MAJORITY REPORT. 
251 
ee — 
looked upon as a merely temporary feature for which compensa- 
tion will be provided at a later period. These facts must be 
kept in view in considering the evidence directed to the question 
whether any change is desirable. The evidence we have received 
shows that the Societies are, as a rule, more fully appreciative 
of the results of their own investment operations than of those 
of the corresponding official activities as expressed by the credits 
of interest at the *‘ prescribed rate.” Nevertheless, there is no 
general desire for change. 
614. The Ancient Order of Foresters (Q. 4376-4379) have no 
objection to the present arrangements, though in their own 
investments they state that they earn 4:9 per cent. interest, 
with large capital appreciation. The National Amalgamated 
Approved Society (App. XXV, 83-34) propose no change, though 
they have realised similar results. The Lancashire and Cheshire 
Miners’ Permanent Approved Society (App. XI, 31-34) suggest 
that wider powers of investment should be given to Societies. 
The Hearts of Oak Benefit Society have recommended (App. IV, 
307-319; Q. 3667-3708) that Societies should be empowered to 
invest the whole of the moneys available for investment on 
the ground that the Society would gain by capital appreciation. 
On examination, however (Q. 7 394-7449), it appeared that 
this Society had not improved its interest income by the rather 
considerable series of investment changes on which it had 
embarked, and had, therefore, added nothing to its real assets. 
It appeared to us that in these circumstances the capital apprecia- 
tion in which the transactions resulted represented no such 
tangible advantage as to commend to us the proposition that 
Societies should be given control over an extended proportion of 
investable funds. 
615. We have come, therefore, to the conclusion that no 
change should be made in the present arrangement under which 
one-half of the funds available for investment is carried to the 
Investment Account and dealt with in bulk by the National 
Debt Commissioners, the other half being made available as 
regards each Society, for investment by the Society itself, or at 
its direction, in trustee securities. This plan was adopted in 
1911 as a modification of that originally proposed by the Bill, 
Under which the whole of the accruing funds would have been 
Invested by the National Debt Commissioners; it was the sub- 
lect, therefore, of an important amendment to the Bill, and 
One which must have been fully considered at the time. It 
cannot he said to have operated to the disadvantage of the insured 
Persons. So far, indeed, from this having been the case, it has 
Provided opportunities of comparing alternative policies in regard 
to the treatment of interest income which may lead to very 
valuable conclusions if the experiment is allowed to continue for 
* sufficiently prolonged period to enable definite results to 
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