CONFIDENCE RETURNS.

Waikato Times, Volume 112, Issue 18777, 27 October 1932, Page 6

CONFIDENCE RETURNS.

SYDNEY MAN’S OPTIMISM. LIFE INSURANCE STABILITY. i, A GREAT ORGANISATION. "Just as a boom burata ao doa* a doppesslon, and In Australia w* are not turning the corner—we are already round It,” stated Mr A. M. Loewenthal, of Sydney, who Is visiting Hamilton to-day. Mr Loewenthal is as well known in Sydney as a philanthropist as he is as a prominent business man. He is federal president of the Field Officers’ Association of the Australian Mutual Provident Society and is touring New Zealand on a mission of goodwill, establishing personal contact with the Held staff, interchanging Ideas with them and giving them the benefit of his wide knowledge and experience In life insurance. “ 1 am encouraging all our men to treat this depression lightly,” Mi' Loewenthal told a Waikato Times reporter this morning. “After all, we have,had depressions before and have; emerged safe and sound. The bankt crisis of 1891 was just as severe only it did not appear so because the popu-1 lation was smaller then.” He added! that the most disturbing factor in the: depression was the freezing of credit and confidence, but it was gratifying to know that In Australia and New Zealand trade and commerce was rapidly returning to normal. A feature of the bad times, he emphasised, had been the unsliakeable stability of the large life insurance institutions operating in Australia and New Zealand. A Hint to Governments, . It could truly be said that thelf. oredlts have been far from frozen and it was a great pity that governments did not apply the principles of life, Insurance to the affairs of state. Had their funds been seoured and protected to the extent of those of the big life insurance oonoerns many “headaches” would have been saved taxpayers to-day. After providing ample reserve to meet any crisis and after allowing for depreciation on all its securities, the A.M.P. still left a wide margin of safety. He reoalled the fact that had Mr Lang remained In office long enough to enforce his capital levy scheme the society could have paid the £1,000,000 demanded immediately without realising on any security. He pointed out that the society was national in character and constitution, since It not only encouraged individual thrift, but Invested largely in Commonwealth, State and looal government stooks. In faot, the society’s Investments In suoh stocks throughout the British Empire j amounted to no less than £43,882,923. They had sufficient money invested in 1 local body securities In New Zealand to pay all claims in full In New Zealand ourrenoy, an amount totalling about £16,000,000.

Unique Endowment Soheme. A unique method of making provision for educational, philanthropic and charitable institutions which has been followed with great success in New South Wales was referred to by Mr Loewenthal. Instead of following the usual custom of bequeathing money in his will Mr Loewenthal effected ten policies for £IOO each on his life iff favour of the trustees of various institutions, so that on his death, instead of receiving a fixed sum, the institutions would receive the sums assured, Including the accumulated bonuses, and his dependants would be deprived of no portion of their inheritance. Mr Loewenthal invested a certain sum of money In Commonwealth stock, the interest on which was sufficient to pay the premiums on all ten policies. For Instance, Mr Loewenthal donates an annual prize to the Sydney Grammar School among other educational bodies. Upon his death the proceeds of the policy if invested would be sufficient to maintain the endownment In perpetuity. 11 This system Is practised to a large extent in the United States,” he added. New Zealand Insurance-Minded. “ The New Zealand public, I. hav* found, is insurance-minded and this scheme should appeal to phllanthropi-cally-mlnded men here . As a matter of fact there Is a greater incentive to insure in this country because there is a generous exemption on life insurance premiums. In New South. Wales exemption applies only up to £SO irrespective of the extent of the taxpayer’s income,” Concluding, Mr Loewenthal expressed himself as greatly Impressed with the general air of prosperity he had found in the Waikato. He had been delighted also with the fresh, rich aspect of the pastures, and the neat, efficient app'earance of the farms. This morning Mr Loewenthal conferred with members of the field staff in the Waikato.