INSURANCE

Among the many other agencies to promote thrift we shall only mention building and loan associations and insurance.  The purpose of building and loan associations is to help people of small means to purchase or build homes.  Insurance affords a particularly good illustration of organized cooperation.  The premiums paid by thousands of policy holders produce a large sum of money, part of which goes to pay the expenses of the insurance company, but most of which is invested in enterprises that cause the amount rapidly to increase.  Out of this fund the occasional losses of individuals are paid.  Life insurance is a good form of investment.  It provides for the future of the family of the insured in case of his death.  By the endowment plan the insured may himself receive, at the end of a specified number of years, all that he has paid in premiums together with interest.

During the war our national government itself insured the soldiers against death or injury.  This was known as war risk insurance.  At the end of the war the soldier had the privilege of converting the war risk insurance into a regular form of insurance, still provided, however, by the government itself.  One of our states also, Wisconsin, sells life insurance to its citizens.

As we proceed with our study we shall encounter other aspects of thrift in various chapters.  As a nation we may be thrifty or unthrifty in the use of our resources (see Chapters xiv and xv).  Thrift is as essential in our “community housekeeping,” which is carried on by government, as in our homes and business.  But we can hardly expect thrift to become a national characteristic unless it first becomes a personal habit.

Are you a capitalist?  If so, explain in what way.

What forms does the capital take with which your father does business?

What capital does an Eskimo have? the American Indians when the country was first settled?

Do you belong to a thrift club?  Would it be desirable to organize one in your school?  Confer with your teacher and principal about it.  Write to the Savings Division, U.S.  Treasury Department, Washington, D.C., for literature regarding organization.

Is there a credit union, or a savings association, or other organization to promote thrift in your community?  If so, find out how it operates.

Write a story on the subject, “What my five dollars may accomplish after I put it in the savings bank, before it comes back to me with interest.”

Why are people willing to accept a lower rate of interest from a postal savings bank than from an ordinary savings bank?

READINGS

In lessons in community and national life: