The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-05-24
LIFE INsURANoE-A YEARLY sAcRI-
EYrr

FICE.
For more than quarter century
the East has held a monopoly of the
insurance business of this country,
especially the life branch of the busi-
ness. The official reports Of the va
ri0us State Insurance Departments
show that there is annually drawn
fro-n the country and c9ncentrated In
New Ycrk and a few New England
cities, an immense sum of money.
Last year it amounted to about
seventy million dollars Only about
ten per cent. of this comes back ia
payment Of current losses. hence the
working capital of tho West is de-
pieted to the tune of sixty millions.
There is probably withdrawn from
our State every year not less than two
and half or three million dollars !;
and even our own city contributes an
nually sum equal to the capital of her
/ largest bank. In view of these facts,
which can be proven By official re-
cords. ID il any wonder that capital
should be scarce and the rate of inter-
est on money highsin the West. while
IN the East it is usually a drug2 It is
difficult to conceive of more suicidal
4 policy than that which has been pur-
sued By the West for many years In
this matter Of life Insurance. There
/ seems to prevail a crude notion that
the East alone can supply the
brains ard the capital necessary
to conduct the business successfully,
and this idea attaches itselfin great.
er or lesser degree to other branches
of business as we'll as insurance. We
Of the West are content TO grow corn
and wheat, and raise the pork. and
4 leave all the more cultivated and gen
.lemanly employments to the people
of the East. And why should this
be the case2 Have we not all the ia.
clllties tor managing our own affairs
! that they possess in New England
( In this matter of Insurance, for ex
: ample. does not the West present 4
: condition of affairs infinitely more
: favorable Tor it's practice than tht
East2 a Life Insurance Company ii
practically a savings bank. No
more than twenty per cent. of the pre-
miums paid IN 60 to cover ths
current death losses The balance i
simply a deposit with the Company
} | to be improved &C interest and pait
: back to the depositor &C some futur
t time-on the happening of a contin
/; gent event, or after the expiration Q
( a stipulated period. When we pa.
t . premium to an Eastern CompaD,
we should recollect that, on an aver
/, age, less then twenty per cent. OF !
r IS for insurance.. e., 10 cover th
r current death -risk-and the othe
I eighty per cent. is simply a deposit
& Who of US would think Of depositinl
S our money IN Hartford Bank, wher
I money is worth less than six per cent
E when we can loan it at home on rea
] estate security at ten per cent. Ye
Z the people Of Indiana do this annual
a " to the amount of two million dol
g lars or more. And why2 Simply be
i, cause they are blinded to the rea
facts of the case by the veil of insu
]. rance which hangs over it. We thin
4 it IS the duty Of our business men t
Z examine into this matter. and if the
find the condition Of things IS "
e have described them and they assul
Il edly will-to adopt such steps as the
n may deem proper to check this res
and rapidly advancing evil.