Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-15
THE DEVELOPMENT
Of OLD GE
PENSIONS
SYSTEM WITH AN
ORIGIN CENTURIES OLD
Rapid Spread Of the Plan IN
America in Recent Years By
Which the Aged May Be In
dependent,

NaN@f hRho DOBuid III most EuInDHHl
countries, may yet give the thrift,
American workman a chance to bro
VIDE voluntarily for his old age In
stead OF being taxed by the stare o
by his employer on that account. II
Germany life and old age insurance 1
compulsory. That may be all right 70.
the Germans, if they like it, but tina
isn't the American way. We don't be
heve in making the individual merel,
a ward of the state. Our idea is to EN-
courage him to do things on his owl
hook; to look out for himself instead
of being looked out for.
That Is why schemes by which tn,
state is to pension people are neve,
seriously entertained In the United
states. Massachusetts for severa
years past has had experience with an
agitation, carried on energetieally by Z
small group Of well-meaning persons
For the establishment of a system b,
which the workman will automatlcal.
~ pay taxes during his productiv,
years n automatically come into d
pension after he has passed a certain
age or has become disabled. This
plan would be compulsory. No es,
cape from the taxation. No choice IN
the matter. As the average American
does not like TO have virtues rammed
down his throat. he has not shown
great enthusiasm for this method OF
giving him a pension.
"A much more American scheme Of
old age pensions is offered by the saw
ings annuity. so say enthusiastic pro-
moters OF the plan by which saving:
banks OF the Bay state have been
authorized at any time after November
!, 1897. to establish departments for
dealing in annuities as well as in small
Industrial life insurance policies. Be
cause of the opposition of certain in
terests TO the idea of a savings insti-
tuition issuing life policies-though in
surance Is basically only a form of
savings-less public attention has been
directed to the Importance of the pro-
visions in the Brandeis-Whi bill re-
garding annUities Of 5000 each which
any resident Of Massachusetts may
purchase of any savings bank which
advantage of the permission
granted by the new law.
Yet a chance Is really offered. which,
If the departure is found successful In
n American state. will almost GER
tainly be taken up In others, for enab-
ling persons Of thrift and foresight to
pension themselves, In the most eco
nomical manner possible. Henceforth
1t Will be up" to the forehanded.
Minutes. 10 be sure. have been less
in vogue in this country than in most
countries up TO this time. There have
been greater profits for insurance ON
papies in handling the various kinds OF
life policies. Annuities have been is
sued for the most part as gifts from
some wealthy person to a poor rela-
tive or a dependent. Now and then "a
nan of wealth provides for himself in
this way against all possible vicissi-
tudes of the stock market. The most
noted market operator in Boston is
said thus to have secured his future
with an annuity of $35, 900.
Whether American wage Farmers
will buy annuities at the lowest pos
siblc price from the savings banks
which they have patronized to the eX-
tent of S3.4S2, 127,f9S is what Is to be
tested In Massachusetts. The problem
is to discover II any considerable num-
Der of people are willing TO do their
duty by themselves and their families
without being led to do so by a per-
suasive agent. Under the law the
banks are not to employ solicitors To
sell either annuities or policies. The
business will be strictly ''over the
counter" There will, however. doubt
less he no reasons why the advantage
Of this plan of voluntary old age pen
s~ioning should not be set forth i'm the
form Of such advertising as these in
stitutions do in the local press.
If successful, the scheme will carry
fAh III AAAt 1AAAAAM NAdAiE llfIH MHlII
have belonged to the conception of the
annuity from the beginning. The
mathematics OF the arrangement by
which a sum Of money. either In a
single payment or "A series of pay
ments. can be so applied at compound
interest as TO produce annual pay
ments Of a ixed amount during the
remaining life time of an average in
dtvidual was first worked out by no
less "A .nHTEnnnp Than tho Grand non.
%sionary Of Holland. John Dewitt. the
statesman. who so often led the Dutch
To victory against the English.
De Witt. who had become interest
Cd in speculation then current regard
ing probabilities in games OF chance,
was the first TO establish for philan-
throphic purposes tables Of mortality.
based on the register Of births and
deaths in Dutch parishes. He wrote
and presented to the states-general OF
his nation a treaties on life annuities'
IN which were laid down practically an
the principles nov in use. His was
really a remarkable achievement. Most
OF the other mathematician OF the age
like the gentle and pious Pascal
were engaged in the less humanitarian
task Of discovering by Wha c%alCula-
lions they could break the bank at
Tic or cards. some time after De
Wits tragic death at the hands Of an
u~ngrateful populace. theirs developed
the details Of his scheme. Among
them, II H. well remem bered. was the
French philosopher. Condorcet. who
proved by mathematical tables that
the human race would soon be per-
feet and immortal He committed
suicide. unfortunately. before he had
illustrated his own theory.
Throughout the eighteenth century.
when philosophical and practical de-
signs for the benefit OF humanity were
popular. mathematicians were perfect
ing the arrangements by which annui-
ties could be issued. soon associa-
tons began TO handle them as "a husi-
ness OF a beneficial character. The
'Laudable Society Of London, for the
benefit OF widows was begun IN 1861.
while the London Annuity society was
established in 1895. Throughout Great
Britain voluntary annuity associations
were formed. many of which have
lasted down to his DAY. Part Of the
Of the ideal savings institution.
as outlined in 1907 by Samuel Whit
bread. the Whig refOrmer, was 70 pro-
vide annuities on favorable terms
Eminent mathematicians. Ike the Rev
DR.. Price. gave time and study 10 the
theory o. .reversiouary payments
~ British life. as every reader ~ Ing
iish novels learns. the aunuifv has
long been a very important feature.
Specuiations and practices regarding
annuilies spread even 70 this counl!