Low rates of contribution have been the principal cause of the failure of Friendly Societies.[1] It was of course natural that the members, being persons of limited means, should endeavour to secure the objects of their organization at the lowest cost. They therefore fixed their rates as low as possible; and, as the results proved, they in most cases fixed them _too_ low. So long as the societies consisted, for the most part, of young, healthy men, and the average amount of sickness remained low, the payments made seemed ample. The funds accumulated, and many flattered themselves that their societies were in a prosperous state, when they contained the sure elements of decay. For, as the members grew older, their average liability to sickness was regularly increasing. The effects of increased age upon the solvency of benefit clubs soon becoming known, young men avoided the older societies, and preferred setting up organizations of their own. The consequence was, that the old men began to draw upon their reserves at the same time that the regular contributions fell off; and when, as was frequently the case, a few constantly ailing members kept pressing upon the society, the funds were at length exhausted, "the box" was declared to be closed, and the society was broken up. The real injustice was done to the younger men who remained in the society. After paying their contributions for many years, they found, when sickness at length fell upon them, that the funds had been exhausted, by expenditure for superannuation and other allowances, which were not provided for by the rules of the society. [Footnote 1: The Registrar of Friendly Societies, in his report for 1859, states that from 1793 to 1858, the number of societies enrolled and certified had been 28,550, of which 6,850 had ceased to exist. The causes of failure in most cases were reported to be, inadequacy of the rates of contribution, the granting of pensions as well as sick pay, and no increase of young members. The dissolution of a society, however, is frequently effected with a view of remodelling it, and starting afresh under better regulations, and with rates of premium such as increased knowledge has shown to be necessary for the risks which they have to incur.]