The British Press; or, Morning Literary Advertiser.
London, England, 1824-07-26 00:00:00

Henry Clarke, Esq. I John Heeler, E.g.
Burrage Davenport, Esq. I David 3PLean, Esq.
Timothy Francis Power, Esq.
hr 1 'ills su Kay, Bart., Pries, Marryat, and Coleman.
r a John Peering, Bart., Shaw, Barber, and Co.
Sect's.retie—James Mitchell. Esq. A. 31.
STAN moo Cot; arse L—Saniuel Girdlestone, Esq.
Sotteiroa—John 11'ilks, Jun. Esq.
CONSULT/NO Sonn rows—George Buckley Bolton, Esq. and
lkwicke Lynes Esq
away grout—Joseph t/wilt, Esq. Edward nimon, Esq., and
1E1,4.
.4111-115 COMPAtif *es, esliklinand eta, *lei
11 authority of a *pedal Act of Parliament and Deed of Settle-
ment, for the ► Ic investment of capital n the purchase of
annunks, upon freehold, copyhold, and leasehold estates,
money in the Governante, fonds, parish bonds, turnpike tells, and
other eligible property.
The nature of annuities not Mew generally understood, it may
be desirable to enter suesewlsat into detail in the explanation of
them,
Au annuity is a sum of money eannelly paid by a per..on, who Is
trailed the Grantor, to another person who is denominated the
Grantee, in consideration of a aunt of mope), paid by the latter M I
the forts*, as the purchase-money for the duty. This annual pap.
meat is nude during the life of lane or more individuals named by
the litanies, and on the extinction of thetas& life the annuity matte
Thus, A pays to 11 1,000/. as the purchase of an annuity of 1601.
per apnym, payable during the liras of C. D, and E. At the death
of the list SlififiliOT of these the annuity ceases ; but the purchase.
money ie set thereby lost, since, in order to secure the return of
the LOAL,the grantee may insure that sum at a moderate premium
ice an Insurance Office. In this case Ais the grantee, and Blithe
grantor. I
As to an investment of money in this way, although the Legisla.
tore has limited the rate of interest to live per cent. on monftere,
and all loans for a fixed period, it lass neva attempted to regulate
the terms of annuities between tb : ponies. but has simply passed
Acts to direct the enrolment of the deeds, and to secure the pay.
anent, and the equitable; protection of the rights of all concerned.
The sulbetenceof the Acts formerly passed on this subject is embo.
died is the Act 53 Geo. 111. c. 141, which has been further el*
pleinoil by the Act 3 Geo. IV. e. 92. Prior however to the limner
of these Acts being pained, many Insurance Companies obtained
private Acts for this pullover. Since that period all purchap of
linnuitiei have been effected on the authority of the General An.
salt, Aet.
By the law of the land, therefore, any WO whatever, which par-
ties choose to agree upon, may be legally secured for any period
depending on the contingency of one, two, three, or any number of
Lives, or the last survivor of them.
During the last war, the usual annuity granted for the sum of
1,0001. was 1001. a year, or ten per cent.; and where, from the na.
lure of the security, it was dependent on the life of the grantor, as
much more was given as was syfficient to pa the annual premium
for the insurance of the sum advanced, at an Insurance Other. By
this rodde, the person who advanced the mriney obtained an advan.
worsts return for its use, and was in no risk whatever of the loss
of his capital; for if the annuity WAS paid off by the grantor, then
the genie:* received Ids money beck ; and if the grantor died with.
oat paying it eft, still the grantee received it at the office at which
it was insured.
Experience has primal to the monied interest, that annuities on
single lives, which can be insured, are highle profitable and silvan-
tetecotts, as well as perfectly secure to the grantees; but annuities
granted upon freehold and other perpetual securities, without the
expense of insurance, may be rendaed %Wally, or even more profit-
able and be mach mare modems* eowdeels the graben%
In suebteases the annuities ale usually micted to continue due,
log the life-time of the last carrier of decent Owl* persons. The
lives are selected by the individual purchasing the annuity, who I
naturally chooses young persons of good constitution.
'That this letter mode of investment is very profitable can be I
clearly demonstrated, since it has been found by long and Maria.
hie experience, that although a single life is of very uncertain du.
ration, ye: in the case of three or more toed-seleeted lives the
casualty comes, and an average fixed period may be relied upon.
Thie period is generally not less than 66 years. but let it bar
assumed to be only 56; by referring to tables of compininn interest
it will be seen that U. per annum, unproved at 5 per ant., will
amount in 56 years to till. 6s. 114 d.; and therefore 3/. 10s. per
annum, regularly paid and improved at that rate, will in the same
time amount' to 1,0051. 14s. 41d. If 1.0001. be lent at • pet cent.
interest, the individual who makes the loan obtains 50/. a year. and
when the loan is repaid he receives back his 1,0601.; but if another
person lay out IMO/. in the purchase of an annuity of 531. 10e. pee
annum, payable for 56 years, he will have an equal advantage, for
if he lay by 3/. les. a year to accumulate at compoond interest, it
will, as has been already seen, in 56 years, more than replace the
I,OOW. investetL
lf, therefore, a portion of the annuity be laid aside to form an
accumulating fund adequate to replace the capital by the end of
the probable expiration of the annuity, the remainder may be con.
aidered as the sum given for the tile of the money, Besides this
adiantage, as the annuities are frequently paid off, the whole slim
laid aside as an accumulating loud at the paying off forms an addi.
tional source of profit, by adding to the amount of the original
capital.
But if, instead of receiving as annuity of 531. 10e. for 1,000!.,
and none are granted so low, be receive 100/. per annum, then it is
evident that nut only at the expiration of 56 veers he will obtain
back his 1,000/.. but every year lie will immediately derive an ad-
vantage of 4111. los. pee annum, which be can 'obtain oily by this
anode of tavern:tent. . . • .

It Mee, briteetribe inquired by some peUntia, why should indi-,
viduilli prefer to raise money by this inetheed on their istatesoand
proVekty which, whilst it is advantageous to the grantee, must
sunfifbe burdensome to the granter? To this qoestion it is
replied. there Are ample and important lessons, in addition to the
ditficeity of procuring money at 5 per cent. fur any given length of
time, which induce many individuals possessed of undoubted free-
held and copyhold securities, as well as public bodies, to prefer
raising money by way of annuity. Fur exempla, if a geotleman
raise money by niortgae;e, he cannot generally be secure against
being (idled upon to repay it for more than six months, unless
under particular eircumatanceen-as for instance, from its being trust
money. Ile is therefore placed at the mercy and caprice of the
lender. The money he was of course in, want of, or lie would not
have borrowed it, and it may be difficult in so abort a time u sin
Months to repay it. It tray have been expended in the improve- ,
ment of his estate, or in such a speculation that it may be a very
unfavourable time to sell bis prOperty. When be applies foe a
fresh loan,. he is subjected to uoumeal difficulty and suspirien, even
froin the tercunietanee of his estate being already mortgaged for the
very SUM he is cannel upon to pay oft: Ileoce it may be impaistible
to obtain the money, and he suffers the consequences, which are
i not unfrequently sale or foreclosure. But in the case of raising
money by granting annuities it is different; fur so long as the
grantor continues to pay the annuity granted. he cannot be called
upon to pay off the purchase-money, although he may do so when
he finds it convenient, upon giving a short notice, or paying a small
fine.
Presptietors of Leasehold Property are, for like mammon induced
to prefer raising money by annuity tit mortgage ; and it ales fre-
quently occurs that they are unable in obtain money by mortgage
at all, although the duration of their interest in the property may
be ariply sufficient fur securing the payntent of the annuities they
are willteg to rant.
Proprietors of shares in raids, canal, bridges, and other public
works of this nature, when they may deem it an unfavourable time
to sell, are able to give good security for en advance of money by
way of annuity, to such an extent as the value of their shares will
cuter.
Parishes are unable to false money by mortgage, because they
cannot give a power of sale, and can only grant a security on
the rates from time to time as they come in. It is &leo deemed
ineeeitable to lay the whole burden of defraying the expense
of a church, or other public object, the benefit of which is to
extend over a long period, upon the present inhabitants. They
tleneeire rake money by anatiity ; and nintnet every local Act of
Parliament directs, or recognises, this mode of obtaining money by
parishes.
The proprietor. of unincumbend but entailed estates cannot raise
money by mortgege, as they here wily a lite in:excel in the pro-
r,ty. it is frequently inipieusilde to cut of the entail, and suite.
times a proprietor does rut desire to do so ; hence, when mom y is
raised, it must be by way of annuity t and such an annuity is
grareed as will remunerate fur time use of the money, and pay the
premium for the insurance of the life.
In Scotland, a large proportion of the land is entailed ; nees the
entail being perpetuni. it cannot be cut off by any :mans. In that
part of foe United Kingdom all securities on heal are registered,
and take priority in time order in which ince are registered ; and the
I system of registering is universal throughout the country, and is
I reduced to such a der:, of eimplieby, that it may at once be seen
if any and what aunts of money have been mien' tie the security of
an eetate. Such securities nee therefore very desirable, anti the
British Annuity l'onitemy has already had applications trots co:laud fur money to a very coneidetaLle amount.
• 1 All persons deriving an income for life, or fur lives, enennen on
I Intel, by niarriaee ecitleturat, arse! n'ele pensions hem Govern.