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Bellefonte, Pa., January 2, 1920.
— sm——
THE SIGNIFICANCE OF THE IN-
CREASING VOLUME OF LIFE
INSURANCE.
(An address delivered by Hon. William A,
Day, president of the Equitable Life As-
surance Society, at the thirteenth annu-
al meeting of the association of life in-
surance presidents, in New York, on De-
cember 4th, and furnished the ‘“Watch-
man’ by Mr. J. 8. McCargar, local agent
for the Equitable company).
_A year ago we were addressed by a
distnguished Senator of the United
States. In a masterly and impressive
manner Senator Thomas sketched
some of the serious problems con-
fronting the nation.
. He appealed for a more virile and
intense Americanism and the stimu-
lation of public opinion wherewith to
check the drift toward radicalism, and
the rising tide of disorder and disloy-
alty which grows out of it. He
stressed earnestly our national sin—
wastefulness; pointing to the lavish
bounty of Congress in public expendi-
ture, and urged that the war against
extravagance and waste be pressed
with ever-increasing vigor.
In due time the genius of our people
will solve these problems; in fact we
already have encouraging signs with
regard to some of them.
From the Governor of Massachu-
setts has come the answer to the Sen-
ator’s appeal for a public awakening.
Govorner Coolidge, that steadfast and
fearless official, in the quiet, unosten-
tatious performance of duty, has set
in motion a wave of public sentiment
which all the oraters of the land could
not have done. By this act he has
aroused and electrified the dormant
forces of law and order in his own
State and throughout the Union to an
extent that promises most beneficial
results.
As to extravagance, this sin is still
upon us. While the saving habit,
whether already acquired or stimulat-
ed by the thrift drives of the war per-
iod, still prevails among some people,
many have gone far to the opposite
extreme.
The war thrust upon us an unnat-
ural and unbalanced prosperity and
has left us a legacy of inflation, spec-
ulation and excessive improvidence.
A large volume of easy money has
found its way into the National Treas-
ury, and into the pockets of many
people to whom a substantial cash
surplus was a new and tempting pos-
session. There has followed, among
those of improvident and self-indul-
gent tendencies, a passion for expen-
diture in the pursuit of pleasure and
costly non-essentials which, undoubt-
edly, has no parallel in history.
How has life insurance responded
in these wasteful days of 1919 to the
urge for renewed vigor in spreading
the gospel of thrift? A partial ans-
wer to this question may be found in
the estimates of new business for this
year based upon information recently.
gathered by the Association of Life
Insurance presidents from 176 com-
panies representing 98 per cent. of
the new business issued in 1918.
THE GAINS OF 1919.
In round millions, the volume of
new insurance which life insurance
companies have induced the people to
take during the year 1919 promises
to reach the enormous total of $7,-
712,000,000. This is $3,010,000,000, or
64 per cent. more than was written
last year. It is nearly $4,613,000,000
more than was written in the year
1914, or an increase of 149 per cent.
When did any institution in the pub-
lic service ever receive such a signif-
icant vote of confidence as the public
has given life insurance companies in
this stupendous volume of new insur-
ance? In amount it exceeds all the
insurance outstanding in all the com-
panies twenty years ago, and it equals
over one-fourth of the entire insur-
ance in force in all the companies at
the beginning of the present year.
It appears .that every walk of life
contributed to this increase in life in-
surance protection, and it seems to
have included ail of the standard plans
issued by the companies.
The gain in the popularity of insur-
ing employees, through the employer,
on the group plan is indicated by an
increase of over 100 per cent. in this
new business over last year. It is es-
timated that the dependents of over
one million workingmen are now pro-
tected with life insurance without cost
to themselves as a result of the recent
adoption of this progressive idea.
SUPPLY AND DEMAND!
The growth of public appreciation
of life insurance and the increase in
the volume issued in recent years has
been so far beyound the anticipation
of isurance men that the lawmakers,
who fifteen years ago limited the vol-
ume of business we could do annual-
ly, may well be pardoned for misjudg-
ing the future. Subsequent Legisla-
tures have seen the wisdom of permit-
ting the public to have more insurance
by extending the limitation.
It is especially gratifying to know
that upon the wise suggestion of the
Superintendent of Insurance in New
York, the public privilege of taking
insurance in companies doing business
in New York State was again extend-
ed by the Legislature this year. But
ior this prudent action the great field
organizations of many companies
would at this moment be idle; in fact,
the increase in new insurance was so
rapid that some of them would have
been obliged to stop doing business in
the early fall months.
Whether or not the present rate of
increase continues, one thing we know
- the public wants the insurance.
" herefore the volume issued is bound
to increase; if not next year it will
later. It is our duty to help it in-
crease until every insurable person in
the United States is protected, and
the law should aid us in doing so.
L'o some insurance officers, especi-
ally those representing the younger
companies, the prospects of an in-
crease over the present enormous vol-
ure of new business does not appear
as an unmixed blessing. Their minds
are apt to turn to the temporary ad-
verse influence such an increase will
exercise upon the contingency reserve
i
or free surplus under the net premi- |
um reserve system.
The logical answer is—adjust the |
reserve laws to meet the new situa- |
tion. Our laws should operate to help |
us safely to insure as many people as
possible and not to keep us away from
them. This they can do without dis-
turbing the present expense limita- |
tions or the present rigid State super- |
vision which, notwithstanding its im-
perfections, has contributed immeas-
urably to the safety, the stability, and
the popularity of American life insur-
ance.
PUBLIC CONFIDENCE.
Back of this extraordinary demon-
stration of public appreciation of life
insurance given this year lie many de-
cades of hard work on the part of life
insurance agents in educating the
breadwinners of our country to the
nature, purpose, and need of life in-
surance protection.
This permanent educational cam-
paign was greatly accelerated by the
adoption of the Governmental life in-
surance plan for our soldiers and sail-
ors, and by the publicity which was
given to it.
A knowledge of life insurance is not
enough; the average man, as we
know, must be stimulated to want it.
This stimulation came in wholesale
form as a result of the heavy loss of
life from the war and the influenza
pandemic. There was scarcely a home
in the land that did not mourn the
loss either of a relative or a friend.
These twin calamities suddenly
brought our people face to face with
some of the destiny-shaping uncer-
tainties and realities of life, which
many had been overlooking. Coinci-
dent with this effective stimulus came
an abundance of ready cash, as a re-
sult of war prosperity.
This undoubtedly is the combina-
tion of circumstances which history
will record as the immediate cause,
under the efficient pressure of the field
forces, of the marvelous impetus giv-
en the life insurance business this
year. But underlying all this is the
fundamental reason,—public confi-
dence, without which our public use-
fulness would be impossible.
PROSPERITY AND THRIFT.
With this constantly increasing
public trust comes constantly increas-
ing responsibility. In order that we
may get a more intimate view of the
obligation and opportunity for service
immediately before us, it may be well
to take a brief glance at some phases
of the present unusual economic situ-
ation.
The American people were never so
fully occupied in commerce and indus-
try as they are today.
This year bank clearings will ag-
gregate about $392,000,000,000 as
against $155,000,000,000 in 1914—a
gain of 152 per cent.
For the first 8 months of this year
the value of our exports was 300 per
cent. greater than in 1914 (tonnage
not available).
Savings banks authorities report
that savings deposits have increased
from $7,105,000,000 in 1914 to $10,~
574,000,000 at the beginning of this
year.
During the period 1914-1918, due
chiefly to increased premium deposits,
the- assets -of ‘all the life companies"
combined have increased by $1,694,
000,000.
To these signs of good times must
be added the remarkable fact that
about 20,000,000 people were able to
spare $25,000,000,000—much of it
from current savings,—for govern-
ment war loans.
This brief exhibit indicating the ap-
parent prosperity and thrift of our
people is pleasant to contemplate, but
we must not be misled by these vast
figures.
It is true that our national wealth
as measured in dollars has greatly in-
creased but this increase is to a large
extent due to the fact that our curren-
cy has been inflated, and that the ev-
idence of wealth has increased at a
greater rate than the wealth it rep-
resents. Production alone can create
wealth; the means of producing it, the
instrument of production, alone is
real capital.
Let us now glimpse the other side
of the shield, the side which holds the
real inspiration for life insurance
service in this disturbing period of
readjustment.
In the short period of the war over
$30,000,000,000 were raised for war | rope
purposes. A large part of this fabu-
lous sum of money was promptly re-
distributed throughout the country in
high wages and high prices paid for
materials. Previous to this, immense
sums had been similarly paid out as a
result of foreign war orders. The
period which has followed, of reckless
personal spending by wage earners
and others who suddenly profited by
this prosperity, is quite generally ac-
cepted as a natural consequence.
Popular extravagance naturally led
to Governmental extravagance. It
was recently stated from an official
source, that the Federal taxes to be
collected for the year ending June 30,
1920, will be about $4,940,000,000, and
that this equals about $235 per fami-
ly in the United States as against
about $36.75 in 1914,—an indicated
increase of 539 per cent. in this par-
ticular factor of the cost of living.
We may also expect a large revenue
deficit at the end of the present fiscal
year. Chairman Good, of the House
Appropriations committee, announced
recently that certificates of indebted-
ness at that time would amount to
$3,591,273,345, and he did not know
how it was going to be paid. This
means that governmental outlays will
have exceeded revenues at the rate of
nearly $10,000,000 per day.
In 147 cities last year the excess of
governmental cost payments over rev-
enue receipts aggregated $71,000,000.
The net indebtedness of cities of over
30,000 inhabitants has increased from
30187 per capita in 1913 to $77.53 in
1918.
INDIVIDUAL EXTRAVAGANCE.
As a result of the labor shortage
and other war conditions our products
have been consumed faster than we
could produce them. Stocks on hand
were reduced or exhausted. The high
prices which inevitably followed but
served to whet the appetite of the
spendthrift. He protests as vigorous-
ly as the provident man against the
high cost of the necessities of life, but
he eagerly pays high prices for luxu-
ries and other non-essentials, and for
early service he is very often willing
to pay a premium above the market
price.
There has, for instance, as every-
one knows, been an extraordinary in-
crease in the price of musical instru-
ments, automobiles, precious stones,
furs, silks, and other costly articles of
adornment, and in the cost of travel
and amusement, and of fancy foods,
candy, etc. There are, however, so
| many people with surplus cash who
are buying these and other expensive
luxuries that the figures of the aggre-
gate sales since the armistice would,
—if they were available,—stagger be-
lief. Dealers report that manufactur- |
ers are far behind in filling their or- |
ders for these things, but that the de-
mand continues unabated, much of it
coming from the wage earning ele- |
ment.
The war almost stopped the con-
struction of homes, and prosperity has
caused many people to seek more ex-
pensive quarters. Thus we find rents
reaching exhorbitant figures, but
many people who cannot afford it pre- |
fer to pay them rather than to live in
more modest quarters.
Many thousands of good men who
have been hoping for years for a
chance to lay by a snug sum each’
month now have that chance, but they
have been seized with the spending
mania. They have the illusion that
this golden flow will continue perma- |
nently and that they will live forever
to enjoy-it.
Our wasteful spending is not com- |
ing alone from current earnings. !
Many who, under ordinary circum-
stances would not think of indulging
in extravagance, are joining in this
craze to spend. Signs that such peo- |
ple are dipping into their savings are
not lacking. An evidence of this is
found in the extraordinary number of
people who are reported to be redeem-
ing their war savings stamps, and by
the many who have sold their Liberty
bonds.
A recent published report (of a |
committee of the American Legion) !
stated that our veterans of the world |
war had lapsed 87 per cent. of their
government life insurance. While
this unfortunate occurrence is, to an
extent, due to neglect, or to the fact
that the men were short of funds, yet
it is obviously true that a large num-
ber who were financially able to con-
tinue lapsed their government insur-
ance because the lure of the times had
weakened their “will to save.”
With so many people in this spend-
thrift mood, so many outbidding each
other for some of the necessities and
most of the luxuries of life, any ma-
terial reduction. in the high cost of
living seems a remote possibility.
Moreover the shortage in the prin-
cipal factor in the cost of production,
that is, labor, is reaching serious pro-
portions.
THE COST AND SHORTAGE OF LABOR.
It was thought by many that when
peace came, war wages would go back
to something approaching the normal
pre-war level, but the chief leader of
union labor announced at the close of |
the war that this would not occur,
that under no circumstances would
any of the advances secured during
the war be surrendered. In fact, the
post-war strikes, which have been so
prevelant, are not to maintain the war
wage level, but to increase it, with a
tendency to decrease the average pro-
duction per man.
Five years of increasing prosperity
have automatically moved large num-
bers of laborers and industrial work-
ers generally into mercantile and oth-
er fields. The war and epidemic have
deprived us of several hundred thous-
ands of able-bodied men.
During the past five years immi-
gration has been virtually stopped, al-
though for many decades we have on-
ly been able to supply the demand for
labor by immigration. As a result of
this stoppage, we are short nearly two
million adult male immigrants. This
estimate is based upon the average of
the arrivals for five years previous to
1914, with due allowance for aliens
returning home.
Another important factor is the
present threatened exodus of foreign
labor back to Europe. The American
Bankers Association states that 1,-
500,000 will go and will take with
them nearly $4,000,000,000. In one
enterprise employing 12,000 foreign
workers, 45 per cent. have announc-
ed their intention of returning to Eu-
pe.
In the face of this serious situation
it is being urged in different quarters
that immigration should be prohibit-
ed, or at least materially checked for
the next few years. There may be
pressing reasons why this should be
done, but, if it is done, how are we
going to overcome the constantly in-
creasing shortage of labor?
This labor problem vitally affects
American business interests and the
prosperity of every citizen.
Our battle with improvidence, at
least for the immediate future, must
be planned with due regard for all
these extraordinary conditions. With
so .many people abandoning the sav-
ing habit and spending what they
have for pleasure and luxury, with
production far behind the heavily in-
creasing demand, with a labor short-
age and no sign of alleviating it—
with these and other factors still op-
erating to maintain the high cost of
living, the imperative need of the
hour is an extraordinary effort to
spread the gospel of thrift and saving
among the people.
The gigantic task of readjusting
our national life to normal peace time
conditions is under way. The leaders
in every field have taken up their bur-
den and are carrying on with varying
degrees of success. In the domains
of politics, finance, industry, mercan-
tile pursuits, agriculture, investment,
transportation, public health, religion,
science, education—everywhere the
genius of the nation is struggling
with the problems of readjustment,
that is, with the exception of ‘the
problem of getting our people to re-
turn to sanity in the matter of expen-
ditures.
The institutions of life insurance
and banking are in the business of en-
couraging thrift, and they are accom-
plishing much in this direction at this
time. I believe that they could and
should do much more in carrying gen-
eral thrift education into the homes
of the land. But why should this es-
pecially important task of reconstruc-
Yon be virtually left to these two fac-
ors?
| vidual and every organization of indi-
| camping equipment, climbed to their
| seats, and soon left behind the city of
They are highly important units in |
the constructive power of the nation, J
but so are others operating in the
fields mentioned above.
not business, social, religious and oth-
er organizations make a special effort
to assist in this crisis in bringing our
spendthrifts and wasters back to their
senses? They should recognize in the
prevailing extravagance a public is-
sue of the very first magnitude. It
cannot be eliminated but it can be
greatly reduced if those having facil-
ities for thrift education will use
them. Such facilities exist in abun-
dance in almost every community.
Why wait for adversity to teach us
this lesson as we did after our great
Civil war? A period of inflation, of
speculation and of high prices follow-
ed that war. The extraordinary de-
mand for labor had increased wages
abnormally. A frenzy of extrava-
gance seized people in all walks of
life. Nearly every one seemed will-
ing to spend and but a few were will-
ing to save their surplus earnings.
Our people were finally brought to
their senses by the great panic of
1873 which resulted in immense loss-
es, the prostration of business, and an
enormous army of unemployed peo-
ple, all of which finally led to the
great railroad strike and the acts of
pillage and destruction of 1877.
If the danger of repeating this ex-
perience is to be avoided every indi-
viduals must assist in bringing our
people back to the practice of ration-
al economy,—that is, sensible thrift
as distinguished from that of the pe-
nurious, miserly sort.
The constantly expanding field of
public service and the steady and sig-
nificant gain in public confidence and
good will have given the institution of
life insurance an exalted and honor-
ed place in our national life. To suc-
cessfully hold this position it must
show an active and intelligent concern
in public problems affecting the pop-
ular interests over which it stands
guard. One of these is extravagance,
governmental and individual, one
causing needless taxes and the other
needless poverty.
Will it not profit us to regard the
pleasing and impressive message life
insurance has received from the pub-
lic this year as a call to expand and
intensify our efforts to aid and to lead
in the battle with improvidence and
waste ?
Nine Thousand Miles in a Ford Truck.
Imagine it! Nine thousand miles
for $127.37, that’s the record of a
Ford one-ton truck loaded with tour-
ing and camping equipment and car-
rying Dr. and Mrs. McIntosh and
children (our informant doesn’t say
how many children), also their mar-
ried daughter, Mrs. Armstrong, and
her husband.
On July 7th last they loaded a Ford
truck—not a touring car—with a tent,
frying pans, fishing tackle and sundry
Ames, Iowa. Their trip led through
Sioux City, Rapid City, Wind Cave,
Hot Springs, Yellowstone National
park and 296 towns or cities, and con-
sumed approximately three months.
A record of the expenditures for
the entire 9000 mile trip showed that
the amount spent for gas, oil and re-
pairs totaled just exactly $127.37.
Can you beat it?
Dubious Explanation.
On going his rounds about midnight
a policeman noticed on individual
moving from house to house and try-
ing to open the doors. He seized him
by the collar and said:
“What are you doing here?”
“Oh, nothing particular. You see I
found a latchkey and I'm merely try-
ing it on the doors in order to restore
it to the owner.”
-——Subscribe for the “Watchman.”
MEDICAL.
The Proper Coures
Information of Priceless Value to
Every Bellefonte Citizen.
How to act in an emergency is
knowledge of inestimable worth, and
this is particularly true of the diseas-
es and ills of the human body. If you
suffer with kidney backache, urinary
disorders, or any form of kidney
trouble, the advice contained in the
following statement should add a
valuable asset to your store of knowl-
edge. What could be more convinc-
ing proof of the efficiency of Doan’s
Kidney Pills than the statement of a
Bellefonte citizen who used them and
who publicly tells of the benefit de-
rived ?
Mrs. L. A. Hill, E. Bishop St., says:
“I am bothered by backache occasion-
ally, but I keep Doan’s Kidney Pills
in the house and the benefit I derive
from their use is very gratifying.”
Price 60c, at all dealers. Don’t
simply ask for a kidney remedy—get
Doan’s Kidney Pills—the same that
Mrs. Hill had. Foster-Milburn Co.,
Mfrs., Buffalo, N. Y. 65-1
FINE JOB PRINTING
o—A SPECIALTY—o0
AT THE
WATCHMAN OFFICE
le of work, from the
er’ to the finest.
BOOK WORK,
that we can not do in the most satis-
factory manner, and at Prices consist-
ent with the class of work. Call on or
communicate with this office
There is no &
cheapest “‘D
(Get the Best Meats.
You save nothing by buying poor, thin
or gristly meats. I use only the |
LARGEST AND FATTEST CATTLE
and supply my customers with the fresh-
est, choicest, best blood and muscle mak-
ing Steaks and Roasts. My prices are no
higher than poorer meats are elsewhere.
I alwavs have
—— DRESSED POULTRY —
Game in season, and any kinds of good
meats you want.
TRY MY SHOP.
P. L. BEEZER,
High Street. 34-34-1y. Beliefonte, Pa
oo: - i i———
Shoes. Shoes.
Why should | afl Ee TT Ta SSS eee Ga
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Fully appreciating your cour-
tesy and patronage in the past
we extend to you the greetings
of the season and wish one and
all a
VERY HAPPY NEW YEAR! I
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i Yeager’s Shoe Store §
THE SHOE STORE FOR THE POOR MAN
Bush Arcade Building 58-27 = BELLEFONTE, PA.
LA
Lab
AR
ee Fen
Come to the “Watchman” office for High Class Job work.
l Lyon & Co. Lyon & Co.
Happy New Year
to All
E want to thank all our friends
for their generous patronage
the past year, and will endeavor to
make the coming year better in
every way to all our old and new
friends.
WATCH OUR STORE FOR A
Big Clearance and White Sale |
It will mean dollars saved
on all your purchases
f Lyon & Co. « Lyon & Co.