Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1868-02-22
AN R BUREAU.

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The movement made in the Legisla-
,ure Of Pennsylvania, in relation to the
institution Of an Insurance Commission
or, and the bill offered in the United
States Senate by Mr.. Williams, of Ore
ron, providing for the creation of a
national Insurance Bureau, show that
there must be considerable interest OK
listing in various parts of the country in
relation to the subject of insurance and
as to the security of the people, who are
supposed to be insured. Insurance Is
peculiarly n business in which tho in-
surer has to take much on credit. dc
cannot know whether he is assured by
a good or bad company, until 1t IS too
late to rectify the consequences, II ne
shosld be deceived. He pays his pre-
MUM money altogether upon the faith
that if loss arises he will be reimbursed.
In some cases a general insolvency warns
the insured that they have lost tho
amounts paid TO gain security, and that
they must haste to be treasured. But
no Que knows whether the insolvency of
q company may not first be demonstrate
ed in his own case, and when it is too
late to rcctify the consequences of dis
aster. Hence, the necessity Of guard
ing by legislative care the interests of
the people, and Of establishing such
safeguards as will make the capitals of
insurance companies ample. In Pennsyl-
vauia it is proposed to reach that end BY
the appointment of a commissioner, with
ample power to investigate as to the
condition and assets Of each insurance
company doing business there, and their
ability to carry out the contracts which
they undertake to make. Mr.. Williams
bill proposes to insure the capital in the
first place, by making it dependent upon
the substantial basis Of Government
bonds. What the system Of deposit of
bonds as security for capital is to the
national banking system Mr.. Williams
proposes shall be the means to secure
the capital of insurance companies.
The bill declares that they shall de-
post certain per ceutages upon their
capitals, in national bonds, and that the
same shall be kept as surety for the
faithful performances of all the obliga-
tions of the companies to the persons
whom they undertake to assure. Such
u plan seems founded upon a proper
idea of guarantee. Much of the diai-
Guilty which has attended the frauds Of
what are known as " bogus insurance
companies" has been occasioned by
ignorance of the manner in which their
capitals were invested, aud by fraudulent
statements Of tho value Of what they
called their "assets." But If ten per
cent. Of the capital of every insurance
company is in Government bonds, and
in the hands of the officers of the Gov
erument, there will be far less danger
Of loss than there is now, and the bust
ness of the company will be s~atisfac-
tory alike to owners and insurers; while
the profits, by reason Of the confidence
created by this plan of security, must
be greater than they are now; and it
would be we'll if both national and
State Legislators had in view the pas
sage of a law that will prevent insur-
ance companies of reputed wealth and
position awaiting themselves of bubbles
and tcchnicalitics which either compel
litigation or disgraceful compromises in
which the insurance companies gain
largely.