The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-02-04

ing OF the role played by INSURANCE
in the years business, this capitaTSt
expert shows how society could NV
vide it's own capital funds witbo,'t
the intervention of a privileged own
ing class.
Marsh naturally points to the nro
lection Of 58,OOO,OO0 policy-holders
and their dependents against the Fl.
nancial loss due to the destruction
of earning power by death, as fbo
primary service rendered by life in
surance. But he continues:
Gathers Liquid Capital
"Of scarcely less importance to tho
economic fabric of the country. hoye-
ever, is the Junction of life insnr-
ance as a gatherer and distributor Of
liquid social capitalize funds 70.
ceived by the insurance institutions
and held as reserves to provide for
the maturing policies.
"The assets held by the legal-re.
serve life insurance companies of the
United States at the end OF 1926 ag-
gregated in value S12,850, 100000 or
about 3.6 per cent Of the total nation
al wealth, now estimated at $780,
000,O0O,000. The gain in assets dur
ing the single year 1926 was S1,3I3-
100000, or certainly much more than
SO per cent of the years increase in
national wealth"
This means that insurance assets
form a larger and larger proportion
of the country's liquid capital. Ac-
cording to Marsh they represented
IL per cent of the national wealth in
1880; IL per cent in 1890; 2 per cent
! in 1900; 2.3 per cent in 1904; "a per
: cent in 1912; 2. 7 per cent in 1922 and
3.6 per cent in 1926. "This insurance
{ assets, moreover now constitute the
greatest single source of investment
: capital in the land"
I Where the Money Goes
Il The investments of So life insur-
ance companies holding about 924
II per cent of the total assets of all
e legal-reserve companies in the Unit
/ ed States, according to Marsh in.
e clude $1,96e,00O,0O0 in farm mort.
/ cages, $3,123, 100000 in other mort.
rV cages, $1,116,O0O,0O0 in U. S., Can.
5 adam and foreign government bond,
! and state and municipal bonds, 49,.
y 420,000,000 in corporation stocks and
II bonds, and numerous other assets.
Taking into account the fire, ma.
: rine, and the casualty and Iabilit,
insurance companies of the country
& Marsh concludes "that the various m
surance institutions now have aggre
70 gate resources of almost $1,000, 900.
d 900, or At per cent of the entire ma
OF tional wealth; that they collect an
O. nually from the American people in
Us surance premiums totaling about 81,
&c 100000, or almost per cent of tn
ne entire earned national income; an
ne that their total income from all sour
ces last year was more than $4,75O
nj 100000, or almost z per cent of tn
IS earned national income"
r. One More Step Needed
e. Here is real social saving in whic
ne social capital is being provided
Is 58,000,000 individuals, or more tina
.ip the total gainfully employed. A
is that is lacking is social control q
this huge investment fund. But tn
sc people are leaving this control in IL
y hands of the bankers to further the
LeI desire for domination. 1t is none tn
!, less proving that capital can be pre-
~ vided socially as it would be in
10 worker republic. Various Australia
~ labor governments have demonstra
NJ ed that insurance can be successful
III managed by the state at far low
Oh cost than in private hands