BRITISH DOMINIONS AND OTHER COUNTRIES As indicated earlier, the tide of emigration carried the friendly society system overseas at an early period in the history of the orders and a number of the pioneer branches which members of the two great bodies established in Australia, South Africa and New York in the decade 1840-5o are still in existence and ap parently flourishing. The subsequent development of the connec tions of the orders beyond Great Britain has been considerable and branches are to be found in most parts of the Empire, in the United States and in other countries, especially of the American continent. The Manchester Unity of Oddfellows claims more than 1,500 lodges outside the British Isles, of which over 1,200 are in Australasia, and the Ancient Order of Foresters presents an even wider geographical distribution of its 90o courts abroad. It is, however, to be observed that the link between the parent bodies and their branches overseas is simply one of fraternal associa tion. The jurisdiction of the central body of a British order can have no wider scope than that of the Friendly Societies Act of Great Britain, and although (somewhat exceptionally in British legislation) including the Isle of Man and the Channel Islands, it extends no further, the branches, so called, of the orders which are established elsewhere being subject in all respects to the laws of their own States, and possessing, independently of any association with societies in the mother country, such powers of self-govern ment as those laws confer upon them.
The friendly societies of Australia include a total membership of about 590,00o, in over 5,800 societies and branches, with funds of £12,200,00o. The benefits are of the same type as those of the British societies but are more substantial, the usual rate of full sick pay being 20s. or 21s. a week. Their sickness "experience" as actuarially analysed in the various States is distinctly more favourable than that of the British bodies, a feature which in some degree at least may be attributed to the differences between the economic conditions of old and new coun tries. The Australian legislation was based upon the Brit ish Act, but for a considerable period has departed widely from the principle of freedom from State control which underlies that Act, a policy of close official supervision and intervention having been definitely adopted. Each of the six States of Aus tralia has its own registrar of friendly societies and in the three largest States registration is compulsory. The rates of contribu tion must receive official sanction, the valuations are made by State officers, either under compulsion (as in New South Wales) or under the inducement of a low scale of fees (Victoria), control is exercised over the distribution of surpluses which valuations disclose, and where deficiency is discovered rectification of the position is, in effect, compulsory. In some of the States, also, the responsible government officer is vested with extensive powers of inspection and of examination of books. Where, as in South Australia, a measure of freedom in regard to finance is left with the societies, the official charged with their oversight is endowed with such powers of comment in his reports as in the long run must amount (as Parliament evidently contemplated) to a very effective form of government pressure. Another interesting de velopment, and one which differentiates the system even more strikingly from its English parent, is that of the State subsidy. This is found in New South Wales where a "subvention" has been granted by Parliament to all societies that choose to apply for it, and, naturally, is almost universal. The subvention takes the form of a grant of part of the cost of benefits and is very substantial in the case of members of ages over 65 (women 6o) ; the amount distributed under the heading of State subvention between 1908 (when the system came into operation) and 1925 is officially stated as over £500,000, the amount for the latest year being nearly £55,000. It does not appear, however, that public control is more complete in the State in which it is accompanied by a subsidy than it is elsewhere, and it is to be inferred, in conse quence, that control has the support of public opinion as a matter of principle.
In New Zealand the Friendly Societies Act is also administered by a registrar, whose last report shows a mem bership of over 98,000 with funds amounting to the remarkable relative total of three and a half million pounds. The numbe? of separately registered bodies is over i,000 including some 900 branches of which about 24o lodges of the Manchester Unity of Oddfellows represent the largest group. In this Dominion, also, the registrar is responsible for the valuations, and his report shows that in many cases there is a veryy considerable surplus of assets over liabilities.
The description already given of the war time adaptations of the British friendly societies requires refer ence to the corresponding action in the Dominions. It will be suffi cient in this connection to mention the records as to the State of Victoria. The societies paid the contributions of enlisted mem bers during their absence from Australia at a cost of about £152,000; sickness and mortality benefits of such members amounted to about f286,000, and certain societies received over £46,000 in reimbursement of benefits which had been reinsured with the Government under one of the acts included in the war legislation of the State.
The friendly societies of South Africa, although in some cases of considerable age, are not numerically strong. They have a membership of about 43,00o, largely in bodies of the "order" type. Legislation in regard to these societies is not elaborate. So far as Canada is concerned, it is quite sufficient to say that, while the "order system" has been widely extended, its development has pro ceeded rather on ceremonial and "fraternal" lines, with certain endowment benefits, than in the direction followed by the British friendly society system.
Institutions bearing a close analogy to the English friendly society are to be found in various European countries, although in no case has the system developed along quite the same lines in regard to legislation, or with the same attitude towards financial considerations. In France the system appears to be one of considerable antiquity and it was doubtless on the model of the societies existing among the Protestant communities of that country that the component societies of an interesting group es tablished in East London by Huguenot refugees between 1687 and 1750 were founded. It would appear that, in general, greater im portance is attached on the continent than in Great Britain to benefits "in kind," e.g., medical, hospital, dental treatment, etc., and especially to the inclusion of the dependants of the insured in the scope of these benefits.
The number of societies of adults which submit re turns is about 16,900 and the total of insured persons exceeds two and three-quarter millions. Revenue in 1924 was about 32f.
head and expenditure on benefits about 22f. These items are nearly double the corresponding amounts of 1913, an increase doubtless due to the depreciation of the currency. The French societies fall into three categories, "independent" (corresponding with the English unregistered societies), "approved" and societies "recognized" as of public utility. The two latter groups are sub ject to a law of 1898 which in various respects is similar to the British Friendly Societies Act, but provides for a greater degree of State supervision, especially in the case of the recognized societies. There is no requirement of actuarial valuation except in the case of approved societies providing pensions in old age. Approved and recognized societies are entitled to Exchequer grants de pendent on the nature of the benefits assured.
Sickness insurance is transacted by over 3,800 societies with 1,200,000 contributors, and invalidity insurance (covering, broadly, permanent sickness as distinct from temporary incapacity) by 135 societies, or funds, with a membership of 900, 000.
The Belgian societies were originally confined to workers in particular trades but were later reorganized on a territorial basis. The societies are of two categories, "independent" and "approved." The latter must comply with certain regulations and are subject to some degree of control ; they may be aided by grants from the central government or from the local authorities. Pensions in old age and death benefits in excess of 3oof. may not be assured directly by approved societies.
In respect of these benefits the societies may act as agents of the State pension and assurance funds. The invalidity funds consist of federations of approved societies. In principle, but not entirely in practice, it would appear, the State grants are reserved for these federations. There are no statutory provisions as to valuation.
There appear to be about 1,650 societies; the mem bership is reported as about 1,500,000. The societies are self governing, but receive grants-in-aid from public funds, through the administration of which the Government is able to exercise control and guidance.
The system is so fully developed that the rules of the societies make provision for the transference of members, presumably on migration, from one society to another. Expenditure on bene fits in kind, largely incurred in respect of dependants, is between three and four times the sum spent on cash benefits.
There are about 1,300 societies with nearly 900,000 contributors. Expenditure on cash benefits predominates, little being spent on treatment benefits. Many societies are financially weak, and there is lack of co-operation between them.
The number of societies is given as about 1,000 and membership 1,160,00o, of whom, however, over 200,000 are children of school age. Expenditure is about equally divided between "cash" and "treatment" benefits. The "revenue" in 1925 averaged nearly 36f. a member and the payments in benefits over 30f.
M. Eden, The State of the Poor (1797), ObservaBibliography.-F. M. Eden, The State of the Poor (1797), Observa- tions on Friendly Societies (180I) ; C. Ansell, A Treatise on Friendly Societies (1835) ; J. F. Wilkinson, Friendly Society Movement (1886) ; Mutual Thrift (1891) ; E. W. Brabrook, Provident Societies and In dustrial Welfare (1898) ; A. W. Watson, Sickness and Mortality Ex perience of the I.O.O.F. (Manchester Unity) during the Years
(1903) ; J. D. S. Sim, Law of Friendly Societies (14th Edition) (1909) ; R. W. Moffrey, A Century of Oddfellowship (191o) ; F. B. Fuller, Law Relating to Friendly Societies (1926) ; Journal of the Institute of Actuaries: Vol. 27, G. F. Hardy, Friendly Societies (1886) ; Vol. 44, A. W. Watson, Some points of interest in the operations of Friendly Societies, Railway Benefit Societies and Collecting Societies (191o) ; Transactions of the Actuarial Society of America: A. Hunter, Beneficial and Relief Associations (1917) ; J. H. Woodward, Employees Mutual Benefit Associations (1925) ; Transactions of the Eighth International Congress of Actuaries: Vol. I, Various Papers on Social Insurance (1927) • Voluntary Sickness Insurance: International Labour Office Study (1927) ; Guide Book of the Registry of Friendly Societies; Annual Reports of Registrars of Friendly Societies (Gt. B. and Aus tralian States). (A. W.
In America the term "fraternal insurance" covers the activities of those bodies included in England under the head of "Friendly Societies." The forms of organization cover a wide range, from societies like the Improved Order of Red Men, formed in 1771, to what might be called "intramural" benefit groups formed within industrial concerns like the New York Telephone Company. The Associated Employees of Bureaus of Buildings of the Borough of Brooklyn, organized in 1907, with 200 members, indicates the specialized grouping which such bodies may take. Again, organi zation may centre around racial interests, as in the case of the Bavarian National Association of North America, with the object of providing "mutual insurance to relieve the families of deceased members." Not all fraternal bodies embrace insurance activities, as for example the Freemasons. But all such bodies do provide machinery of some kind for the relief of distress : "homes" for the aged and orphans, hospitals, funds for the relief of indigence and employment services represent their more common activities.
The tendency among fraternal insurance organizations is toward standard commercial insurance. State laws have in some cases pointed the way, but the volume of business made such a change necessary. Originally no legal reserve was carried, members being assessed an amount required to cover current mortality. It was soon found that the average age of the member grew with the age of the order. In several instances societies were discontinued owing to the increased mortality; those that survived followed usually one of two plans : raised their premium rates, or else low ered the benefit schedules. The stronger bodies, too, were able to build up their membership in sufficient volume to relieve the pressure of the growing mortality hazard. Taking a lesson from this experience organizations began to adopt the reserve plan, with such modifications as adapt it to fraternal association needs, together with the use of more or less standard mortality tables. The adoption of these more scientific ideas, with the lower manage ment costs and writing of business, as compared with these factors in commercial insurance, has placed fraternal bodies upon a sound economic basis.
The total business written by these groups in 1932 exceeded $7,122,700,000, representing over 225 bodies. The societies are in a healthy condition, and new business is being written at the rate of approximately $600,000,000 annually.
Among the leading strictly "friendly societies" in point of mem bers are the Fraternal Order of Eagles, with
members; Modern Woodmen of America, with 494,730; Royal Arcanum, with Ioo,000; Ancient Order of Odd-fellows; Knights of the Maccabees; Order of Owls; Fraternal Aid Union; American Order Sons of St. George; Ancient Order of Hibernians; National Union Assurance Society.
Stevens, The Cyclopaedia of Fraternities Bibliograpiiy.--A. C. Stevens, The Cyclopaedia of Fraternities (1899) ; American Year Book (1927) ; Financial Handbook, edit. by R. H. Montgomery ; Bureau of Foreign and Domestic Commerce, U.S. Department of Commerce, Statistical Abstract of the United States (1926) ; World Almanac. (T. C. O'D.)
