Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1896-08-04
From Llfe-Insurance Standpoint.

pduy, nave expressed themselves Ab
strongly opposed to the free coinage
of silver. These gentlemen have adj
dressed the policy holders of their re-
spective companies-at the expense
of the policy hole ers-setting forth
the evils of free coinage, and depre-
eating any possible legislation that
may in the future entail the payment
of policies in "52 cent dollar of sill
ver."
It is but natural that the presidents
and managers of corporations which
enormous sums of sums of money,
should favor monetary system that
constantly swells the value Of the
present assets. 1t is but natural that
they should join the bankers for
steadily approaching currency;
The holdings OF the old line COM
panies Of the United States are simp-
ly enormous. The Mutual Life of
New York alone, the greatest of all,
holds over 1920, 900, 900. The holdings
of all the legal reserve companies is,
in round numbers, 81, $50, 900, 200. In
connection with this enormous sum
the accumulation of years, the follow
ing will be of interest:
In the first place the accumulation
on the part of these companies of 81,
1850, 100000 of assets, cash and secure
ties easily controvertible into cash
has had much to do with the great
and increasing stringency of the
money supply. Think of it. These
corporations already have q large
part of the entire money supply of
the country. No wonder they are in
terested in keeping up a constant ap-
probation of money. No wonder
they insist on such money as they
describe as "honest dollars"
Nearly ninety per cent of this enor-
nous sum is specifically the money of
the policy holders held as reserves.
The reserves form a specific account
with each policy, and belonging to
the policy holder 10 the sa me way
that deposits in bank belong to the
depositor. But the reserves cannot
be withdrawn until the policy ma
lures, except as withdrawal after q
certain period is made matter of
contract. In view of the fact that
these reserves belong ultimately to
the insured, any appreciation or de-
probation in their values operates to
the same effect only as it would in
the case of deposits in q bank.
But the pl esidents, managers and
other officers of these companies, a
small army, receiving large fixed in.
comes-these men are greatly con
cerned in keeping up a gold standard
and corresponding high standard
of money. One has but to recall the
official examination of the New York
Life Insurance Company made sever
:. al years ago. to appreciate the force
of this. This official examination dis
: closed an exhorbitant expense &C
count and wasteful extravaganza
Princely salaries were paid to hun
dreds of officers and managers. VIM
= Beers, the president at that time, re
ceived salary of 100000 yearly. NJ
wonder that Mr.. Mccall, who nov
occupies the comfortable berth al
president, is in favor of system tina
increases the power of money, ant
! writes to the policy holders telling
them how q larger volume of legitl
: mate money in circulation would ID
= jure them.
- But the single gold standard ha
:. u had another effect on the life insul
ance business. Under steadily in
u creasing value of mouey, contract
taken out in the earlier day have be
E come burdensome and impossible t,
carry. While nominally paying tn
same amount in premiums, the polio
holder has found himself obliged t
y pay double the value of his labor O
u his POSSESSIONS. The result has bee
. failure to pay premiums and fol
. fixture. The amount of lapsed an
" forfeited life insurance during tn
:. past few years has been simpl
~ enormous. The Equitable Life Al
:, surance Society alone, during 1895 a
!, though it wrote $4,000, 900 of ne,
:. business, at the end of the year ha
:. over 81 1000, 900 less business in fore,
- net loss of over a million after dom
: new business of $1S2,0OO,O0O. I'll
- Washington Life lost over a millio
% more than it gained in new bushes
the United States Life over three mi
:, lions; the Provident Savings ovt
~ $4,000, 900; the Michigan Mutual Lii
!. over $4,000, 900. All these companie
= did large volume OF new bushes
L. and still suffered net loss as abov
- owing to the heavy lapses and 70
80 FIXTURES.
&c Official statistics will show that
1896 alone about 800. 900, 900 of life i
surance was terminated. Only abol
$75,000,0(0 of this was terminated b
death or maturity, leaving the emo
nous amount of 1925. OOO 900 lapse
and forfeited, and why? Because me
, could not pay their premiums. Ever
sa. forfeiture and lapse meaus dire
loss to the policy holder and corr