Bisbee daily review., 1914-01-24
Saturday Morning, January 24, 1914.
PAY AS YOU GO.

FAY 40 rOO SOs Attention was called in the editorial columns of The Review a short time ago to the increasing and dangerous tendency of policy holders to borrow their life insurance Statistics secured by the Association of Life Insurance presidents emphasize the pers of the situation it exists today. Instead of paying as go 1t is much easier. if so much less wise to from posterty. Extrava gance goes hand in hand with improvidence and this is an extravagant age in country That 1t is rich country is perhaps temptation, but
 Various evidences collective ,and individual, attest this inclination mortgage the future What the in dignant reflections poserity who shoulder the penalty in either or added depleted in hertance does not disturb our bthe freehanded concern.
 In general directions, the fruits that follow when a corporate future is overdiscounted by undue capital aon or dividends, and stockholdng poseriy pays the piper The advocates of conservation paint iustifably wordpictures of how coming generations will regard thrftess waste of natural 
 More particular evidence is also abundant in the personal handling of pecunary resources An impressive sign the times the indictment drawn by the fraterny.-both companies and commis- the startling increase in the tendency for the insured to borrow from their heirs by dip ping the principal the protection fund for their families.
 The Association of Life Insurance Presidents pre-. elaborate figures which show in brief that while the benefciares usually dependent of all the life pol es in the United States supposed to be protected by almost 34 billions of somewhat over half billion of this nonexstent comprising the sOf; of policy loans that not being and will be repaid The incompatible total loss through consequent lapses will magnify this fraction considerably. Perhaps only threequarters of the aggregate protection fund is real not nominal.
 It is the unbroken increase in thsb orrowing sty that s the disconcerting element The ratio of pol icy loans and premium notes.-the former constituting 95% thereof-ayeraged about 3H of total insurance re during the eight years 1sss-1S95. Thereafter il began its steady climb.
 The ratio for 1913 is believed to have been abou 1s9 No part of the country is innocent of this indul gence the differences being merely those of degree be the lowest of 1Sk& in Central Northern states 2O9 the Pacific Coast The facility of thi borrowing practice, with the big companies carryini scores of available cash millions to be had at 5% a all times, however hard, has smoothed the ways o temptation. Now the big companies recognizing tn need of reform remedy by raising the interest rat to GG; while the convention of insurance commission has advocated setting the brake of 6Oday defer ment of all loans for premium payments.
 Their effort is to check what amounts to a mora peculaton by American husband and father from hi widow and orphans. Admittedly the average polio total is far from adequate. measured against tn value of the life insured and aevation rathe than projections 1t should be augmented rather ha pared down How spacious the excuses and tn promises of either exgency is reveale by the that only oneenth of selfpromised repa made How quick and ready is the r sort of business embarrassment to this shown by the jump in loans of over 67ft in 1913 an 33& in lsO7,-whout any appreciable restoratic in succeeding years.
 This is an individual counterpart to our colleci' conduct. We put steadily rising share of steadi rising governmental the backs of posterity. tween 19O 2and 1912 the per capita expense of runnl 1iG largest cities from s22.71 to $3219. The population in that interval 35%; but their n debt mounted lo039s. and the per capita share, that