FRIENDLY SOCIETIES.

Gisborne Times, Volume XXVI, Issue 2298, 17 September 1908, Page 3

FRIENDLY SOCIETIES.

: - -A NOTE OF WARNING. (Special to “Times.”) WELLINGTON, Sept. 16. The thirty-first annual report of the Registrar of Friendly Societies states that the total number of registrations during the year was 23; the number of members of the 516 lodges in the colony is 56,817; the total funds amounted to £1,118,216; the average capital per member .is now £l9 13s 7d. The comparison with the Australian States is greatly in favor with New Zealand. The number of* 1 members sick during 1907 was 10,896, equal to 21.29 per hundred membqts at risk. There was an increase in the death rate. In his last report/the Registrar drew attention to the importance of the close investment of funds x and he now says that an improvement might readily be effected by reducing the amounts held on current account in some districts and lodges. The sums so held arc out of all proportion ito requirements, and seeing that the Post Offico Savings Bank is available on special terms for societies', it does not reflect much credit on the part of those responsible that the funds should bo deprived of the interest earnings so necessary to insure future benefits to members. “I cannot,” adds the registrar, “but reiterate the desirability of the establishment of centralised investment funds, the benefits of which, in those districts •ivhero they have been sent up, are constantly coining under the notice of the Dep,ar(htent.” The .report makes special reference to the important conduct ; of sound finance which is now engaging the attention of all who r are interested in the future of friendly socioties. “It is interesting to note,” says the registrar, “that, compared with New Zealand, several of the Commonwealth States have in force much .more drastic legislation, not only applying to future registrations, but to societies already registered. It is doubtful, however,” he ■adds, “whether the desired effect is attained -at once by adopting extreme compulsory measures, and the recent disclosures in a State which has more stringent Jaws than New Zealand on ■this subject, are not encouraging to those who expect complete reform by the passing of an Act of Parliament. The sociijwes in New Zealand have in recent years improved in this respect and there is now an almost genera! desire in the leading order to take up the question in earnest, a result largely due to the lessons of actuarial valuation and its undertaking -'by the Government free of charge. Those societies that have improved their position and adopted sound scales ol contributions are now entitled to such protection as the State can give them from competitors who, without regard to the financial liabilities they are incurring, offer benefits for which adequate provision has not- been made. There appears to be a. disposition in some of the Dominion friendly societies to adopt the uniform death levy or assessment for high funeral benefits, and a note of warning is sounded, on the unfinancial character of the system.” :A report by the Actuary is appended. From this it appears that several old lodges in New Zealand have already' arrived at the stage where the outgo for benefits is in excess of the -contribution income. Two instances are mentioned, but in each case the lodges are solvent, showing the wisdom of accumulating a fund in their earlier years. The Actuary eavs that ill-advised investment of bene*fit fund money in halls has been a stumbling block to many lodges.