See *Polynesia*.
**FRIENDLY SOCIETIES** are associations of persons chiefly in the humbler classes for the purpose of making provision by mutual contribution against those contingencies in human life, the occurrence of which can be calculated by way of average. The principal objects contemplated by such societies are the following:—the insuring of a sum of money to be paid on the birth of a member's child or on the death of a member or any of his family; the maintenance of members in old age and widowhood; the administration of relief to members incapacitated for labour by sickness or accident, and the endowment of members or their nominees. Friendly societies are therefore associations for mutual assurance, but are distinguished from assurance societies, properly so called, by the circumstance that the sums of money which they insure are comparatively small.
Although the period when such societies originated appears to be unknown, their existence in ancient times is unquestionable. They were numerous in England among the Anglo-Saxons, but from the general want of learning at so early an age, and the difficulty of preserving written documents even of the highest importance relating to a period so remote, it cannot be expected we should now possess any very complete records of their history or proceedings. Writers of credit, however, have mentioned several of these fraternities or "gilds" as existing both before and subsequently to the Norman Conquest, and their rules which are still preserved are highly interesting from their similarity to those of the friendly societies of the present day.1
"These gilds or social corporations," observes an excellent writer, "seem on the whole to have been friendly associations made for mutual aid and contribution to meet the peculiar exigencies which were perpetually arising from burials, legal exactions, penal mulcts, and other payments and compensations."2 Some of them had for their objects the bestowal of annual charity, the payment of stipends to poor persons, the entertainment of poor strangers and travellers, and various other works of a like charitable and benevolent character. It is highly probable that, notwithstanding the inconveniences arising from the political and social disturbances so frequent in England during the middle ages, the formation of the institutions in question suffered no permanent interruption.
No general account of their proceedings, however, is attainable. Their operations were confined to certain localities; they were formed for limited periods, after which they ceased and were reconstructed, and the only records of their labours consisted of their accounts, and perhaps a few scanty and ill-kept minutes, all of which were cast aside as without value on the dissolution of the body to which they referred. Even one of the most ancient friendly societies in London, which is said to have been founded in 1715, and to have continued from that period, possesses no documents from which may be gathered either its own history or that of any kindred institutions.3
It is scarcely possible to overrate the importance of such their im-
associations. When founded on correct principles and con-
ducted with prudence, they are in every point of view of the highest value, not only to that class of society for whose welfare they are more immediately designed, but to the community in general, of which that class is a component part. A labouring man with a family to provide for is, as to in-
general rule, unable, even with his utmost industry and individual frugality, to make a sufficient provision against a time of ne-
cessity; but as a member of a friendly society he can with comparative facility accomplish this desirable object, and without subjecting himself or those who are dear to him to any severe privations, he is enabled to look forward to substantial and adequate aid in the event of sickness or other unavoidable evils of a natural kind. But the be-
nefits he secures by this means are of a moral and intel-
lectual, as well as a merely physical character; the al-
lowances which he receives are not accompanied by the painful reflection that they are the fruits either of public or of private charity; they are accepted by him as the legiti-
mate produce of his own labour and foresight. Such con-
siderations cannot but administer great comfort to a suf-
ferer accustomed during an active life to cherish the sen-
timents of independence and self-reliance. The very self-
denial requisite to secure the benefits of a friendly society is not only itself a virtue, but is in its exercise directly in-
strumental to moral and intellectual advancement. A man who acts on such principles must necessarily be more ami-
able and more intelligent than those who overlook them; he must be a better husband, a better father, a better servant; and this is amply illustrated by the observations of those who have had most experience of friendly societies, and who affirm that members of these bodies are not only the most intelligent but the most trustworthy of their class. It is and to scarcely necessary to remark that the influence of friendly soci-
eties upon the community in general must be eminently gen-
eral, beneficial. By fostering habits of frugality, self-reliance,
and independence, they restrain the tendency too common among the labouring classes to rely on parochial relief rather than their own exertions, and thus they counteract one of the most active causes of the moral deterioration of the people, while their direct effect is to diminish the burdens laid upon parishes for the support of the poor.
It is unnecessary to encumber the present article with the Principles of compu-
tation
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1 Some of these institutions among the Saxons are referred to in Hick's *Thesaurus*, and in particular those at Cambridge and Exeter, of adopted, which the rules are fully given; other institutions of the same character are referred to as existing after the Conquest, by Dugdale, in his *Monasticon*. The laws of St Catharine's guild at Coventry in the reign of Edward III, are cited by that author at length, as "manifesting the decent government, ceremony, devotion, charity, and amity of those times."
2 Turner's *History of the Anglo-Saxons*, vol. III., p. 139.
3 Amell's *Treatise on Friendly Societies*, p. 11. Friendly societies have been constructed to regulate the computations of friendly societies. It will be sufficient to notice, in general terms, the principles on which such computations are based, and in accordance with which those tables are constructed; these principles are derived from the operation of interest and annuities, and from the doctrine of probability. The former, i.e., the operation of interest and annuities, affords the means of ascertaining what present or periodical payments would increase to given sums in future specific periods when such sums might be required to have been created or realized; the latter, i.e., the doctrine of probability, renders it easy to determine the measure of the expectation of some supposed future event happening or not happening, such as sickness; and if the event must occur at one time or other, such as the event of death, it furnishes the means of determining the time at which, on an average, it may be expected to occur. The tables computed on these principles, it need scarcely be added, are large and numerous, as well as of the utmost practical importance.
That the progress of friendly societies in Britain has been extremely great is beyond doubt, and that such progress is in the highest degree honourable to the industrious classes is no less unquestionable. It is however impossible to discover the number of societies which have been in existence. It has been stated that from January 1793 to January 1832, a period of thirty-nine years, there existed in Great Britain and Ireland 19,783 such societies, and that of these 16,596 were in England, 769 in Wales, 2144 in Scotland, and 274 in Ireland. It has further been stated that in the year 1815 the number of members amounted to 925,429. Mr M'Culloch hesitates to admit the accuracy of this statement; and in the report of the House of Commons, dated November 29, 1852, p. 12, it is expressly stated that "there is no authentic account of the number of friendly societies enrolled previous to the 19th June 1828." The same report further declares that "it is almost impossible to ascertain the number of friendly societies which are now in existence;" it furnishes, however, a table prepared from returns sent to the Registrar of Friendly Societies which exhibits the number of those societies certified in England and Wales between the years 1828 and 1847. From this table the following results appear:
| Number of societies certified in England from 1828 to 1847 | 9497 | |----------------------------------------------------------|------| | Number of members of such societies on 8th July 1847 | 740,581 | | Amount received from members during the year preceding 8th July 1847 | £662,682 | | Amount paid to or on account of members during the year preceding 8th July 1847 | £491,462 | | Number of societies certified in Wales from 1828 to 1847 | 936 | | Number of members on 8th July 1847 | 41,141 | | Amount received from members during the year preceding 8th July 1847 | £231,629 | | Amount paid to members or on their account for the year preceding 8th July 1847 | £27,616 |
From the view thus given upon unquestionable authority, it appears that the aggregate number of persons who on a given day in 1847 were members of friendly societies in England and Wales alone was 781,722; that the sums contributed by them in one year amounted nearly to L700,000, and that the amount distributed among them in one year was considerably more than half a million sterling. It must be recollected also that the table from which the above extracts are taken refers only to certified societies, and that there existed, as there still exist, a large number of uncertified societies possessing a very large number of members and a very large amount of revenue. It may be proper further to add, that according to the same authority, the number of societies in England and Wales which have been certified from the 19th June 1829 to the 30th September 1852 amounts to 16,000. These figures must necessarily exhibit to the reader a striking view of the progress of the societies in question, and suggest some idea of the vast amount of good of which they have been the instruments.
Great, however, as the progress of friendly societies has been during the last fifty years, and vast as the benefits which have resulted to individuals and society from their labours, their beneficial effects have on various occasions been in no small degree counteracted by injurious causes, and in particular by defects and errors of constitution, and by the imprudence or misconduct of those under whose management their pecuniary affairs have been placed. Without entering on minute detail as to the former of the two causes of miscarriage now mentioned, we shall refer only to one illustration of the injurious effects resulting from it, and as evinced by the practice adopted by some societies of making their allowances at the outset of their career on too liberal a scale. This, although a natural error, was in more than one instance productive of the most fatal consequences. It is obvious that an association formed of members in the prime of life and in vigorous health, could not be called upon for any great outlay for some years after its institution, the amount of sickness or incapacity for labour among its members being comparatively small. Under such circumstances there is a rapid accumulation of funds, and the flourishing state of their finances naturally leads the members to presume that they may with perfect safety make very considerable allowances to the few who require relief. The fact is wholly overlooked, that if the society shall continue to exist, a time must arrive when a large majority of its members must necessarily require assistance, and that liberal allowances at the outset are altogether inconsistent with the demand thus to arise. From this fundamental error the most fatal consequences have been produced. Not only have societies, which at their commencement appeared in the most flourishing state, become bankrupt, but aged members, after contributing for a long series of years to the common fund, have found themselves in their old age deprived of that support for which in the season of youth and vigour they had with so much self-denial and frugality sought to provide.
From these remarks as to the importance on the one hand of friendly societies, and on the other as to the dangers to which they are exposed, it must be sufficiently obvious that they possess a strong claim upon the fostering care of government. It was not, however, till the year 1773 that the attention of parliament was awakened to the wisdom of efficiently protecting and encouraging institutions which, under legislative regulations, have since that period conferred so large an amount of benefit on a most important part of the community. In that year a bill was introduced into parliament, the object of which was to empower parishes in England and Wales to grant annuities to persons willing to purchase them at a price set down in tables annexed to the bill, which annuities were, if necessary, to be chargeable upon the poor's-rates, as a collateral security to the purchasers. This bill having passed the Commons was rejected in the Upper House. Another bill was introduced in 1789, which in like manner having been approved of in the Lower House 1789, was thrown out in the House of Lords. No legislative interference, therefore, as to friendly societies occurred until 1793, when an act was passed which is known by the name of its author, Mr George Rose. Of the provisions of this Mr Rose's bill the following is a brief abstract. The act recited "that act, 1793, the protection and encouragement of friendly societies in this kingdom, for securing by the voluntary subscription of the members thereof separate funds for the mutual relief and maintenance of the said members in sickness, old age,
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1 Report of the Select Committee of the House of Commons, 1823. and infirmity, is likely to be attended with very beneficial effects by promoting the happiness of individuals, and at the same time diminishing the public burdens. It then proceeded to enact that it should be lawful to institute such societies for the purposes above mentioned, and for the members of such societies to meet in committee to make rules and regulations for their guidance, to impose fines and forfeitures upon those violating such rules, and to amend those rules from time to time. The act further provided that no society should come within the meaning of the act until its rules should be exhibited to the justices in quarter sessions and approved of by them. These rules were not to be afterwards altered otherwise than by three-fourths of the members present at a general meeting, or by three-fourths of a committee appointed to manage the concerns of the society. The act further provided that, before the enrolment of its rules, each society should declare the intents and purposes for which it was established; and that it should be unlawful to dissolve any such society so long as any of its purposes remained to be carried into effect, and that it should be unlawful for the society to make any use of its funds, other than that declared to be the purpose of its establishment.
In addition to those restrictions, the act conferred certain privileges on friendly societies, which may be briefly stated as follows:—1. Any bonds required from the officers of the society were to be given to the clerk of the peace without fee or reward, and were not to be liable to stamp duty. 2. In case of neglect in the treasurer or other officers in rendering their accounts, summary proceedings were made lawful before the supreme judicatories of the country, and that such proceedings should be taken without any expenses charged by such judicatories, and that counsel should be assigned to the society, who should perform his duty in advocating their interests without fee or reward. 3. That the money of the society in the hands of a treasurer should on his decease have a preference over all his other debts. 4. That the officers of the society should be invested with the power of "suing and being sued." 5. That a member, thinking himself aggrieved, should be allowed to take summary proceedings before two justices. 6. That if the rules of a society provided for an arbitrator, there should be no appeal from his decision; and finally, that no member of a friendly society was to be removed from any parish until he should become actually chargeable.
Such were the provisions of Mr Rose's act. Since the year in which it was passed, several additional statutes have been enacted for the purpose of securing and promoting the interests of friendly societies. The principal acts in existence up to the present year (1855) are the following seven, viz.:—33d Geo. III., cap. 54; 59th Geo. III., cap. 128; 10th Geo. IV., cap. 56; 4th and 5th Will. IV., cap. 40; 9th and 10th Vict., cap. 27; 13th and 14th Vict., cap. 115, and 15th and 16th Vict., cap. 65. There are a few others relating to minor points, which however it is unnecessary to specify.
In the course of the year 1854, a very important bill was introduced into the House of Commons, entitled "A Bill to consolidate and amend the law relating to Friendly Societies." A select committee of the house was appointed, who, after carefully investigating the subject and considering the bill, presented their report. This document pointed out in the clearest manner the necessity of legislation on the subject, and made a variety of important suggestions as to the bill referred to. We shall now present the reader with an outline of the principal provisions of the bill itself, which is entitled "A Bill to consolidate and amend the law relating to Friendly Societies."
The preamble sets forth that "it would conduce to the improvement of the law relating to friendly societies, if the several statutes relating thereto were consolidated, and certain additions and alterations were made therein." The first clause repeals all the preceding statutes with certain exceptions as to existing societies, and subsequent clauses provide that societies instituted prior to this act shall continue, and their rules, contracts, bonds, &c., shall remain in force, notwithstanding the repeal of the acts and statutes above referred to. The act then proceeds to the subject of the appointment, salaries, and current expenses of the registrars. It then points out in the following terms the law as to societies hereafter instituted.
"It shall be lawful for any number of persons to form and establish a friendly society under the provisions of this act, for the purpose of raising by voluntary subscriptions of the members thereof, with or without the aid of donations, a fund for any of the following objects, viz.:—1. For insuring a sum of money to be paid on the birth of a member's child, or on the death of a member, his wife, or child. 2. For the relief or maintenance of the members, their husbands, wives, children, or kindred, in old age, sickness or widowhood, or the endowment of members or nominees of members at any age. 3. For any purpose which shall be authorised by one of her majesty's principal secretaries of state, or in Scotland by the Lord Advocate, as a purpose to which the powers and facilities of this act ought to be extended; provided that a society established under this act shall not assure the payment of an annuity exceeding L.50 per annum, nor a sum payable on the death of any person, or on any other contingency exceeding L.200. The bill further enacts that no money shall be paid by any society upon the death of a child under ten years of age, except upon the production of a copy of the entry on the register of births and deaths, signed by the registrar of the district in which the child shall have died," and that the cause of death shall be certified by a qualified medical practitioner; and further, that the sum to be paid shall not exceed L.6 in the case of the death of a child under five years of age, nor L.10 in that of a child between five and ten years of age. The remainder of the bill, which contains forty-nine clauses, refers to matters of detail regarding the appointment of officers, the rules of societies, the receipts and payments by societies, their property and the mode of its investment, the determination of disputes, and the returns made to the commissioners.
(F.R.W.F.)