The Sun.
London, England, 1838-05-07 00:00:00

IL In a state of employment and health every one may be
assumed capable of self-support; competition has, no doubt, re-
duced the rewards of labour to the standard of existence, ren-
dering it the more necessary that the smallest surplus, over exi-
Vacies, should be carefully husbanded, in order that, by the best
facilities given to economy and the application of means to ends,
it may be rendered capable of supplying the deficiencies, caused by
want of employment, sickness, the several casualties of life, and by
old age. Over the frequent fluctuations in the quantity of em-
ployment, the employed have no contront ; and, as the cause is not
dependent on fixed laws, but most frequently on the contingencies
which affect the quantity of money, their duration or occurrence
cannot be submitted to calculation—at any rate -the remedy is be-
fond their reach. The laws of sickness have been sufficiently as-
"rtained, for fixing a provision apportioned to the value of a given
contribution ; but although such a provision is not to be overlooked,
it is of trifling importance compared to the hardships resulting from
want of employment, and unprovided old age. Want of employ-
ment, sickness, and old age, may fairly be classed under one head,
%—a state of non-productiveness. To those, therefore, who
solely depend on their labour, which is seldom too highly remune-
rated, it must be a matter of importance, out of their earnings
when employed, to provide for every period of non-productiveness,
from whichever of the foregoing causes it may arise.
111. The twit institutions open to the productive classes, are Sa-
vings Banks and Benefit Societies, whose nature and scope, when
mtilie amied, will be found to offer but a very imperfect remedy against
evil, being institutions wherein the limited means of this class are
slot bestmade applieable to their several ends.
Savings Banks are of unquestionable utility, but they afford no
9mtingent future advantage and, besides, the sum that can be
hoarded is incommensurate
ductive classes. 'with the wants of the middle pro-
Benefit Societies pro pose to offer provision in sickness and old
age, but their construct on will be found imperfect, and their plan
the least profitable ara e t' on of the means of economy.
1. Because sicknep pssitsellf is not a calamity of equal probable
duration to the fluctuations in the quantity of employment
and other casualties, and misfortune, against which they offer
no protection
2. Because, out of a given means, the sum laid aside for sickness
3 must diminish the provision for old age.
Because many must contribute to the sick fund who never
become chargeable upon it, and the value of such contribu-
tions. is lost to themselves and families.
4• ileeause sickness, being a state of non-productiveness, must
necessarily be included in any protection against Bush an oe-
otrrenee.
sic,r• Yvious observations have been mad. on the duration of
lintrs, amongst the industrious classes, from an early period of life
ten Its close. Those most in use are,—the sickness amongst the
sick eat Societies in Scotland, given by the Highland Society the
vie n." 9 amongst the labourers in the East India Company's Ser-
w:o—the sickness amongst persons employed in Cotton, Silk,
I, Flax, and in the Potteries, by the Factory Commissioners ;
sand the sickness amongst the English Benefit Societies, from re-
turns made to the Societ for the Diffusion of Useful Knowledge.
These results, thouehyvaried, show how inconsiderable is the
a2O mount of sickness during that period of life, between the ages of
and6s, when each individual is more immediately thrown on his
resources ;—they are as follows •.

Average Average yearly
Class of Persons. Period. amount of Sickness in the
Sickness. period.
___.----
igh)
11
1_ Sickness.
Societies' return ----
Months. Days. Days.
20 to 65 16 4
6 1-15
ilrit'b,E India Company's labourers 20 to 65 9 0
Lt°rY Commissioners—
Cotton 21 to 61 7 27 1
Wool, Yorkshire 91 to 61 10 29 1
Ditto, Westof Eugland '2l to 61 8 13 1 74
Flax, Yorkshire
Silk
Society for Diftbsion of Usetbl
Knowledge '24 to 65 IS 21 1 IN

Thus, it appears that the highest expectation of sickness, amongst
males, is twelve and a half days, and the lowest six days, in each
year from the age of twenty to sixty-five; its mean duration,' in-
clusive of accidents of all kinds, would be nine and a quarter days,
during which, from these causes, an individual may expect to be ab-
st raeted from productive employment throughout a
period of forty-
11ve years: while, it may be observed, his religious observation of
the seventh day, in which he " shall do no work," has diminished
411 productiveness, by its recurrence in the same period, six years
and 156 days.
liYi•teFrom.' the foregoing facts it must be obvious that provision in
t'"( ss, or a Health Assurance by means of a separate contribu-
:6°.?, is unnecessary, more particularly as such separate contribu-
eirt'i must tend to waste the resources out of which the industrious
saes have to provide for the future. It also in effect throws the
lu
sothe permanently sick on one class exclusively, instead of
ltety at large ; who are thus called on for an act of benevolence,
fun.!ie, they are scarce able to do justice to the claims of their own
-.4'3. Besides this, no compensation is given out of the contri-
bution for a provision in sickness and old age to the families of
those
'l4lO never reach the nee of 65, though death should happen
mediately preceding it ; and, if an assumed hypothesis L 4 correct,
that sickness before death is not more than five weeks, and taking
el-lying-pay at 10s. per week, it will not unfrequently happen the
°thy return a man may obtain as a long and steady contributor to a
iteriefit Society, will not exceed 505., a sum scarcely equal to one
er's payment at a shilling per week, while by his death he leaves
a family entirely unprevided for.
It is to remedy these defects, inherent in the constitution of
Benefit„ Societies, that the National Loan Fund Life Assurance
Society proposes to submit a plan of Deferred Annuities on a new
principle, which will not only afford a more ample provision for old
te, and protection against sickness and misfortune—but in addi-
;it n the means, at all times, of putting his energies in motion, and
übe event of premature death, a better protection to his family.
Uolan proposed will embody several essential objects :
1 secure an'increased provision for old age out of a given
laving, by applying it exclusively to the purchase of a De-
2. Teer i
render the purchase of a protection in sickness unneces-
sary, by enabling the purchaser of a Deferred Annuity to
3. B withdraw or borrow two-thirds of his previous payments.
Y the use of tyro-thirds of all his payments when required,
tt?liir:,,ni,teT of productiveness
and want of employment, and extend
productiveness by an increasing command, in
e,aa'aect Year, of capital, so that, while providing for old age,
luec"ive contribution renders him more secure against
4.
_present misfortune.
To afford, at the age at which the Deferred Annuity would
Commence, without reference to his then state of health, the
option of receiving, instead of his Annuity, its value in
money,
g sum
according to the value fixed on the contract, or a
5. ae at deat.
Ina her e eventpaoyfbl deathhis beforeh the age at which he would
be entitled to Isis Deferred Annuity, to return two-third:i of
his payments to his family [or such fixed Life Assurance as
may be settled on the contract].
6'. In all such cases where the power of productiveness fails,
either from disease or accident, to enable the assured on
equal terms to convert his Deferred Annuity into a present
Annuity.
VII. Nothwithstanding the obvious and manifold advantages of
this plan over every other hitherto proposed, for securing present
and future competence to the industrious population, 'still more
striking advantages will be exhibited by contrasting its prospective
Provision for old age with that offered by Benefit Societies. This
arises from the non-abstraction of a given sum for a separate bene-
fit in sickness, which protection, by the operation of the Loan
Fund on the Deferred Annuity, is not only more ample, but other
misfortunes are provided against, which if calculated, and a sepa-
rate contribution made for each, whose duration equals that of
sickness, the purchase of them would entirely absorb the means of
providing for old age, while such a system must tend to discourage
productiveness, and afford no protection to a family. in the event of
premature death. The object this plan embraces is to open faci-
lities to the efforts of self-support, to stimulate the independence of
one class above the forced benevolence of another, while it recom-
mends itself to the latter by diminishing the burthon of Poor-laws,
l'thich has been at all times irksome, disturbing the harmony and
fomenting the mutual distrusts of society.
The following is a comparison of the benefits to be derived from
the Contribution of Is. per week paid into a Benefit Society, or to
Purchase a Deferred Annuity from the National Loan Fund
Society :

Age 20,

Annuity'

Cash. Policy

Death.

'l:l49"alLoanFund
itrredAnnuities
01,tiun of Benefits,
at q,5
...
...............
Societies
ditto ............. ......

X. s.
1
1
147 It 3

% of the
payments
rixeived.

126 0
,?_27 11

LoanFur:d
at" " Benefits,l
.....

1269 Il

% of the I
payments

% of the
'payments
received.