h;—l.

14. The following summary shows the disposition of the various investments at interest, together with the respective average rates per cent.: —

15. The percentage of members sick and the average sickness per member at risk, in lodges containing one hundred members and upwards at the beginning of the year, is given in graphic form in Appendix 11. 16. Averages and percentages deduced from the tabulated returns for the years 1880-90 are given in Appendix I. 17. As was anticipated, the prevalence of the influenza epidemic had a marked effect upon the sickness experience. A comparison between the statistics for the years 1889 and 1890 shows, for the latter year, in the percentage of members sick an increase of 23 per cent., in the average total sickness per member an increase of 5 per cent., in the average sickness per member experienced within the first six months an increase of 9 per cent., in the average sick-pay per member an increase of 5 per cent., in the average total sickness per member sick a decrease of 14 per cent., and in the average sick-pay per member sick a decrease of 13 per cent. 18. These respective increases and decreases clearly indicate the character of the sickness to which the excess is due as being numerous attacks of short duration. 19. The financial loss hereby represented is great. Yet only one death is attributed to the epidemic, and the mortality for the year from all causes was below the average, 20. The friendly societies of Preston, in Lancashire, a town conspicuous for its heavy mortality, suffered so greatly that they recently combined to agitate for municipal sanitary improvements. 21. Members of friendly societies, not only as citizens but also as subscribers to a mutual benefit fund, are interested in questions relating to the disposal of sewage, in preventive measures against infection, in the enforcement of stringent laws against food adulteration, and in all matters affecting health. The economic value of sanitary science is to the wage-earner of special importance. Loss of wages and of savings represents a heavy item, which might be greatly diminished in most towns by an outlay that would be comparatively small if regarded as an insurance premium against disease. As centres of population increase in size, the health of the inhabitants can be maintained only by strict observance of hygienic laws. 22. A valuable contribution to the literature of wage-earners' insurance is contained in a paper on National Insurance Legislation in Germany, read before the Institute of Actuaries by Mr. T. E. Young, 8.A., a vice-president of the society. 23. While admitting that all reforms must be more or less experimental, the author points out that a measure which calls into existence such a formidable array of vested interests, and in whose issues are involved so many economic and social questions, should before adoption have been subjected to the severest criticism. He suggests that, as the oppression of the military system and industrial protection have driven away many, this additional burden may drive yet more of the best workmen out of the country, and so deteriorate the national character. 24. Theoretically, the insufficiency of the workmen's contribution is to be supplemented out of the pockets of the employers of labour and out of the State treasury. With regard to the former, employers, if they cannot raise prices sufficiently to recoup themselves, will reduce wages. Thus a great part, if not all, of the contribution nominally paid by the employer will come out of the workman's wages. And with regard to the latter, State aid, so far as it is merely a return of taxation, is a delusion, and, so far as it is a reality, pauperises the recipient. It may be added that the cost of collection of such returned taxation practically represents a considerable addition to the expenses of management. So that the total charge to the beneficiary will thus be little, if any, less than he would have to contribute were he required to pay the whole direct. 25. It is said that already German manufacturers are asking for an increase of import duties on the ground that they have to contribute to this insurance-tax. 26. Both from an economic and from an actuarial point of view the inauguration of the scheme is a leap in the dark. In the view of those who regard individual freedom as an essential factor of progress, and who believe that the influence of voluntary thrift upon character is of greater benefit to society than the mere accumulation of savings, and that any pecuniary advantage derived from treasured-up taxes is therefore dearly bought, it is a leap in the daylight, and in the wrong direction. In consequence of imperfect data it is not improbable that the financial basis will have to be rectified, but a far greater danger lies in the possibility that ignorance of the effect of the measure

3

Mode of Investment. Amount. Bate per cent. On deposit with the Post Office Savings-bank On deposit with other banks On mortgage of freehold property In Government and municipal debentures Other investments I £ 10,965 12,684 53,071 205,471 9,589 9,666 4-5 4'0* 4-8 7-4 6-4 7-5 £301,446 6-6 * Interest on sums exceeding £200 in the P.O.S.B. is at the rate ol 4 per cent.