The British Press; or, Morning Literary Advertiser.
London, England, 1824-08-06 00:00:00

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LON

BRITISII ANNUITY COMPANY,

FOR TIIL PI'RCIIASE OF ANNUITIEs SECURED ON
PROPERTY IN GREAT BRITAIN AND IRELAND.

CAPITAL TH.': MILLIONS,

IN SIXTY TII0I;SANIO SHAMES or FIFTY POUNDS EACH.
Established under the Authority of an Act of Parliament, June 21,
I 6 4.—Office, 36, New Broad-street, London.

DIRECTORS.
Pt:TER 31nonE, Eq. M.l'. Chairman.
S. H. M. BaRRLTT, E . 31.1'. Deputy Chairman.
Colonel Henry Corson William Nee non, Esq.
Nicholas Denny*, Esq. Samuel Page, Esq.
LiNat.-Ilea. sir Butane Deakin, (chinch Palmer, M.P.
K.C.11. Nathaniel Wm. Peach, Eq.
11 or James Jones lion. William Powleit, M.P.
It. Lane, Esq. A. A. Sorter', Eq.
I/eorge Magnus, F.sq. CAilunel 'Talbot. 1.P.3
Jahn Mentalism, Esq. John 11'ilkin, Esq.
AUDITORS.
Henry Clarke, Esq. John llorlor, Esq.
Burrage Davenport, Esq. I David 31tLean, Esq.
Timothy Dimas Power, Esq.
lIA SIRE Rs.
Sir William Kay, Bart., Price, 31arryat, awl Coleman.
Sir John Peering, hart., Shaw, Barba. and I o.
SECRETARY —Jaws Mitchell, Eq. A. 31.
STAN Di NO UAW N MEL—Samuel liirdleatone, Esq.
SOLICITOR—John Wilk), Jun. El.
CORSI:1E1EO SuitaA:oss—liesorge Buckley BtAton, Esq. and
William Bewicke Lynn, Esq.
SeiteTTons--Joscpti tiwilt, Eq., Edward Fanatic, Eq., and
James Savage, Esq.

Tins COMPANY has been established tinder the
authority of a special Act of Parliament and Deed of Settle-
ment, for the profitable investment of capital in the purchase of
annuities, secured %Fon freehold, might-11d, and leasehold eatatea,
money in the Government funds, pariah bonds, turnpike tolls, and
other eligible property.
The nature of annuities not being generally understood, it may be
desirable to enter somewhat into detail in the evplanation of diem.
An annuityt is
toras. oumof money annually paid by a person, who is
celled t person who is denominated the
lirantee, in consideration of a sum of money paid by the latter to
the former, as the purchase-money fur the duty. This annual pay-
mart Is made during the life of one or mere individuals named by
the grantee, and on the ewtinstion of theism life the annuity
Thus, A pays to 11 1,04104. as the purchase of an annuity of 11,0/.
per annum, payable during the lives of 4:, 11, and E. At the death
of the bat survivor of these the annuity erases ; but the purchase.
Implies is not thereby last, since, in order to secure the return of
the I,Mlol.,the grantee may insure that sum at a moderate laremfum
in an Insurance 4 /thee. In this case AI, the grantee, and 11 is the
grantor.
As to an investment of money in this way, although the Legisla-
ture has limited the rate of interest to five per cent. on mortgage,
and all loans for a fixed period, it has never attempted to regulate
the terms of annuities between the parties, but lies simply passed
Acts to direct the enrolment of the deaths, and to secure the pay.
meets and the equitable protection of the rights of all concerned.
'The substance of the .acts formerly pissed on this subject is embo.
dirt in the Act 53 lien. 111. e. 141, which has been further ex-
plained by the Art t Deo. IV. e. !r2. Prior however to the former
of these Acts being passed, many Insurance Companies obtained
private Acts for this purpose. Since that period all purchases of
annuities have been effected on the authority of the General An.
minty Act.
Hy the law of the land, therefore, any sum whatever, which pat.
ties choose to agree upon,
mar be legally secured for any period
depending on the contingency iifone, two, three, or any number of
or the last survivor of them.

During the last war, the urual annuity granted fur the sum of
1,01101. was 1001. a year, Of ten per cent. ; and when, from the na-
ture of the security, it w dependent on the life of the grantor, as
much niece was given as was sufficient to par the annual premium
for the insurance cif the mint advanced, at an Insurance (Mice. Ily
this modit, the person who advanced the money obtained an advan-
tageous retbnt for he usv, and was in no risk whatever of the loss
of his capital i for if the annuity was paid off by the grantor, then
the grantee teemed his money hark ; and if the grantor died with-
out paying it off, still the grantee received it at the office at which
it was insured.

Experience has proved to the monied interest, that annuities on
single lives. which ran be insured, are highly profitable and advan.
tageous, as well as perfectly secure to the grantees; but annuities
granted upon freehold and other perpetual securities, without the
expenee of iIIeCTRACO, may be rendered equally, or even more profit.
able, and be much more moderate towards the grantor.
In such eases the annuities are usually granted to continue dur-
ing the life-time of the last survivor of three or more persona. The
lives are selected by the individual purchasing the annuity, who
naturally choose. )uitag persona of rod ealwritution.
That this hatter mode of investment is very profitable can be
dearly demonstrated, since it has been found by long and invaria-
ble experience, that although a single life is of very uncertain du.
ration, yet in the case of lbw: or more welhaeleeted lives the
sailuslty macs, nod an average lived period may he relied upon.
This period Is generally not less than *1 years, but let it be
aseurned to be only 51; ; by referring to tables of compound interest
it will he seen that IL per annum, improved at 5 per cent., will
amount in !di years to 21177.14. 1131; and therefore SL Itle. per
annum, regularly paid and improveil at that tate, will in the same
time amount to 1,005/. 14s. /Ad. If I.OOOL be lent at 5 per cent.
interest, the inch/Mimi who mikes the loan obtains MM. • year, and
when the loan is repaid he receives bock his OWL; hut if another
person lay out LIMO/. in the purchase of an annuity of SU. 101. per
annum, payable fur :at; years, he will have an equal advantage, for
if he lay by 3/. 10s. a year to accumulate at compound interest, it
will, as has been already seen, in .6 years, more that, replace the
1,0101. invested.

If, therefore, a portion of the annuity be laid aside to form an
accumulating fund adequate to replace the capital by the and of
the probable expiration of the annuity, the remainder may be con-
siderel as the stint given for the use of the money. Besides this
advantage, as the annuities arc frequently paid off, the whole sum
laid aside as an accumulating fund at the payingoff forms an addi-
tional source of profit, by adding to the amount of the original
capital.
nut if, instead of receiving an annuity of Mi. 10s. for 1,0001.,
and none are granted so low, he receive 1110/. per annum, then it is
evident that not only at the expiration of SR years he will obtain
back his 1,0110/., but every year he It ill immediately derive an ad-
vantage of .ltil. 10s. per annum, which he can obtain only by this
mode of investment.

It may, however, be inquired by some persons, why should
victuals prefer to raise money by this method on their estates and
pmperty, which, whilst it is advantageous to the grantee, must
surely be burdensome to the grantor? To this question it is
replied, there are ample and important reasons, in addition to the
diffmalty of procuring money at 5 per cent. for any given length of
time, which induce many individuals I of undoubted free-
held and cnpyhuld securities, as wel as public bodies, to
raising money by way of annuity. For example, it a gentleman
raise money by OlOrtgage, he cannot generally be secure against
being called upon to repay It for more than six months, unless
under partieuhir eircumstanees—as for instance, from its being trust
money. Ile is therefore placed at the merry and caprice of the
lender. The money he was of course in want of, or he would nut
have borrowed it, and it may be difficult in so short a time as six
months to repay it. It may 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 his property. IVhen he applies fur a
fresh loan, he is subjected to unusual difficulty and suspicion, even
from the circumstance of his estate being already mortgaged for the
very punt he is called upon to pay off. llmce it may be impossible
to obtain the money, and he suffers the ennacquencep, which are
not unfrequently sale or foreclosure. But in the ease of raising
money by granting annuities it is different; for oolong as the grantor
continues to pay the annuity granted, he cannot be called upon to
pay oil the purchase-money, although he may do so when hr finds
it convenient, upon giving a short notice, er paving &antral! line.
Proprietor* of Leasehold Property are. for like reasons, induced
to prefer raising money by annuity to mortgage ; and it also fee-
quently occurs that they are unable to obtain money by mortgage
at all, although the duration of their interest in the property may
be amply sufficient for securing the payment of the annuities they
arc willing to grant.
Pmprietors of shares in roads, canals, bridges, and other public
works of this nature, when they may aeon it an unfavourable time to
sell. are able to give good security for an advance of money by way
of annuity, to such an extent as the value of their shares will cover.
l'arialim are unable to raise nioncy 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 also deemed
inequitable 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 therefore
raise money by annuity ; and almost every local Act of Parliament
directs or recognises this mode of obtaining money by parishes.
TI e proprietors of unincumbewel but entailed estates cannot raise
money by mortgage, as they have only a life interest in the pro.
petty. It is frequently impossible to cat °tithe entail, and maw-
times a proprietor does not desire to do sot hence, when money is
taiseil, it must be by way of annuity ; and such an annuity is
granted as will remunerate fur the use of the money, and pay the
premium for the insurance of the life.
In Scotland- a large proportion of the land is entailed ; and the
entail being perpetual. it cannot be cut oft by any means. In that
part of the I toted Fainploni all vicinities on land are registcred,
and take priority in the order in which they are registered ; and the
system of registeting is universal throughout the country. and is
reduced to such a degree of simplicity, that it may at once he seen
if any and what sums of money have been raised on the security of
an estate. Such securities are therefore very desirable, and the
Whisk Annuity Company has almuiv hail applications from Scot-
land for money to a very esmsidetabir amount.
All persons deriving an income for hie. or for lives, secured on
land, by marriale settlement, attachable pensions limit trovern-
ment, money in the fonds, or mita gond securities depending on
life, must, horn the nature of such seciir•ties, when they raise inn.
rev. do it tiv nay of nonititv. AY in ihattra”ee
is rc_
loured. the pallet f.t.`t:ll; tits: DIV.,'

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