One of the oldest and perhaps the largest of the Friendly Societies for
the benefit of the operative classes, is the ‘Hearts of Oak,’ which
at the present time numbers over eighty thousand members, and has a
reserve fund of nearly a quarter of a million. Such extraordinarily
large proportions has this society of late years assumed, and so
widespread is its influence and usefulness, that we feel sure a short
account of its origin and working system will not be without interest,
and maybe profit to the reader.
Thirty-five years ago—in 1842—the ‘Hearts of Oak Benefit Society’ was
started at the _Bird-in-Hand_ Tavern, Long Acre, London. Of its history
for the next twenty years little can be said, save that, although its
progress was not anything remarkable, it worked steadily and honestly
at the object it had in view, and thus firmly established itself, if
it did not produce any extraordinary success. In 1863 the number of
members had reached eight thousand, a circumstance which rendered a
removal to more commodious premises necessary; and these were purchased
freehold in Greek Street, Soho. Notwithstanding, however, this
increase of business the amount transacted was not considered by the
promoters of the society in satisfactory proportion to the justifiable
expectations of such an undertaking, the total number of members having
in 1865 only reached ten thousand, and this was attributed to the
result of bad administration on the part of the existing management.
A change was made in consequence; when the present form of government
was inaugurated, which had at once the beneficial effect of materially
increasing the society’s business. So perceptible and rapid indeed
was the progress of the ‘Hearts of Oak’ after this event, that in the
year 1874 another removal had to be undertaken; and for this purpose,
noble premises in Charlotte Street, Fitzroy Square, W., were bought and
adapted at a cost of twenty thousand pounds, and have since served for
all the business requirements of the society.
Having said so much for the history of the ‘Hearts of Oak,’ let us now
briefly turn to the main features and working of the system pursued by
this huge benefit society.
The predominating principle upon which the system acts seems to
be a complete reliance upon actual merits and on them alone. As a
consequence, a total absence of all external show and attraction
will be found in the administration of the society. It clings to the
term ‘society’ in opposition to ‘club’ with a most jealous tenacity,
although we confess to seeing very little difference between the
strictly lexical significance of the two words. Mr Marshall, the
able secretary to the society, is of a different opinion, however,
and holds that the associations which are respectively bound up with
each term differ considerably; a club being generally looked upon as
a meeting for social purposes, held as a rule at a public-house. ‘It
involves,’ he goes on to say, ‘the glass, the pipe, the song, and
other incidents of what is called good-fellowship; and also in many
cases regalia, processions, dinners, suppers, and other devices for
wasting money and weaning men from their homes and their families.’
Whether such ‘incidents’ are the associations attached alone to a club
or not, it is not necessary here to determine, it being sufficient
to know that at all events the ‘Hearts of Oak’ does not rely upon
any of these things—although it is common to think that only by such
inducements and attractions can the working classes be brought into
habits and ways of thrift and saving—and in so doing, the society is
a standing contradiction to all such opinions. It has never had to
resort to any such extraneous aid. It does not make use of either
public-houses or lodges; it indulges in no dinners or suppers, no
regalia or processions, no pipe, glass, or song; it employs no agents,
canvassers, or collectors; and it spends no money in commission nor yet
in advertisements, generally so indispensable an aid to institutions
of all kinds. Notwithstanding all this, the ‘Hearts of Oak’ has of
late years admitted more new members than the increase shewn by the
Odd-fellows, who possess lodges and branches in every part of the
civilised world.
As already stated, the society now numbers more than eighty thousand
members, and these are formed into divisions of one thousand each; and
each of these divisions holds a meeting at the society’s house once
every month for the transaction of business, &c. Every candidate for
membership must earn not less than twenty-two shillings per week, and
his age must not be more than thirty-six; while before election he
has of course to satisfy the committee upon certain points relating
to himself and (if married) his wife, and has finally to be generally
approved of by them. There are certain trades and occupations which
are considered dangerous and injurious by the society, and persons
belonging thereto are therefore held ineligible for membership. Each
member has to pay on entrance a fee of two shillings and sixpence if
under thirty-two years of age; and three shillings and sixpence if over
that age and under thirty-six, the highest limit for admittance. The
periodical contributions amount to about nine shillings and sixpence
each member per quarter; this sum having been found, however, rather
more than the total average payment for the last six years. The
separate items consist of two and twopence a month to the society’s
stock; and at each quarterly meeting an equal proportion of the claims
met by the society during the preceding quarter on account of the
various benefits (not including sickness) it has during that period
conferred. In fact, each quarter every member is required to clear
the books of all demands. After having belonged to the society for
twelve calendar months, a member who up to that time has paid all his
contributions, can by the payment of an additional fee of two shillings
and sixpence, become what is termed a _free member_, such members
having the right to participate in all the benefits which the society
affords.
The benefits offered by the ‘Hearts of Oak’ are: (1) Sick-pay at the
rate of eighteen shillings a week to _free members_ for twenty-six
weeks; and should the illness continue beyond that period, half that
amount for a further twenty-six weeks; after which the sick member
becomes entitled to relief from further contributions, and to a pension
payable at a rate in accordance with the length of his membership.
_Non-free_ members participate in this benefit, but of course on a
smaller scale, which, however, is very liberal. (2) Funeral benefits;
being the allowance of a sum of ten pounds on the death of a _free
member’s_ wife, and double that amount to the survivors of a free
member upon his death. Certain proportionate rates are granted on the
death of a _non-free_ member, half such rates being allowed in the
event of such a member’s wife dying. (3) Lying-in benefit; which is
the grant of a sum of thirty shillings on the confinement of a _free
member’s_ wife; the marriage and birth certificates, duly signed,
requiring of course to be produced on such occasions. And (4) Loss
by fire; being a compensation allowance of not more than fifteen
pounds in the case of any _free member’s_ tools or implements of trade
getting destroyed or damaged by fire. There are besides these some
miscellaneous benefits to which _free members_ are entitled, such as
allowances for imprisonment for debt contracted under circumstances
that are in a sense justifiable, or allowances to help towards
defraying the cost of a substitute to _free members_ who are drawn and
liable to serve in the militia.
These benefits seem to anticipate the chief emergencies that may happen
in the course of one’s life, as well as providing for the expenses
always attendant upon death; and the allowances made in respect of them
are, it must be admitted, very liberal, and are doubtless the means of
causing so many poor persons to save in this simple manner against the
occurrence of such untoward incidents.
The success of the ‘Hearts of Oak’ is largely due, however, to other
causes. Principally, we think, it may be attributed to the great
economy in its management; as, for instance, it saves a large sum by
the fact of its not being what is commonly known as a ‘collecting
society.’ On the contrary, the members bring or send their money quite
of their own accord; the consequence being that, while the managerial
expenses of some collecting societies vary from 25 to 70 per cent. on
the annual income, the expenses of the ‘Hearts of Oak’ amount only to
3¾ or 4 per cent.
Another favourable point in the system pursued by this society is, that
all members pay alike. Technically of course this must be considered
unscientific, but in the aggregate the system is found to pay; just as
the same charge for a telegram whether it be to Aberdeen or to the next
street is also unscientific, but practically answers well. The great
argument in favour of the system seems to be the fact that it promotes
business—and what more is wanted? Our large insurance companies
report about one thousand policies as good work for one year; whereas
the ‘Hearts of Oak’ on its system reports over sixteen thousand new
members during the same period. On some such system as this it were not
impossible, we think, for the whole life-insurance business of the city
of London to be done by one well-conducted office; in which case the
insured would certainly derive one great benefit—namely, that of having
to pay very much less, perhaps only one-half of the usual premium.
Another counterpoise to the disadvantage of charging all members alike
is, that a lying-in benefit of thirty shillings—as already shewn—is
allowed. To young men this has a great attraction; and the result is
that the average age of joining the society is only twenty-seven.
So rapid indeed has been the growth of the ‘Hearts of Oak,’ that an
average age of the whole society, which ten years ago was nearly
thirty-four years, is now only about thirty-three years.
One other circumstance which we fancy may have something to do with
the success of the society is worth mentioning—it is the business-like
manner in which the system adopted is carried out. Perfect discipline
among the members is maintained, and a strict adherence to the rules
that have been made enforced. Every infraction of a rule is promptly
visited by the imposition of a fine on the offending member; and
so stringent is the society in this respect, that the amount which
annually accrues under this head is very large. In the accounts of the
‘Hearts of Oak’ for 1876 we notice that this item reaches the large
sum of L.6949, 13s. 6d.; which not only served to defray the year’s
expenses of the society (namely, L.5819, 9s. 7d.), but left a balance
of L.1130, 3s. 11d. It can hardly be considered as exactly any merit
of the society that it is thus able to pay its expenses; yet there
stands the fact, whatever we may think of it. It is only fair, however,
to state that the greater part of this large amount arises from a
fine of ninepence imposed upon members who fail to clear the books
by their quarterly night. This is levied more as a sort of interest
for a month’s longer use of the money; and it is a striking instance
of innate want of thrift on the part of the working classes, that so
many are willing to pay ninepence for the use of ten shillings for
the month, rather than arrange to be prompt in their payments. The
revenue derived from this fine alone is about four thousand pounds a
year. It is a curious fact too, that of the total number of members
on the books at any one time, it is always found that just one-third
will not pay at the quarter, and have therefore to be fined. In thus
deferring their payments, these members are the means of allowing both
the monthly and quarterly payments being reserved entirely for the
purposes of the benefits already enumerated, and for profit; under
which head the surplus now amounts to forty thousand pounds per annum;
in point of fact, the cost of management has always been paid for by
these miscellaneous receipts. This substantial advantage is probably
caused unwittingly on the members’ part, but it is not the less felt or
beneficial for all that.
Having briefly pointed out the main features and benefits of the
‘Hearts of Oak,’ it only remains for us to add one word as to the
great usefulness of such societies. Notwithstanding the great success
of the Post-office savings-banks and such other banks as are intended
for the deposit of small sums, it is our belief that they are not so
conducive to permanent saving and thrift among the poorer classes as
may be supposed. The number of deposits in the postal banks in any
one year is no doubt very great; but on the other hand, the number
of withdrawals is also great; and from this fact we infer that the
larger part of the sums placed there is more for the sake of temporary
safety than with any view of permanent saving. Hence then the great
usefulness of societies which yield ultimate benefits for present
contributions. As already pointed out, the difficulty of persuading
the poorer classes to save in this manner is by no means great; and
once, therefore, a working man has become a member of such a society,
he knows he must pay regularly; which when he becomes accustomed to it,
he only feels as a natural duty, like the house-rent he has to pay,
or any other such tax. A further advantage of societies too is, that
his contributions cannot be regained, except indeed at a considerable
loss; but in the savings-banks it is always at his own discretion to
draw out his deposits; a discretion often not very wisely used. In
this comparison, however, it is by no means our wish to suggest the
slightest disparagement of savings-banks, which in their way are most
useful to all who are really anxious to lay by. We have only desired to
shew more forcibly the benefits of societies like the ‘Hearts of Oak,’
that thereby those whom it may concern may be induced—if they have not
already done so—to become members.