National Republican., 1877-08-13
now TO INSURE INSURANCE.

We publish elsewhere q statement show
ing that titty-two fire insurance companies
allied during the first six months Of the
'prescnt year This statement means that
The people OF the United states have paid
uui TO those companies several millions Of
dollars ior which they have not received
!any equivalent, and never will. II means
that n great deal OF property. which was
Supposed to be insured, was found, whom
destroyed, to I've covered by worthless poh-
cirs. Nor IL this state OF affairs new on
The same thing has bccn going on ever
since the Chicago lire, and the list Of in
solvent companies now embraces several
hundred names.
These facts are calculated to create u
great deal of uneaSineSs among policy
holders, for they cannot help feeling II sense
Of insecurity not Mt all comfortable. The
evil is u great one, and the attempt to de-
visc u remedy for il has perplexed some Of
the most. thoughtful business men in the
country. The condition Oi the nation IN
regard TO insurance is II great deal like 1t
was with reference TO banks before the war.
As long as each State was permitted to
authorize banks to issue bills the condition
'"f the currency was most wretched. Bank
,hills were generally at discount outside OF
'rhe State in which they were issued, and
Immense losses to bill-holdcr>.
Everybody now admits the advantage
'~hicll the country has derived from the
present system Of uniform currency. Every
body now wonders why the people submit
led to the disadvantages and losses OF the
rld system for such n long period. When u
lmorc perfect system Of insurance is devised
IN place OF the present one people will won
der why the nation Submitted Tor ~ many
.ears to be robbed by th. present insecure
,,nd iniuuitous plans al fire and life inSru'
.sp,e.
it possible to devils. secure plan o
tLre insuranceY We think II is The prin
cipleS Of insurance are well understood, and
she failures do not result 80 much iron
ignorance MS from recklcssncss and dis
honesty. The system Estate s,IperNisiO h,
a,to,cn to be no safeguard whatever Il,
policy -holders. The insurance experts cai
nearly always tell when an insurance com
,rany has become insOlycnt, but such inior
nation is of very little ,alu. To people Wit
have already paid their money to u worth
les company. Besides, the diversified aI'
conflicting laws Of the >r'rT'l states pro
dHcc infinite confusion i0 til" TGumtion /"
this business. There is 10 stable policy il
regard to it. The States are c"ntinuail'
rnkcring with their laws, aud yet the Onl'
'prlctical results the people get arr c0u>tau
,vroods NJ insOlVcnt companies,
- long as the regulation OF Insurance j
L,t to the several States the pcopl" will cn
u,ir to lo=c their money through w"rthlr,
q ,npauics. The evil can only be- "lrrtuall
r,mcdied by giving the National Govern
meut control OF insurance, and requiring tn
assets OF companies to In deposited II
money or Government bonds with the Trca'
Irrr OF the United States in the same man
.ncr as bonds prc now deposited by ~,
tional banks for thc security Of the bll
holders. Under n systematic, uniform ~
f,ionnl supervision the interests of policy
'aOliers could he protected much MOI
thoroughly than Is possible under tn
,rescnt plan OF conflicting state surri-io
by thus concentrating all the business j
me department experience would b. game
which would gradually perfect the Systcl
80 that the policy-holders would br rs *
rurr as the holders OF national bank bills ~
now. No companies except ih0-c ln.S's'
ing real capital would he allowed tod" hun
ness. Thus, by the expenditure ri lc'
Thousand dollars ior national sul"lN i-iol
millions of dollars would be saved Ia III
people OF the United States annually.
The whole financial system oi the malhr
seems 10 be deranged. Immense sums Al
invested annually in fire and life ins'lan'
rndcr II sense Of great insecurity II Is II
right that this state Of uncertainty W
h.,laId should be allowed to continue. ii