The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-10-08
INSURED WILL SUFFER.
Effect Of Free Silver on Life In
Sllralce.
IMPORTANT PAPER BEFORE LIFE
UNDERWRITERS ASSOCIATION.

Contracts VIII Be Carried Out to the Let
ter, Says the Author, But the Benefl-
ciary VIII Get Only Half What the In
sured Intended in Purchasing Power
of the Benefit.
Washington, October THE National
Association OF Life Underwriters began
the seventh annual convention in this
city this morning. About 1876 men are
present. representing associations from
New Hampshire to California Benjamin
s. Calef of Boston, president, in the
course of his opening remarks, paid
tribute TO the memory of the late ex-
Gov. W. E. Russell of Massachusetts,
who held the position of arbitrator for
the leading life Insurance. companies,
which position has since been filled by
the appointment of Speaker T. B. Reed.
The principal number in the days pro-
gramme was the address by VIM. I.
Stanton, actuary of the United States
Life insurance company Of New York, on
The Effects of Possible Silver Legisa-
tion on Life Insurance Contracts
He said: If the value of each dollar
paid to the companies is to be scaled
down to the effective purchasing power
of about 80 cents, then, in order to main
tain it's obligations at the present value
In effective purchasing power the COM
panies would need to increase their
annual income from S275, coo, 00U to about
$3.50, 900. 900.
Unable to do this by reason of the
nature of their contracts, their obliga-
r ,ofG Ill -
pilr chasing power to about So, 800, 600, O00
One or the other will be an absolute neces-
sity. 1t they are to maintain their
present proud position of absolute un-
questionable and abundant solvency and
sill yield the same benefits they now
confer on their patrons.
Those who have been paying q dollar
having an effective purchasing mower of
lOO cents for dollars worth of life in
surance, cannot reasonably expect to get
the same benefits from the payment Of a
dollar that has an effective purchasing
power of only 50 cents. The man who
wants $50. 900 Of life insurance, and ex.
poets to pay for 1T in coin, VIRTUALLY sub,
Ject to 4S per cent depreciation. will find
that be cannot buy $25, 900 of life insur-
ance of the effective purchasing power of
today, but only $l3, 900. 1t has been
sought to be shown that we shall be par
TALLY repudiating our obligations.
pay in current scoin Of the realm" as
many dollars as our contracts provide
for dollars Of 100 cents each. Under tbs
threatened new order of things each of
those 100 cents would be of an effective
purchasing power of only about half.
We frequently hear it said that free and
unlimited coinage of silver must IN
eyitably impair life insurance contracts.
Nothing of the kind. Life insurance
contracts can and will be carried out to
strict letter. 1t is after claims are paid
and life insurance companies functions
are strictly performed, that trouble will
come in. The man who, in his provident
forethought, intended to leave his family
in the enjoyment of all those necessities.
comforts and luxuries which an annual
income Of 50, 600, based upon present
conditions would SECURE to them, may
have insured his life for $50, 900.
When the money reaches the hands of
his widow the prices of both necessities
and luxuries will have SO greatly en-
haneed, that the income, resulting from
his prudence and forethought, will pro-
vide his wife ana children with only
a bout one-half of what he intended to
provide for them. The change will not
in any sense impair the functions of the
life insurance companies themselves, ex-
cept as to dividend benefits and the
basis of premium payments.
Its action will be to impair the present
existing relation between assets and
liabilities and effect arrangement of
these important facts, which it will be
very hard subsequently to esta blish. -