Construction of Rules-Transfer. By the 7th rule of a building society shares might be transferred upon application in writing to the secretary, upon the printed form provided by the society, at a charge of 3 d. each, except as per Rule 16. Rule 16 provided for the making of appropriations, and concluded as follows, "Members obtaining the appropriation by ballot, and disposing of the same, shall pay to the society a fee of 21. per cent. upon the sum so advanced, previous to the transfer." The rule contained no other provision relating to transfers.

A member obtained an appropriation of 400 l. by ballot, but only required 300 l., and executed a mortgage to the society for that amount; he afterwards claimed to transfer his interest in the property mortgaged, and his shares connected therewith, to another person, on payment of 3 d. per share, under Rule 7, and of legal expenses (which by Rule 13 were to be paid by the member purchasing property). The facts were not in dispute, and no hearing was required by either party.

Award, that the member was not entitled to transfer his interest in the mortgaged property and shares, except upon payment to the society of a fee of 2 l. per cent. on the amount advanced to him by the society.

2. Building Societies in the Colonies and Foreign Countries.

Mr. Amos Fayram has again kindly forwarded to the Registrar a statement of affairs of building societies in the province of Ontario for 1881. This comprises 51 societies, instead of 46 last year; one, however, figuring only by name, having sent no return, owing to the death of the secretary and treasurer. Two have commenced business during the year; 12 societies have now upward of 1,000,000 dollars invested on mortgage; but the mortgage investments of the Canada Permanent Loan and Savings Company of Toronto, which still heads the list with 6,559,588 dollars, are nearly 300,000 dollars less than last year.

South Australia.

The Chief Registrar has received, as a Paper ordered to be printed by the House of Assembly of South Australia, the balance sheet showing the receipts and expenditure, assets and liabilities, of the Catholic Permanent Building Society of that colony, but is not aware whether the document in question represents the only return received from a building society in the colony. The society is apparently one newly established, whose total receipts during the half year ending 27th June 1881 were 632 l. 16 s. 3 d., its liabilities 538 l. 4 s. 9 d., and its assets 518 l. 11 s. 1 d., leaving a balance deficit of 69 l. 13 s. 8 d.

XIX. TRADE UNIONS.

The number of Trade Unions registered was 22, or three more than last year. One union, however, applied to have its registry cancelled (to which the Trade Union Act Amendment Act, 1876, gives it a right, not subject, as in the Friendly Societies Act, 1875, to the discretion of the Registrar). A foot note in the Report for last year already summarized the results of the abstract of returns. 133 out of 179 sent returns, or three more than in the previous year. The number of members returned was 200,370, or 22,483 less than last year; the amount of funds was 258,663 l., or 13,750 l. less, and the income 228,211 l., or 29,228 l. less. As, however, pointed out last year, several large societies, as the Amalgamated Society of Railway Servants, the Amalgamated Labour League, the North Wales Quarrymen's Union failed to make returns. The funds returned amounted thus to over 17. 5 s. 9 d. per member, or 1 s. 4 d. more than in the previous year; the income to 17. 2 s. 9 d., or 4 d. less; indicating probably the cessation of the extraordinary efforts lately made to keep up or restore the finances of the unions. Seven societies, as last year, returned over 10,000 members; eight, as last year, over 10,000 l. funds; but

only

only five (instead of seven) over 10,000 l. income. The following list contains all the societies coming within any of the three categories.

If this table be compared with that of last year, it will be found that although it does not contain a single new society, three have disappeared from the list (the Amalgamated Society of Railway Servants, which made no return, the Amalgamated Society of Operative Lace Makers, which only returned its membership, and the Steam Engine Makers Society, which fell below the required figure) whilst the position of others shows marked fluctuations as well as differences. The case of the United Society of Boiler Makers and Iron Shipbuilders is the most remarkable. The funds of these had fallen in 1880 from 28,519 l. in 1879 to 9,195 l.; they have now risen again to 23,294 7., the income also rising from 46,796 l. to 48,184 l., or almost precisely the figure of 1879, and the membership from 17,400 to 18,388, or within 1,444 of 1879. The Durham Miners Association has raised its funds from 10,551 l. to 15,262 l., the income, however, falling from 26,032 l. to 24,809 l., and the members from 35,000 to 30,000. The Society of Operative Bricklayers and the National Society of Operative Plasterers show in like manner, though in a less marked degree, an increase of funds with a decrease of income and members, and the same is the case with the Kent and Sussex Labourers Union. The Amalgamated Society of Carpenters and Joiners had followed an exactly opposite course, the funds falling from 53,596 l. to 46,395 l., whilst the income rose from 39,855 l. to 42,173 l.,.and the members from 17,034 to 17,764. The London Society of Compositors shows a diminution of funds, but an increase of income and members. The National Agricultural Labourers Union shows a slight increase of funds and a diminution of income and of membership. The Amalgamated Society of Tailors shows alone an increase under all these heads.

On the whole, allowance being made for non-returning societies, the figures of the abstract indicate a strengthening of the position of this class of bodies, which affords so valuable a test of the condition of the working class.

Although it is but seldom, and perhaps only in women's unions, that a married woman has any interest in a trade union, it may be a question whether Clause 6 and others of the Married Women's Property Bill, 1882, will not apply to such trade unions as may be construed to be "provident" or "benefit" societies.

XX. LOAN SOCIETIES.

The number of Loan Societies Returns received shows a marked increase con previous years, owing to the sending round of notices to societies in default.

The above figures are remarkable as evidences of returning prosperity, which is testified to as well by the items on which there is a decrease as by those on which there is an increase. A diminution of management expenses, a less number of summonses or distress warrants issued, and for less total amounts, and a smaller amount of costs paid by either the societies or the borrowers or sureties are found to accompany an increased amount of receipts from subscriptions and deposits, of advances on loan, of interest paid, and of net profits; though at the same time the loss is found also to have increased.

Three societies returned 700 members and over, viz., the Friends of Labour Loan Society, Portsea, 766; the Friends of Labour Loan Society, Munhamstreet, Edgware-road, 730; and the Cardiff Mutual Loan Society, 700. Four societies in Nottinghamshire and one in Yorkshire had over 7,000 l. share or deposit capital; the Nottingham Loan Society, 15,9117. (17 members); the Exchange Loan Society, Nottingham, 9,897 l. (7 members); the Incorporated Loan Society, Nottingham, 8,420 7. (59 members); the Retford Equitable Loan Society, 7,940 l. (7 members); and the West Riding Commercial Loan Society, Heckmondwike, 7,270 l. (7 members). But only three societies circulated over 10,000 l. during the year; the Nottingham Loan Society, 27,980 l.; the West Riding Commercial Loan Society, 13,198 l., and the Incorporated Loan Society, 10,562. It follows that 24 persons (the total membership of the two societies which had the largest circulation), or rather less thanths of the whole number of members returned, circulated together 51,740 7., or nearly th of the total amount. It is thus obvious that the very considerable privileges of the Act are largely made use of by very small groups of persons.

Clause 6 and others of the Married Women's Property Bill, 1882, apply to the interests of married women in loan societies. (See above, pp. 14, 15.)

The Chief Registrar continues to regret that the legislation on this subject should not be placed on a more satisfactory footing, the more especially as the important case of Jennings v. Hammond (appeal before Justices Field and Cave, 1st July 1882; W. N., p. 114), establishes that loan societies of more than 20 members, uncertified or unregistered, are illegal joint stock companies under Section 4 of the Companies Act, 1862. In this case a promissory note had been taken, and was sued on by a person who was in fact a trustee for the Ipswich Mechanics Mutual Benefit Society, a society established for the purpose of lending money, not generally, but primarily at least to the members. It was held that the association was forbidden by the Companies Act; that all contracts made directly for the purpose of carrying on its business were illegal, and that the note was consequently given for an illegal consideration, and could not be sued on either by

the

the society or by any one suing as a trustee for the society, or even for his own benefit, if he took the note with knowledge that it was given for an illegal consideration.

XXI. THE SELECT COMMITTEE ON POST OFFICE ANNUITIES AND LIFE ASSURANCE POLICIES, AND THE GOVERNMENT ANNUITIES BILL, 1882.

A Select Committee of the House of Commons was appointed during the Session of 1882 to inquire into the operation of the Act 27 & 28 Vict. c. 43, which authorises the Post Office to grant annuities, and issue policies of life assurance. The witnesses examined were Mr. Algernon Turner, and Mr. James Joseph Cardin, of the Post Office, Sir Rivers Wilson, and Mr. A. J. Finlaison, of the National Debt Office, Mr. George Howell, Mr. M. N. Adler, Mr. Fletcher Naton, and the Rev. W. L. Blackley. No representative of any Friendly Society was examined.* The Report of the Committee, which was presided over by the Right Honourable H. Fawcett, Postmaster General, is dated 18th March 1882. It begins by stating that the Post Office insurance and annuity system has failed in attracting more than a trifling amount of support, that during the 17 years that the Act has been in operation the number of life policies issued has been only 6,524, and the number of annuity contracts granted 12,435; that on the 31st December 1881 the number of existing life policies was 4,557, the number of annuity contracts 8,962; the latter business, indeed, having slowly increased, but the former having actually declined; that the great bulk of the life insurance policies were for the maximum amount allowed (100 7.), only 600 for the minimum, the average being 79 1. After enumerating the causes which had led to this comparative failure, the first of these being the absence of personal solicitation and collection, and the necessity of visits being made to post offices to pay the premiums in fixed sums and on specified dates, the Report states that the Committee had come to the conclusion that it would be inexpedient for the Post Office to employ agents either for soliciting business or for a house-to-house collection of premiums. But they were of opinion that by the adoption of a plan suggested by Mr. J, J. Cardin, Principal Book-keeper in the Receiver and Accountant General's Office of the General Post Office, of connecting the insurance and annuity business of the Post Office with the Post Office Savings Banks, so that any deposits in a Post Office Savings Bank might, on the depositor's request, be applied to the payment of premiums for life insurances and annuities, many of the difficulties arising from the absence of personal canvassing and house-to-house collection of premiums would be obviated. By connecting the insurance and annuity business (which can now be transacted only at about 2,000 post offices) with the Post Office Savings Banks, more than 6,700 in all, the number of offices at which this particular kind of business could be carried on would be more than trebled, and in each depositor's book a short and clear description might be given of the manner in which life insurance and annuities or old-age pay could be obtained through the Post Office Savings Banks, every one of the 2,734,066 depositors in such banks (who increase at the rate of more than 400,000 a year) being thus made acquainted with the new facilities afforded. The existing minimum limits, both as to policies of insurances and annuities, should be abolished, and the Post Office authorised to grant life-policies and annuities for the smallest amounts which might be found practicable, and the maximum amounts for both should also be raised, as well as the maximum and minimum ages for insurance extended, as also the minimum age for annuities. The Committee attached special

One or two errors in respect to Friendly Societies which occur in the evidence given should perhaps be noticed. Mr. A. J. Finlaison (answer to Question 646) is reported to have stated that it is prescribed by the Friendly Societies Act that societies "shall keep their accounts perfectly separate, and that separate funds shall be formed for the conduct of each class of business." The latter part of this statement is not correct. Except that it results from the wording of the Act that a separate management fund should be kept, there is nothing to prevent a society from combining one or more objects in one fund, and this results clearly from the provision as to the separation of accounts, that separate accounts shall be kept "of all moneys received or paid on account of any particular fund or benefit assured for which a separate table of contributions payable shall have been adopted." Mr. Howell again, in answer to Question 666, stated that he knew of no Friendly Society which made a provision of a distinctive character with regard to accidental deaths, Such a provision, on the contrary, is by no means uncommon in societies of miners.

special importance to encouraging in every way the habit of making some provision for old age. By the plan now in successful operation of receiving shilling deposits in the form of postage stamps, it would be possible to devote these stamp forms to the payment of premiums on an annuity, or a policy of insurance, and thus savings made penny by penny might be used to effect an insurance or to secure provision for old age. Proceeding to the question of tables (which had not been calculated for annuities on lives under 10), the Committee observed that on the valuation for the quinquennial period terminating 31st December 1880 of the assets and liabilities of the insurance and annuity business, whilst there appeared to be a small loss on the annuity business alone, yet on the aggregate liability of 148,084 7., on both businesses together, there was a profit of 28,7301. In the preparation of new tables which would be required, account might fairly be taken of the diminished expense to be expected through the now recommended connection of the business with the savings bank, and if it should be subsequently found that there was a considerable margin of profit, a desirable encouragement would be given to thrift if those who insured were allowed to participate in the profits, either through an addition to the amount insured, a reduction of premiums, or a bonus paid. Every facility should be afforded to persons who might wish to insure their lives, to purchase annuities, or old-age pay in small amounts by means of single payments. Noticing the proposal that the Post Office should combine with its insurance and annuity business some provision for sick pay, the Committee did not think it expedient for the Government to undertake this class of business. "Among the many objections that may be urged, it would appear that if the Government provided sick pay, they would be without the same protection from imposition which exists in the case of Friendly Societies, where the individual members have a distinct interest in preventing their funds being improperly drawn upon, and, further, that a Government Department would be involved in constant difficulty if it undertook a class of business which could not be managed according to strictly defined rules." To carry out the recommendations of the Committee it would be necessary to provide by legislation that in future policies of insurance and annuities might be granted for any amounts not exceeding 2007. (the present limits being 100l. and 501. respectively); that the minimum limit of age for insurances and annuities, which is now 16 for insurances and 10 for annuities, should be reduced to eight years for insurances not exceeding 57., and five years for annuities respectively, and the maximum age for insurances increased to 65, and that the period after which premiums on a surrendered policy should be returned should be two years instead of five. In the Bill for giving effect to the proposed changes, a provision should be inserted (similar to that in the Savings Bank Act, 1880, with respect to the purchase of stock), to the effect that sums paid into a depositor's account in the Post Office Savings Bank for the purpose of insurance and annuity premiums should not be taken into account in calculating the maximum amount which may be paid in during the year. And the required Bill should be passed with the least possible delay, because until the limit for insurances and annuities, as well as the limits of age which might be sanctioned by Parliament, were known, the new regulations could not be prepared for giving effect to the scheme for connecting the insurance and annuity business of the Post Office with the Post Office Savings Banks.

66

It will be observed that the above-referred to Committee and its Report were solely confined to the subject of Post Office Insurances and Annuities. The Bill founded on the Report, which now only awaits the Royal Assent, the "Government Annuities Bill, 1882" (a Bill to extend the Acts relating to the purchase of small Government annuities, and to assuring payments of money on death (see post, Appendix D.), appears at first sight to belong to quite a different subject, the very term post office" occurring only in two clauses, and four times in all. The Bill, however, carries out the recommendations of the Select Committee, but applies them both to Post Office and Trustee Savings Banks, including both by definition under the expression "Savings Bank," and defining insurances and annuities contracted with either class of body as "Savings Bank Insurances" and "Savings Bank Annuities" respectively. Savings Bank Annuities may be of any amount, not exceeding 100 l. a year, and may be granted to any person not under the age of five years (Clause 2). Savings Bank Insurances, which (Clause 9) include endowments payable on the attainment

of