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 I 
 
CIRCULAR. I 
 
 New-Yokk, Fehruftnj 1st, IsfiO, 
 To the Insurance Agents of the United States: 
 
 Gentlemen — You have probably heard soniethiiiu oi 
 a movement that has been inaugurated to procure from 
 cress a "National Insurance Law." It is to advist' 
 
 you, somewhat m detail, concernmg tins project — m which 
 you, as Agents, are vitally interested, that this circular 
 and the accompanying pamphlet have been prepared. 
 
 The plan is prompted mainly by three considerations : 
 its Necessity, its Desirableness, its E(piity. 
 
 I. Its Necessity. — Legislation in the several states 
 towards the Insurance Companies of sister states, has 
 proceeded hi a spirit of persistent and injurious liostility, 
 until it has created an almost prohibitory burden of 
 taxes, forced loans, deposits, licences, subsidies, compul- 
 sory advertising, fees, &c., «&c., State, County and Muni- 
 cipal, that would surpass the belief of one not fannliar 
 therewith. Generally, these laws do not look to the real 
 security of the policy holder, or the strength of tiie 
 companies, but are apparently conceived in a temper of 
 extortion and unfriendliness to enterprises that are the 
 handmaids of conmierce and the guardians of all <nir 
 destructible values. For example : the one item of com- 
 pulsory newspaper printing in the one State of Ohio 
 alone amounts to over S:2r),00() each year, not one copper 
 of which is necessary to the safety ot the insured. 
 
 But to begin nearer home. No company, domestic or 
 "foreign", can do business in New^-York without respond- 
 ing annually to a catechism of ninety-eight questions, 
 spread over six broad jiages of super-royal paper, which 
 run the chromatic scale of subtile inquisition with most 
 scrutinizing curiosity ! In so far as this conduces to the 
 suppression of unworthy institutions and the encourage- 
 ment of solid ones, no good company does or will object 
 
 From Ths Insurance Librar: Association oi boston 
 
■ must be accorded to the Insurance 
 . Departments of New- York and Massachusetts for the 
 salutary effect they have had upon the companies of the 
 ' land. In Life Insurance, however, a deposit of $100,000 
 is required, to be made in the New-York Department 
 j (or that of some other State), and this feature is com- 
 plained of bitterly by Western Life and Accident Com- 
 panies who will not make the deposit here, who have no 
 Department at home with which to make it, and yet 
 whose means are ample, and whose record creditable ; 
 and it is used as a telling plea for retaliatory measures in 
 their several states. 
 
 In Pennsylvania, each "foreign" Company must pay 
 an annual State license of $600, and appoint a State 
 Agent to whom all other Agents in that State must report 
 the amount of their premiums, on which he must pay a 
 tax of three per cent. 
 
 In Virginia they have in contemplation, as I have been 
 recently advised, a law requiring a deposit of $50,000 
 from all ''foreign" Companies. 
 
 In Alabama, each agency of each " foreign" Company 
 must make a forced donation of $200 annually to the 
 Fire Department of the town in which such Agency is 
 located, and in Mobile an additional $200 to the Medical 
 College ! 
 
 In Louisiana there is a State Tax of $1000, and in New 
 Orleans an additional City Tax of $2,000, and a certain 
 per centage of premiums go to the Bonds of the Opelousas 
 Railroad ! 
 
 In Tennessee, a deposit of $20,000 is required as a pre- 
 requisite to the first policy, an annual fee of $1,250 to the 
 State Auditor in addition to his little perquisites for issu- 
 ing papers, &c., and the county and municipal taxation is 
 such that it costs $1,500 entrance money per annum at 
 Nashville and about the same at Memphis to plant 
 Agencies in those cities. 
 
 Arkansas has made a fliint copy of the Wisconsin 
 swindle, in a requirement for each Company to purchase 
 
and deposit with lier own State officials, So,00() of her 
 own Bonds. One Conii)any recently applied for the 
 Bonds and was told by the Honorable State Auditor that 
 they had no Bonds yet, and, worse, they had no money to 
 
 California requires a deposit of $7.5,000 (in gold). 
 
 Missouri has a sliding-scale license arrangement of 840 
 to SlOO per county. 
 
 Wisconsin demands a deposit of S'),000 and upwards, 
 according to premium receipts, to be made in her own 
 Bonds, and the deposit to be increased from year to year. 
 
 Iowa and Ohio require a deposit of 5 per cent, of all 
 State premiums received, if deposits are made in any 
 other States. 
 
 One word here in regard to deposits. Each State that 
 adopts tlie plan, renders it the more urgently necessary 
 that each other State should do the same. One State 
 cannot quietly see $^30,000 or $100,000 of the assets of a 
 Company doing business among her citizens, detached for 
 the exclusive security of a "foreign" State without 
 demanding similar security for her own people, and she 
 must have as large a deposit too. Of necessity and in self- 
 defence each State must legislate this matter as severely 
 as any other State ; and from the movements now contem- 
 plated and threatened, I do not see where local legislation 
 can consistently stop, short of a maxinmm deposit in each 
 State of, say $100,000. Let this become general, (as it must 
 if it continues,) and it will take over three millions to go 
 around. Compliance is sim])ly impossible. Such legisla- 
 tion is prohibitory, and this is precisely w hat local monoj)- 
 olists covet ; and monopoly, or a desire for it, is, after all, 
 at the root of these adverse measures. 
 
 To resume. All these States, and most of the others, 
 require annual or semi-annual statements, of greater or 
 less length and complexity, and all levy taxes on the 
 premiums received ; some two, some three, some five per 
 cent. — not on the profits alone, but on the losses and 
 expenses as well, they tax "gross sales!" Some require 
 
aavertisiiig at each agency, an 
 indiscriminate requisition for the smallest village and 
 the largest city alike; and- all these onerous burdens are 
 laid on Companies from '^ other States," while home 
 institutions are, as a rule, without any wholesome check 
 or regulation whatever. 
 
 These are samples of the uufriendly impediments laid 
 m the way of legitimate enterprise by State legislation. 
 No other branch of national enterprise is so harassed. 
 Manufocturmg Conipanies, Express Companies, Telegraph 
 Companies ; Scholastic, Religious and Publication Compa- 
 
 mes,andscoresofothercorporateenterprisesprosecute their 
 business, through the medium of agencies, in all the States 
 without let or hindrance, and they have a perfect right to 
 do so. The clogs placed upon Insurance Companies, who 
 wish to do the same thing, are wholly inexcusable ; they 
 are without precedent or justification ,• their tendencies 
 are evil and only evil ; they impose burdens and restric- 
 tions upon the citizens and the trade of sister States that 
 they impose not upon their own, and thereby violate the 
 spirit of that broad and beneficent provision of the Con- 
 stitution which says, " The Citizens of each State shall he 
 entitled to all Privileges and Lnmmiities of Citizens in the 
 several States,'' 
 
 Such legislation is in violent discord with a loyal, 
 national spirit, is productive of prejudice and full of 
 useless opposition to the legitimate enterprises of the 
 several States. Such legislation tends to establish 
 monopoly, cripple trade, promote inconvenience, increase 
 the rates of Insurance, encourage laxity in local Com- 
 panies, destroy the incomes of thousands of agents, 
 quench competition, substitute favoritism for merit, and 
 to force upon the people against their desires a poorer 
 article at a higher price and more difficult to obtain. 
 
 No relief need be expected from the States themselves ; 
 on the contrary, the disposition is increasing to add to the 
 absurdities and injustice already existing. Hardly a week 
 passes, but some new municipal license or State deposit 
 
is broaclied. The newest sensation is an ordinance now- 
 pending before the city authorities of Chicago, to impose 
 upon Insurance Companies from^ other States an annual 
 city license of $-300 ! fl^plH 
 
 The necessity, then, for some central bureau that sliail 
 regulate this whole matter, produce uniformity, and at 
 once protect both insurer and insured, is apparent. Such 
 regulation can come from the National Government only, 
 and to Congress we must look for the needed relief. 
 
 II. Its Desirableness.— This is best set forth by the 
 facts above stated, which demonstrate the necessity for 
 such a measure. The present status being evil, relief is cer- 
 tainly desirable ; uniformity is desirable, thoroughness is 
 desirable, broad publicity to the conditions of Companies 
 is desirable. The best talent for the management of an 
 Insurance department is desiral)le. The greatest power 
 for demanding and compelling true and full exhibits 
 from Companies is desirable. The highest seal upon the 
 Companies examined and found worthy is desirable. The 
 fullest measure of confidence that can be inspired for such 
 worthy (Companies is desirable. Even justice for all 
 Companies, from every section, is eminently desirable. No 
 where aiul no how can these de^*irable ends be so certainly, 
 so easily, so simply, so cheaply reached as through a 
 National BurcMu of Insurance, authorizi'd, watched, pro- 
 tected and fostered by the United States Uovernment. 
 
 III. Its IvniTY.— The plan proposed embraces the 
 whole Union, with eveiy Company therein that may 
 choose to avail itself of its benefits. It is not lor the 
 advantage of any one section or set over another, but tor 
 all alike ; the most obscure Company in the centre of 
 any Western State that wishes to join in securing the 
 rich harvest among the heavy values of the Eastern Cities 
 is embraced in its provisions, and may profit equally with 
 the most powerful Eastern corporations, if it elects to con- 
 form to its requirements. 
 
 It is not the de«iuu to ask for a law to regulate the 
 Companies of any State within that State, Congress 
 
could not enacr siicli. But, under its special grants of 
 power to r(^gulate trade between the States and promote 
 the general welfare, it can dictate the terms on which 
 Companies may carry on an inter-state business. 
 
 It is not the design to ask, nor would it be the pro- 
 vince of Congress to grant a law to which compulsory 
 obedience must be made, but to provide a statute that 
 will protect the rights of all parties, and let those com- 
 panies comply that choose. 
 
 The effect of such an arrangement must be most bene- 
 ficial. Enterprise from any quarter would be encouraged 
 by it. Capital would be protected by it. Monopoly 
 w^ould be checked, favoritism restrained, injustice put to 
 shame and many evils quenched. 
 
 What are the best means for obtaining the desired end ? 
 This question has exercised the minds of some of the 
 ablest men in our profession, and is not yet fully an- 
 swered. On the first of November last, a convention of 
 fifty-one Companies met in this city, and, after much 
 earnest conference, appointed a committee of thirteen, to 
 whom was confided the duty of preparing a bill which 
 they should present to Congress. They were also to solicit 
 your aid in behalf of the measure, and to take such other 
 steps as would be most likely to secure the object sought. 
 Subsequently, the Life and Accident Companies met also, 
 and appointed a committee of eight, to work in harmony 
 with the committee of thirteen. 
 
 The bill is now in course of preparation, and will be 
 laid before Congress at the earliest practicable day. 
 
 Among the resolutions passed at that Convention was 
 the folio win Of : 
 
 Resolved, That the members of this Convention, and all others interested 
 in the business of Insurance, be requested to use earnest and active efforts 
 to prepare the niinds of the .Senators and Representatives of their r.'spective 
 States to receive with favor some plan of nationalizing the business of 
 Insurance. 
 
 What can you do as an Agent to forward this work? 
 I suggest the following plan of operations ; it can be 
 modified to meet the necessities of various localities, but 
 
will serve as a l)asis lor 
 
 11 throiiirhdnt the 
 
 countrv. 
 
 ] . Let all the Agents in your Congressional District 
 meet at some central and convenient point to deliberate 
 upon this matter. Concert of action is vital, and this 
 cannot well be attained without conference and a mutual 
 understanding. 
 
 •?. Memorials should be circulated among your business 
 men for signatures, petitioning Congress for a general 
 Insurance Law. Forms for these will be furnished. 
 
 ;3. If you are personally and hiflueutially acquainted 
 with your member, write him on this subject, urging his 
 favorable action on such a measure when it comes up ; if 
 you are not so acquainted, secure at once letters from some 
 of his strongest friends, and have these points put in such 
 shape and with such force as will arrest his attention. 
 This step I regard as of the first importance. 
 
 Among the points on which you should post your Con- 
 gressman, are : 
 
 1. The number of Agents in his district. 
 
 2. The value to them of their Agencies. 
 
 ;i. The loss that would ensue should they be deprived 
 of them. (Bear in mind always that the aim and tendency 
 of oppressive local legislation is to wipe out the present 
 efficient and valuable system of Agencies, and substitute 
 for it local Companies ; Home insurance.) 
 
 I. The character and real merits of the local Compa- 
 nies, the home institutions and the Mutual Wild Cats sei'k- 
 ing business in his district ; tell him of their practices, give 
 him their history, advise him of the real estimate in 
 which they are held by the best and the best posted men. 
 Oive him the real bearings of the business, and the true 
 mciits of the best Companies as compared with the ones 
 favored by this local legislation. 
 
 -5. Remind him that his own property or his life is in- 
 sured in some Company. Ask him to apply the matter 
 to his own case, and bv what he wants himself, he can 
 
none too good for him— the best is none too good for all. 
 If he would like the additional safety that will be secured 
 by the proposed measure, if he would enjoy the guarantee 
 of the National Insignia, if he prefers Greenbacks to 
 ordinary currency, he may be sure his people would like 
 the same. 
 
 6. This movement is really a personal matter to him, to 
 you, to us all. There will be corporations that favor it 
 and corporations that oppose ; there will be motives 
 good, bad and mixed, for and against it, but the real gist 
 of the matter is one that persofially concerns every citizen 
 of the United States who holds, or, ever expects to hold 
 an Insurance Policy— Fire, Marine or Life. 
 
 Allow me to urge upon you the great iniportan<-e of 
 prompt and efficient attention to this matter ; it cannot 
 fail to commend itself to your good judgment. Let it, 
 then, command your time and effort. Unanimity of action 
 will insure success, and success will he worth all it can 
 cost and a thousand times more. 
 
 What shall you do ? 
 
 1. At once bring to bear upon your Congressman all the 
 light, all the influence, all the weight, all the constraining 
 and quickening poWer at your command. If you cannot 
 reach him eftectually yourself set some one in motion who 
 can, and do not rest contentf'd with a promise, but see 
 
 THAT IT IS DONE. 
 
 2. Attend the meeting that will shortly be called in 
 your congressional district by all means. Go resolved to 
 act and you will return well posted and enlightened. 
 
 3. Diligently circulate the memorials among your 
 leading and influential men, and forward them to your 
 member without delay. 
 
 4. Do not rely alone upon these suggestions for ways 
 and means ; the subject is not only not exhausted, but 
 hardly touched. Ample field is open for thr exercise of 
 your own independent powers. 
 
 C. C. HINE, 
 
 Sec. of Com. of 13. 
 
 that will shortly be called in 
 by all means. Go resolved to 
 11 i>osted and enlightened, 
 the memorials amonc: your 
 
 , and forward 
 
 m to vour 
 
COMMITTEE OF THIRTEEN, 
 
 Appointed hy the Convention of November 1, 1805. 
 
 (JK()I{(JK T. HOPK.... 
 
 C. ('. niNE 
 
 DOHAS L. STONK 
 
 EDWI). li. SMITH.... 
 
 TIMO ('. AI.LYN 
 
 F. CHAMIJKKLAIX ... 
 I). U. SATTHHLKE.... 
 
 .1. N. nrxiiAM 
 
 KDMINI) FKEKMAN 
 JOHN KIN(;SIUIKY.. 
 
 J. S. PAKISH 
 
 A. (J. COFFIX 
 
 . Secretary Infemafional 
 
 . President Hanover . 
 
 , Secretary Wcxtrrn 
 
 . President Hartford , 
 
 . Director PhiEui.r 
 
 . President Home 
 
 .Secretary Western MasHachmettg . 
 .President Sprin<r field Fire cS- Mari} 
 .President Proridence Washini 
 
 . Secretary Atlantic 
 
 . President Xortk Amerira 
 
 .New-York, 
 .liutfalo. 
 
 J NO. H.SKIDENSTUKKEU, President National F 
 
 COMMII'TEE OF EIGHT, 
 
 Appointid hij the Life Companies, December 13, 1865. 
 
 (;iTY K. PHELPS... 
 SHEPPARl) IIOMAX! 
 
 N. 1). MOKCAN 
 
 HENKY STOKES.... 
 
 B. F. STEVENS 
 
 SAME H. WHITE.. 
 AMZI IX UH) 
 
 C. VV. HorCK 
 
 .Secretary Connecticut Mutual Hartford. 
 
 .Actuary Mufunl Life New-Yot 
 
 .President Sort.h America Life N'ew-York. 
 
 . President Manhattan Life New-York. 
 
 , President Scir England Mntual Life, Bostoi 
 
 Secretary C//''/r//r Oak Life Hartford. 
 
 . Mathematician Muhial Benefit Life. . Ne\ 
 
 . President Brookr,,n Life Brooklyn. 
 
 LIST OF COMPANIES THAT HAVE FILED ASSENT TO 
 THE KESULUTIONS OF CONVENTION. 
 
 REPUBLIC 
 
 WASHINtJTOX 
 
 MOKKIS 
 
 AIU'TIC 
 
 HONVAUI) 
 
 ASTOH 
 
 NIAGAUA FittE 
 SECURITY 
 
 .New- York. 
 New-York. 
 .New -York. 
 . New-York. 
 .New-Y<.rk. 
 .New York. 
 .New- York. 
 .New- York. 
 .New-York. 
 .New- York. 
 .New York. 
 .New York. 
 .NrwY(»rk. 
 .New York. 
 .New- York. 
 .N<'W-York. 
 
 ANDN.Y.. New York. 
 AN New- York. 
 
 KNICKERBOCKER 
 LIFE 
 
 NORTH AMERICA 
 LIFE 
 
 ALBANY ( 
 SPinN(;Fll": 
 
 AU1NE....M 
 >LVSSACHr 
 
 ^ETNA Har 
 
 HARTFORD Hari....... 
 
 PHCENIX Hartford. 
 
 PUTN A.M Hartfonl. 
 
 MERCHANTS' Hartford. 
 
 CITY FIRE Hartford. 
 
 NEW ENOL.VND Hartford. 
 
 NORTH AMERICAN. .Hartford. 
 CONNECTKUr FIRE,Hartfor<i. 
 CHARTER OAK LIFE, Hartfonl. 
 PIKENIX MUTUAL 
 
 LIFE Hartford. 
 
 TUAL I 
 TR AVE LEI. 
 PIIENIX .. 
 
 HOME 
 
 NORWICH 
 
 LANTIC. 
 ERICAN 
 
 Brooklyn. 
 New Have 
 
 .Norwich. 
 . Providen* 
 
 .Providenc( 
 ProvideniM 
 
 liN TRANSIT, St. Loui 
 
 SURANCE\ 
 N W MUTUAL 
 
The object of the succeeding pages is to lumisn snch 
 material as has been collated, touching the subject of In- 
 surance Legislation. To show the feasibility and the 
 constitutionality of National Insurance. To give the 
 views, so far as they have been obtained, of statesmen 
 bearing upon this important topic, and to supply facts for 
 use as they may be needed. 
 
 Ko uiore fitting opening could be devised than the 
 lol lowing 
 
 I Evtractfrom President Johnson's Message, Dec. o, JStio. 
 
 monopolip:s. 
 
 Our government springs from and was made for the people- 
 people for the government. To them it owes allegiance ; from then. i7mZ 
 denve Its courage strength and wisdom. But while the government is 
 thus bound to defer to the people, from whom it derives its existence, it 
 should, from the very consideration of its origin, be strong in its power of 
 resistance to the establishment of inequalities. Monopolies, perpetuiti^^ 
 
 Id class Legislation are contrary to the genius of free government, 
 ought not to be allowed. Here, there is no room for favored classes' or 
 monopolies ; the principle of our government is that of equal laws and free- 
 I 01 industry. Wherever monopoly attains a foothold, it is sure to be a 
 source of danger, discord and trouble. We shall but fulliH our duties as 
 legisators by according - equal and exact justice to all men," speci- 
 privileges to none. The government is subordinate to the people; b 
 the agent and representative of the people, it must be held superior to 
 monopolies, which, in themselves, ought never to be granted, and which, 
 where they exist, must be subordinate and yield to the govei 
 
 TRADE BETWEEN THE STATES. 
 
 The constitution confers on Congress the right to regulate commerce 
 among the several States. It is of the first necessity, for the maintei 
 of the Union, that that commerce should be free and unobstructed. No 
 State can be justified in any device to tax the transit of travel and 
 commerce between States. The jMsiticn of many States is such that, 
 Jf they were allowed to take advantage of it for purposes of local revenue^ 
 the commerce between States might be injuriously burdened, or even 
 virtually prohibited. It is best, while the country is still young, and while 
 the tendency to dangerous monopolies of this kind is still fe 
 l>ower of Congress so as to prevent any selfish impediment to the free 
 circulation of men and merchandise. A tax on travel and merchandise, in 
 their transit, constitutes one of the worst forms of monopoly, and the 
 evil is increased if coupled with a denial of the choice of route. When 
 the vast extent of our country is considered, it is plain that eveiv 
 to the free circulation of con.merce between the States ought to be stei 
 guarded against by appropriate legislation, within the limits of the consti- 
 
 fnfinn 
 
 3e free an( 
 
 for the maintei 
 
 1 unobstructed. N< 
 
 12", and while 
 
Monopoly is the essence of the objectionable State 
 Legislation. To grant to a class " special privileges " 
 [class legislation] denied to all, is the very pith of the 
 matter. Taxation by one State of the legitimate com- 
 mercial enterprises of other States is the enormity from 
 which refuge is songht. If ^Ir. Johnson had had the 
 great Insurance interests directly in view, he could hardly 
 have been more to the point. 
 
 EXTRACTS FROM WEBSTER. 
 
 Remarks maih in the Senate of the United States, on the hill to authorizt tlie 
 Purchase, on the part of the Govern nit nt, of the Private Stock in the Louis- 
 ville and Portland Canal, on the '2'jth of May, 1836. 
 
 Whoever, Mr. I'resident, would do his duty, and his whole duty, in the 
 councils of this government, must look upon the country as it is, in its 
 wliole length and bn?adth. He must comprehend it in its vast extent, its 
 novel character, its sudden development, its amazing progress, confounding 
 all calculation, and almost overwhelming the imagination. 
 
 To be sure. Sir, this is a work of internal improvement ; but it is not on 
 that account either the less constitutional or the less important. Sir, I have 
 taken a part in this great struggle for internal improvement from the begin- 
 ning, and I shall hold out to the end. 
 
 But, Sir, in this case, as in others, the doctrine of internal improvement 
 has established itself by its own necessity, its own ol)viou8 and confessed 
 utility, and the benetits which it has already so widely conferred. So it 
 Avill be, I have no doubt, in the case before us. We shall wonder hereafter 
 who could doubt the propriety of setting free the navigation of the Ohio, 
 and shall wonder that it was delayed even so long. 
 
 We have foreign commerce, and we have intenial commerce ; and the 
 power, and the duty also, of regulatijig, protecting, aiding, and fostering 
 both, is given in the same words. For one, therefore, Sir, 1 look to the 
 magnitude of the object, and not to its locality. I ask not whether it be 
 east or west of the mountains. Tlu're are no Alleghanies in my politics. 
 
 I care not whether it be an improvement on the shore of the sea, or on 
 the shore of one of those mighty rivers, so much like a sea, which tlow 
 through our vast interior. It is enough for me to know that the object is a 
 good one, an important one, within the scope of our powers, and called for 
 bv the fair claims of our commerce. 
 
 Speech dclirercd at Madison, in the State of Indiana, on the Ut of June, 1KJ7. 
 
 Believing that the great object of the I'nion is to secure the general 
 safety and promote th«' general welfare, and that the Constitution was 
 designed to point out the means of accomplishing these ends, I have 
 always been in favor t»f such measures as I deemed for the general benrlit, 
 under the restrictions and limitations nn'scrilied by the Constitution itself. 
 
I supported them with my 
 
 the benefit of the West, but because they were for the benefit of the wliole 
 country. That they are local in their advantages, as well as in their con- 
 struction, is an objection that has been and will be urjred against ei 
 measure of the kind. In a country so widely extended as ours, so diversi- 
 fied in its interests and in the character of its people, it is impossible that 
 the operation of any measure should aft'ect all alike. Each has its own 
 peculiar interest, whose advancement it seeks ; we have tlie sea coast, and 
 you the noble river that tlows at your feet. So it must ever-be. Go to the 
 
 smallest ffovern 
 
 ^A K„f u„ 
 
 in the world, 1 
 of but ten mile: 
 
 ^u any mea 
 
 of San Marino, in Italv 
 
 "-" miles, having some interests which, on accou 
 "* ^ "--.tinct. There is not on the face of the 
 
 -'ose inhabitants are all the same i 
 le will live on a creek, others near a hill, 
 """ "*"" ''^e general benefit, will giv( " 
 ; imuiesis. In such cases, it has alwaj 
 the point to be examined was, whether the principle 
 principle were general, although the application might 
 y and zealously gave it my support. 
 
 Delivered in the Senate of the United States on the 26th of January, 1830. 
 
 Sir, I do not desire to enlarge the powers of the government by unjusti- 
 fiable construction, nor to exercise any not within a fair interpretation, 
 it is believed that a power does exist, then it is, in my judgment, 
 jeneral benefit of the whole. So far as respects the 
 I power, the States are one. It was the very object of the 
 Constitution to create unity of interests to the extent of the powers of the 
 general government. In war and peace we are one ; in commerce, one ; 
 because the authority of the general government reaches to war and peace, 
 and to the regulation of commerce. I have never seen any more difficulty 
 in erecting lighthouses on the lakes, than on the ocean ; in improving the 
 harbors of inland seas, than if they were within the ebb and iiow of the 
 tide ; or in removing obstructions in the vast streams of the West, more 
 than in any worlc to facilitate commerce on the Atlantic coast. If there be 
 any power for one, there is power also for the other ; and they are all and 
 equally for the common good of the country. 
 
 Speech delivered in the Senate of the United States on the 28th of September, 
 18:37, on the Currency. 
 
 The nature of exchange. Sir, is well understood by persons engaged in 
 commerce ; but as its operations are a little out of the sight of other classes 
 of the community, although they have all a deep and permanent interest in 
 the subject, I may be pardoned for a word or two of general explanation* 
 I speak of domestic exchanges only. We mean, then, by exchange, this 
 same transfer of funds. We mean the making of payment in a distant 
 place, or the receiving of payment from a distant place, by some mode of 
 
papfr credits. If done by draft, order, or bill of exchange, that is one form ; 
 if done by the transmission of bank notes, through the post office, or other- 
 wise, that is another form. In each, credit is used; in the first, the credit 
 of the parties whose names are on the bill or draft ; in the last, the credit ot 
 the bank. Every man, Sir, who looks over this vast country, and conto 
 plates the commercial connection of its various parts, must see the gre 
 in>portanc«.' that this exchange should be cheap and easy. To the produc 
 and to the consumer, to the manufacturer and the planter, to the merchant. 
 to all, in all classes, this is a matter of moment. 
 
 The power over the coinage is not the strongest, nor the broadest, ground 
 on which to i)lace the duty of Congress. There is anotluT power granted 
 to Congress, which seems to nw to apply to this case directly and irresisti- 
 bly, and that is the commercial power. The Constitution declares that 
 Congress shall have power to regulate commerce, not only with foreign 
 nations, but hetircen the Stntrs. Tins is a full and complete ^rant, and must 
 include authority ortr ertnj thing tchirh is part of commerce, or essential to 
 commerce. And is not money essential to commerce ? No man in his senses 
 can deny that; audit is e(iually clear, that whatev.T paper is put forth. 
 with intent to circulate as currency, or to be used as money, immediattl v 
 affects commerce. Bank notes, in a strict and technical sense, arc U" 
 indeed, money ; but in a general sense, and often in a l»*gal 8«-ns<', they lu*. 
 money. They are substantially money, b«'cause they perform the functions 
 «>f money. They are not like bills of exchange or common pn>uiiss(>ry 
 notes, mere proofs or evidences of debt, but are treated as mon«'y, in the 
 g«neral transactions of society. If receipts be given for them, they are 
 given as for money. They pass under a legacy, or otlu-r form of gift, as 
 money. And this charact«'r of bank notes was as well known and under- 
 stood at the time of the adoption of tlu; Constitution as it is n<»w. Tlie law, 
 both of Kugland and AuK-rica, regarded them as money, in the sense above 
 expressed. If Congress, then, has poirer to regulate commerce, it must hare a 
 control over that money, trhatenr it may be, by which commerce is actually 
 carried on. Uhfther that monnj be coin or paper, or however it has acrjuircd 
 the character of money or currency, if, in fact, it has become an actual aumt or 
 instrument in the performance of commercial transactions, it mnssanlif then by 
 becomes subject to the regulation and control of Congress. 
 
 Speech delivered in the Senate of the I'nited States on the 'JJ«'/ of Munh, l-.i-, 
 in Anstrer to Mr. Calhoun. 
 
 IJut, Sir, I liave insisted that government is bound to protect and regu- 
 late the means of con)merce, to see that there is a sound currency for tl»e use 
 of the people. The honorable gentleman asks, ^Vhat then is the limit f 
 Must Congress also furnish all m.aus of comnurce ? Must it furnish 
 weights and scales and steelyards ? Most undoubtedly, Sir, it must regul. 
 ate weights and measures, and it does so. But the answer to the general 
 question is very obvious. Government must furnish all that which none 
 but government can furnish. Government must do that for individuals 
 which individuals cannot do for themselves. That is tlie very end of 
 government. Why else have we a government / 
 
MAGNITUDE OF THE INSURANCE BUSINESS WITHIN 
 THE UNITED STATES. 
 
 The following figures show the operations of the Com- 
 panies reporting to the New- York Insurance Department 
 for Rve years. 
 
 JSo reports of Ocean Marine Companies are included. 
 These vast amounts are from Fire, Inland and Life Compa- 
 nies only, and on business done within the United States only, 
 and such portion oj those Companies as do business in New 
 York only. No statistics are accessible to show, in 
 addition, the immense transactions, Fire, Inland and 
 otherwise, of the other Companies located at Boston, 
 Philadelphia, Baltimore, Pittsburgh, Cincinnati, Chicago, 
 St. Louis, New Orleans, and the other Cities of the Union. 
 
 Premiums received in 5 years, - - - $124,909,732 
 Losses Paid. 60,786,019 
 
 Amounts Covered, 12,888,917,333 
 
 An annual average of over Two and a half Billions of 
 value protected by Companies whose reports are attaina- 
 ble ; which amount would be enormously swelled could 
 the figures of the grand aggregate be had. 
 
 It seems incredible that interests of such stupendous 
 aggregate magnitude should be the subjects of the whim, 
 prejudice or carelessness of 3G local legislative assemblies, 
 having diverse notions and limited means of knowledge. 
 And it seems more incredible that even such legislation 
 should so utterly fail to appreciate the importance of the 
 subject with which it was dealing as to devise such 
 burdensome, ungenerous and unwise measures as are 
 rehearsed, in part, in the foregoing Circular. And it 
 would seem most incredible of all that any one should 
 doubt the National Character of Commercial transac- 
 tions covering over Twelve and three-quarter Billions in five 
 years. 
 
 If this be not Commerce, what is Commerce ? 
 
Extracts from the Reports of Hon. William Baknes, 
 Superintendent of the Insurance Department of the 
 State of New York. 
 
 From the Report of 1864. 
 
 The proposed passage by the State of California of an Act requiring all 
 Insurance companies not incorporated under the laws of that >itate, to niak.' 
 a special deposit with some citizen, who shall be approved by the Comp- 
 troller, of the sumof $7r>,(HM), in I'nited Stat.^s or California State stocks, or 
 in stocks or bonds of the City and County of San Francisco, for the secur- 
 ity of policy-holders, as a pre-requisite to the transaction of any business in 
 that State, has again forced public attention to the consideration of the 
 whole system of State deposits, as applicable to Insurance companies and 
 the business of Insurance between the various States of the I'nion. No 
 apparent necessity has dictated this unfriendly step on the part of our 
 Pacific neighbors; no recent frauds by Eastern companies are reported, 
 nor any failure to pay claims for losses when duly established by the usual 
 proofs, or by litigation in the State courts of California. Indeed losses are 
 not as closely scrutinized and examined by Pacific, as by Atlantic agencies. 
 Less necessity for deposits now exists than at any previous period, as pro- 
 bably all unsound and fraudulent organizations have been dissolved by 
 the Courts, and the great mass of companies have also largely increased 
 their capitals and reserved funds. The sales of California mining stocks in 
 this State subject our citizens to greater chances of loss than can result to 
 citizens of California from any New York Insurance company ; and 
 deposit law, requiring all California Mining companies to deposit .f 7r),(MX> 
 in New York before selling stock, or otherwise oi)erating within our terri- 
 tory, would be entirely justifiable, as proper retaliatory legislation against 
 the unjust Insurance laws already enacted by her Legislature. 
 
 The existing laws of the States of Ohio and Iowa require a conditional 
 deposit, and Tennessee recpiires an absolute deposit to be made by Fire 
 Insurance companies incoriM>rated in other States. 
 
 The Act in the State of Ohio, passed in the year 1856, requires all Fire 
 Insurance companies not incorporated by the State of Ohio, which have on 
 deposit in any other State, territory, or country, any portion of their capital 
 or earnings as a guarantee fund for the exclusive benefit or security of per 
 sons insured therein, to deposit in Ohio, in such manner as the Audito. 
 may direct, five per cetit. of the premiums received in the State during the 
 previous year, until such deposit shall amount to the sum of $40,(MM>, to be 
 held as a guaranty fund for the benefit of policy-holders in the State ot 
 Ohio, until all claims for losses or premiums on risks unexpired shall be 
 fully paid and discharged, or until all deposits in other States and conn- 
 tries shall be withdrawn. (See act entitled ^^ An net to regulate Insurance 
 companies not incorporated by the State of Ohio ^ Session Lairs, 18r»(;,/». /o.) 
 In the year 18r>8, the same statute was passed by the Legislature of 
 Iowa. (Chap. 12, Laws of lSoS,p. 15.) 
 
 In the year 1^60, the State of Tennessee enacted that all Insurance com- 
 panies, whether chartered by the Legislature of Tennessee or any otlu^r 
 State, should deposit with the Comptroller, as security for risks taken by 
 
citizens of that State, the sum of $20,000 in six nor P^nf i. i r . 
 
 The earliest law on the s„bjcct of State Insurance deposits seems to be 
 , the Act passed by this State in la^I. (Cha,. 95,) entitled ''An AZnrZtl 
 
 ^e t» iTT',"^ ""' ■'''"" <=<'«>P--'n!es, whether : t- 
 
 the State of New lork, or in other States, or foreign cou 
 
 the busmess of Life Insurance within this State, were renuired to deno,i°t 
 
 Ce r^'T' "" ^""^ "' ^'"".O"" in United C s, New C 
 
 State, or city stocks, or in bonds and mortgages. This Act was cnlt™„ , 
 by the then Comptroller, Hon. P„ao C. fLLb, as "qui oTsnch d p™ U 
 T^I^^:T: r^' "fPo'-y-l-oW-' ;» this S.ate. Vee L. JXd 
 VofsmdAcl.) The n.jusUce to our sister States of re(|nirin<r a snecial 
 depos.t to be made by their Life Insurance companies in this state. or " 
 protection ot New York policy-holders, was soon demonstrated to be so 
 apparent, that ,n about two years the law was repeah.d, and the Inerl" 
 L,le Insuranee Actof 185arC*«;,.463)was passed, which subs.ifnted a 
 
 ^1 T \ d ""VTT" ™'"''''""' '" '^''•°"" "•« «M«.<'0« in this State ;i 
 all such deposits to be made for the common benefit of all the policy-holders 
 whether res.dn.g „, tins or in any other State of the Union. 
 
 The L.(e Insurance Act of ISKi, requiring a home deposit of $100 000 
 '^lll'lTT'" Poiir!'""-- undoubtedly exerted 1 iudicforC 
 
 uenencen. ■nnuence on the business of Life Insurance in the United States 
 g.v,„g .t stabahty and character, and preventing the organifattn of 
 numerous unsound, experimental and fraudulent companies,';vhieh would 
 otherwise have been foisted upon the public in this and other States 
 
 Deposits are evidently much more necessary in Life than in Fire Insur- 
 ance, for the reason that Fire Insurance contracts are generally made7or 
 only a single year, while a Life company most ordinarily reieive for a 
 score or more years an income greatly exceeding its expenditure, and its 
 maximum ot .abilities is not generally reached until after the e.™ ation of 
 the average life of at least one generation. pir.»iion ot 
 
 If the system of State deposits by Insurance companies is ever to become 
 generally prevalent in the United States, such deposits should never be 
 required to be made except in the State where a company is incorporated 
 unless made with the General Government at Washington, and all deposits 
 by American companies should be held, not for the .special protection of 
 policy-holders residing in any particular State, but for the common benefit 
 of all American policy-holders ; and all deposit laws should be applicable 
 to home companies as well as to those of other States of the Union. 
 
 The California law requires a depo.sit to be made by the companies oi 
 other States and foreign nation, only, and not by California companies 
 thus actually classing the corporations of sister States as "Foreign" com' 
 
panics, organized by an alien government, and not beicg ev.n as fair i 
 this respect as the law of Tennessee. 
 
 The Constitution of the Tnited States provides that,— " The <itizeks 
 OF EAcii State shall be entitled to all privile<jes and immini- 
 
 TIES OF en I/ENS IN THE SEVERAL STATES." {Article 11, section '2, i>ub- 
 division J.) 
 
 This section was a condensation of a more ampUHed provision to the 
 same effect, contained in the old Articles of Confederation and perpetr^' 
 union (Art. 4.), which was expressly designed for the purpose of bet... 
 securing and perpetuating mutual friendship and intercourse amon.cr tl... 
 people of the ditierent States. Upon declaring their independence of ^ 
 Britain, the several Colonies suddenly found themselves separate and ii 
 pendent sovereignties, with all the rights and privileges of independent 
 nations, subject to the contingency of establishing their freedom by the 
 chances of war. The absolute need for combined action was, however,^so 
 apparent that the old Articles of Confederation were agreed upon in 1777, 
 the next year succeeding the Declarati.)n of Independence. The Fourth 
 Article was evidently a modification of the usual clause, granting the same 
 privileges as to the most favored nation contained in Treaties of amity, 
 commerce and navigation between foreign nations, and also of the ordinary 
 article as to the rights and privileges of the citizens or subjects ot one coun- 
 try in the territory or dominions of the other. {See Elliott's American 
 Diplomatic Code, lots, land If, passim ; Treaty tcith Crcat Britain, Vol. I, 
 p. 243, art. :i; Siodcn and Nortcay, id. '2i\i^, Art. 1 ; France, id. 90, 91 ; The 
 Netherlands, id. VM\; Prussia, id. SM, :m. Arts. 2, 3; Denmark, id. 44^, 
 Art. 2.) 
 
 By a recent 'I're^itv between Great Britain and Belgium, this provision 
 has been so extended that the high contracting parties mutually JTiant to 
 all " co.npanies and associations— connnercial, industrial and Imaneial, 
 constituted and authorized in conformity with the laws in force m eitiier 
 of the two countries, the pow.-r of exercising all their rights, and ot appea 
 ing before the tribunals throughout the dominions and possessions ot the 
 other power, subject only to the condition of conforming to the laws ot such 
 dominions and possessions. (Xew Yorlc Instance Ii, port, iSGS, page MS.) 
 It is reported that a similar Convention has been concluded between Irauce 
 and Great liritaln, nations which are natural enemies by the traditions 
 habits of centuries. 
 
 Eminent counsel have given professional Opinions that under Art. 4, 
 Sec. 2, of the Constitution of the United States, one State ot the I nion 
 cannot impose any taxes, restrictions or burthens on the Insurance corpora- 
 tions of sister States, which are not also e«iually imposed on the home or 
 domestic companies of such State, and that the fundamental and supreme 
 law of the land providing that the citizens of each State shall be entitled to 
 all privil.«ges and immunities of citizens in the several States, is ai.plicable 
 as well to corporations or artiHcial persons as to citizens or natural p.-rsons. 
 (See Opinions of DANIEL WEBSTER, GEORCiE Woov, and Chiet Justice 
 Samuel Jones, and of Wilijam Curtis Noves, arguendo, 3 /:. D. Smith 
 Eeports. N. Y. Common Pleas. 4r)8— 48<).) 
 
 •en France 
 
ess and souudness of these Opinions. {The t ire Department xs. ISoble, 
 ime vs. Wright, id., p. 453 ; People vs. Imlay, 
 20 Barh. Sup. Court Rep., 68; Bard vs. Poole, 12 N. Y. (2 Kern.) Rep. 4%, 
 504 ; Tatem vs. Wright, 3 Zabr. Rep., \'cw Jersey, 429.) 
 
 lose of suing and being sued in the United States Courts, 
 Jate corporation is considered as an artificial person and citizen of the 
 State in ^vhich it was created— per Wayne, J., in Louisrille Railroad Com- 
 pany vs. Lctson, 2 How. Rep. Sup. Court United States, 555, 558. 
 
 Whatever decisions may have been, or will hereafter be made on these 
 points, either in the State or the United States courts, it is incontrovertible 
 that for tlie purposes of strengthening our inter-state relations and subsei 
 ing the best interests of the American people, no invidious or unfair dis- 
 crimination should ever be made by any State against the free and unre- 
 stricted transaction of business within its limits by the corporations of 
 
 3ter States, subject only to the same rules and regulations, as near as may 
 e applied to domestic companies. 
 
 Hamilton says, that " It may be esteemed the basis of the Union that 
 the citizens of each State shall be entitled to all the privileges and immuni- 
 ties of citizens of the several States." (Federalist, No. Ixxx.) 
 
 Denio, Ch J., says, that "No provision in that instrument has so strongly 
 tended to' constitute the citizens of the United States one people as this." 
 {Lemmon vs. People, 20 N. Y. Rep. p. 607.) 
 
 . violation of the letter only, of this Article, which is obnoxious 
 
 le patriotism and American nationality.; its pervading spirit and object 
 
 should inspire reverence and sacred regard in all our inter-state relations. 
 
 Says Marshall, Ch. J., " A Constitution from its nature deals in gener- 
 als,'uot in detail. Its framers cannot perceive minute distinctions, which 
 arise in the progress of the nation, and therefore confine it to broad and 
 
 general principles." (Bank of the United States vs. Devaux et al., 5 Crunch. 
 
 It is possible that under the power to regulate Commerce among the 
 ;tates (see Art. 1, sec. 8, sub. 3), the right inheres in Congress to 
 prescribe rules and regulations for the governance of inter-state corporate 
 eby ensuring a unilbrm and harmonious system in lieu 
 t dissimilar requirements of the ditferent States. If such 
 latent power exists, the potential exercise of it will undoubtedly be held in 
 as the several States, in a true spirit of honorable and 
 ternal intercourse, refuse to impose prohibitory burthens on their 
 ant them substantially the same rights, privileges and 
 tnities bestowed upon their own corporations. The inherent justice 
 I equity of this policy is sanctioned by the express provisions of our 
 Constitution as applicable to the citizens of each State, while the necessity 
 dino- the same rule to corporations is daily increasing, and with a 
 restored an°d homogeneous Union of freemen will be more desirable m the 
 future, than in any former period of our history. The States should cer- 
 
tainly jrrant to each other tlie same privilcfjes which the advancing civiliza- 
 tion of the acre induces Great Britain and other foreign nations to give to 
 each other by Treaty stipulations. 
 
 The States are inliibitcd by the Constitution from making any Treaty, 
 alliance or confederation, and also from entering into any agreement or 
 compact, with another State, without the consent of Congress. {See Art. 1, 
 sec. 10.) Unless, liowever, the legislation of the various States can be 
 made to liarmonize on a sound and just basis of reciprocity and lair deal- 
 ing, compacts or conventions l)etwe.'n assenting States can be n.-gotiatcd 
 on this subject with the consent of Congress. Such a proceeding" would, 
 however, be undesirable, and miglit be more troublesome and unsatisfoctory 
 than a direct effort to procure an amendment of the Constitution, niakinj 
 the first subdivision of section second of Article fourth expressly applicable 
 to corporations as well as citizens. 
 
 The Insurance legislation of New York carefully discriminat.s betwee 
 the companies of oth(;r States and those of foreign countries, never desij 
 nating the former as "/«/•//>«" corporations. Such a designation, intrwoven 
 into the statutes of so many of our sister States, is disloyal in its tendencies, 
 malign and pernicious in its influence on judical decisions and State 
 legislation. Massachusetts, which uses this word as applicable to the 
 companies of other States, appreciating its incorrectness, has been drivr^ 
 to the necessity of defining it by a special section of her general Act. {See 
 sec. 7S, Chap. ]5(i of the Acts of lr<6«.) 
 
 The relations of the States of tlie American Union to each other are st ' 
 generis, and without any precedent in political history ; the laws of uatioi 
 do not therefore, fully define the extra«»rdinary obligations and comir 
 required by our inter-state relations. The cori)orations of sister States are 
 not "foreign," they may be quasi foreign or cxtra-territorial; but no 
 American company should be designated in the statute books of any 
 American State as ''foreign." The word as thus applied should be entirely 
 eliminated from our statute books. It is diametrically opposed to that 
 catholic .spirit of brotherhood and patriotism which inspired our revolution- 
 ary fathers, and which has now bLtn re-baptized on so many fields of 
 battle by the connningled blood of all the loyal States. 
 
 In order to give Insurance corporations an adequate field for legitimate 
 future growth and expansion, tlie utmost freedom, consistent with soundness 
 and safety should prevail in permitting the corporations of one State to 
 transact business in any other State of the Union. The deposit law of the 
 State of Tennessee was passed on the 29th day of March, IHtiO, a few 
 months before her secession fr(»m the Union; the depo.sit8 became greatly 
 depreciated in value, and the rebel State oflicers have also absccmded with 
 the stocks. As a preliminary step to citntemplated secession, this disK>yal 
 and unsound legislation and fraud was in entire harmony with the treach- 
 erous plans and schemes of tljc Rebels. Such laws are necessarily inimical 
 to the old Union, and that free and unrestricted commercial intercourse 
 between the States, which should alwajs be fostered and encouraged by 
 every true friend of the Republic. The business tratlic and social intercoun 
 between the States on the sujtpression of the Kebellion, unless embarrassed 
 by non-intercourse laws, will exceed all former i)recedent. The stream of 
 
 From Tha Insurance Librai-^ ' Association o£ Boston 
 
extortioricate demands and levies on American coi 
 improperly styled " foreij 
 
 d custom house official should not, 
 ivery State line, with 
 lies, incorrectly and 
 
 1 he question on this whole subject must sooner or later he narrowed 
 down to a single inquiry,— that of inter-state Justice and Comity as 
 between the different States of the Union. No system founded on injustice, 
 or State cupidity, or jealousy, can ever be permanently forced upon the 
 American people. We are to constitute one vast consolidated and homo- 
 "" '' " " ' :eries of States, always fighting' 
 
 :eneral Uovernment. It will not long be tolerated by 
 the people of any State that for the purpose of protecting, at their expense, 
 local and personal interests of rival and competing corporations, the free 
 and honorable competition of the citizens and companies of other States 
 should be interdicted. By giving all Insurance companies a fair field for 
 business and competition through all the States of the Union, subject, 
 liowever, to the most rigid system of personal inspection and examination, 
 
 and Annual Statements of their con 
 
 the rates of p 
 
 Avill be kept down to the lowest standard of safety, and those companies 
 which best subserve and protect the public interests, wherever located, will 
 obtain, as they always should, the largest and most extensive patronage. 
 State Insurance monopolies will always enhance premiums and lessen 
 security in any great contlagration. Whatever may be thought of Free 
 Trade, as between foreign nations, th<^re cannot surely be any doubt that 
 Free Trade from the Atlantic to the Pacific should be the established rule 
 of Legislative policy throughout the Eepublic. The miner of Colorado, 
 Nevada and California will not and should not leave his mines of silver and 
 gold, to organize an Insurance company where the margin of profit is small 
 and where a score of years is needed to build up an established and stead> 
 business. The jegenerated cottcn planter of the Mississippi, the Sea 
 Islands and the Gulf States, when his broad acres are blessed with the 
 whiteness of blossoming beauty, will not leave the wealth and riches 
 spread out before him with each returning Spring, for the dark office of the 
 Underwriter, where only the sacrifice and devotion of a lifetime, even 
 under favorable auspices, can obtain a marked success and prosperity. It 
 is natural, and not to be deprecated, that the older States,— where the 
 avenues to immediate and sudden wealth are less numerous, and where 
 capital has bef-n accumulating for many years, and old companies are 
 reaping the fruits of long experience,- should assume a leading position in 
 all departments of Underwriting. This natural and necessary sequence 
 affords no just ground for jealousy or envy in the younger States, or for 
 the erection of Chinese walls of seclusion and non-intercourse. In the 
 fullness of time, if other financial schemes do not afford superior induce- 
 ments, domestic and home Insurance companies will be organized to the 
 full satisfaction of the people in all the States; and sound companies from 
 any State of the Union are now freely welcomed and admitted into this 
 State, on the same basis as far as practicable, with our own companies. 
 
a lU'cessHiv as wen a.s eon 
 
 m every interui* 
 
 'xTUACTS from an ojniuo?^ of Charle.s Tracy, Esq. 
 
 ' 'ess of Insurance has become an essential part of the commerce 
 
 : uie several .States and with foreign nations, the rpgrulation of which 
 
 s to Congress. Goods shipped by railroad, canal, river, or lake 
 
 rt.iiius, from the seaboard cities to all points in the interior ; and produce 
 
 = — "■' every part of the country to its markets, must cross many State 
 
 njn , «ii« .111 insurance against loss or damage by tire or by the perils of trans- 
 '•♦ '- a necessary as well as conunon precaution in the due course of busl 
 .V.C-*,. ^i policy issued at New York or at Chicago therefore has its performance 
 in every intermrdiate State ; and if the local laws and regulations in those 
 States, artecting the contract, ditfer, the parties an* involved in perplexity. 
 Ill order to the best and most etfcctivr conducting of the wide inter-state 
 commerce of this broad country, it has become a national necessity th: 
 both money, the grand agent of commerce, and insurance, its grand pro- 
 tection—each an essential i»art of conmierce itself— should be regulated by 
 Congress, and made uniform and well guarded by national laws. 
 
 The first principles of Insurance require that the soundness of the Ii 
 ranee companies, in respect of Capital and the fidelity and fairness in 
 inanngeinent, should bc secured by governmental action. The State 
 ts, assuming this duty, have proceeded in diti'erent and ever 
 rays to accomplish it ; but, as in the case of Banking Institutions, 
 the success <»f State government in this respect has not been uniform nor 
 tisfactory. The time has come ft»r the Federal government to take this 
 matter in hand, and pass laws for the t^stablishment of Insurance com- 
 ics, with ample Capital, uniform organization and systematic reptnts of 
 
 ut ami ever 
 
 their conditiiui ; and toc<mleruponall companies contorming to sucn reipure- 
 ments, a national character, which may enalde tliem to issue policies in every 
 part of the Inion, and to cover risks without restriction as to their location. 
 
 The constitutionality of the prop«».sed Naitional Insurance Law, when 
 enacted by Congress, is clear. The power of Congress to ngulate com- 
 merce among the States and with foreign nations, and to borrow numey on 
 the credit of the Tnited States, and to protect and establish the credit of the 
 national debt so formed, are tlu> foundatitui of our National Hanking system ; 
 and the exercise t>f this power in establishing a kindred National Iisurance 
 system is calUd for by the necessities of the country. Ours is a great cor- 
 mercial nation. The property in stores and in manutact»»ries, and moving 
 along our great avenues of transportation, represents the capital of our im- 
 ise and rapidly increasing trade. The provision for its Insurance is a 
 natter of national concern ; and tlie I'nited Stat<s Government, in wisely 
 ' '• : the business of Insurance, will strengthen the Treabury, confirm 
 the credit of the public debt and advance the general welfare. Congress is 
 the judge of what measures are necessary and proper to effect these impor- 
 tant ends, and when Congress shall adopt the plan of National Insurant 
 companies based on a Capital invested in the public debt, the validity of th-. 
 }aw will be indisputable. ClIAliLES TKACY. 
 
 No. 50 Wall St., New -York. July l.rfl, 1?^G.'>. 
 
 This oi)inion has nneivid the unqualified approval of Hon. Calku 
 Cu.siiim; and others of kindred abilitv. 
 
 ClIAliLES TKACY 
 
COMMERCE DEFINED. 
 
 1. C03IMERCE— J/i a Strict sense, Traffic in merchandize. 
 (BurriWs Law Diet.) 
 
 2, Commerce — Li a general se?ise, an interchange or 
 mutual cliange of goods, wares, productions or property 
 of any kind, between nations or individuals, either by 
 barter or by purchase and sale. 
 
 Trade; traffic. 
 
 Commerce is foreign or inland. Foreign commerce 
 one nation carries on with another; inland commerce, or inland trade, i 
 the trade in the exchanjre of commodities between citi: 
 
 'i. Intercourse between individuals, interchange of 
 work, business, civilities or amusements ; mutual deal- 
 ings in common life. 
 
 Active Commerce : The commerce in which a nation carries its own 
 productions and foreign conunodities in its own ships, or which is prosecute^' 
 bj its own citizens ; as contra-distinguished from passive co 
 which the productions of one country are transported by the people of 
 another country. 
 
 The commerce of Great Britain is active; and that of China is 
 passive. {Webster) 
 
 4. Commerce — In a critical sense ; from con and merx, 
 ies a nuitual selling or traffic ; and, in ordinary i ^ 
 
 actical acceptation, it means trade, bargain, s; 
 exchange, barter — embracing these both as its means and 
 objects. (Opinion Daniel J. T. How., U. S. Supreme Ct. 
 i?., .501.) 
 
 CONSTITUTION AND INTERPRETATIONS. 
 
 lie v^ougress snaii nave power to regulate commerce, 
 with foreign nations, and among the several States, and 
 with the Indian Tiibes. {Const, U. S., Art. I, § 8, Sub. 3). 
 
 The word Commerce, as used an Art. 1,^8, Sub. 3, of 
 the United States Constitution, is not limited to the mere 
 buying and selling of merchandize and other commodi- 
 ties, but comprehends the entire commercial iutercourse 
 
with foreign nations ; and among the several States, it 
 includes navigation, as well as traffic, in its ordinary sig- 
 nification. The power of regulation vested in Congress 
 relates to all these subjects. {People v. Broohj 4 Denio, 
 469). 
 
 Under the above provision of the Constitution, tlie 
 Federal Government lias exclusive power to regulate the 
 external coninierce of the nation, and of the respective 
 States ; to determine the terms and conditions upon which, 
 and to prescribe the regulations by which, the commodi- 
 ties and products of one State, should be permitted to be 
 introduced into another ; or exports should be made, from 
 State to State, or through the several territorial sovereign- 
 ties. (4 N, Y. Legal Observer, 1S7). 
 
 The article of Confederation regulating coinmen'e be- 
 tween the States reads as follows : 
 
 The better to secure and perpetuate mutual friendship 
 and intercourse among the people of the ditierent States 
 in this Union, the free iidiabitants of these States (pau- 
 pers, vagabonds and fugitives from justice excepted) shall 
 be entitled to all privileges and imnninities of free citi- 
 zens in the several States ; and the peoph' of each Statp 
 shall have free ingress and egress to and from any othei 
 State, and shall <'njoy therein all the privileges of tra«h' 
 and commerce, subject to the same duties, imposition ^ 
 and restrictions, as the inhal)itants thereof ji^spectively ; 
 provided that siich restrictions shall not extend so far as 
 to prevent the removal of property, imported into any 
 State to any other State of which the owner is an in- 
 habitant ; provi(hMl, also, that no imposition, duties or 
 restriction, shall be laid by any State on the property of 
 the United States, or either of them. {Ari\ Coujhl. 
 Art. 4.) 
 
 As the avowed object of the framers of the Constitution 
 was, among other things, " to form a more perfect union " 
 
of tlie states ; "to insure domestic trafquMy, „.. 
 
 force which iDheres in this fourth Article of Confederation, 
 is likewise embraced (though in a more condensed form) 
 in the corresponding article of the Constitution of the 
 United States. 
 
 It provides that, *' The people of each State shall have 
 free ingress and egress, to and from any other State, and 
 shall enjoy therein all the privileges of trade and com- 
 merce, subject to the same duties, impositions and restric- 
 tions as the inhabitants thereof respectively. 
 
 Unharmonious and conflicting State action, necessitated 
 the adoption of this clause in the Articles of Confedera- 
 tion, from which they were afterwards engrafted into the 
 present Constitution of the United States. 
 
 Hamilton, in reference to this point, says, *' The inter- 
 fering and un-neighborly regulations of some States, con- 
 trary to the true spirit of the Union, have given fair cause 
 of complaint to others, and, if not restrained by national 
 control, will become injurious impediments between the 
 different parts of the confederacy." {Federalist, No. 22, 
 p. 116.) 
 
 Mr. Hamilton further gives it as his opinion, that, 
 "from the gradual conflict of State regulations, citizens of 
 each would at length come to be treated in no better light 
 than that of foreigners and aliens." 
 
 1. The provision of the Constitution, relative to the 
 regulation of commerce between the several States, arose 
 from a condition of conflicting State enactments, analag- 
 ous to the conflicting local laws now enacted by the legis- 
 latures of many of the States. 
 
 2. The term commerce, as used in the section of the con- 
 stitution, giving to Congress the power of its regulation : 
 " comprehends the entire commercial intercourse with 
 foreign nations, and among the several States." {The 
 People vs. Brooks, 4 Denio, 469.) 
 
ii. The word inicrcoursc has a general signification. It 
 is defined by Webster as " reciprocal dealings between 
 persons or nations, by an interchange of connnodities, by 
 purchase and sale, by treaties, by contracts, &c." 
 
 an nisurancocon>oi 
 
 by which the safety of goods and commodities that givt; 
 rise to connnerce, is assured to the ow^ner, and indemnity 
 promised in case of loss, either while in transit fnun State 
 to State, or while stationary, is as properly included under 
 the power of Congress to regulate intercourse between 
 the several States, as is the contract for the purchase or 
 sale of such conunodity, <u* for its transportation from one 
 point to an(»tlnM' included in the said power. 
 
 '). " This power, like all others vested in Congress, is 
 complete in itself, may be exercised to its utmost extent, 
 and acknowledges no limitations other than are presented 
 in the constituti<Mi." (Gibhons vs. Og(hn, 9 Wheaton, 19().) 
 
 (). " The pow^M- to regulate commerre extends to every 
 species of coimnerciul intenMUirsc annuig the several 
 States." (0 IVheutnn, J D.) 
 
 7. "It does not stop at the jurisdictional lines of the 
 several States, but must be exercised wherever the subject 
 exists." (0 Jr/teufoN, 19 4, 19»j.) 
 
 8. *' A State has no power to declare what should be 
 an article of lawful connnerc under the provision of the 
 United States Constitution. 
 
 *' The power of Congress to regulate comuierce is sub- 
 ject to no such limitati(ui." (Oiii/iion, Catron, J., -'> 
 How., -)44.) 
 
 ♦). "Hence the jurisdictimi of Congress over the entire 
 subject is unlimited, and the power of Congress to contnd 
 all cases included under connnercial interests unlimited." 
 
Extracts from the Argument of William Curtis Notes; 
 (The Fire Departmetit v. Wright, 3 E. I). Smith's 
 R„ 464.) 
 
 (1.) A domestic corporation, credited to carry on the business of insu- 
 rance, is a citizen of this State; entitled as such to all the rights of such a 
 citizen, which from the character of its existence, as an artificial being, 
 relate entirely to its franchises and property. (Louisville R. R. Co. v Ut- 
 son, 2 How. U. S. R., 497); {Conroe v. National Protection Insurance Co., 
 10 How. Pr. R., 403.) 
 
 (2.) As such citizen, and in respect of its franchises and property, it is 
 also a person, and as such entitled to all the rights of such a person. (2 R. 5., 
 703, $ 35) ; People v. Utica Ins. Co., 15 J. /?., 358.) 
 
 (3.) They are also inhabitants of the State under whose laws they are 
 created, and in which they have their office and carry on their business. 
 (Ontario Bank v. Bunnell, 10 fVend., 186.) 
 
 (4.) As the owner of its property, such a corporation is entitled to the 
 same protection as any individual citizen ; and its private property can 
 only be taken for public or private use, in.the same manner, and under the 
 same circumstances, as the private property of an individual. ( The Bellona 
 Case, 3 Bland, 451-2.) 
 
 (5.) Private property «,hall not be taken for public use, without just com- 
 pensation. (Amendments Const. U. S., Art. 5.) 
 
 (6.) The Citizens of each State shall be entitled to all the privileges and 
 immunities of the citizens of the several States. (Const. U. S., Sec. 2, 
 Art. 3.) 
 
 (7.) A corporation of a sister State has precisely the same rights as those 
 above enumerated, in the State which created it, and where it transacts its 
 business. 
 
 (8.) The Const 
 created by the se\ 
 where they transa^ 
 519,588.) 
 
 ution of the United States recognizes corporations 
 ral States, as citizens and persons in all other States, 
 business. (Cases under point VH., Suh. 1, 13 Peters, 
 
 i,J.; It tollows, therefore, that under the foregoing clause of the Constitu- 
 tion of the United States, a corporation created by, and being a citizen of 
 one State, is entitled in each State, to all the "privileges and immunities " 
 of similar citizens of that State. If this clause protects a natural person, 
 who is a citizen, it also protects an artlHcial person, Avho is also a citizen, 
 ^nder the Constitution ; so that one State should not put its own artificial 
 citizens upon any better footing than a like citizen of another State, or 
 make any unjust discrimination between them to the prejudice of such 
 
 of similar citizens of that State. If this 
 
 who is a citizen, it also protects an artifi 
 
 nder the Constitution ; so that one State 
 
NEW YORK LAW. 
 
 Where the term person, or jiersons is used, in sections 
 18 and 20, of title 2, chapter 13, of the first part of the 
 revised statutes, and in sections 5, 6, and 7, of chapter 
 176 of the laws of 18-31, such term shall be construed to 
 include corporations, as well as individuals. (Laws of New 
 York, 1857, chap. 536, § 3). 
 
 These sections relate to the correction of the assessment 
 rolls, corporations being, in this instance, persons and 
 citizens by State enactment. 
 
 ON TAXING PREMIUMS OF INSURANCE. 
 
 OPINION OF JUDGE SKINNER. 
 
 I am asked whether the 6th, 7th, 8th and 9th Sections of the Act to 
 incorporate "The Firemen's Benevolent Association of the City of Chi- 
 cago," passed June ilst, 1KV2, are constitutional and binding. 
 
 Our State Constitution contains a provision common to aU the &taie 
 
 onstitutions of our sister States, that *' no freeman shall in any manner be 
 
 deprived of his life, liberty or property, but by the judgment of his peers, or 
 
 the law of the land." , ,. ,. * i 
 
 The meaning and effect of this provision has been frequently adjudicated 
 
 „d is now thoroughly understood. So far a., it relates to the right of 
 
 rty, it absolutely prohibits the legislature from passing any laws, the 
 
 .ncct of which would be to dispossess any man of any portion of h.s 
 
 V _ .1. „,.i... ..o,.«;,-.wl f.ir nnblic mirnoscs, or 
 
 in the administration of justi< 
 power of the le 
 
 appropriate the private property of individ- 
 by forcible seizure or by taxation, is limit* 
 
 The clause above quoted, whilst contemplatinj 
 the passage of such laws as may be necessary for the due administration ot 
 iustice, etlectually inhibits the legislature from passing any laws which 
 would have the eff.ct to deprive any person of any portion ot his property 
 in any case, or for any purpose not warranted by other clauses of the Con- 
 
 ^ a' Tareful examination of the Constitution shows that the legislature 
 cannot pass laws whereby a man may be deprived of any portion ot his 
 property, excepting as ft>llows: 
 
 Jst. Laws authorizing the appropriation of any specific portion ot a man's 
 property for p»Wrc purposes, but for no other, upon ti.st making him due 
 and just compensation therefor. 
 
COPY OF A LETTER FROM THE HON. DANIEL WEBSTER. 
 
 )er to nave jriveu swc 
 
 Washington, April V,\, 1847. 
 I have your letter of the Kith instant. 
 
 member to have given such an opinion as you speak of, but have no 
 sre, nor have I now either the time or the means of drawing i'" 
 another opinion on the subject. 
 
 I remember that my opinion was a good deal founded on or strent „._, 
 by a judgment of Mr. Justice Washington, in the Circuit Court of Ph..„- 
 delphia. The (juestion never appeared to me doubtful. 
 
 It may, perhaps, be conceded that since corporations are artificial bein „, 
 atures of State Statutes and not "citizens," a State may, if it so 
 ^ iase, refuse to such corporations, when created by the law of another 
 State, a right to sue'in its courts, but this would be going very far. But to 
 tax business transactions allowed to be conducted in the State when per- 
 formed by the citizens of other States, while such transactions are ui 
 
 when occurring between those who are citizens of the State itself, always 
 led to me against the constitutional provision. Citizens of Pennsvl- 
 vania or Massachusetts are found in New York engaged in merca 
 transactions, either among themselves or with citizens of New York, i 
 
 sceiving promissory notes and bills of exchange. Could the L(^ 
 
 ture of New York lay a stamp tax on such bills and notes, no such tax beinc 
 1 generally upon all bills and notes ? Allow me to say th. 
 I my power to comply with your request, either by furnishing i 
 of the opinion referred to, or by drawing a new one with a short state 
 of reasons and references to authorities, I should hardly make it m 
 then the occasion was public, and the opinion requested o 
 the purpose of suggestions to those who have duties to perform. 
 
 Signed, DANIEL WEBSTER. 
 
 OPINION OF CHIEF 
 
 I have perused the opinions of Mr. Webster and Mr. Wood on 
 ject to which tliey relate, and I concur with them in opinion, t 
 upon any lawful business within the State, when carried on by c 
 t)ther States, when such transactions are untaxed while carried on 
 re citizens of this State, is unconstitutional ; and that the a 
 Legislature imposing upon individuals or associations not iucorpc 
 the laws of the State, though incorporated in any other State, a ta 
 per cent, on the amount of premiums for eflfecting insurance, c 
 constitutional. The right of the Legislature to impose such a t 
 such a business operation, is not questioned, provided the tax so 
 be general, and proportionally- equal ui)on all persons who are en 
 isiness transactions. The Legislature may, for purposes of 
 select such subjects for taxation as they may deem most suitable 
 calculated to etfect the object, with the least inconvenience to and 
 
 the sub- 
 lat a tax 
 
 X of two 
 annot be 
 
tax ou property lu any urancn oi oi 
 frrouud of discrimination bet 
 of any sister State, and thai 
 
 lust all be placed on the same footinj 
 
 Tlie same rule appears to me to apply to corporations. A corporation coi 
 
 posed of citizens of a sister State engaged in the business of insurance in 
 
 this State, can be subjected to the same tax only as shall be imposed on a 
 
 corporate body created by the Legislature of our own State. The citizens 
 
 of a sister State do not lose the constitutional right to the same privileges in 
 
 their lawful occupations and business pursuits in this State with our own 
 
 citizens, merely because they ar 
 
 capacity. ; 
 
 *^ Signed, SAMUEL JONKS. 
 
 New York, February S, l^r*(t. 
 
 The following is claimed as the pioneer article on the 
 subject of National Insurance : 
 
 from the Wall Street Undencriter, November 30, l-'W. 
 
 UNITED STATES AND NATIONAL INSURANCE COMPANIES. 
 
 "When in the course of human events" improvements are necessary 
 they are accomplished. 
 
 The successful establishment of the National Banks, founded on United 
 States Securities, has given rise to the question " Why not have National 
 Insurance Companies also ?" This (piestion cannot be answered either yes 
 or no, without some serious, anxious rctiection. Upon the very threshold 
 of the incpiiry falls the broad shadow of a pussiant body called "States 
 Kights." How would such a scheme interfere with State Rights 7 It 
 would confer upon corporations created by Congress, the right to transact 
 insurance business in every state and territory of the Union, free from let 
 or liindrance at tho hands of any state or local authority, without charter 
 or license from any local power, and free from all local taxes or impositions. 
 This would simplify and facilitate the transaction of insurance business 
 throughout the country. Bat it would unquestionably so far iut.rfere with 
 the rights or privileges hitherto exercised by each state as to in a measure 
 supersede them by the exercise of a power paramount. Yet it would not, 
 could not preclude any state or territory from exercising the same power m 
 a collateral degree within its own jurisdiction. State legislatures could 
 still charter insurance companies for local business, being in tact all that 
 any state could ever do. Congress could confer the additional power on all 
 state companies upon certain conditions of operating throughout the entire 
 Union. At present it is on the constitutional ground that United States 
 citizens shall enjoy all their privileges and immunities in common without 
 any territorial limit that the companies of one state carry on business m 
 another state. If any state should pass unconstitutional prohibitory laws 
 in this regard, it is in the power of Congress or of the United States Su- 
 preme Court as the executive agent of Congress to abrogate such laws. 
 
 o 
 
The power to regulate trade and commerce as between the several states 
 being vested in Congress, cannot that power be exercised to regulate the 
 business of insurance which is merely a department or auxiliary of com- 
 merce, as between the several states ? This could be effected by empower- 
 ing all the companies now organized, or hereafter to be organized in the 
 
 several states, to ti 
 
 o-r^ictx Biaies, lo iransaci Dusmess throughout the Union upon the terms of 
 investing their capital or one-half or three-fourths of same in United States 
 Securities, such portion to be free from taxation and to account annually to 
 a Central Insurance Bureau to be organized at Washington. The material 
 for the organization of such a National Bureau is ready to hand. New-York 
 and Massachusetts could already furnish competent skilled chiefs for such 
 a Bureau in the persons of Mr. Barnes and Mr. Wright. 
 
 If this idea be ever wrought out into practical form and being, there will 
 be an end to all the inconveniences of state deposits, such as that now re- 
 quired, ($75,000) in California for instance, and Fire, Life and Marine 
 Companies carrying on extensive business throughout the Union, will be 
 elieved from the offensive burdens of state and city taxes, and voluminous 
 state returns scattered through various portions of the year, interfering 
 vexatiously with the conduct of business. Furthermore the expenses of 
 managing insurance business would be reduced so far as relates to the cost 
 attending investments of capital and assets. The title to a United States 
 Bond is simplicity personified as compared with a mortgage on real-estate. 
 Then, would the security to the public be at all weakened by this plan ? 
 We cannot see that it wnnlrl in ihn ci;rri>f<^of ^^^^r.^ n^ ^i ^ ,i 
 
 vve cannot see that it would in the slightest degree. On the contrary, the 
 means of recovering against insurance companies in cases of litigation in 
 any part of the country would be made a very simple process involving no 
 question of local jurisdiction, security for costs, or difficulty in discovering 
 or realizing assets. In submitting this plan for consideration, we are fully 
 aware that we are merely giving embodiment to ideas that have been en- 
 tertained for some time by reflecting underwriters. The subject affords 
 ample opportunity for discussion. On another occasion we may consider 
 the feasibility of the National Government granting annuities immediate 
 or deferred, for money deposited with the U. S. Tieasurv. 
 
 From the Insurance Monitor. 
 iTERN ADVOCACY OF A NATIONAL INSURANCE BUREAU. 
 
 ec, from your last number, and from other sources, that a movement is 
 smplated to obtain from Congress a National Insurance Law. I sin- 
 y trust it may succeed— its benefits will redound mainly to the West, 
 so difficult to discern between reliable and unreliable companies as 
 come to us here that we need a stamp— the great broad seal of th(! 
 rnment— in the foreheads of all candidates for public confidence. We 
 ;rn people know that a greenback is good, we also know- that an east- 
 r western bank bill, not a greenback, may be good, but we reject it and 
 r the greenback. It will be just so in Insurance as soon as you nation- 
 it.^ If the Home Insurance Company of Cincinnati can make compli- 
 with a national law and obtain the Government insio-nia, then its 
 
policies will be as good as those of the Home of New York and just as 
 popular— not only here but throup^hout the Union. So the Mutual Life of 
 Wisconsin may become the peer of the Mutual Life of Xew York ; the ^tna 
 Fire of Illinois the equal of the iEtna Fire of Hartford, and so on. It is a 
 grand scheme, and one that the people have a direct interest in. What ve 
 want is security— absolute prot«'ction from any legitimate, honorable source 
 that will serve us best, and we feel that " National " Insurance Companies 
 wUl do the work best. It is impossible for the Insurance companies of any 
 one section to do the whole business of that section, and in no place is that 
 more sensibly felt than in your city of New York where you have moro 
 local companies and more agencies than at any other point in the Union. 
 Heavy calls have recently been made upon the companies of western cities 
 for lines, on cotton and other merchandise stored in New York, but we can 
 only issue policies from hen*, we cannot plant our agencies in New York 
 and share the rich harvest there because of the stringent local legislation of 
 that State. A national law would remove our disabilities and put us on a 
 par with the companies of the eastern States. 
 
 Oh, that there were a Webster in Congress to put this measure through ! 
 le was ever the friend of the West and the friend of every broad compre- 
 hensive measure that embraces the xrhoh Union within its arms. He would 
 have demonstrated the constitutionality of this project as he did of the other 
 great works of internal improvement, national in their character, prominent 
 in his day. I never read the speech he made at Madison, Indiana, in June, 
 1837, without renewed admiration for the broad, national, comprehensive 
 structure of the man and that sublimr instrument, the CoNSTiTUTiox, of 
 which he was the great apostle and expounder. Please give place to the 
 following extract ; it is pertinent to the subject in hand, and a scathing 
 rebuke to the narrow, potty spirit that has dictated the State legislation on 
 Insurance here and everywhere throughout the Union. 
 
 Speaking of the constitutional right of Congress to improve the naviga- 
 tion of our great internal rivers, and to constnict roads through the ditTerent 
 States, he said : " That they are local in th»*ir advantages is an objection 
 that has been and will be urged against every measure of the kind. In a 
 country so widely extended as ours, so diversified in its intensts and in the 
 character of its people, it is Impossible that the operation of any measure 
 should effect all alike. Each has its own peculiar interest, wliose advance- 
 ment it seeks ; wo have the sea coast and you the noble river that flows at 
 your feet. So it must ever be. Go to the smallest Government in the 
 world, the republic of San Marino, in Italy, possessing a territory of but 
 ten miles square, and you will find its citizens, separated but by a few 
 niles, having some interests which, on account of local situation, are 
 separate and distinct ! There is not on the face of the earth a plain fiv 
 miles in extent, whose inhabitants are all the same in their pursuits and 
 pleasures. Some will live near a creek, others near a hill, which, when 
 ny measure is proposed for the general benefit, will give rise to jarring 
 claims and opposing interests. In such cases it has always appeared to me 
 that the point to be examined was, whether the principle was general. If 
 the principle were general, although the application might be paitiul, I 
 cheerfully and zealously gave it my support.'' 
 
shall have a National Insurance Law that will be a blessing To" the "i'/e 
 country. 
 
 A Western Underwriter. 
 
 From the Northwestern Insurance Journal, Chicago, III. 
 THE NATIONAL INSUEANCE LAW. 
 
 The early c 
 insurants of our Western States, solely as a 
 
 :ard it not only as desii 
 throughout tl 
 
 )rotection : but we 
 
 act, to aid the Government in the ^icat uuaiiuiai piou^em or m 
 tion of the public debt. This feature of the act should be oi sumcienr 
 importance to at once place the matter before Congress, and we doubt not 
 that with this view of the law there can be no question as to its immediate 
 
 In another column of the . 
 es to be j 
 Life and Fi: 
 
 ice Companies will give th 
 the measure. 
 
 1 of the Journal wi 
 
 will be found mentioned other advau- 
 \ the business of Insurance, both 
 t confidence that many Western Insu- 
 ty approval and manly endorsement of 
 
 From the Banking Sf Insurance Chronicle, Chicago. III. 
 NATIONAL INSURANCE LAW. 
 \vr« „v£. «.i.4<q in nnfo ar. in^voocof^ pubHc iutcrcst iu the above measure, 
 
 t'ell as by Insurance journals. Whether 
 the law about to come before Congress (a summary of which we gave last 
 week) will pass, in its present form, or even at all, is doubtful ; but we may 
 look for good results to follow from the discussion of the matter, with, we 
 may hope, some beneficial effects upon State legislation. It is not easy to 
 settle at once upon all the details desirable in a general law for nationaliz- 
 ing all classes of Insurance Companies ; progress in legislation in a matter 
 of so great importance, may properly be slow, and should be exceedingly 
 
 The incidental advantages to be realized by creation of a National In- 
 „ „^ T> nany. The chief ones are, first, the adoption of uni- 
 form rules for the estimation of the liabilities and resources of Insurance 
 Companies to be employed as tests of solvency ; no Company being allowed 
 to transact further business, under the National law, unless or until its as- 
 
sets are sufficient in proportion to its obligations, according to the standard 
 of valuation. Second, relief from arbitrary and oppressive State legis- 
 lation. 
 
 The many weighty reascms for the passage of a National Insurance law 
 apply with especial force in respect to Life Companies. Fire Companies 
 are, in many senses, local institutions ; some of the most successful of them 
 (in results to the assured) have confined th.-ir business within narrow U-n\- 
 torial limits. The nature of Life Insurance is far diflferent. The law of 
 mortality (without security in which there can be no security in Life In- 
 surance) requires for its full and fair operation, a large number of persons, 
 scattered over a wide extent of territory. (Contrast the position of a Com- 
 pany, in a season of cholera, or other pestilence, having five thousand lives 
 insured, say in New York and Philadelphia, with that of anotlier Company 
 havinc' the same number insured, scattered throughout the twenty-two 
 States^north and east of, and including Virginia, Tennessee and Missouri.) 
 Yet in many instances, we see State legislation as regardless of the nature 
 of Life Insurance, which for its own safety, needs a wide field, as it is of the 
 entirely humane character of the institution. 
 
 We will not stop here to speak of existing State legislation— a subject 
 which demands a chapter by itself; but the reflection, how little such legis- 
 lation has accomplished for the security of the assured, (notably excepting 
 the State of Massachusetts,) brings us to consider how much will be done 
 in this respect by the establishment of a National Bureau. It is not so well 
 known as it should be, that the ordinary commercial tests of solvency have 
 little or no applicability to Life Insurance. The Companies are daily re. 
 ceivin.r funds, a large portion of which arr to be finally accounted for ^ 
 generation hence. The calculation, as to the amount of assets necessaiyM 
 be on hand at ipresent, against these liabilities, are intricate-even d.th- 
 cult. The people at large never can estimate these things accurately, but 
 the National Bureau will have its standard of valuation established by law, 
 and no Company will be permitted to do business unless its assets ar. up to 
 the standard. Kvc-ry insurant will then know that the institution to which 
 he confides the " .sacred legacy for his family," is secure (so far as wise pre- 
 ventive and supervisory law can make it so) in ability to discharge its obli- 
 gations. 
 
 The amount of Life Insura.ic- in force in the United States, probably ex- 
 ceeds $i;UO,.l(M»,(K)0, ouiwhich the sums annually received in premiums 
 nud interest exceed $i2,(..)0.(Mm. Looking at the immense magnitude of 
 ;tinterests involved, we may see how much they ^^-^^^^^^;;^:::^: 
 vation, a system of National U>gislation. careful, well considered, far-.eein., 
 and abounding in provisions for the security of the assured. 
 
 If there could be brought about united action on the part of those who 
 are annually paying premiums on this .^GU0,0.U.O0i» of "-;-;-• ^^^ 
 would, we doubt not, make such an appeal to Congress a. -ou Id e u 
 the immediate passage of a National Law. In the ^,^-"7 ^«^J ^^"^^^^^^ ^ 
 action, let us hope that some member of Congress --^'"f f ^«. .^^ J/ ; 
 getic advocacy of the measure, and labor unceasingly ui its behalt until h, 
 has secured its enactment. 
 
From the Insurance Monitor. 
 
 CONSTITUTIONAL REMEDY AGAINST OPPRESSIVE STATE 
 INSURANCE LAWS. 
 
 ^+ V^ i„_ -•-_i A .. ,.. 
 
 ley are liable to assault 
 
 •ters and nothing but the 
 
 ilness can preserve them unimpaired. What 
 
 pprehended from so inno- 
 
 neddling politicians contrived 
 
 i even preventing the 
 
 employ it as an msti 
 ■ er-commerce of the States, 
 riie fourth article, second section, of tl 
 
 itution of the United States 
 
 s that " The citizens of each State shall he entitled to all the privilea. 
 numties of citizens in the several States.^^ It follows that anv citize 
 
 ihe United States, desirous o 
 ', his house, o ' ' ' ' 
 
 lor and procurinj 
 other State, or even loreio 
 indisputable, he is also equally 
 "-ent, and an- '^*"*- '-— ' 
 sxiould at once oe aeciarea sub\ 
 
 y privih 
 
 For the sake of affording a prac 
 
 cate, we will suppose that i ' ' 
 ranee from com ' ' 
 consequence of the oppressive leo-ii 
 appoint agents in it. The question i 
 cies ? As a citizen of the Uj 
 apply for them personally, and surely 
 his asrent to do this business fnr hi " 
 
 basing a policy of insurance on his 
 
 d immunity " of applying 
 
 tion in his own or any 
 
 (•ht to do this in person be 
 
 eel to do it by letter or through his 
 
 ational " privilege and immunity," 
 
 unconstitutional and void. 
 
 I of the principle we advo- 
 
 isin uesires policies of insu- 
 terea oy otner States, but which companies, in 
 islatiou of his own State, decline to 
 question arises, how shall he obtain these poli- 
 > United States he has the undoubted right to 
 and surely his right to appoint another citizen 
 s for hi • •' 
 
 ...o cvg^^. .„ „w t..xo uuaiiicM, lor mm, is equally unquestionable. If so, any 
 number of citizens may appoint the same man their agent for the same 
 purpose, and no State law, contravening this constitutional and inherent 
 right, can be enacted which the United States Court would regard for a 
 moment. 
 
 It accordingly appears that a plain, simple, legal way, founded upon 
 general and constitutional principles, still remains open to our insurance 
 companies for the continuance of their business throughout the Union, in 
 spite of the adverse and vexatious legislation of many of the States. The 
 change of method it will necessitate may, at the outset, subject them to 
 temporary inconvenience, but it will prove light in comparison with the 
 evils and losses consequent upon a slavish compliance with unrighteous 
 state requisitions. 
 
 Now we^propose a remedy. Let a consultation of the insurance companies 
 on this subject at once be held, and the right alternative— an absolute refusal to 
 comply with unjust State exactions— be promptly adopted ; then let the compa- 
 nies give notice that they will receive applications for insurance from citizens of 
 other States in person, by letter, or through their agents. 
 
 This action will fon-ver rid them of a burden which neither their business 
 nor their charters will enable them to sustain. A course so decisive and 
 resolute will at the same time administer a needful lesson to State leo-isla- 
 
tures, and perhaps convince tlieni that they cannot with impunity usuq) 
 authority and rob companies that liave always evinced a ready willingness 
 to pay a fair amount toward defraying the expenses of the government of 
 any State to which they have extended their business. 
 
 We refer below to the Insurance Law of Wisconsin, which is a fair index 
 to that of other States, and should serve as a warning to the people tl " 
 is quite time that they took the matter into their own hands, and reminded 
 the petty politicians who have transformed it into an engine of extortion 
 and tyranny, that they are only our ser\ ants, and that wc are still the sov- 
 ereigns of this one and indivisible country, and must and will, in spite of 
 them and their unconstitutional State laws, have free insurance, the cheap- 
 est and the best that can be procured. 
 
 WANTED-A NATIONAL INSURANCE BUREAU. 
 
 We cut the subjoined timely and pertinent remailts from a late number 
 of the Traveler's Record : 
 
 The insurance interest is one of the most important interests in the coun- 
 try, and is rapidly increasing. The ntimber of fire, life, and marine insur- 
 ance companies is legion, and new ones are chartered at every session of 
 every State legislature. 
 
 The Insurance laws of the different States arc exceedingly diverse and 
 oppressive. While one State is liberal, allowing its citizens to take their 
 own choice of companies, others place unjust restrictions upon all outside 
 companies, which either greatly embarrass their operations or virtually 
 exclude them from doing business there. Pennsylvania, till very recently, 
 required all insurance companies outside the State to pay a license of $im> 
 to $2(K) for each county, (it has 65 counties, and the total license was 
 f6,700forthe State,) but this demand has been modified to $r><io for the 
 State ; Wisconsin requires a deposit of f 2,5,(K)0 in " Stump Tail " l$onds at 
 par; and Nevada requires a deposit of ^.-^CtKM) in Bonds of that State. 
 Other lecrlslatures are provoked into retaliatory measures, and companies 
 that for vears have been established and doing business in certam states 
 suddenly find themselves hampered with embarrassing requirements. 
 
 If the plan of $25,(»00 and $ 5(>,(XM) deposits in each State is to become 
 universal, few companies will have sufficient capital to make all the deposits 
 required, or would find it profitable to make them if so disposed. Ihe 
 effect of these unjust requirements will react upon the people, who are the 
 parties mainly interested after all. All these matters could be settled by a 
 National Insurance Bureau. 
 
 From the Insurance Monitor. 
 NATIONAL BUREAU OF LIFE INSUR.VNCE. 
 
 Near the close of the last session of the United States Congress, a memo- 
 rial was presented, bearing the signatures of many prominent persons 
 askin- for the establishuient of a National Bureau of Life Insurance. Jt 
 
COPY OP OPINION OF GEORfiE WOOD, ESQ. 
 
 I have examined the act in the first Revised Statutes, page 714. 
 
 The third section of that act imposes a tax upon any individual or asso- 
 ciation not incorporated by the laws of this State, thouf^h incorporated in 
 any other State, of ten per cent, on premiums for etfecting insurances. 
 The desiffn of this act was unquestionably to prevent corporations in the 
 
 sister States frc 
 than by the imi 
 
 The act of 1847 reduces the 
 pie is the same. 
 
 pei; cent. l)ut the princi- 
 
 1. It is a tax on business. The 
 ' select 
 
 SUCH a tax. iiiey 
 best fitted to bear i 
 he Lejrislature ci 
 
 I think this provision is 
 Legislature no doubt ha^ 
 
 such subjects for taxation as they may deem best : 
 But I presume it will not be contended that the Legislature ci 
 dious distinctions between individuals or classes in imposing a tax on pro- 
 perty or any branch of business- They could not, for instance, enact that 
 merchants who should underwrite, should pay such a tax on the amount 
 of their premiu 
 
 "■ ■ ■ " : is the taking of private property for public use. 
 
 dividual taxed receives a just compensation 
 
 or equivalent in the protection he derives from government. But if invidi- 
 
 i, in reference to the same sub- 
 ] feel that there is the absence 
 '. can perceive no substantial distinction betwee 
 it case to discriminate between corporations of this 
 
 indi- 
 
 Cleaiiy, a State Legislature could not impose unequal taxes upon 
 citizens, and the citizens of other States doing business in such State. 
 lUst all, in this respect, stand upon an equal footing, 
 'he same may be said of corporations. The Legislature does not prohibit 
 the citizens of Pennsylvania, incorporated under Pennsylvania laws from 
 ; the business of insurance in this State. When thus engaged, such 
 Ivania corporation is pursuing a lawful calling. In the pursuit of 
 that business, I think they can be subjected only to the same tax as shall 
 be imposed on a New York corporation. 
 
 The citizens of a sister State do not lose their constitutional rights to the 
 lent of the same privileges with the citizens of this State in transact- 
 • a legitimate business here, merely because they are acting in a corpo- 
 
 Signed, GEORGE WOOD, 
 
 New-York, April 16, 184: 
 
ments, and persons tliere enumerated, excepting hy tcny of taxes. Call it 
 license or what you will, it is still only a tax, and must have all the features 
 and characteristics of taxation. It must be imposed for the public benefit, 
 and its proceeds must be applied for the public good and not for any private 
 benefit. The bado^es which distinguish a valid tax, even though it be called 
 a license, are, that it is uniform, equal, and that the proceeds go into the 
 public treasury. That treasury may be the State, County or Town ; but 
 still it is the public treasury, and the money must go into them, and, osten- 
 sibly at least, for the public benefit. The license must be uniform — that is, 
 alike in its character and equally imperative on all of the particular class of 
 persons pursuing the calling to be licensed. It mu.st be equal in its burthen, 
 though that equality may be per capita, or a per centage; and in all 
 cases the money received must go into the public treasury for public 
 purposes. 
 
 The decision in the case of The People vs. Philip Thurber, VMh Illinoi.s, 
 554, cannot be cited to .sustain the provisions of the act in question. The, 
 License Law under which that decision was rendered, was passed during 
 the lifetime of the old Constitution, and before the limitatiim afterwards 
 made in the 2d Section of the 9th Article of the new Constitution took 
 effict. The new Constitution kept the License law alive, and therefore the 
 case was adjudicated without any reference to the implied limitation in the 
 new Constitution. And even if it had been, it would have made no ditfer- 
 ence, for that was a case of real, bona fide license, when the money went 
 into the public treasury and was raised equally and with due regard to the 
 legitimate rules of taxation. 
 
 It may be. thought that this law only effects the agents of foreign compa- 
 nies, persons, or associations. But this is not so. Every person, partner- 
 ship, or association, residing in the State of Illinois, and even in the City of 
 Chicago, that underwrites through an agent in the City of Chicago, and 
 insures property here against loss or damage by fire, is amenable to these 
 provisions, if they are constitutional and binding. In this way, private 
 persons are heavily taxed for doing a lawful business, while artificial per- 
 sons escape. The law, therefore, is unequal, and does not bear equally 
 and justly on the class of persons within the ptirview of its spirit. This 
 fact, too, destroys all the pertinency of any argument that might be at- 
 tempted to be predicated upon the right of the State to regulate the use and 
 -enjoyment of franchises or j)rivileges in this State by foreign corporations 
 or persons. 
 
 The provisions of the act in question seem to belong exclusively and 
 solely to that rare class of statutes, by which it is attempted to benefit one 
 person at the expense of another. If there was ever a case in which the 
 lescriptive language of the greatest of American lawyers could be made to 
 ►roperly and pertinently apply, this is one, for in truth and in fact, the act 
 in question is " a legislalire judgment; an act directly transferring one man's 
 estate to another. '^ 
 
 For these reasons, I consider the law unconstitutional, and therefore 
 
 MARK SKINNER. 
 
The insurance business in the State of Illinois is as legitimate and proper 
 as any other business in whicli the citizens of the State can embark. It is 
 
 open alike to all persons, natural as well as artificial, im 
 
 corporations. There is no law prohibiting it — there is none that discount- 
 enances it as being a calling hostile or injurious to public policy. The 
 premium money earned in its pursuit as absolutely and as justly belongs to 
 the person or association earning and receiving it as do tlie wages of labor 
 belong to the laborer that earns and receives them. Once earned, they 
 ivate property, and as such are protected and assured as perfectly 
 as the rights of property protect and assure any private property whatsoever 
 To compel the owner to part with any portion of property so earned, excejit 
 in the same manner that the owner of any property le^ '"" " 
 
 any calling, however worthy or bono"' ' -" ' 
 
 robbery. Under our Constitution it cj 
 
 question, however, attempts to affect that object. Jt calls upon the insu- 
 fent to pay over a considerable per centage of his employer's prop- 
 erty, not as a public and etjual tax levied on community at large, or even on 
 all persons of his craft, to go into the public treasury for the public good ; 
 not in the course of tlie administration of justice to pay just debts or 
 ■use a wrong — but simply, nakedly and boldly, as a«forced gratuity, 
 
 imv/iii compensation or equivalent, to a private person for ])rivate benefit, 
 x'he fact that the corporation is ostensibly created for a charitable piiri»ose, 
 of course does not effect the position in any particular. It is in no sense a 
 public coi-poration, much less a ])olitical one. in the simse in whi(rh city and 
 town corporations are— and cannot, therefore, claim any such rights or 
 powers as are sometimes granted to such corporations. It is purely private, 
 both ill its constitution and the ends for which it was created, and all its 
 risrhts and powers therefore are, and must be, upon the narrowest and most 
 
 But it may be attempted to be argued that this money so required to be 
 paid is not a tax, but is license money. I have never been able to appre- 
 hend the difference attempted to be drawn between taxes and licences, as 
 also between taxes and special assessments. A tax on property may be one 
 thing, and a license to pursue a pjirticular calling may be a different thing; 
 but I apprehend it involves a difference in name and not in nature. In either 
 case it is simply the exercise of that power of taxation inherent in the State, 
 by which the public Avrests from a man a portion of his private property 
 ■'■*hout compensation, for the purposes of supjtorting the government. 
 The change of name from tax to license does not change the act. IJut, 
 whether it does or not, it is not necessary on the present occasion to inquire. 
 The act in question is not in any sense whatever a license law. A license 
 law comprehends only the idea of paying into the public treasury for the 
 public bcmfit wjiatever amount of money the law may see fit to j'xact of any 
 one pursuing a particular calling. The 2d Section of the Uth Article of our 
 Constitution expressly defines what callings, business and persons may bn 
 specially taxed, and thereby, according to tiie well-understood construction 
 of Statutes, limits the callings, business, and persons that may be so taxed, 
 and also the method of taxing them By this clause, the Legislature is 
 restrained from imposing any other burthens upon the business, employ- 
 
2d. Laws providing^ for the appropriation of the property of individuals 
 in the course of a due administration of justice. 
 
 'M. Laws passed in pursuance of the power of taxation vested in the 
 legislature, as limited and restricted by the provisions of the Constitution. 
 
 That the provisions of the act in question come under either the first or 
 second of these heads, will not of course be pretended. It only remains, 
 therefore, to inquire whether the legislature, under its power of t 
 has the constitutional right to pass such a law as the one under consideration. 
 
 Without undertaking to define or enumerate what is actually within the 
 legislative power of taxation, it is sufficient for the present purpose to lay 
 down the clear and undisp.ited principle that the right to take the private 
 property of one person and give it to another private person for his private 
 use, is not within the power of taxation, or any other power possessed by 
 the legislature. The legislature may compel a man to part with any specific 
 article of property to be appropriated to public purposes, upon making him 
 due compensation. It may compel him to yield up his property Ibr the 
 payment of his debts, or as a penalty for wrong doing. It may compel him 
 to appropriate a portion of his estate in defraying his proportion of the 
 burthen of government ; l)ut it has no poucr to conqiel him to alienate any 
 portion of his property to a private person for private uses, even though he 
 should receive ten-fold compensation ;— nnich less can it compel him to 
 part with his property for such purpose without any conjpensation what- 
 
 There is no way in which a law can be disguised, whether under the 
 name of a License law, Jicrenue law, or how otherwise, that can effect 
 such an object directly or indirectly, or that can baptize it into a constitu- 
 tional and vital existence. 
 
 Does the act in question attempt the accomplishment «»f any such result ! 
 By the terms of the first five sections of the act in <iuestion, a private corpo- 
 ration is created. It is simply a private corporation; a purely private 
 artificial persi>n created by law for a private purpose, and without one tra<e 
 of any thing of a pul)lic nature in its composition, and without one public 
 duty. As such private person, it has only the bare naked rights of an ordi- 
 nary private person, not to the extent by any means of a natural person, 
 but only such as arc allowed to it by the bare letter of the charter of its 
 existence. Beyond this it has nothing. The succeeding sections of the act 
 are the ones under consideration. By these the legislature has attempted 
 to require that all persons acting as agents of persons and associations not 
 incorporated by the laws of the .State of Illinois, in the business of effecting 
 insurance against loss or injury by fire in tlie city of Chicago, to pay over 
 to the private corporation so created by the preceding sections of the act, 
 two per centunj of all premiums received by such agent, or agreed to he 
 paid to hiw year by year. The provisions in (juestion have just this extent 
 and no more; they require certain private persons pursuing a lawful calling 
 in the city of Chicago, to give year by year a portion of their estate, without 
 compensation or ecpiivalent, to another private person for the private use 
 and benefit of that person alone ; and in addition thereto, meanwhile, puts 
 such persons under bonds in a heavy sum, that they will so give of their 
 estate in compliance with th(? terms of the law. 
 
my Its presentation became simply a matter of record, for 
 future reference and action. We were among the signers of this memorial ; 
 and our only objection to it was that it is not broad enough to cover all 
 branches of the Insurance business— Fire and Marine, as well as Life. 
 There is no good reason why the Insurance business of the country should 
 not become as national as the business of banking. Tlie qwestien of Union 
 is settled. Now let us nationalize ; and so do away with all petty State 
 lines and State laws, in financial and commercial transactions. We append 
 a copy of the memorial to which we have refen-ed : 
 
 " We, the undersigned, citizens of the United States, respectfully repre- 
 sent that there are now in the Ignited States, thirty, (30,) or more life insu- 
 rance companies incorporated by loyal States and States in rebellion. 
 
 " That in order to secure all the averages which appertain to health and 
 longevity, it is necessary for, and the several companies do issue policies of 
 life insurance in States other than those from whom thev receive their 
 
 " That the people of the United States are constantly changing their 
 residences, from one State to another, and are thereby subjected to embar- 
 rassments, by reason of conflicting State laws,, which to a greater or less 
 extent prejudice the interest of persons insured, and their survivors, in the 
 collections of claims for losses. 
 
 " That the rules and regulations of State institutions are variable, and 
 that no standards have been, or are likely to be, established, whereby the 
 solvency and perpetuity of life insurance companies will be secured. 
 
 " That at the present time there are very nearly or quite one hundred 
 thousand (100,000) persons holding policies of life insurance, amounting in 
 the aggregate to about two hundred and seventy millions ($270,000,000) of 
 dollars, towards the payment of which the several companies have accumu 
 lated about forty millions ($40,000,000) of dollars, and are receiving in 
 annual premiums about eight million five hundred thousand (8,500,000) 
 dollars. 
 
 " That the present is believed to be a favorable time for Congress to estab- 
 lish a Bureau of Life Insurance, at the seat of government, under an act 
 which will enable State institutions to become national in their character, 
 receiving new charters from and depositing the capital with the govern- 
 ment, and exchanging their present policies for issues such as shall be 
 authorized by the Comptroller of Life Insurance. 
 
 " That in the opinion of the undersigned, such a modification of the system 
 of Life Insurance would be beneficial to the present life insurance com- 
 panies, and the present holders of their policies ; and that the holding of 
 policies of life insurance, issued by life insurance companies of a national 
 character, would tend greatly to increase the interest of the people in the 
 government, and that the latter would be strengthened by the concentration 
 of capital, which has been already accumulated, and which, under a national 
 system, would increase with great rapidity ; and the blessings of life insu- 
 rance would be more generally distributed among the peoph'. 
 
" In view of the above, antl many other considerations, the undersigned 
 petition Con<^ress to consider the subject, and pass the act hereto appended, 
 with such alterations and amendments as in your wisdom sliall be deonud 
 icessary. And, as in duty bound, they will ever pray. 
 " Dated, New-York, January, 1805. 
 
 C. r. Smith, Brooklyn, N. Y. 
 
 Marshall Jewell, Hartford, Conn. 
 
 Jesse W. Bexedict, City of New-York. 
 
 P. C. Caliioux, New-York City. 
 
 J. Thompson, New-York City. 
 
 T. Jones, Jr., New-York. 
 
 Benjamin Noyes, New Haven, Conn. 
 
 Edward A. Stansbury, New-York City. 
 
 Charles Taylor, New-York. 
 
 John B. Rohertson, Conn. 
 
 Edward C. Mundy, M.D., New-York. 
 
 Joseph IToxie, New-York. 
 
 Henry D. Walker, New- York. 
 
 Henry C. Bowen, New-York Indep't. 
 
 J. B. Ecclesine, New-York City. 
 
 J. D. Mitchell, Wa.shington, D.C. 
 
 N. D. Sperry, Connecticut. 
 
 ^VM. M. ^VHITE, Connecticut. 
 
 From the If all Street Underttriler. 
 NATIONAL INSriJANCE COMPANIES. 
 
 !Many months ago, in this paper, we adv«x'atcd the establishment of a 
 National Bureau of Insurance at Washington, to assimilate our Insurance 
 Companies to the action of the National Banks, and thus over-ride all the 
 unconstitutional inter-state prohibitory laws which have grown into fashion 
 of late years. More or less were we derided for our suggestions at that 
 time. " Insuperable obstacles " were suggested, and we held our peace, 
 still believing we were right. Now the otticers of the several leading com- 
 
 nies in the general agency line have grown up to the dimensions of the 
 idea, and a general movement is on foot to memorialize Congress to nation- 
 alize our Insurance Institutions. Good ! We b.ok on it that the thing 
 will be done, and hope to live to see the day when a sound Company can 
 operate fn.m Maine to California, without let or hindrance from State limits 
 or jurisdictions. As to hoic it shall be done, " How to do it," much renuiins 
 to be considered ; but the derails will be worked out when the principle is 
 settled. 
 
 In this connection we confess that we have felt and have published what 
 we felt, that our leading companies were too supine for many years in 
 regard to the obno.xious State restrictions now complained of. For instance, 
 the New York and Hartford Companies should never have complied with 
 the State deposit law of California, but should have resisted it and taken 
 the question up to the I'nited States Supreme Court, where we feel a tirm 
 
nconstitutional and void. 
 ' prevailed upon to establish a National 
 Insurance Bureau, and empower properly constituted companies to transact 
 their business all over the country, greater results will be reached than 
 could be accomplished by even the most satisfactory decision of the 
 Supreme Court. Care must be taken, in organizing the national system, 
 that the individual characteristics of well established companies shall not 
 be merged in the indiscriminate plan of numeration, as in the case of the 
 banks. Good companies will need to preserve their nomenclature as they 
 value their individuality. It will answer well enough to have the ^.tna 
 National of Connecticut, and Home National of New York, &c. &c., whilst 
 it would be subversive of all existing interests to have the companies jum- 
 bled up and distinguished only asjirst, second or third National Insurance 
 Companies, &c. We expect there would be Continental as well as Metro- 
 politan objections to such a course. 
 
 From the Insurance Monitor. 
 
 INSURANCE AND DEPOSIT LAWS. 
 
 The truth, that the ability of an insurance company to respond to all 
 claims for losses that can be made upon it, largely depends — first, upon the 
 amount to which it assumes risks within a limited area; and secondly, 
 upon the extent of country over which its business is conducted, is one 
 which has not commonly been sufficiently appreciated. 
 
 Whenever companies insure for unlimited and excessive amounts, the 
 liappening of a fire which burns over a comparatively small district, is 
 liable to render it impossible for them to pay the losses sustained under 
 their policies. If companies, whose business is confined mainly to a single 
 city, assume such inordinate risks, the liability to failure on account of 
 such a fire, is vastly greater than in the case of companies whose business 
 reaches as wide as the country extends, for, while the annual receipts of the 
 former commonly range between $50,000 and $100,000 per annum, those 
 of the latter extend to five or ten, or even twenty times these amounts, 
 and these large annual receipts aid materially in paying excessive local 
 claims. It does not follow that the company which does the largest business 
 is necessarily the safest company. The amount of capital has a bearing 
 
 ipon this question; but the fact of greatest consequence is this: is the 
 Dusiness prudently conducted ? That is, does the amount assumed within 
 limited districts, bear just proportion to the amount of annual receipts? 
 If all capitals were of equal amount, the business conducted with uniform 
 
 rudence, and the charges for insurance equal, it is plain that the extent 
 of district over which companies insure, would be very nearly the measure 
 of the security afforded by them respectively. What is called luck, either 
 good or ill, extends only to limited districts, and for brief periods ; conse- 
 quently the companies doing the widest business will, provided that business 
 is done with prudence, find themselves, from the fact that the aggregate 
 average of loss over an extended district is not liable to sudden fluctu- 
 ations, be able to pay the excessive losses, in a few localities, from the 
 
counter-balancing excessive profits of the remainder of tlieir field of op«ra- 
 tions. The capital of companies adds to the security of policy holders 
 precisely in proportion to its amount, provided the measure of prudence is 
 perfectly equal. 
 
 There are, also, other advantages to the community in having its insu- 
 rance companies extend their business over a wide district instead of ope- 
 rating within a more limited sphere. One of these advantages is, that a 
 more extensive and thorough knowledge of the real cost of insurance is 
 obtained, and excessive charges arising from ignorance are modified; and 
 another is, that there are certain inevitable expenses to be incurred in con- 
 ducting a business of $50,0C0 per annum, which would not be materially 
 increased in transacting a business of $1 ,U(M),000 per annum. The expense 
 of conducting the fire insurance business of the country is not far from 
 :i3J per cent, of the premiums received ; in few cases falling below 25 per 
 cent., in many cases exceeding 50 per cent., and now and then running up 
 to 75 per cent. It is evident that each 5 per cent, of reduced expenses in 
 conducting the general business is in the end just 5 per cent, advantage 
 to the community requiring insurance. 
 
 The actual amount assumed by different companies unfortunately bears 
 proportion neither to the amount of their respective capitals, nor to the 
 extent of their several businesses. Amounts are taken on single risks 
 ranging from f5,W(», as th«' maximum of some companies, to over $300,(MK>, 
 as that of others, and the practice respecting taking neighboring risks 
 ranges just as widely, some companies writing with unnecessary caution, 
 and others with the most unpardonable and short-sighted greediness. 
 
 The question, then, becomes a most important one, whether the advan- 
 tages of transacting a broadly extended and properly regulated business 
 can be secured, and whether such rash conduct on the part of any portion 
 of the companies as has been referred to, can be prevented. The reply 
 must be in the negative, if there are to be as many, or one-half as many, 
 different rules of acti<m for insurance companies, as there are, or may be, 
 States in this Union. To-day no two are precisely alike. Some do not at 
 all restrict their compmies as to the amount to be taken on a single risk ; 
 others require special deposits for the security of their own citizens, as a 
 pre-requisite to the establishment of agencies by companies of other States, 
 and all require different and often meaningless statements from the com- 
 
 panics. . 
 
 The tendencv of a deposit system is to enhance the cost of insurance to 
 the inhabitants of the States requiring deposit. Competition is diminished, 
 and it is an inflexible law of trade that all impediments in its way must be 
 paid for by those who place them. It is seldom that so great a fallacy as 
 that originating this effort to obtain security by special deposits, is made a 
 law. Whether the deposit be great or small, it diminishes the ability of 
 the company to meet the demands upon it to exactly.tho amount of the 
 deposit itself. The only exception to this rule is in case of a company 
 having made a deposit with but a single State. The inhabitants of that 
 State are not at all benefited, nor are they injured (although every customer 
 outside of that State is) ; but just so soon as a company has made deposits 
 in more than a single State, just so soon all of its insured, including the 
 
amount of capital 
 
 tes holding deposits, are injured. The best s 
 fiven by a company, assuming it to be honestly 
 
 .ving all its assets under its own control, and applicable, on the instant 
 to the payment of claims upon it. 
 
 There are now no fewer than six States which requir 
 from five per cent, of the annual premiums to i 
 result other States constrained thereto, are preparii 
 deposits, or excluding from transacting business ^ 
 companies that have made such deposits witli other States. The ac 
 will, no doubt, generally tend in the direction of requirinj 
 "len, of course, State will compete with State as to the amou 
 leposit. Xew York, for instance, with its large acci 
 
 rrow districts, will insist upon having deposits so larj 
 
 Qie proportion to the largest deposit in any other St{ 
 Dears to the population of such State. So will Massachusetts, wit] 
 Boston; Pennsylvania, with its Philadelphia; Maryland, with its E 
 more; Ohio, with its Cincinnati; Illinois, with its Chicago; Louisiana, 
 with its New Orleans, and other States with g 
 
 and this necessary discrimination will, of course, excite again the jealousy 
 of States without concentration of property in lar^ 
 required become so great that companies will b 
 
 three or four States they will, do business in, no existing amount of capital 
 being sufficient to comply with the deposit laws of a greater number 
 of States. And while this evil is growing, how fictitious is the security 
 presented by the companies which, in compliance with the requisitions of 
 the States, thus hypothecate their assets ! 
 
 The States requiring deposits stipulate that no company shall withdraw 
 its deposit until all its risks in the State have terminated. It is a common 
 thing for risks to be written for three years, and even five year policies are 
 not unusual. Let fires occur in New York or St. Louis, or San Francisco, 
 or in several other cities, no larger than any of these cities have already 
 experienced, and, with the immense sums now frequently assumed by com- 
 panies, it is not improbable that at least fifty per cent, of the losses would 
 remain unpaid until the years elapse necessary to run out the policies of 
 the company losing, and release its hypothecated assets or such portion of 
 them as might remain after the payment of local claims. How seriou ' 
 eflfect of such a result would be, can be readily appreciated when it is recol- 
 lected that when property is destroyed by fire, the loser, be he a claimant 
 for loss of goods worth a half million of dollars, or for a dwelling worth one 
 thousand dollars, wants money then as he never wanted it before. The 
 prospect of getting it at the end of two or three years is not much better 
 .than that of not getting it at any time. 
 
 Is there no remedy for an evil already great and ^ ' • i • i- ' ^ ■ ' 
 a much greater 1 None, unless the whole system is changed, i ne tena- 
 ency of the action of the several States is all in the contrary dir "' "" 
 
 immediate interest of many of the companies er ^ '- -- 
 
 ness, is in favor of having as many restrictions a^ possiDie placed in tue 
 way of competition. So certainly is this the case that it is commonly 
 
 ^ ... Yhich is liable to become 
 aioie system is changed. The tend- 
 s is all in the contrary direction. The 
 mpanies engaged in an agency biisi- 
 restrictions a^ possible placed in the 
 3 this the case that it is commonlv 
 
 understood that many of the restrictions, imposed by States, cit 
 
counties in the way of deposits, taxes, license fws, statcimuts, vVc, bavo 
 originated with insurance companies. There is no hope therefore in tliis 
 direction, nor in any other, unless a fundamental change is effected, and 
 that to such an extent, that instead of having more than a score of different 
 leriods and forms of their annual statements, the limit to 
 ;es, the extent of capital required, the tax 
 lount of deposit exacted and the various 
 I'npniinlltlos. tlip «»nTnnmues generally are brought upon a 
 m, ana an are compelled to conduct business on a uniform 
 pian so lar as us action is concerned. 
 
 Whether this can be accomplished or not dep<'nds upon the possession 
 by Congress of the right to regulate this branch of Commerce, and whether, 
 if the right exists, the subject can obtain the consid«>ration its vast impor- 
 tance demands. That Fire Insurance is an important branch of conmierce 
 needs no argument. The mere statement that without Fire Insurance, no 
 man not already too wealthy to have any inducement to do so, can pursue 
 business, because no one not thus wealthy can either obtain merchandise 
 on credit or afford to hold that which he owns to any large extent without 
 tire insurance, is at once recognized as a fact and establishes it as one of 
 the most essential elements of commerce. 
 
 Banking is often carried on by individuals. Marine Insurance has in an 
 inferior manner been prosecuted in England by individuals, but the 
 assumption of tire risks by individuals is a thing unknown, and from tho 
 nature of the case, except by corporations, is impossible. If thru, unless 
 by institutions created by law, there can be no Fire Insurance, it is of the 
 first importance that the institutions which are created for a business so 
 essential to commerce should be regulated in the wisest manner, and they 
 should all, for the same country at least, be homogeneous. Of «ourse the 
 existing companies and all such as may hereafter be created by the indi- 
 vidual States, should be left to conduct their business at homr as the 
 various State laws will permit, while by complying with such regulations 
 as Congress may prescribe, they ought to have the right to pursue their 
 business wherever the authority of the Government extends. Judicious 
 congressional action alone can induce many of the existing companies to 
 pursue such course as shall render the holders of their policies as safe as 
 they can (and therefore should) be made. 
 
 From the Insurance Monitor. 
 
 THE HL'REAU OF INSURANCE AT WASHINGTON. 
 
 The preamble to the Constitution of the United States reads as follows : 
 "We, the people of the I'nited States, in order to form a more perfect union, 
 establish justice, insure domestic tranquility, provide for the common de- 
 fense, promote the general welfare, and secure the blessings of liberty to our- 
 selves and our posterity, do ordain and establish this Constitution," &c. 
 and the Constitution in article 1, Sec. 8, when defining the powers of Con- 
 gress, establishes its power to legislate for the '^general ttelfarer' In after 
 parts of the same section, provision is made for establishing also " uniform 
 
United States— also to 
 
 the time and space necessary to show ho 
 
 hich relate to the ''general welfare'' of the peoph 
 
 \y all, rich and poor, old and young, 
 plan, by giving the preference uni- 
 ' s, over that of State banks. 
 ) of its constitutional richt to do so. 
 
 legislates in regard to their own compa- 
 r of the States are now, and have been for 
 md prescribing terms on which the lusu- 
 1 shall be allowed to enter and transact 
 
business with their people; and to insure the enforcement of these laws, 
 heavy penalties are prescribed. 
 
 Among the enactments of States are found regulations as to the a"— •* 
 of capital, how it shall be invested, and demanding a portion of it on 
 deposit, to be held in trust for the benefit of the people of tlie State with 
 whom it is deposited. Taxes are levied on premiums collected, and some- 
 times on capital ; annual exhibits— expensive advertising of a particular 
 character; the filing of charters; the entire schedule of all policies ever 
 issued, and, by annual additions, all subsequently issued, whether to th.' 
 I)eople of that or of any other State; full explanations as to the manner in 
 which they transact their business ; the manner of declaring dividends, 
 and the manner and time of paying them ; and sometimes votes and resolu- 
 tions of the directors are called for; attorneys have to be appointed on 
 whom processes of law can be served ; .jnd a long list of honorary fe<"s, 
 heavy State licenses, and other expenses, so that, to attempt to comply with 
 the laws of a sufficient number of States to secure the benefits of the princi- 
 ple of averages which apply to life, health, fires, and the winds and the 
 waves, is to run risks and hazards never contemplated, including penalties, 
 and, what is worse. State officials who, having had conferred upcjn them 
 more or less discretionary powtT, become their own law makers, and a sum- 
 mary ejectment from the State is likely to follow. 
 
 This annoying system of legislation by one State bus led to retaliation 
 by others, until at the present time, a majority of the States, by retaliatory 
 laws, have rendered it almost impracticable for Insurance Companies to 
 continue tlie ordinary transaction of their business. Indeed the evils now 
 experienced and the annoyances now put upon the legitimate business of 
 Insurance Companies, far exceeds that tbrmerly experienced by the people 
 in the system of State banking. 
 
 In Life Insurance the present State system produces an evil of the most 
 monstrous character; not a single State has ever attempted to establish 
 tables of mortality and expectation of life, or tlie rate of interest on money, 
 to bo Hsed in the valuing of the policies issued by their own Life Insurance 
 Companies ; but they have left it an open question, so that State officials 
 and the managers of Life Insurance Companies necessarily come in conflict, 
 especially as the former become laws unto themselves, and each company 
 is subjected to as many kind of ordeals and standards as States they 
 attempt to transact business in. 
 
 So far has this conflict gone, that it is mcessary for Insurance Com- 
 panics to employ an expert, either in or out of their offices, in order to reatl 
 wp year by year, and to post up — movement by movement — the action of 
 States, or the rulings of their Treasurers, Comptrollers, Insurance Commis- 
 sioners, Superintendents, &,c., as the case may be. Indeed, it is very diffi- 
 cult in many States to know who to apply to, in order to get all the neces- 
 sary information, and when and how to perform all of the requirements of 
 position or of reciprocal laws— for thus far the requirements of no two 
 States are alike ; and the same is true of State officials, clothed with discre- 
 tionary power. 
 
 Whenever special deposits of capital arc'required by sister States, such 
 deposits become special assignments of just so nuich of the capital of the 
 
 From Th3 Insurance Library' Association oi' Boston 
 
Company, for the exclusive benefit of thv people of the Stnto rL., 
 
 and receiving it ; and it being then beyo 
 
 Company itself, is no longer an available asset for its ^e 
 
 Such a system of legislation, by the ^ 
 Avill drive every company into too narrow limits for the laws of avera 
 apply upon their business, or the companies must scatter and exhaust 
 capitals in making special State deposits, and thereby become entirelv 
 
 deposits— so that, as has already been attempted, one St 
 
 legal effect of the terms of any policy issued to thei 
 
 present time an Insurance company doing business in several States, is to 
 
 a certain extent, in certain cases, obliged to conduct its business in as many 
 
 ditiercnt ways as States in which they transact business. 
 
 And here we meet a new difficulty. Much of the legislation now enforced 
 by the States, is pronounced unconstitutional, by such men us Webster, the 
 Hon. Mark Skinner, of Chicago, the Hon. Geo. Wood, and the Hon. 
 Samuel Jones, of New York, and by others representing the best legal 
 minds in the country. 
 
 To settle these vexed questions. 
 
 courts, would involve 
 
 he whole Insurance fraternity in endless and expensive litigation, rather 
 lian which they submit to annoyances and wronirs, which are hard to 
 
 The people and the Insurance companies now propose to have this ver; 
 injurious and perplexing State system exchanged for a National one, su 
 that this conflict of laws shall be ended, with one place for the deposit of 
 capital — one ordeal to pass — one accountability, and but one accounting 
 officer. This done, confidence in the perpetuity of our companies will be 
 restored, expenses will be vastly reduced. Insurance premiums will be per- 
 manently diminished, and the people will hail the advent of the system 
 with demonstrations of favor, the same as they did the bills of Natiom ' 
 
 Congress, in establishing a Bureau of Insurance, at Washington, will 
 provide, in the enactment, that existing State companies may, as in the 
 ise of State Banks, be turned over and converted into National institu- 
 tions ; this done, and such companies as have made deposits with States, 
 will be allowed to withdraw them, and make their deposit at the seat of 
 Government, in Government securities, registered and held for the benefit 
 of all the policy holders of the company, no matter Avhcre they may reside. 
 This change will add to the security of every Insurance i)olicy, whether it 
 be Life, Fire, or Marine, and the holder will feel not only a new interest ir 
 his policy, but in the Government itself— for his policy is founded upon ii 
 
 In conclusion, we venture to assert, that when the time shall come that 
 all the Bank bills, and all the Insurance policies held by the people, are 
 National in their character, and based upon the debt of the Government, it 
 will be universally admitted that Congress has done more " to form a more 
 terfect union, establish justice, insure domestic tranquillity, provide for the 
 common defense, promote the general welfare, and secure the blessings of 
 liberty to ourselves and our posterity," than ever before, by mere legish. 
 
tion for them ; every bank bill, and every policy of Insurance upon our 
 lives and our property, representing as they will thousands of niillious of 
 dollars, and held by citizens in every town in the Union, will become a 
 tower of strength to the Government itself. 
 
 NATIONAL INSURANCE BUREAU. 
 
 Mr. A. D. Morgan, the able Presid«-'nt of the North American Life 
 Insurance Company, has written a letter to Superintend«'nt Barnes on the 
 subject of the proper mode of valuing the liabilities and assets of Life 
 Insurance Companies, wherein he dissents materially from Mr. IJarnts* 
 views on the subject. It was our intention to have published the letter,' 
 but want of space will not permit us. We, however, cannot omit publishin- 
 Mr. Morgan's allusion to a National Insurance Bureau, a subject which is 
 v generally agitated, lie says : 
 
 My motive in thus addressing you has a far more extended object, a 
 and comprehensive as are the blessings which follow in the train of a' 
 wise and extended adoption of the practice of life insurance. If the State,' 
 or, what is better for this purpose, the National Gt)vernment, is to h'gislat. 
 on the question of a test as to the solvency of our Life Insurance Comjia- 
 nies, I might suggest that a commission be created to investigate the vital 
 statistics of the country in which the business of the Companies is to be 
 transacted, and fix upon a rate of interest, to which the calculations for pre- 
 miums should be adjusted, with such a measure of contingent loading r 
 would be deemed sufficient to meet expenses and other incidental charges. 
 
 'his would be all that slumld be required. Applying this rule of cost to the 
 business of every Company at annual or other periodical sea.sons, a certain 
 test would be always at hand, and the public would then, in the reports ot 
 the Bureau (which I would liave at the seat of the National Government). 
 have a sure guide as to where they could secure the advantages of life 
 insurance. 
 
 The reasons why I would prefer a National Bureau to the present Stat' 
 supervision are patent to every otHcer of our present Companies. 
 
 Life Insurance, to be successful, should not be confined to one locality. 
 The business of a Company should be extended over as great an extent of 
 territory as possible, in order to equalize, as far as may be, the rate of mor- 
 tality among its members in seasons of epidemics. A company doing an 
 extended business in the city of New York, and in all the large cities of the 
 United States, would hardly be aft'ected in case of the plague raging in one 
 of those cities, while the others are exempt; the income from the exempt 
 district compensating for any excessive claims from the infected one. It i 
 therefore important that the largest liberty to transact btisiness throughou 
 the whole country should be accorded to our Life Insurance Companies. 
 
 L'nder the present system of State Legislation it is very ditficiilt for our 
 Companies to so extend their business. Restriction after restriction i- 
 thrown up against the work of the insurance agent throughout the lengtli 
 and breadth^of the land, as though the business involved some terribl' 
 harm to the public, instead of the life-giving stream of joy and gladne^^ 
 
that it is to the widow and the orphan. This, to enable the work to go on as 
 it should, and would were matters different, should be remedied by the 
 creation by Congress of an Insurance Bureau, to which every Company in 
 the country should report, to enable it to transact business outside of the 
 State where located. The filing of such report with such deposits in the 
 Bureau, as is now demanded by our own State laws, and with satisfactory 
 evidence of solvency as the laws of Congress might demand, should secure 
 to such reporting Companies certificates of authority to transact business 
 within any State of the Union, without regard to any State or municipal 
 laws whatever. 
 
 From the Insurance Monitor. 
 
 NATIONAL INSURANCE DEPARTMENT. 
 
 It is a truism in Politics, that, as New York goes, so goes the Union : 
 and, since New York is the financial heart of the country, it is equally true 
 that as this monetary heart beats, so throbs the pulse of the Republic. 
 Hence it results that the financial institutions of other States are modelled, 
 to a great extent, on those of New York. Nor do foreign countries fail to 
 jrofit by our example in these particulars. Our Insurance Department, 
 for instance, has afforded a useful hint to all communities, and has been 
 
 videly imitated. In view of this fact, we think it cannot be denied that 
 Superintendent Barnes has done himself great credit, and the State great 
 service, in this official department. In the important, onerous, and very 
 responsible position of Superintendent of the Insurance Department, he 
 
 las displayed an original, independent, and indefatigable mind. He it is, 
 
 Iso, who has first suggested, in an ofiicial manner, that the Insurance 
 business ought to be made National. The narrow and illiberal California 
 Law has received, in his last Report, a properly severe rebuke. In dis- 
 cussing this subject, he thus, for the first time, officially, suggests the idea 
 of a National Insurance Department : 
 
 " If the system of State deposits by Insurance Companies is ever to 
 become prevalent in the United States, such deposits should never be 
 required to be made except in the State where a company is incorporated, 
 
 nless made with the General Government at Washington, and all deposits 
 by American companies should be held, not for the special protection of 
 policy-holders residing in any particular State, but for the common benefit 
 of all American policy-holders ; and all deposit laws should be applicable 
 to home companies as well as to those of other States of the Union " 
 Again, he pursues this idea with the following pertinent suggestion : 
 *' It is possible that under the power to regulate Commerce among the 
 several States (see Art. 2, sec. 8, sitft. 3), the right inheres in Congress to 
 prescribe rules and regulations for the governance of inter-state corporate 
 
 of the varying and dissimilar req 
 These views are followed up, i: 
 Insurance Companies in the Wall Street Underwriter, from which we mak< 
 the following extract : 
 
" When in the course of human events improvements are necessary, 
 they are accomplished." 
 
 "The successful establishment of the National Banks, founded on 
 United States Securities, has given rise to the question, • Why not have 
 National Insurance Companies also ?' This question cannot be answered 
 either yes or no, without some serious, anxious reflection. Upon the very 
 threshold of inquiry falls the broad shadow of a puissant body called 
 ' States Rights.' How would such a scheme interfere with State Rights ! 
 It would confer upon corporations created by Congress, the right to 
 transact insurance business in every State and territory of the I'nion free 
 from let or hindrance at the hands of any State or local authority, without 
 charter or license from any local power, and free from all local taxes or 
 impositions. This would simplify and facilitate the transaction of insu- 
 rance business throughout the country. But it would un«juestionably so 
 far interfere with the right of privileges hitherto exercised by each State 
 as to in a measure supersede them by the exercise of a power paramount. 
 Yet it would not, could not preclude any State or territory from exercisiug 
 the same power in a collateral degree within its own jurisdictiuu. State 
 legislatures could still charter insurance companies for local business, being 
 in fact all that any State could ever do. Congress could confer the addi- 
 tional power on all State Companies upon certain conditions of operating 
 throughout the entire Union. The power to regulate trade and commerce 
 as between the several States being vested in Congress, cannot that power 
 be exercised to regulate the business of insurance which is merely a 
 department or auxiliary of Commerce, as between the several States .' This 
 could be effected by empowering all the companies now organized or here- 
 after to be organized in the several States to transact business throughout 
 the Union upon the terms of investing their capital or one haIforthn;e- 
 fourths of same in United States Securities, such portion to be free from 
 taxation and to account annually to a Central Insurance Bureau to be 
 organized at Washington. The material for the organization of such a 
 Bureau is ready to hand. New York- and Massachusetts could already 
 furnish competent skilled chiefs to such a Bureau in the persons of Mr. 
 Barnes and Mr. Wright." 
 
 This, it seems to us, is somewhat extreme doctrine : and, much as we 
 sympathize with National enterprise, and all sorts of schemes that work for 
 the National good, we yet hesitate to endorse this idea. Insurance, in 
 most of its aspects and its bearings, is local. Would it, then, be wise to 
 take its management from the State authorities ? A policy of Insurance is 
 a purchasable article, sold at the highest price by the company, and 
 bought at the lowest price by the public, according to the law which governs 
 in all transactions of bargain and sale. The first necessity is soundness 
 and security in the contract. Mere insurance capital, without experience 
 and good management, is no lasting pledge of security to the public. 
 A company having .f 1,000,0<M) capital may be ruined by the conflagrations 
 of a single night, in consequence of its holding badly selected risks. The 
 need of proper direction is self-evident. Would such direction be assured 
 under the supervision of the National Government, remote from the com- 
 pany's operations, and only animated by the cold spirit of oflScial routine .' 
 
We think not. On the contrary, we believe that failure would be frequent 
 under that arrangement, whence general distrust of Insurance corporations 
 would rapidly possess the public mind. A single wild cat, one-horse con- 
 cern in Michigan, failing, under this system, would throw its blot of ruin 
 upon the whole Insurance brotherhood — upon the staunch old -(Etnas of 
 Hartford, equally with the feeble corporations of its own Peorian hamlets. 
 In short, the fiiilure of a single company, under this new regime, would 
 discredit the entire system of National Insurance supervision, and damage 
 the interests of Insurance everywhere. Nothing, surely, would be gained 
 by that. Nor, again, do we see how the Natioueal Government would be 
 financially benefited by the organization of such a department. Insurance 
 companies, as we regard the matter, are mutual aid societies, combinations 
 of citizens to help each other. In the very nature of things, therefore, they 
 are local benevolent associations, which should be committed to the manage- 
 ment of those nearest, and most interested in their aftairs. We have always 
 urged, indeed, that they ought to have national privileges — to wit, the 
 freedom of the whole country for business purposes — and that all possible 
 safeguards ought to be thrown around them. But we stop there. The 
 American people read and think, and do not need the legislation of the 
 Federal Congress for every thing. Left to themselves they are wiser than 
 any body of legislators— because their hearts are in the right place, and 
 their instincts go with the truth and the right. If, however, we are mis- 
 taken, and a National Insurance Department is, indeed, desirable— as 
 tending to conserve Insurance interests, and make us more homogeneous as 
 a people— we shall not oppose it. All that benefits our country deserves 
 and will receive our determined support. The plan of requiring each 
 Insurance Company to invest from one to two hundred thousand dollars 
 in United States Securities, in order to obtain the right of doing business in 
 each and every State— that security being deposited, as National Insurance 
 capital, with the Secretary of the United States Treasury— and to make an 
 annual statement to that officer, might prove practically beneficial, and we 
 trust that Superintendent Barnes will consider the subject at length, in his 
 next report. 
 
 inaurance Library Association of Boston 
 
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 THE UNIVERSITY OF CALIFORNIA UBRARY