The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-08-22
Editorial Comment
On the Thrift Side
(Thc New York Tines

iThc New York Tines
The common impression that there are a great
many people in the United States and that it take
many different kinds of people to make a world
finds confirmation in the rival statistics OF luxury
and thrift. Has the American people gone automo
bile mad? Possibly, in many Yet if the con-
sumption of motor is close to one per family
in the United States. it is now asserted that the
consumption of life insurance policies averages
more than two per family Fifty million people,
according to the figures issued by the Prudential
Life Insurance Company, pay annual premiums of
$2oooooOOo0 for protection to the aggregate value
of $4,000 100000. Fifty million people means
roughly 100000 families, each carrying life in
surance to the average amount Of $500 and paying
$3.50 per year for the privilege. If the indicated
rate of per cent high, remember that a con
siderable of the total of insurance is in the
form of endowment policies which combine savings
with insurance.
Atosether the American people pay something
like 3400,00O0OO year for prot ection and thrift
in the form of life, fire and minor insurance prem
lnms. That would be nearly and half times
as much as the estimated value of motor proiuc-
ton in the United States in the year 1928 And in
surance represents only item in the nation
thrift along with savings banks, building and loan
associations home building and Investments If
the notorious appetite has been growing, so has,
apparently, the thrift instinct In 1923 the market
value OF automobile production was three times that
Tor 1916 During the same period the number of
ordinary life policyhoders rose from TO- 700 600 to
Io,515O0O. and the face value of the policies from
slightly less than twenty billion dollars to more
than forty-four billions. From 1916 to 1924 tie
increase in savings bank deposits was from five
billions to nearly eight and half billions
The growing intensity of life manifested in the
nations automobile habit may be one psychological
reason for the rapid development of the insurance
habit Conscience. a bit uneasy over the cost of the
new car, sometimes makes amends for the depleted
bank account by purchasing insurance protection
Tor the wife and the children This same relation
would be illustrated in the fire insurance statistics.
We destroy immense amount of property by fire
ums on policies aggregating nearly one hundred
and twenty billion dollars. That sum would cover
all of the $4,000, 100000 which a recent Census
Bureau estimate gives for that part OF the national
wealth comprising stocks of goods and machinery,
and would leave $4,000 100000 toward protecting
S175Oo0,0OO 900 worth of real property and improve
mens. Or taking the total estimate of the national
wealth three hundred and twenty billions, and
subtracng land. railroads and other property i'm
mune to fire, We find that the American people are
insured against fire for than so per Of the
total hazard. Fire prevention is much better tina n
fire insurance. Still, the figures dot not indicate a
hopelessly wasteful and reckless nation