUtcd boar powerful witness to the healthiness, iinonciilly as well as physically, not only of New South Wales, but of the colonies ftenpially. In 1869, when its prospectus was issued, life assurance was almost a monopoly in these colonies, and hence was subject to restrictions which would now be consideied absurd, but which were then deemed absolutely necessary. Thus a policy became void if (thc^e are ipnssima verba) " the person whoso life is assured die by his own hands, or by ihe hands of justice, or from habit 3 of intemperance or disease, or injury arising theiefrom, or be convicted of felony." Moreover he could not reside in certain paita of Australia, nor make a \oyage to England in the mail bteamer(l) without paying an extra premium. It may xeadily he imagined therefdo that when the Mutuai, Lipjs Association, by announcing as its bpeuial feature " Indefeasible Policies," swept away all these conditions at one stroke, its com age was denounced as rashness, and speedy failure freely prophesied. Bui the foundeiH had confidence in the soundness of the principles laid down (how well founded the association's success clearly shows), and they have seen them copied more or less fully since by every other Australian Mutual Life Office. Every new featuie v/hich inoi cased knowledge, ov the advice of dulled actuaries pronoiuiced safe, has been added from time to tiiue, and if; is not too much to say that, at the picscut time, it bears a name, not oaly with the Australian public, but with the insurance piess throughout the world, second to none for stability, liberality and prosperity. Its latest new feature h an amended by-law making its policies " non-forfeitable," by failuio to pay premiums, so long as the surrender value is sufficient to pay same, with intete-it for even one quarter 1 For the bone/it of the uninitiated it may be well to explain what this means. Human nature is prone to procrastination, and in vo way moie so than with regard to the payment of money. Even wealthy men get into the babit of not paying an account until personal demand is made for it ; and so it happens chat even wealthy men, at times, neglect to pay up such calls upon them as premiums upon their life-policies. Of course it has never been the policy of any Assurance Company to compel payment of premiums, or oven show themselves extra solicitous for their collection. Under the old system, they indeed gained largely by non-payments, owing to the immediate forfeiture which followed. Some benefactor to his species, seeing the hardship which accrued to the families of peiaoiis whose policies \\ ere so forfeited (perhaps after having hesn kept in force for many years, and often owing to sudden misfortune, illness, or even foxgetfalness on the pait of the assured) conceived the idea of making the Assuiance Society responsible for the carrying on of xjutniuin-paymentsfor so long a period as the interest of the money so advanced was coveied by what is known as the " surrender value " of the policy. This value is, of course, determined by the length of time that the policy has been in force. The Mutual Life Association claims to be the only Australian Mutual Life office, established within the last thirty yeara, which has declared a bonus on an absolutely pure premium valuation, without anticipating any part of its future revenue. This is very tangible evidence of its prosperity, when its youth is taken into consideration. And the prosperity of a mutual life office means the prosperity of its aistomers, who are, in effect, its shareholders. At the close of the Quinquennium (or five-yearly division of profits), which will be next year, the Mutual Life Association estimate (with justice) that their invested funds will exceed £350,000. Sir George Wigram Allen (Chairman of the Directors), in his speech at the recent meeting, laid much stress upon the advance made by the company without any undue effort to secure new business. He showed that, during the last twelve months, the number of entrants (that is, new policy-holders) was only exceeded in seven cases out of a hundred old established offices in Great Britain ; and, that, of these seven, there were two showiug less amounts assured. Considering that, in the old country, the average sum assured is larger than with us, this is very satisfactory evidence, primarily, of the prosperity of the society under notice, and secondarily of the prosperity oi the community. In England, the Jaw of entail compels many a large landowner to seek assistance from Assurance offices in order to make provision for his younger children ; and this is done even to the extent of £100,000 in individual eases. With us there is none of that sort of thing. Fathers are not particularly anxious to enrich one child at the expense of the rest, and tho bulk of the policies are issued to men in the receipt of regular, or only slightly varying incomes, which they conceive insufficient to enable them to lay by oufc of in the ordinary way. There are also large numbers of " endowment assurances " effected, which provide for maturity of the policy at any age selected by the member, he paying of course a proportionate premium, and his heirs receiving the sum assured in event of his death before the age named. This system is very much in favor in America a.% welias Australia, but is not so well known in England. The Mutual Li£e Association ha.s, since its establishment, fourteen years ago, issued no less than 14,254 policies, amounting to £4,236,622, of which a large proportion belong to the class jusif mentioned." During the .past "year , ,the ;new .policies

numbered 1,9-iO, assuring £521,838, at an animal premium payment of £18/11S Is. 10.1. This means that thi3 society alone received, within the laat twelve months, from fresh xnvestors only, the last-named sum, in payment for future benefit to themselves or their heiis or assigns. There can be no doubt as to the stability of a community which invests its surplus earnings after this fashion. Of course these returns are gathered from all the colonies, the Mutual having branches in all except Western Australia ; but the bulk of the business, it is fair to assume, conies from New South Wales, to which colony its operations were confined for some years. In conclusion it is but fair to remark that much of this Society's success is due to its Secretary, Mr. J. 0. Remington, or at least all material advance has been made since it lias been under his management, lie took charge in 1873, when the annual income was only £11,000 ; in the decade, it has increased to over £111,000; and its investments, from £13,000, have giown to over £300,000. The great progress made by these colonies in population and wealth is well known. Is it fair to say that the thrift o£ the people ha 3 increased also in like propoition ? I think it i 3, since the establishment of this, and kindred societies, and the adoption of new principles by older onea, has opened up such a favorable line for investment. The days of the old stocking, full of guineas, hidden under a mattrass or up a chimney, are gone by ; and even the least educated classes are learning the truth of the saying that " money breeds money."