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CHARITABLE INSTITUTIONS.

FRIENDLY SOCIETIES.

Substance of the Report of the Select Committee of the House of Commons, appointed to consider of the Laws respecting Friendly So

cieties.

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of many persons to one common fund, that "the most effectual provision can be made for "casualties affecting,' or, as it would have "been more correctly said, liable to affect all «the contributors.' This proposition, which "is, indeed, obviously true, has been well THE committee commence their report with "illustrated by a writer on friendly societies, an account of the progress and present state of "who asks, whether the advocates of separate the law affecting friendly societies. The first" and exclusive saving will be easily persuaded legislative interference with them was in 1793,"to save their annual premium instead of when the act passed, which was known by the "securing their houses against fire.' Wherename of its author, Mr. George Rose. While ever there is a contingency, the cheapest way this act imposed certain restrictions upon" of providing against it is by uniting with friendly societies, it also conferred upon them" others, so that each man may subject himself certain privileges and immunities; all which" to a small deprivation, in order that no man are detailed in the report. The acts of 1795, "may be subjected to a great loss. He upon 1803, 1809, and 1817, made a variety of further" whom the contingency does not fall, does not provisions on the subject. To the provisions" get his money back again, nor does he get for and operation, however, of the act of 1819, the "it any visible or tangible benefit; but he attention of the committee has been principally" obtains security against ruin, and consequent directed. In 1815, the members of friendly" peace of mind. He upon whom the consocieties were enumerated at 925,429. The" tingency does fall, gets all that those whom system was nevertheless deficient. The chief" fortune has exempted from it have lost in defect was the want of sufficient security against" hard money, and is thus enabled to sustain error in the original constitution of societies." an event which would otherwise overwhelm Another material defect was found in the pro- "him. The individual depositor, not the convision made against a fraudulent or inequitable "tributor to a common fund, is really the disposition of the funds, or dissolution of the "speculator. If no sickness attacks him during society. The facility given to combinations" his years of strength and activity, and he was a further abuse of the old system. The" dies before he is past labour, he has been suc preamble of the act of 1819, in its recital," cessful in his speculation; but if he fall sick averred the utility of these institutions, as well" at an early period, or if he live to old age, he to the community as to individuals, an aver- " is a great loser; for his savings, with their ment in which the committee fully concur. "accumulations, will support him but for a "The opinion," says the report, "which" short time in sickness; or, even if he retain some persons entertain, hostile to the forma-" something in old age, after having provided "tion of any common fund by contribution" for his occasional illnesses, the annuity which 66 among the lower classes, and the preference" he can then purchase will be very inferior "given to individual savings, induce your com. "indeed to that which he would have ob"mittee to consider the claims of these socie-"tained, if he had entitled himself to the "ties in some detail. It has been observed," benefit of the accumulated savings of all those "that the hostility to friendly societies has" who, having contributed for many years to a "been no where more strong or controversial" superannuation fund, had never reached an "than among the patrons of saving banks. Of age to require it. A common fund, in all "these institutions, which are not referred to cases of contingency, is not less obviously for "them for consideration, your committee will" the interest of the public. The unsuccessful "only say, that they are undeniably calculated" speculator described in the last illustration, "for many very useful purposes, some of which" in other words, the depositor in a saving bank, 66 cannot possibly be secured by institutions of "who falls into habitual sickness, or reaches "mutual assurance; but your committee affirm," old age, must either starve or come upon has "without hesitation, as equally undeniable, "friends or neighbours, wholly or partially for "that it is by the contribution of the savings support. In this country the poor laws wid

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of the copies; points upon which there is some discrepancy in the acts and in the practice of the counties; and the committee recommend the example of the county of Kent, where the act appears to have been executed with propriety and judgment. In the opinion of the committee, the bench of justices have in many counties been satisfied with the signature, to tables of

“bring him upon the parish. The parish will the form of enrolment, and the authentication "lose all that the more fortunate speculators "gain. The parochial funds must supply the "difference between the expense of maintaining "the sick and aged poor of the parish, and the "amount of the accumulated deposits of those "sick and aged persons only: whereas, if the "people contribute to a common fund, the "parish will have to supply the difference be"tween the expense and the accumulated con-payments or benefits, of persons whose opinion "tributions of all the people; which difference, "if the society be well constituted, will be "nothing. Your committee are very anxious, "that in thus comparing, as they feel bound, "saving banks with friendly societies, they "should not be understood to depreciate the "former; all they insist upon is, that for the “particular purposes to which friendly socie“ties are applicable, saving banks are entirely "inefficient, and that those purposes are highly "beneficial to the people and the state."

upon the probability of sickness and the duration of life was not to be depended upon. The committee especially call the attention of the house to the inquiries which they have pursued with a view to the formation of accurate tables for the use of friendly societies. They acknowledge, however, that the rate of mortality and sickness in England is not at present sufficiently well ascertained to justify a parliamentary enactment of any particular set of tables. By a petition, referred by the house to the committee, One of the first endeavours of the framers of and from other quarters, suggestions were made the act of 1819 was to define the objects to for establishing a central board, or office, for which friendly societies should be applied. the approving, in the first instance, of the calThose were, "the maintenance or assistance of culations upon which friendly societies are "the contributors thereto, their wives or child-formed, and subsequently watching over their "ren, in sickness, infancy, advanced age, management. The committee say they are not "widowhood, or any other natural state, or prepared to adopt this suggestion; but they are "contingency, whereof the occurrence is sus- of opinion, that the same objects may be accom"ceptible of calculation by way of average." plished in a mode which will require but little The first enactment of the act was intended to alteration of the law, and which will not excite engage the more particular attention of the ma- alarm or jealousy. By the present law, every gistrates in quarter-sessions in its administra- society which desires to avail itself of the gotion, and to point out to them some material vernment debentures is required to send to the objects of inquiry; reminding them, that the national debt office copies of the rules, after proportion between the payments and the at- they have been enrolled at the sessions. The tendant benefits was an essential point in every committee propose, that the rules of friendly plan which they were required to consider. societies shall be transmitted to the national The act provided that the duties which it pre- debt office previously to enrolment; and that scribed to the justices might be performed, the actuary of that office shall perform, either either by the bench collectively, or by any com- singly or in conjunction with another calculator, mittee of no fewer than three justices. In their to be named by the commissioners, the duty of report the committee are decidedly of opinion, examining and certifying the tables of payments that this reference to a committee will, in and benefits, and the rules connected therewith; almost all cases, be the more advisable course. and he should be required to accompany his The bench, or committee of justices, were to certificate with such observations and sugsatisfy themselves as to the fitness of the contin-gestions as may appear to him useful towards gencies for which it was proposed to provide. furthering and securing the object of the soThere is reason to believe that due attention ciety. The enrolment at the sessions would has not always been paid to this direction of then proceed as at present. The managers of the law, and that rules have been admitted saving banks are required to furnish to that whereby an allowance has been promised to office annual accounts, in a form prescribed. persons confined for debt. The committee have The committee are inclined to think, that there no hesitation in pronouncing that all rules of could be no reasonable objection to placing that sort, referring to contingencies not "na-friendly societies on the same footing in this "tural," ought in no case to be allowed. In respect as the saving banks, or in requiring reference to the number of persons of whom a them to make to the office in London periodical society ought to consist, the committee, observ-returns in a prescribed form, whence the state ing that it is clear that a very small society of their affairs might be deduced. If this procannot be secure, as among a few individuals the law of average will not operate, add that they think it desirable that no society should consist of fewer than 200 members. A more specific provision is necessary with respect to

vision should be thought likely to excite alarm, it would be enough that the office should furnish each society with a form of the return, and with instructions for keeping their books; and declare a readiness to give an opinion upon the sufficiency

of the funds, and the prospects of the society, rity against a fraudulent or imprudent applicawhenever an application, accompanied by a re- tion of the funds, or dissolution of the society. turn in the form prescribed, should be made to it. In the first place, no division of money otherIn furtherance of these suggestions, and that wise than in the ordinary course can be made, the number and extent of friendly societies nor the society be dissolved by the vote of any may be known, the committee propose, that proportion of the members, without the consent those institutions be no longer permitted to de- of the trustees; and such consent cannot be given posit their funds in saving banks, but that they without the certificate of two actuaries, who be required to draw their debentures directly shall have been already admitted as such by the from the bank. The first part of the enactment justices, "that, according to the most correct of the act of 1819, allowing the publication of " calculation of which the case will admit, the general rules, to be adopted by all societies ap-" interest of all the contributors to such instiplying for enrolment, appears to the committee "tutions, and of all persons having claims to be well calculated to avoid error and delay." thereon, in possession or expectancy, are, by Some difference of opinion has arisen, as to the" the proposed scheme of dissolution, fairly extent to which the power may be delegated to "dealt with and secured." No alteration apthe petty sessions (which delegation has taken pears necessary in this provision beyond what place, it is understood, in the county of Devon), may be requisite to adapt it to any new arrange. and it occurs to the committee, that instead of ment which may be made as to the actuaries. continuing this power of delegating the autho- But the committee take the opportunity of obrity of final approbation, it may be advisable to serving, that sufficient provision does not appear provide that societies may tender their rules to to be made by any of the acts, against a breach the petty sessions, in the first instance, instead of the law in respect to the appropriation of the of sending them to the clerk of the peace; and funds. Let the case be supposed, of the disre that the petty sessions shall transmit them, with gard of the provision now in question. A society their opinion, and with any explanation which is dissolved, against the will of the trustees, or they may think it right to give, whether of by the justices, without the certificate of the their own notion, or upon examination of the actuaries. The trustees are not aggrieved in a parties tendering, to the actuary of the national way which entitles them to relief in the sumdebt office. The next provision of the act is mary mode pointed out by the acts. Of the memone upon which the committee find some diffi- bers, it may confidently be assumed, some are culty. It requires that every society shall have considerable sufferers, because the members in three trustees at the least, of whom the majority general have probably not the knowledge, if they shall be substantial householders, assessed to have the honesty, necessary to an equitable set"the relief of the poor upon a sum not less tlement; but these sufferers probably do not "than fifty pounds." The objects of this pro- know the extent of their loss; and indeed if, as vision assuredly were, to furnish to every society will be the most probable case, they receive a the guaranty of a certain portion of respectable sum in hand, instead of an annuity to commence and responsible persons; and also to encourage in even a few years, they will not have the inclithe formation of larger societies, for which there | nation to complain. Nor could they be relieved can be no difficulty in finding a sufficient num- in the way pointed out by the acts, which prober of substantial trustees. The committee be-vide only for a payment of money. It appears lieve that the difficulty of procuring trustees in to the committee, that a breach of the acts by the smaller societies has been great; that in any trustee, member, or officer of a society, whesome counties no care has been taken to ascer-ther it be made the subject of complaint by an tain their sufficiency, or even their existence; individual aggrieved, or not, should be liable to and that it will certainly sometimes happen that punishment in a mode more easy than an indict. the owner of a considerable estate in the country, ment at common law. It might, perhaps, be who retains only a small quantity of land in his expedient, that two justices, in petty sessions, own hands, may not be qualified under the act; informed of an intention to divide or appropriate nevertheless the committee are not prepared the funds of a society otherwise than according with any substitute for this clause; the state to law, should be empowered to issue an order would perhaps not be justified in giving the for staying all proceedings therein; and that all important pecuniary advantage which the de- persons concerned in a breach of such order bentures afford to any set of persons for whose | should be punishable by fine and imprisonment, funds no two men of the degree of substance by summary process. The permission to draw implied by the enactment are willing to an- debentures from the bank, at a fixed rate of swer. And that enactment operates as a prefer- interest, will, the committee trust, be enjoyed ence of the larger institutions, in a degree which by friendly societies so long as it is continued to may be deemed neither inexpedient nor unfair. saving banks. They, however, at the same time These trustees, in whom all the property is suggest, that it might perhaps be desirable, with vested, are to appoint the treasurer; a security a view to any new arrangement that may be which the committee think it right to retain. made as to these debentures, that no future The act of 1819 provided an entirely new secu-calculations should be made at more than

three per cent.

66

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But in this case it would be ne- "the preceding year; but the diminution is cessary to provide, as indeed all institutions very inconsiderable. In comparison with should provide, for an appropriation of eventual" the year 1817-18, which has been nosurplus. Nothing in the act prevents the trus- "ticed in former reports as the year of highest tees from investing the money in the public" amount, there has been a decrease of funds, or from lending it upon real security, at "2,486,8107. ;* but, compared with 1822-3, interest. This last-mentioned facility is said to "the returns of the money levied in 1823-4, have given rise to some abuses, and it may per- " exhibit a declension of no more than haps be advisable to withdraw it. The clause" 64,5231.† which provides for the intervention of the jus- "These comparisons refer to the total sums tices, in any case in which the trustees shall be" levied, including county rates and other apprehensive that the funds of the society will" charges not appertaining to the poor. These be deficient, appears to require revision, not "other charges, which in the last triennial peonly so far as it respects the case in which an "riod had been on the increase, have within enrolment shall have taken place at the petty" the last three years been gradually reduced; sessions (which practice it is proposed to dis-"but they still amount to more than continue); but because, by what must have" 1,200,000.‡

been an accidental omission, no certificate of "The expenditure upon the poor in 1823-4 actuaries is in this case required. The commit-"falls short of the amount of 1822-3 by 38,7427. tee are inclined to believe that the arbitration" only.§

The average of three years ending
"In March 1815 (the concluding
period of the war) was
"March 1818

"March 1821

"March 1824......

6,129,8447.

6,844,2907.

7,273,5351.

5,955,2927.

clause has not been productive of good effect; "The year 1823-4 completed a fourth of the and they therefore recommend its repeal. The" triennial periods, of which the average expenreport of the committee which considered the "diture was as follows:— combination laws was referred to the committee," in consequence, no doubt, of the following resolution of that committee: "That the commit"tee regret to find from the evidence, that so"cieties, legally enrolled as benefit societies, have "been frequently made the cloak under which" And in the three years ending in "funds have been raised for the support of com"binations and strikes, attended with acts of "violence and intimidation; and without re"commending any specific course, they wish to "call the attention of the house to the frequent "The diminution in the fourth period, as "perversion of these institutions from their compared with the first or war average, is "avowed and legitimate objects." Neither less considerable; and in seventeen counties the evidence which has incidentally been given" and ridings of England, and in eight counties upon the subject before the committee, nor the" of Wales, there is an increase.|| The expenevidence appended to the report referred to them," diture in the year 1823-24, being 5,734,2167., appears to justify an apprehension that the" is lower than that of any year since 1815-16, statement of the resolution is extensively true. "and only exceeds that of 1815-16 by 9,7107. And even if some of the older societies have been "The most remarkable circumstance attendin a degree perverted to the purposes of combi-"ing the returns of 1823-4 is, that although

nation, the committee say they have no reason whatever to believe that any such abuse has occurred in a society formed under the last act. The committee finally recommend, that all the laws relating to friendly societies be consolidated into one act.

The minutes of evidence taken before the committee, and a variety of documents, are attached to the report.

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"The house will observe, that the last of "these averages is considerably lower than the "preceding two.

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Bedford, Cambridge, Cornwall, Cumberland, Devon,
Durham, Huntingdon, Kent, Lincoln, Middlesex, Nor-
folk, Northumberland, Suffolk, Surrey, Westmorland,
Fast Riding of York, North Riding of York, Anglesey,

Brecon, Cardigan, Carmarthen, Carnarvon, Glamorgan,
Merioneth, Pembroke.

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