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Article THE GENERAL ASSURANCE ADVOCATE. ← Page 5 of 6 →
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
The General Assurance Advocate.
put forth the names of wealthy prince-merchants , names which are synonyms of responsibility and security , ancl which commence their business by heavy monetary advances , and the creation of shares which , as the representatives of wealth , are bought and sold in the great commercial marts of the world . Men are perfectly at liberty to act thus , ancl the Companies so created flourish and grow wealthy ; but what becomes
of the true object of Assurance—the advancement of society ? How is the humble policy holder benefitted ? At first , no doubt , confidence is generated by the security which a subscribed capital , and high names as guarantees , appear to hold out ; but do the policy holder ancl his family , benefit in the same ratio as if they insured in a Mutual Office ? assuredl y not . A subscribed capital , on which dividends must be paid out of the
pockets of the policy holders , is a costly luxury , a cumbrous ornament without use ; for it should never be forgotten , that the profits arising from Assurance are sufficient of themselves to support the system , and something over , or capitalists would not invest their funds in the business : and if that be so then capital is not needed , and that burden being avoided , the Assurers will reap the benefits of their own accumulations , instead of throwing them away for what professes to be a help , but is , in reality , only an incumbrance . If the rates be not sufficient , a subscribed capital will never secure the existence of an Assurance Company ; if they
are it is needless , and therefore ought not to be allowed . That reasoning appears to be conclusive against the Proprietary System . That these truths cannot he much longer concealed—nay , that they have been already dragged from their hiding places , ancl are beginning to attract attention—is becoming every day more evident . Many new offices , and some old ones , have turned to what is called the mixed
principle ; giving part of the profits to the assured , part to the subscribers of capital—a combination likely to attract much attention , but not very likely to be ultimately successful . It is only diluting bad with good—wrong with right—error with principle ; it is putting new wine into old bottles—patching the robe of commerce with shreds of philanthropy ; it is dividing a house against itself , and it cannot stand . " No
man can serve two masters , "—courtesy forbids us to finish the quotation , but every one is familiar with it , and will recognize its applicability . Professor De Morgan has well observed that " there is nothing in the commercial world which approaches even remotely to the security of a Mutual Office . " What need then of dubious attempts " to gild refined gold , or paint the lily , "— " to make assurance doubly sure . " Assurers
may , with the most perfect confidence , rest securely , leaning upon their mutual suppon ; and it is hig h time that the fallacy of borrowed or subscribed capital , got together at a vast expense , and breeding competition , adds to the safety or usefulness of a Combinative System , should be thoroughly exploded .
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
The General Assurance Advocate.
put forth the names of wealthy prince-merchants , names which are synonyms of responsibility and security , ancl which commence their business by heavy monetary advances , and the creation of shares which , as the representatives of wealth , are bought and sold in the great commercial marts of the world . Men are perfectly at liberty to act thus , ancl the Companies so created flourish and grow wealthy ; but what becomes
of the true object of Assurance—the advancement of society ? How is the humble policy holder benefitted ? At first , no doubt , confidence is generated by the security which a subscribed capital , and high names as guarantees , appear to hold out ; but do the policy holder ancl his family , benefit in the same ratio as if they insured in a Mutual Office ? assuredl y not . A subscribed capital , on which dividends must be paid out of the
pockets of the policy holders , is a costly luxury , a cumbrous ornament without use ; for it should never be forgotten , that the profits arising from Assurance are sufficient of themselves to support the system , and something over , or capitalists would not invest their funds in the business : and if that be so then capital is not needed , and that burden being avoided , the Assurers will reap the benefits of their own accumulations , instead of throwing them away for what professes to be a help , but is , in reality , only an incumbrance . If the rates be not sufficient , a subscribed capital will never secure the existence of an Assurance Company ; if they
are it is needless , and therefore ought not to be allowed . That reasoning appears to be conclusive against the Proprietary System . That these truths cannot he much longer concealed—nay , that they have been already dragged from their hiding places , ancl are beginning to attract attention—is becoming every day more evident . Many new offices , and some old ones , have turned to what is called the mixed
principle ; giving part of the profits to the assured , part to the subscribers of capital—a combination likely to attract much attention , but not very likely to be ultimately successful . It is only diluting bad with good—wrong with right—error with principle ; it is putting new wine into old bottles—patching the robe of commerce with shreds of philanthropy ; it is dividing a house against itself , and it cannot stand . " No
man can serve two masters , "—courtesy forbids us to finish the quotation , but every one is familiar with it , and will recognize its applicability . Professor De Morgan has well observed that " there is nothing in the commercial world which approaches even remotely to the security of a Mutual Office . " What need then of dubious attempts " to gild refined gold , or paint the lily , "— " to make assurance doubly sure . " Assurers
may , with the most perfect confidence , rest securely , leaning upon their mutual suppon ; and it is hig h time that the fallacy of borrowed or subscribed capital , got together at a vast expense , and breeding competition , adds to the safety or usefulness of a Combinative System , should be thoroughly exploded .