It so happens that the world cannot be conducted on superfine principles. To most men, and especially to the men we are speaking of, it is a rough, working world, conducted on common principles, such as will wear. To some it may seem vulgar to associate beer, tobacco, or feasting with the pure and simple duty of effecting an insurance against disablement by sickness; but the world we live in is vulgar, and we must take it as we find it, and try to make the best of it. It must be admitted that the tendencies to pure good in man are very weak, and need much helping. But the expedient, vulgar though it be, of attracting him through his appetite for meat and drink to perform a duty to himself and neighbours, is by no means confined to societies of working men. There is scarcely a London charity or institution but has its annual dinner for the purpose of attracting subscribers. Are we to condemn the eighteenpenny annual dinner of the poor man, but excuse the guinea one of the rich?
A vigorous effort was made by Mr. Akroyd of Halifax, in 1856, to establish a Provident Sick Society and Penny Savings Bank for the working men in the West Riding of Yorkshire. An organization was set on foot with these objects; and though the Penny Bank proved a complete success, the Provident Society proved a complete failure. Mr. Akroyd thus explains the causes of the failure: "We found the ground preoccupied," he says, "by Friendly Societies, especially by the Odd Fellows, Druids, Foresters, etc.; and against their principles of self-government, mutual check against fraud, and brotherhood, no new and independent society can compete. Our rates were also of necessity much higher than theirs, and this was perhaps one of the chief causes of our failure."
Low rates of contribution have been the principal cause of the failure of Friendly Societies.[1] It was of course natural that the members, being persons of limited means, should endeavour to secure the objects of their organization at the lowest cost. They therefore fixed their rates as low as possible; and, as the results proved, they in most cases fixed them too low. So long as the societies consisted, for the most part, of young, healthy men, and the average amount of sickness remained low, the payments made seemed ample. The funds accumulated, and many flattered themselves that their societies were in a prosperous state, when they contained the sure elements of decay. For, as the members grew older, their average liability to sickness was regularly increasing. The effects of increased age upon the solvency of benefit clubs soon becoming known, young men avoided the older societies, and preferred setting up organizations of their own. The consequence was, that the old men began to draw upon their reserves at the same time that the regular contributions fell off; and when, as was frequently the case, a few constantly ailing members kept pressing upon the society, the funds were at length exhausted, "the box" was declared to be closed, and the society was broken up. The real injustice was done to the younger men who remained in the society. After paying their contributions for many years, they found, when sickness at length fell upon them, that the funds had been exhausted, by expenditure for superannuation and other allowances, which were not provided for by the rules of the society.
[Footnote 1: The Registrar of Friendly Societies, in his report for 1859, states that from 1793 to 1858, the number of societies enrolled and certified had been 28,550, of which 6,850 had ceased to exist. The causes of failure in most cases were reported to be, inadequacy of the rates of contribution, the granting of pensions as well as sick pay, and no increase of young members. The dissolution of a society, however, is frequently effected with a view of remodelling it, and starting afresh under better regulations, and with rates of premium such as increased knowledge has shown to be necessary for the risks which they have to incur.]
Even the best of the Benefit Societies have been slow to learn the essential importance of adequate rates of contribution, to enable them to fulfil their obligations and ensure their continued usefulness as well as solvency. The defect of most of them consists in their trying to do too much with too little means. The benefits paid out are too high for the rates of contribution paid in. Those who come first are served, but those who come late too often find an empty box. Not only have the rates of payment been generally fixed too low, but there has been little or no discrimination in the selection of members. Men advanced in years and of fragile health are often admitted on the same terms as the young and the healthy, the only difference being in the rate of entry money. Even young lodges, which start with inadequate rates, instead of growing stronger, gradually grow weaker; and in the event of a few constantly ailing members falling upon the funds, they soon become exhausted, and the lodge becomes bankrupt and is broken up. Such has been the history of thousands of Friendly Societies, doing good and serving a useful purpose in their time, but short-lived, ephemeral, and to many of their members disappointing, and even deceptive.
Attempts have been recently made—more especially by the officers of the Manchester Unity of Odd Fellows—to improve the financial condition of their society. Perhaps the best proof of the desire that exists on the part of the leading minds in the Unity to bring the organization into a state of financial soundness, is to be found in the fact that the Board of Management have authorized the publication of the best of all data for future guidance,—namely, the actual sickness experience of the Order. An elaborate series of tables has accordingly been prepared and published for their information by Mr. Ratcliffe, the corresponding secretary, at an expense of about £3,500. In the preface to the last edition it is stated that "this sum has not been abstracted from the funds set apart for relief during sickness, for assurances at death, or for providing for necessitous widows and orphans, but from the management funds of the lodges—funds which, being generally raised by direct levy on the members, are not therefore readily expended without careful consideration on the part of those most interested in the character and welfare of their cherished institution."
We believe that time and experience will enable the leaders of Friendly Societies generally to improve them, and introduce new ameliorations. The best institutions are things of slow growth, and are shaped by experience, which includes failures as well as successes; and finally, they require age to strengthen them and root them in habit. The rudest society established by working men for mutual help in sickness, independent of help from private charity or the poor-rates, is grounded on a right spirit, and is deserving of every encouragement. It furnishes a foundation on which to build up something better. It teaches self-reliance, and thus cultivates amongst the humblest classes habits of provident economy.
Friendly Societies began their operations before there was any science of vital statistics to guide them; and if they have made mistakes in mutual assurance, they have not stood alone. Looking at the difficulties they have had to encounter, they are entitled to be judged charitably. Good advice given them in a kindly spirit will not fail to produce good results. The defects which are mixed up with them are to be regarded as but the transient integument which will most probably fall away as the flower ripens and the fruit matures.