POST-OFFICE INSURANCE. The system of post office insurance, first established by the Eng lish Government through the Government An nuities Act of 1864, like the system of postal savings banks, was primarily intended for the promotion of habits of thrift among the working people. For many years the Govern ment had sold terminable annuities for one life, two lives, or a term of years, through the Commissioners for the Reduction of the Na tional Debt. The act of 1864. which went into effect April 17, 1805, provided for the sale of such annuities of any amount between £4 and £50 through the Post-Office Department. It further authorized the Postmaster-General to in sure the lives of persons between the ages of16 and 60 inclusive for any amount between £20 and £100. But little advantage was taken of the provisions of the act, only 6524 contracts for life insurance having been entered into up to 1882. In that year the act now in fm•rc was passed. By its terms annuities, either immediate or deferred, are issued to persons not less than 5 years of age for any amount between £1 and £100. In-1 surance, either life o• endowment, may be taken out by any person between the ages of 14 and 05 inclusive. The amount of the insurance may vary from £5 to £100. Insurance for £5 may be taken out on the lives of children from S to 13 years of age. lnsarance for £25 or less may be issued without a medical examination, provided the insured presents other satisfactory evidence of good health. Such policies provide, however, that, if the insured dies within two years of the issuance of time policy, the beneficiary shall not receive the full amount of his policy. Premiums may be paid in a lump sum in advance, or in installments. In 1896 new premium rates were established, somewhat lower than those before in force. The present rates are a little higher than those of the regular life insurance cora 1 . . Lilt on the whole somewhat lower thin nies , those of industrial companies.
The connection between the insurance depart ment and the savings banks is the most charac teristic feature of flue institution. Every policy holder must be a depositor in the postal savings bank. He must deposit the full amount of his first premium, opening an account if he has not one already. Later premiums the Postmaster General transfers from the deposits of the in sured so long as they hold out, without notice from the insured. The insured may make his deposits in the bank at any time, and in any amounts. subject only to the general regulations of the bank. In the same way payments to the insured. whether arising from annuities or from endowment insurance policies, are first credited to his account on the books of the bank. Further more. the deposits in the bank, and the with drawals from it. may be made at any one of the 13,000 postal savings banks in the country.
In spite of the more liberal conditions estab lished by the law of 1882. flue amount of life in surance business transacted by the Government is very small. Since the new law went into effect the number of policies issued has averaged less than SOO a year. The failure of the scheme is probably be attributed partly to the great popularity of the Friendly Societies, partly to the rigidity of the Government system and its limited number of policy forms. partly to the lack of active effort to push the business through paid canvassers or otherwise, and partly to the antipathy of the English working people to Gov ernmental institutions of this character. The ex periment has had one beneficial result, however, if, as seems to be the case, fear of the competi tion of the Government office has been partly re sponsible for the efforts the Friendly Societies have been making in recent years to establish their business on a sound financial basis,