The sun., 1896-10-08
sILrER AND IRE INSURANCE.
Actunry Stnndon on the Effects ora Debnscd
Dollar on Life Insurance Contracts.

Actunry stnndon on the Effects orn Debnscd
Dollar on Life Insurance Contracts.
WAsuISGToN. Oct. The National Ass2c'a-
tion of Life Underwriters began its seventh an
nual Convention in this city this morning.
About l25 gentlemen we're present. represent
Ing associations from New Hampshire to Cali
fornia Benjamin 5. Calef OF Boston. President,
In his opening remarks paid n tribute to tho
memory of the late cx-Gov. w. L. Russell of
Massachusetts. who held the position OF Ar
btrator Tor tho leading life insurance COM
panes, which place has since been filed by tho
appointment of Speaker Reed The principal
number on the days programme was the ad-
dress by William r. Standon, Actuary Of tho
United States Life Insurance Company OF New
York, 0n The effects of possible silver legisla-
tion on life insurance contracts He said:
Under the conditions winch prevail to-day
about S215. 100000 of annual income ia sufll-
cient to provide for the regular life insurance
companies obligations of about S5,7OO, coo. 900.
II the value of each dollar paid to the cuupa-
MES is to be scaled down to nn effective uur-
chasing power of about >" cents, then, in order
to maintain their Obligations at their present
value in effective purchasing power, the compa-
MES would need to increase their annual income
from S275,0O0,0OO to about S550,OOO,0OO. IN
able to do this by reason of the nature of
their contracts. their obligations OF auout
$500, 100000 will fall in effective pnr-
chasing power 70 about S2,sOO,oOO.Ouu.
One or the other will be an absolute necessity
il they are to maintain their present proud po-
sition of absolute. unQuesttonahlc, and album
dant sovency. and still yield the same benefits
they now confer on their patrons. Those who
have been paying dollar having an effective
purchasing power of 100 cents Tor one dollar 5
worth OF life insurance cannot reas"nah!y ex.
pect to get the same benefits from the payment
of dollar that has an effective purchasing
power of only 81 cents. The man who want,
$4,000 of life insurance; and eYpects to pay Tor tor
cent. depreciation. will find that he cannot
buy $4,000 of life insurance OF the eitrcttve
purchasing power of to-day. but only $4,000,
1t has been sought to be shown that we shall be
partially repudinting our obligations. NcShall
do no such thing. We shall pay in tie current
tracts provide FOR. dollars OF 100 cents each:
but under the threatened new, order Of things
each OF those 100 cents would be al an elective
purchasing power of only about one. hair.
We frequently hear 1t said that the free and
unlimited coinage Of silver must Inevitably i'm
pair life insurance contracts. Nothing OF the
kind. Life insurance contracts can and VIII
be carried out to the strict Istter IL Is after the
claims are paid and the iito insurance com
psny's functions are strictly performed tnat the
trouble will come in. The man who. in his
proyident forethuught. intended TO leave his
family in the endowment OF all those necessities,
comforts, and luXuries which nm annual income
OF s! 600 bas ed upon present conditions. would
SECURE TO them may have insured his lite for
the sum of $4,000. When the money reaches
the hands OF his widow the prices of both neces,
tha: the income resulting from his prudence
and .orcthought will provide the wife and chil-
dren with only about onc-half of what he In.
tended to provide for them. The change Will
not in any sense impair Inc functions OF the ilte
insurance companies themselves. except as to
dividend benefits. and the basis OF premium
payments. Its action will ne 10 impair tie
present existing relation between Assets and
liabilities. and effect arrangement OF these
important factors, which II will be very hard
subsequently to rect tetahish.'
a vote OF thanks was extended to Mr.. stan
don. and the Convention adjourned until to-
morrow.