New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-08-05
New, Jim + egisN
JOHNSON { WGAERskI, PususnE,s.
Wednesday August 5, 1896.
From Life Insurance Standpoint.

John Mccall. president of the NeS
York Life Insurance Company, and j.
Green, president Of the Connecticut Mu
tual Life Insurance Company, have ex
pressed themselves as strongly opposed
to the free coinage of silver. These gen
tlemen have addressed the policy holder
of their respective companies lat the ex
pense of the policy holders setting tortf
the evils of free coinage, md deprecat
ing any possible Legislation that may IN
the future entail the payment of policies
in a "52 cent dollar of silver"
1t is but natural that the president and
managers Of corporations which hoard e.
normous sums Of money, should favor a
monetary system that constantly swens
the value of the present assets. 1t is
bat natural that they should join the
bankers for steadily approaching cur
rency.
The holdings of the old line companies
ofthe United States are simply enormous.
The Mutual Life of New York alone, the
greatest of all, holds over $3.50, 1000, 900.
The holdings of all the legal reserve
companies are, IN round numbers, 81 i So
100000. Ii connection with this enor-
nous sum, the accumulation of years, the
following will be of interest:
In the first place the accumulsaNn on
the part of these companies ofN, i 50,-
100000 of assets, cash anG securities
easily controvertible into cash, has had
much to do with the grea5 and increas-
ing stringency of the money supply.
Think of it. These explorations already
have large part II the entire money
supply of the country. No wonder they
are interested in keeping up constant
appreciation ct 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 from specific account with
each policy. and belonging to the policy,
holder in the same way that deposits in
q a bank belong the deposition. But the
reserves cannot be withdrawn until the
policy natures, except as withdrawal af-
ter a certain period is made matter of
contract. In view of the fact that these
reserves belong ultimately to the insured
any appreciation or depreciation in their
values operates to the same effect only
as it would in the case of deposits in a
bank.
But the presidents, managers and 9TH
er officers of these companies,-a small
army, receiving large fixed incomes
are greatly concerned in keeping up
a gold standard and a correspond
ingly high standard of money. One has
bnt to recall the official examination of
the New York Life Insurance Company
made several years ago, to appreciate
the force of this. This official investi-
cation disclosed an exhorbitant expense
account and wasteful extravaganza.
Princely salaries we're paid to hundreds
of officers and managers. VIM. Beers,
the president at that time, received sal
airy Of 100000 yearly. No wonder
that Mr.. Mccall, who now occupies the
comfortable berth as president, is in ia
vor of a system that increases the power
of money, and writes to the policy hold
ers, telling them how a larger volume OF
legitimate money in circulation would
injure theD1-
But the single gold standard has had
another effect on the life insurance bust
ness. Under steadily increasing value
of money, contracts taken out in an ear
1ier day have become burdensome and i'm
possible t"carry. While nominally pay.
ing the same amount in premiums, the
policy holder las found himself obliged
to pay double the value of his labor or
his possessions. The result has been
failure to pay premiums and forfeiture.
The amount of lapsed and forfeited life
insurance during the past few years has
been simply enormous. The Equitable
Life Assurance Society alone, during 1895.
although it wrote $132,OO0,ooo of new
business, at the end Of the year had over
s1,0O0,000 less business in force; a, net
loss Of over million after doing a new
business of $132,OOO,O0O. The Washing.
ton Life lest over million more than il
gained in new business; the United States
Life over three millions; tile Provident
Savings over $2,OOO,oOO; the Michigan
Mutual Life over 81, 100000. All these
companies did a large volume Of new
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