The Sun.
London, England, 1852-09-22 00:00:00

chaser of a life annuity from Government, or from
an insurance office, enjoys equal advantages, subject
to the same deductions. It must be wholly imma-
terial whether a deceased husband has provided for
his widow by charging her income on his landed
property, or by procuring for her a Government
annuity for life. In either case the saleable
, value of her interest is the same, as well
as the annual revenue. Yet it will be found that,
while only a few careless theorists propose to
tex a life interest in land at a lower rate than a per-
petuity, all the actuaries who have given their opinions
on the income-tax concur in asserting that a termi-
nable annuity ought only to he assessed on the into•
rest of the capital which it represents. The reason of
this distinction is worth considering, inasmuch as it
is connected with the professional position of its au-
thors. Actuaries are the advisers and principal
, managers of insurance offices ; and those associations
are amongst the larger holders of terminable annui-
ties. The preference which they give to this class of
securities is founded pertly on the higher interest
i which they return, even after allowing a sufficient de-
duction for re-investment to ensure the reproduction
of the capital. There is also a convenience in the
constant replacement of the principal sum, which ob-
vicompanies,ates the necessity of selling out stock to meet the
The
demands which periodically arise. insurance
in short, as well as other speculative
capitalists, have no purpose in sinking money in a
terminable
wouldis,
annuity, except to re convert it into a per-
petuity. There
ope-
ration, or itof course, a profit on the
be effected ; but the banker
and the actuary habituallynot
divide an annuity into the
interest due on the
instal-
ments necessary to purchaserepmoney,
which is sunk at the beg
at the end, still subject to thineg'of
beginning
the capital. The sum
and the
new form of investment ; andthe term emerges
although most exagge-
avie been repeatedly
rated statements of the grievance
ephcome-tax under any
is hardnlayss
published, it may be admitted that, this case, as in
distinguished
all others in which capital
from income, the principle of equal
poses a discouragement on one particular mode
im-
in-
vestment. The ordinary method of replacing °R.f
capital consists in the annual employment of the
the
excess of the annuity, over the interest of the
pur-
chase money, in buying other annuities of ehe
same kinds. Many advocates of graduated taxation
have assumed, with singular inaccuracy, that a
fresh loss is incurred as often as an annuity is
purchased ; but it is evident that the market price
of all securities adjusts itself to any permanent
fiscal system. The whole grievance, therefore,
whatever may be its amount, was inflicted at the
time when the income-tax was first imposed. If
annuities have since maintained their former relative
value, as is assumed by our correspondent " Igno-
ramus" and others, the fact only proves that the dis-
turbing influence of the tax has been practically im-
perceptible. Even Mr. Hardy, in his evidence, ap-
pears in some degree to have forgotten this obvious
consideration. No permanent impost on any species
of property can have any effect in increasing the price
to the purchaser, so long as other investment, equally
eligible in themselves, remain exempt from the burden.
There can be little doubt that the annuities actually,
held by the offices have, for the most pert, been pur-
chased with full notice of the tax ; and in all such in-
stances, the Government or other grantor, must have
been the only sufferer from the peculiar incidence of
the impost. The case of the annuities taken by the
Bank of England at the request of the Treasury is,
however, of a different character. The actual
loss suffered by the capitalist or speculator who
holds terminable annuities is easily expressed
in any case which may be selected as an
example. If, in the absence of an income-tax,
A. invests 1,0001. in Consols at par, while B.
purchases an annuity of 901. with the same
sum, it may be assumed that—the interest of the
money remaining the same—B. will be able to spend
30/. annually as income, and at the end of his term
of about eleven years, to realise the same perpetuity
which A. has already secured. The relative posi-
tions of A. and B. will be precisely the same if their
respective purchases are made after the establishment
of an income-tax, although the gross terminable an-
nuity will be larger in amount. If, however, the
tax of 7d. in the pound is imposed immediately after
the first investments have been made, B. will suffer a
comparative disadvana Vie. The income of A. will
be permanently reduced to 29/. 2s. 61. while, if B.
spends an equal annual sum during the continuance of
his term, he will find himself, at the end of the
period, only able to purchase a perpetuity of toe same
amount, subject to income-tax, or a net income for
ever of 281. ss. 61. In other words, his loss in
the first instance, will be represented by the
value of the tax on el.'s tax-free annuity,
deferred to the end of his term. The elaborate
tables which have been published for the purpose
of exhibiting the decreasing values of terminable an-
nuities may be accurate; but they are in the highest
degree complicated and perplexing. In calculating
the present value of an annuity at its commencement,
all the elements of the problem are taken into consi-
deration. It is evident that, after the payment of
each instalment, the residue is diminished in value, so
that, if the tax is estimated as a perpetuity, its ratio
to the capital represented by the annuity must in-
crease from year to year. The only question for the
financier relates to the assumption on which invest-
ments of this kind are to be assessed. If, in point of
fact, terminable annuities are habitually reduced to
perpetuities by the holders, the Exchequer will be
justified in regarding the excess of the annual pay-
ments above the ordinary interest of money in the light
of instalments of capital. On the other hand, common
experience will probably lead to the conclusion that
annuitants are not, as a general rule, mere speculators
in money. Where a principal sum is sunk in the pur-
chase of an increased income, the exaction of an equal
percentage from temporary and perpetual annuities
can inflict no hardship or inequality. The duration
of the tax is equal to that of the income; and the
same total impost is assessed on the sum invested in
Consols in the one case, as on the amount laid out in
an annuity in the other. It is possible that means
might be devised for reducing the rate of taxation
where security was given for the re-investment of
the principal from time to time, so that income could
not benefit by an exemption allowed to capital. In-
surance offices and money dealers will be able to
judge whether such an arrangement would be prac-
ticable and convenient. If it cannot be contrived,l
the only future result of equality of assessment will
be to discourage speculations of a peculiar kind in a
highly artificial species of investment. There are
considerations bearing on the tendency of an income-
tax to raise the interest of money, which tend
to show
that, even to dealers in annuities, the loss
under the
present system is necessarily less than the proportion
convenience.
Our we have assumed for the sake of
Our immediate purpose has been to nvenience.
show that the
bond fide annuitant stands in an entirely
different
position from the speculator in securities.

REGISTRATION .
CITY OF LONDON.
Mr. APCIIRIRTIE, the revising barrister, sat
Guildhall yesterday, delivered judgment with re-
spect to the numerous objections that had been taknt. toe
the want of the proper description of the livery of
.11_
several companies, but in which he had allowed Luu
names to be corrected, retaining them on tb:f the ister.He said he should not have fined the clerks
com-
panies so heavily as he had done, but halfbe companies, or
arose from the neglect of the clerks o. t_
of
liverymen did not
their clerks. For the future, however, if placed on the
take care that their correct addresses... ihe objections
register, they would be disfranchiesed
ded to dispose of the
Tho Learned BAnaisrEa ProCershes
John
St. Andrew
list of voters for the several t Parish
Agnes, St. Botolph, St. Andrew Hub-
John Zachary, St.
Leonard Foster, St.
Year:3;lElft, and St. James, Duke's-
bard, St. Andrew 1113. _
b rose any question of import-
whic a
P none of
principally confined to over-
being
ance, the business
and miedescriptions.
seers' objections a Aldertateein,
jug,
ith and Mr. Ledger appeared for the Re-
Mr. Sidney Sin
form Asscoiati°nt
and Mr. Brown for the Conservatives.
MARYLEBONE.
• of lists of voters for the borough of
The revision
commenced yesterday morning before
lebone was
...
may the C ' t
the revising barrister, at oar
Mr. Macqueen,
House, Marylebone-lane.
The following is a list of the
• and obje
• ctions set down for hearing:—
claims Claims. Objections.
... 4 ... 0
... 25 ... 100
... 19 ... 31

Paddington ...
St. Marylebone
St. Pancras ...

Total

... 45

Mr. Nicholls claimed to be inserted in the list, and 1
the only ground of objection to his being so was, that
he had not paid the two quarters' rates due on Lady-
day until the 27th of July, the proper day being the
20th of July.
The REVISING BARRISTER stated that this was a most
important question, and similar claims had arisen in the
Westminster and Tower Hamlets districts; and until he
r
had decided those at the former place, b© must defe his
decision. It was bis intention to hear two legal gentle-
men discuss the question pro and Coil, to-morrow (this
day), at Westminster, and he would, therefore, defer his
decision until Thursday morning,
He might ,
state that he and Mr. Bayley had decided similar cases
against the claimants. however,
OBJECTIONS TO THE RIGHTS OF ASSESSED-TAX COL

LECTORS,
An objection having been taken to the names of three
collectors of the assessed taxes, upon the ground of their
being servants of the Crown,