Evening star., 1926-03-13

parties should be additional policies
taken out for that specific purpose.
Policies taken out to protect the fam
| ily should be kept sacred-never
| allowed to lapse and never borrowed
upon except in cases of extreme
necessity.
This, however. does not mean that
insurance companies should be used
only to pay money into! Insurance
| companies are as anxious to loan their
funds safely as to collect premiums.
These companies loan money as do
banks. Business mon should be as
free to go to them as to a bank. Some
Of the companies are now making spe.
/, cial propositions to both farmers and
home builders to loan money on the
partial payment plan. In certain Sec
! tions of the West the insurance COM
panies are keen competitors of the
Federal farm loan banks. the joint
stock banks, the building and loan as
| sociations and the cooperative banks.
Therefore, before borrowing money to
build 1t is always wise to see your in
surance agent and have him put you
in touch with the proper parties who
| handle the building loans Of the COM
panies which he represents. This is
an additional reason why il is advis-
able to get life insurance through an
established and competent agent who
can be as useful to his clients in
securing funds as in selecting for them
the right kind OF insurance. Life in
surance no longer should be looked
upon as a mere duty" which one
owes to his family. 1t is the back
bone Of a great industry and should
be capitalized and used as a business
| and in a business way.
Insurance and National Progress.
Not only is life insurance a great
boon to individuals, but 1t has be-
| come a great factor in financing in
dustry and national progress. Our
| railroad systems, great industries and
public utilities are financed largely
by the insurance companies. The in
surance companies were the greatest
| buyers Of Liberty bonds during the
,, war, and are now probably among
the largest holders of our national
debt. The development OF the farms
of the Central West and South have
been largely financed by the insur-
ance companies. The first mortgage
on nearly every large office building.
hotel or apartment house is held by
some insurance company. while now,
as above mentioned, the more pro-
gressive companies are making spe-
cial arrangements for the loaning OF
money for the building of small
homes. This means that when pay
ing money into an insurance COM
pany we not only protect our family
and make a fair investment with a
very good gamble attached, but we
render a good service in helping TO
build up the country's agriculture,
railroads, cities, public utilities and
industry in general. Some or the
companies are now establishing the
excellent practice Of loanfng back to
the people of each State an amount
approximate to the premiums re-
ceived from said State. OF course, q
large amount of the financing OF ma
tional progress is being done by the
banks. investment dealers and other
interests, but without the educational
work and the systematic collection
of small sums by the insurance COM
panies America would not be any
where near what it Is today.
The tremendous factor that insur-
ance companies have become Ill the
investment field IS worthy or greater
attention by bankers and large IN
vestors. Not only are these insur-
ance companies collecting huge sums,
but, unlike the banks, they are In no
fear of being obliged at any one time
to pay off. Some of the companies
conseryatively can make longtime
loans that banks would not be Justf-
fed in considering, Therefore, stu
dents of fundamental business ana
investment conditions should wafcn
the total annual figures published on
life insurance as well as figures on
bank clearings, railroad earnings. FOR
eign trade and other important fac
tors. For the benefit Of such bank
ers and investors, let me say that
today there is in force in the United
States upward of $4,000. 900, 900 life
insurance carried by companies nav
ing actual resources In real estate,
bonds. stocks, mortgages and cash OF
sl1 .O0O. .OO0,0 Sales OF life insur-
ance are increasing rapidly. The
wear 1925 will show about $15,6oo, ,0OO,-
600 Of new insurance written, COM
pared with $500, 100000 written IN
1915 and $2,40O, 100000 written in
1905. The resources of these COM
panies are doubling about every 10
years. When one adds to these fig-
ures the tremendous business OF the
fire insurance companies and those
carving automobile, burglary and
various other forms OF insurance the
total result is stupendous. Hence l
not only advise every one to put
portion of his savings into insur-
ance. but I advise the big financial
interests to give more thought and
encouragement to this great, useful
and rapidly growing industry. Gen.
eral business throughout the country
is continuing at a very steady rate,
now registering by the Babson chart
13 per cent above normal.
downright l926)