Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-10-08
LIFE UNDERWRITERS CONVENTION.
The Effect Of Free Coinage on Lie Insurance
Explained BY nj. Stanton.

Washington. Oct 1.-THE National AS
ISOLATION OF Life Underwriters began it,
seventh annual convention In this city
this morning. About 125 men were pre-.
sent representing associations from New
hampshire to California. BENJAMIN 3
Calef OF Boston, president. and In course
OF his opening remarks paid tribute 70
the memory of the late Ex-Governor w
r.. Russell OF Massachusetts who held
the position of Arbitrator for leading life
insurance companies. which position mas
since been llee BY the apPoaitment
Der In the days programme was the ad-
dress by VIM. Il. Stanton. actuary OF the
United States Life Insurance Co.. OF New
York. on THE Effects of Possible silver
Legislation on Life Insurance Contracts
He said:
"Of the values of each dollar paid to the
companies Is to be scaled down to an e.
fect1ve purchasing power or about ~
cents, then, In order to maintain their
obligations at the present value In an ef-
tective purchasing power. the companies
would need to- increase their annual in
come from $4,000 600 to about $3.50 900, 900.
Unable TO do this by reason OF the ma
ture OF their contracts their, obligations
of IS. zoe. 100000 will fall In effective pur-
chasing power to about $500, 000, 0OO One
or the other will be absolute necessity. u
they are to maintain their present proud
position or absolute unquestionable and
abundant soiVency and still yieid the same
benefits they now confer on their patrons.
Ihose who have been paying dollar
having an effective purchasing power OF
100 cents for dollars worth OF life in
the same benefits from the payment of Il
dollar that has an effective purchasing
power OF only ~ cents. The man who
wants $25.0O0 of life insurance. and ex-
poets to pay for it in coin virtually sub
1ect to a al per cent. depression VIII ind
that he cannot buy $4,000 Of life insur-
ance of effective purchasing power OF to-
day but only sl3. 900. has been sought
to be shown that we shall be partially
rcpudiating our obligations. We shall do
no such thing. We shall pay In current
coin Of the realm''-as many dollars ~
our contracts provide for-dolars of 1870
cents each, but the threatened new order
of things each of those 100 cents would
be OF an effective purchasing power Of
only about half
I'VE frequently hear ii said that the
free and unlimited coinage OF silver must
inevitably impair life insurance contracts.
Nothing of the kind. Life insurance con-
tracts can and will he carried out to the
strict letter. 1t is after the claims are
paid and life Insurance companies func-
tons are strictly performed that trouble
will come in. The man who IN his proYi-
dent fore' bought intended tn leave his
family in the enjoyment of all those
necessities, comforts and Injuries which
an annual income of 5000 based upon the
present conditions would secure TO them.
may have insured his life for $4,000.
When the month reaches the hands
of his widow, the prices OF both neces-
SUES anu lufErltS VIII n'tst 50 EI.dtlS
EXCHANGED that income resulting from
his prudence and forethought VIII pro-
vide the wife and children with only
about one-half OF what he intended TO
provide for them. The change win not
in any sense impair the functions of life
insurance companies themselves eAcep,
80 to dividend benefits and the basis OF
the premium payments. Its action VIII
be to impair the present existing relation
between the assets and liabilities and ef-
feet a arrangement of these important
factors which IL will be very hard subs.-
uuently to re-establish.
a vote of thanks was extended MIR.
Stanton. and The convention adjourned
until tomorrow.