In view of our insurance scandals and the recent investigation, the chapter on Government Insurance is especially interesting at this time. In 1870 New Zealand adopted the Australian ballot and a public works policy, together with a Government Life Insurance Department. As the author points out, “The philosophy of this new departure was very simple. The purpose of insurance is the diffusion of loss. Instead of allowing a loss to fall with crushing weight on one individual, or family, it is spread out over a large number of stockholders or premium payers. If it is a good thing to distribute loss over a few thousand people who hold stock in a given company or pay premiums to it, it is still better to distribute the loss over the whole community. It is also wise to eliminate the expenses and profits of insurance so far as may be, and put the guarantee of the Government behind it, so that it may reach as many people and afford as much security as possible.” The insurance department was popular from the very start. The latest report when this book was written (1901) showed in force 42,570 policies covering $51,000,000 of insurance, or practically half the total business of the Colony. The Government office had beaten the private companies in fair competition, for there was no attempt to exclude private insurance companies. It had, in 1901, a much larger business than any of the companies, and almost as much as all the companies put together. This refers, of course, to the ordinary life insurance business, for there were 21,000 policies in industrial societies, which were not included in the regular life insurance statement. Two of our companies mixed up in the recent scandal, the Equitable Life and the New York Life, had, in 1901, been in the Colony 15 and 13 years respectively. The Equitable had 717 policies in force and the New York Life 139, as against 42,570 Government policies. The people of New Zealand prefer the Government insurance because of its safety—it has the guarantee of the Government behind it. It is in no danger of vanishing through insolvency, as ordinary insurance does now and then. Because of its cheapness, the rates being lower than any ordinary private companies; and because of its freedom from all oppressive conditions. The only conditions are that the premiums must be paid, and the assured must not commit suicide within six months after the insurance is taken out. As Professor Parsons says, “The policy is world-wide. The assured may go where he will, do what he likes—get himself shot in battle, smoke cigarettes, drink ice-water and eat plum pudding, or commit suicide under the ordinary forms after six months, and the money will still be paid to his relatives.” Instead of wasting valuable time and gray matter on devising schemes to prevent scoundrels from looting private insurance companies, why not devote a little thought to inaugurating a system of government insurance?