The Sun.
London, England, 1838-08-16 00:00:00

MR• WOOD'S LECTURE ON THE NA-

TIONAL LOAN FUND SOCIETY,

( From the Leicelertklit

On Wednesday evtiting, Mr. tharleS W, wood dellivefed
a lecture en aSt jest which, when 11:::ty ipi And 4.eteu Upon,
will tenteibute moat essenti222i-te 4te independence and happi-
ness of society, earC.;•tit':i ,y of that large and highly important
branch denoreiaeted the productive classes. We need scarcely
say that we allude to the National Loan Fund Societe, the
objects and uses of which excellent ;nalitlitioli Were admirably
explained by Mr. Wood, toe eery attentive audience.
Atter obteeving that while the wealthy have abundant op-
pettunities of providing for those dependent upon them, the
working classes have but few institutions to avail themselves
of, and those few very inadequate to their wants, Mr. Wood
said—" A kind of link is wanting between the power which
creates capital, and the advantages whcli the possession of it
unquestionably gives. But how is this to be obtained? By
co. operation effect and cause invariably follow each other
so capital (which is represented by money) results from the
means which produces it—which is labour. Labour, there-
fore, being the main spring to capital, I come to the conclu-
sion that all mechanics and artizans possess within themselves
the means of creating it, and that which is necessary for their
own uses they, of course, enjoy ; but when we reflect upon the
casualties of life arising from accident, want of employment,
sickness, and old age, or the still greater certainty of death—
a feeling of benevolence arises in our minds, and makes us
ardently wish that some effectual means could be devised to
provide for such eontinencies—to soothe the rugged path of
life—to produce peace of mind and independence of feeling in
the breast; of all. This can only be effected by steady co-
operktion in some well devised plan which has these combined
objects in view, and which will bring itself within the reach of
every mechanic, however humble his means. These are the
among the objects of the National Loan Fund Society."
Mr. Wood then proceeded to glance at the nature of these
existing Societies to ameliorate our pecuniary condition, remark-
ing that notwithstanding the gre It exertion which had been
made, there were but t-0,000 individuals in the 45 Life As-
surance Societies, and stating that the reason why they con-
tained so few persons was in consequence of their being acces•
sible only to the income classes, while the National Loan
Fund Society, on the contrary, was available to every man,
however limited his means. This Society, he contended, was
the most effectual remedy for want of employment which had
ever been introduced, and he was decidedly of opinion that
the want of employment had never extended over a period of
time that would exhaust- the savings of former prudence. "In
this Society," said Mr. Wood, " a man by a small weekly
saving, will not only enjoy the means of protecting himself
against sickness and misfortune during life, but also guard
against old age, and, in addition, will provide for his offspring
in the event of death. In this respect it partakes of the
nature of a Savings Bank and Life Assurance Society—the one
by the loan system to supply his temporary wants : the other,
a far nobler object, to found the independence of his family."
The Lecturer next proceeded to give examples illustrative
of the peculiar advantages of this Society. Supposing the
case of a farmer who had insured his life for 1,0001., and who
wished to lay out a certain sum to stock his farm. Had he
insured his life in an ordinary Society, he would have been un-
able to draw any of the money he had previously paid in, but
in this Society, he could always borrow two-thirds of the
whole amount paid in, and pay it again at his convenience.
The small trader requiring a supply in his trade, would also
be able to avail himself of the same advantage. The sum
hemmed up in Assurance Societies, and consequently ab-
stracted from active employment, is estimated at sixty millions .
—were that enormous sum invested in the National Loan

Fund Society, with a power of calling two-thirds into active
employment, the Lecturer fearlessly asserted " that poverty
would not walk abroad, and that the necessity for poor laws
would in a great degree be diminished, or only have applica-
tion to those who are wholly incapacitated by age or infir-
mities."

Mr. Wood then glanced at Savings Banks, which, be said,
afforded a very inefficient system of accumulation, the money
invested only bearing three and a third per cent. interest up
to 1501., after which amount the interest ceased. Besides, it
was not to be supposed the Government would encourge a
great extension of Savings Banks, inasmuch as, on the slight-
est disagreement between the Government and the people, the
latter might suddenly draw out their savings (now amounting
to about twenty millions, and if they went on increasing in the
same ratio for ten or fifteen years, the amount would probably
reach one hundred millions), and thus, by claiming, at a short
notice, more bullion than the Bank of England possessed, at
once upset the whole commercial system of the country. This
Society possessed all the advantages of a Savings Bank, and
in addition, entitled the family of the depositor to the sum for
which he had assured his life (even if he died after the first
payment), or the depositor would be entitled to borrow two-
thirds of the whole sum paid in whenever he required a supply
of money.
After making some excellent remarks on the uncertainty of
life, and the necessity of providing accordingly, the Lecturer
proceeded to point out the advantages of the National Loan
Fund Society over Benefit and Friendly Societies, many of
which, from mere sick funds, had branched into Annuity and
Burial Societies. According to accurate calculations, in
reference to Benefit Societies, out of seven and a half
per week one half is appropriated to sickness, which, of
course, must greatly reduce the sum to be appropriated
for superannuations. Now if a man, at the age of twenty,
paid 7d. per week into the National Loan Fund, when he at-
tained the age of 65, he would secure 291. per annum for the
remainder of his life, while he would not receive, in other So-
cieties, more than half that amount at the same age, and, if
died before 65, all he had previously paid in would be for-
feited ; but, in this Society two-thirds of the whole amount
paid in would be returned to his family in the event of his
dying before he reached the age of 65. " This defalcation,
continued Mr. W., " arises from admitting sickness into the
calculations of these Societies, which is provided for in this
Society through the Loan Fund, which also includes every
other casualty, by the facility with which he can withdraw an
adequate portion of his savings, and, at the same time, be se-
cured in his assurance. This Society will also give him the
option of receiving a sum of money equal in value to the an-
nuity, or a larger sum payable as a compensation to his family
for his loss."

The Lecturer proceeded to refer to several tables illustrative
of his remarks. We give a few examples : By paying ls. per
week, or 21. 12s. per year from the age of 20, the party would
have the option, when arrived at the age of 65, of receiving an
annuity of 471. 16s. 6d. for life; :394/. I I s. Od. in cash ; or a po-
licy on his life for 4661. Os. Od., that is to say, when he died
his surviving friends would receive the latter amount. If be
paid the same amount into a Benefit S )ciety he would only re-
ceive an annuity of 15/. ; nothing in cash; and his friends
would receive nothing when he died : true, the Benefit Society
would make him a small allowance during sickness, but then
the Loan Fund would allow him to borrow two. thirds of the

sum previously paid in. If a person paid Is. per week from 20
till 50 years of age, at the cud of that time he would receive
an annuity of 101. 12s. 6d. ; cash down, 136/. 12s. ; or a policy
on his life for 2141. 19s. Od. If he di i not begin paying till
he was 95, the annuity would be 71. I4s. 81 ; cash, 991. Bs. Od. ;
or policy for 156/ 6s. Od. If lie began at 20, and paid till he
was 55,the annuity for the rest of his life would be 16/. 16s. 6d. ;
cash, 1901. lls. 6d., or policy for 269/. 15s. Od. The particu-
lar advantage of this Society over all others is that the scale is
bought down so low as to come within the means of every one.
If a person paid 10s. per year from 20 to 65 he would be
entitled at that age to an annuity of lot. Os. Od. ; cash, 82/.
10s. Od. ;or policy for 971 Bs. 6d. [lt is unnecessary to give
any more examples to illustrate this part of the lecture, as
parties of all ages and in all circumstances, can have every
information by applying to Mr. C. Wood, Friar-lane.]
After explaining the improved system of granting deferred
annuities, Mr. Wood t-Aid-4. The object this plan embraces
is to open facilities to the efforts of self support, to stimulate
the independence of one class above the forced benevolence of
another, while it recommends itself to the latter by diminish-
ing the burthen of poor laws, which has been at all times irk-
some, disturbing the harmony, and fomenting the mutual dis-
trusts of society ;" and concluded his interesting lecture by
congratulating them on the. fact of the National Loan Fund
Society's Bill having become the law of the land, and thank-
ing them for their kind and patient attention.
Mr. Ryley (the esteemed President of the Institute) then
moved a vote of thanks to Mr. Wood in a very appropriate
speech, which was carried unanimously.

THE AMERICAN MINISTER AND

MIL O'CONNELL.

23, Portland-place, Aug. 9.
Sir,-11y attention has been called to the publication in
the last Spectator of a speech which purports to have been
delivered by you at a public meeting hi Birmingham, in re-
lation to myself:—

" I believe their very Ambassador here is a slave-breeder,
one of those beings who rear up slaves for the purpose of
traffic. Is it possible that America would send here a man
who traffics in blood, and who is a disgrace to human
nature ?"

I desire to know from you whether this is a correct report
of what you said on that occasion, and with that view address
to you this communication.

I am, Sir, very respectfully, your obedient servant,
To Daniel O'Connell, Esq., &e. A. STE VENSON.

16, Pall• mall, Aug. 10.
Sir,—ln consequence of your letter of yesterday's date I
examined the report of my speech at Birmingham in the
Spectator of the 4th inst., and have no hesitation in saying
that the paragraph you have selecte3 is not a correct report
of what I said on that occasion.
The very next sentence does, to my mind, show that the
report could not be correct, and having examined another re-
port since, as well as from distinct recollection, I repeat the
report is not correct. _ _

I. have the honour to be, Sir, your very obedient servant,

A. Stevenson, Esq., &c.

DANIEL O'CONNELL.

93, Portland-place, Aug. 11, 1838.
have the honour to acknowledge the receipt of your
note of last evening, in answer to the one from myself of the
preceding day.
Presuming that you intended your reply as a disavowal of
the offensive expression., contained in that part of your re-
ported speech which had allusion to myself, and to which your
attention was called, I am satisfied with the answer you have
given.

As an incorrect report of your speech 11.:s been made public
through the Press, I beg to inform you that I deem it due to
myself that the correspondence which has taken place should
also be published.
I am, Sir, very respectfully, your obedient servant,
To D. O'Connell, Esq., &c. A. STEVENSON.