Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-08-12
FOREIGN.
GTs INSURANCE.
It's Wonderful Growth in The United
States.

Correspondence Of the ST. Louis Time3l
The ornu-tL q. tAe life insurance
.usmess ddFing the twenty years
from lsil to 1861, showing, in only
fOrty-seven companies, the following
figures:
Date Policies. ,m t Insured.
ls4l....--...--.,,. i...-...... ss00O
Sl ...-...--.., U5.ll,. 81 ,O51 ,55I
though surprisingly rapid, cannot be
considered as unhealthy nor out 81
proportion to that Of ;;,,a general
business c. sas country. During that
period great change and improve
mentS We're made in the modes Of do
ing business, The use Of steam power
on sea aud land, the railroad, the
telegraph, the express, and many
other means Of transacting and in
eTe3siDg commerce, were adopted and
firmly established in public favor. l
have no means'Of determining what
gave such an impulse to life insurance
at that time, but probably it was the
result of partial abandonment - the
cash system and tae Introduction of
th5 systedi' OF taking notes Of policy
holders for One-half the amount of
the premiums. This system, .appar-
emily so liberal and easy, was readily
accepted by thousands, gnder the be-
lief, backed often by the assurance of
tie agent, that payment of the note
would never be required-it was taken
as a mere matter OF form, and would
be duly Cancelled by the dividends.
Without stopping to expose the prob
able fallacy Of these expectations and
promises, and the actual insecurity of
the system, | will merely state, in
evidence of the extent to which it was
and still is carried on, that such
arrearages of premiums form, in some
cases, nearly sixty per cent. of the
assets of companies of good standing,
and amount to more than % per cent.
OF the net assets of all companies
combined. In justice to the public,
however, and to many of the note
companies, it must be added that
there is a very general desire to
abandon the note and return to the
cash system.
In the next period, lSo2 tG 1861, in
elusive, the increase in the growth of
life insurance was little less than as
tonishing. Here are the figures:
Date. Policies. Amt Insured.
1861 .....-....,.. 6335......., .....S 1909, SCI
43, 4l7,,,.,,,. .... 1883, 22s
This indicates the Use Of new and
and powerful stimulants, the effects OF
which, I have good reason to fear,
could be neither safe nor permanent.
/ do not have to 90 far to find them in
the vast increase of agents and en-
! 4 ssh
era. Every one who will retrace in
memory the last six years viii recall
to mind the numbers, industry and
perseverance Of insurance solicitors
who sprung into existence during
that time, and by whom he was besel
at all times and places, often to the
serious hindTance of both business
and pleasure. The persistency with
which these solicitations We're followed
| up excited surprise, until it becams
/ known that some twenty-five per cent
perhaps more, Of the cash received
| for first premiums went directly intC
the pockets Of the agents.
The system of receiving notes in
stead of cash for premiums, of paying
heavy commissions, and consequently
increasing vastly the number and ac
tivity of agents will account for the lat
rapid and enormous increase of busi
ness. 1t has now reached proporticri
| so immense as to grouse the graves
lapprehenslOn5 emong our most eX
pefienced financiers. 1t Is even pre-
dicted by some of the Oldest anC
| clearest headed insurance fnen of st
| Louis, that the system must be speed
| ily curbed by lazy agd public opinion
| or il viii end, frst in making tn
| South and West mere tributaries t,
the East, and next, in q break dow
that will be more damaging to the pub
| liz than any other financial event tina
ever occurred in the United States
III think ! have evidence that thi
dreaded event Is not as distant as w
could wish IN the shortness Of life @
| the policies forced into existence b
the unsafe stimulasts or notes am
higb commissions. The commissione
saws that " after making due allow
ance for the legitimate termination Q
policies hy death, purchase and ex
bring, some 1000 policies, insuNni
more than Sl0e, 900, ,0b0, were allowe'
to drop in the year under review
1867) from mere want of perslstene
, on the part of the assured; thes
policies were exactly a third of tn
|. whole number issued in the precedin
year, e