S.-l.

appropriated to management expenses; fourthly, that greater trouble should be taken to accurately record the numerical and financial progress of the society, and the sickness and mortality experience, with the view, amongst other things, of exciting a greater interest among members in the condition and progress of their society ; and lastty, that every effort should be made to increase the membership of the courts, with the view of securing a nearer approach to an average sickness and mortality experience. Thus both the valuations reported during the year disclose a very unsatisfactory state of affairs. Largely has this condition of things been due to an ignorance among members of the first principles of sickness and life insurance. Too commonly, in particular, is the notion entertained that because the benefit funds are increasing year by year the condition of the societies may be regarded as sufficiently satisfactorj'. With the view of counteracting this erroneous idea the Eegistrar appends hereto a table, prepared by Mr. R. P. Hardy, the eminent English actuary, showing the progress of a sickness assurance fund the contributions to which are only just sufficient to enable the society to meet its engagements. It will be seen what very large and rapid accumulations are necessary in the early years of a society, not in order to produce a surplus fund, but simply in order to enable the bare engagements of the society to be met. In the ideal society to which the table refers there is no sick pay beyond the age of 05, and no new members are supposed to enter. Where, as in all New Zealand societies, sick pay is granted throughout life, and a continuous stream of new members is kept up, it is obvious that the increase in the funds must continue for a much longer time, in order that the relatively enormous liabilities of the distant future may be successfully met. Indeed the fact that a benefit fund has increased continuously for forty or fifty years is of itself no guarantee whatever that all the members will receive the full benefits to which in the future they may become entitled. " The WoEKrsrG op a Sickness Assurance Fund. " Suppose 1,000 persons of the age of 35 agree to form a society to secure sick-allowances up to age 65 for those that have been ill. The survivors of them must therefore contribute the sum of £1 17s. 3d. each at the beginning of every year, and those that have been sick may draw out of the funds at the end of the year 20s. for each week's illness. " The following table shows the income, outgo, and funds in hand every year, up to the time when all the surviving members attain the age of 65. It will be noticed that the income is for the first 18 years larger than the demands, but that after that time the demands exceed the income, leaving the deficiency to be met by a draft upon the invested fund, the amount of which is finally absorbed, the last year's claims being just met. " The society is then at an end, having accomplished its purposes." .

These valuations have been dealt with at some length, not only on account of their immediate bearing on the condition of the two Districts mentioned, but also as affording striking illustrations of the results of neglecting to comply with the first principles on which'such societies should be founded, viz., (1) the establishment of a scale of contributions adequate (if properly invested) to provide the benefits assured, and (2) the close investment of all the contributions at the highest rate of interest obtainable on first-class securities. TRADE UNIONS. During the year 1882 no application was received for registry under "The Trade Union Act, 1878." ¥ji. E. E. Bbown, Eegistrar. 2—H. 1.

9

Interest on Investments, Balance of Income. Fund at End of Year. Age at End of Year. Age at Beginning of Year. Number of Members Alive. Fund at Beginning of Year. Members' Contributions. Total Income, Sickness Claims. Excess. Defect. % 35 36 37 38 39 40 4i 42 43 44 45 46 47 48 49 5° 5 1 5 2 53 54 56 57 58 59 60 61 62 63 64 1,000 991 981 971 961 95 1 940 929 918 906 894 882 870 857 844 830 816 802 786 770 754 737 719 700 681 661 640 618 £ Nil 9°5 1,807 2,700 3,579 4.438 5,277 6,088 6,866 7,601 8,288 8,924 9.492 9.992 10,418 10,765 11,028 11,202 ",293 11,260 11,108 10,832 10,418 9.847 9,099 8,156 7,001 5,622 4,003 2,133 £ i,86i 1,844 1,826 1,807 1,789 1,769 1.749 1,729 1,708 1,686 1,669 1,642 1,619 1,595 i»57' i»545 1,519 1,492 1,463 i,433 1,404 i,37i 1,338 1,303 1,268 1,230 1,191 1,150 1,107 1,063 i. 82 109 135 161 186 211 235 257 279 299 317 333 348 360 369 376 38i 383 381 375 366 353 335 3" 282 246 203 '53 96 £ ',917 1,926 1,935 1,942 i,9S° i,9S5 1,960 1,964 1,965 1,965 1,968 i,959 ',952 1,943 i>93' i,9i4 ',895 1.873 1,846 1,814 i,779 i,737 1,691 1,638 i,579 1,512 i,437 1.353 1,260 I>>59 £ 1,012 1,024 1,042 1,063 1,091 1,116 1,149 1,186 1,230 1,278 1,332 1,391 1.452 1,517 1,584 1,651 1,721 1,782 1,879 1,966 2,055 2,151 2,262 2,386 2,522 2,667 2,816 2,972 3,130 3,292 £ 9°5 902 S93 879 859 839 811 778 735 687 6^6 568 500 426 347 263 174 9 1 £ £ 905 1,807 2,700 3,579 4,438 5,277 6,088 6,866 7,6oi 8,288 8,924 9,492 9,992 10,418 10,765 11,028 11,202 ",293 11,260 11,108 10,832 10,418 9.847 9,o99 8,156 7,001 5,622 4,003 2,'33 Nil 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 33 152 276 414 57' 748 943 i,i55 i,379 1,619 1,870 2,133 595 57 1 Totals... 7,978 11,293 45-741 53,7 '9 53,7'9 H,293