The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-01-28
sRxRxx OF TEE PRzss.
Editorial Opinions ofthe Leading Journals
upon Current Topios-CompiIed Every
Day for the Evening Telegraph.
TURN OF THE TIDE.

From the ~ Y. Times
There are unmistalable indications that
for time at least, the progress of life insu-
rance, as a business, has encountered a
check. During ten or twelve years the efforts
put forth to popuarize the system have been
crowned with success which has astonished
the workers themselves. Year after year has
written its record of wonderful advances;
policies have been piled upon policies; agents
have been multiplied until they became like
the frogs of Egypt, in other respects than
mere numbers new companies have been ex-
temporized and pushed into the field; old
companies have heaped up assets and received
vast incomes as the result of public conf
dence, and everything has gone merry as
marriage bell. The idea of such a thing as
halting in this conquering march seems never
to have entered the minds of these promoters
of life insurance, and he would have been
deemed calumniator who limited that retro
gression was among the possibilities.
But the figures of 1870 will bring shadow
over this delectable dream. The movement
has been backward. 1t is too soon to say
how much the diminution will amount to,
but the fact that there has been a considera-
BILE falling off in the business is clearly fore
shadowed by the returns thus far made We
suppose it will be safe to estimate the de-
crease, in the sum insured, at one hundred
two or three millions. This falling off in
business has not, however, been the uniform
experience of all the companies, for some
show exceptional prosperity and progress.
But, as q whole, the life insurance mania has
been checked quite unexpectedly and sud
denly.
1t was natural enough that the tide should
turn, and silly in these sanguine officers and
agents to suppose themselves and their
=
herent in all earthly things. The difficulty
is that they are not prepared for the change
and have not taken in sail in time. Having
expanded and extended their operations in a
most extravagant fashion, the sudden neces-
sity of practicing economy comes upon the u
with all the force of a new sensation of the
unpleasant sort. Thinking that their field
was the world, and that all they had to do
was to put in the sickle and be happy
in the harvesting, the new companies, par
ticularly, have laid their plans for the future
most lavishly. The commissions and other
expenditures connected with the procurement
of new business have been, by frantic CON-
petition, brought up to so high figure as to
make the whistle a costly purchase. The
young companies, struggling to reach the
point where they might feel that their own
lives were insured, have tilted against the
rich old offices whose business was worth
struggling to retain, and between the two
combatants the public have endured a pretty
tight embrace. Such warfare could not be
expected to last forever with profit on all
sides, and now the breathing spell has come.
This has come about, too, without reference
to the failures whose occurrence has recently
startled the community. For these failures
took place too late to affect the business of
1870. And the fact that they have occurred
is only now beginning to have its effect. This
force will be felt during the current year, and
will justify our prediction as to the relapse of
the system from popular favor and confidence
The prestige of immunity from failure, which
has been a glory heretofore, has gone. The
possibility, nay, the probability, of other finan-
cial failures like those of the ''Great West
ern" and the Farmers and Mechanics" will
hover like clouds over the future, and either
repel persons from insuring, or make them SO
cautious that none but we'll established COM
panies will get their patronage. This is Just
where the life insurance scheme should land,
after SO long a season of experiment. If the
signs of the times be studied in this sensible
light, life insurance may yet prosper; but if
the reckless competition, extravaganza, and
maladministration of the past few years are
to continue, there will be thousands in the
community made to mourn, and not few
companies brought to bankruptcy.