The Sun.
London, England, 1849-09-12 00:00:00

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LONDON, WEDNESDAY, SEPTEMBER 12, 1849

The " tontine" was a favourite mode of invest-
ment in the last century. Many extensive under-
takings and valuable improvements were effected by
funds subscribed under that system, which could
never otherwise have been carried into execution.
There was scarcely a large city or district that had
not its own tontine, in which the wealthier inhabi-
tants were more or less interested, and many families
are now in the actual enjoyment of the prizes
placed within the reach of every subscriber. The
stimulus afforded to the national industry by means
thereof was productive of the most beneficial results.
A large joint-stock capital was collected, and judi-
ciously expended in the purchase of estates, or the
erection of public buildings, the rents, issues, and
profits of which were periodically divided among
those subscribers whose nominees were then surviv-
ing. Each year a larger dividend became payable
by the disappearance of those entitled to a participation
in the profits until, ultimately, the survivor became
entitled to the entire fund. It was, in fact, the
converse of life assurance, for in place of receiving
a considerable sum at the death of the
party nominated, the interest of the pro-
prietor altogether ceased and determined on that
event. The prospective advantages to a long-
lived party were undoubtedly very great, but they
were too long deferred, and persons were unwilling
to wait for a long series of years before they should
enjoy the fruits of their speculation. It was, in fact, a
species of lottery, in which the longest lives, obtained
the capital prizes, and those who died early were the
holders of blanks. Eighteen or twenty years should
pass away before the amount of the original subscrip-
tion was returned, but from that time forth
the share became very valuable. Obviously,
however, it was not a mode by which a person
in receipt of a life income could lay by a certain
prevision for his family. He might, undoubtedly,
nominate one of his children, who would thus
beeome entitled to a progressively increasing annuity,
but there were frequently conditions as to age, &c.,
that prevented the subscriber from selecting the per-
son for whose especial benefit he wished the fund to
be applied ; and the life of any other nominee was
subjected to casualties which might defeat the original
object. Hence the system gradually fell into
desuetude, while a vast increase took place in the
business of life assurance.
A judicious combination of the systems would
certainly have guarded against every contingency.
Many subscribers to tontines insured the lives of
their nominees for the amount of the investment, and
thus became certain of receiving back their outlay.
But individual insurances were extremely expensive,
and during the earlier years swept away
the greater portion, if not the entire, of
the dividends. No combined effort was
made on the part of the entire body to insure the lives
of all the nominees, which could have been effected
on very reasonable terms by an arrangement with
any respectable company, and at a very low rate, in-
deed, if the association became their own assurers ;
*/ which mode not only the profits to the assurance
ompany, but the expenses of management and the
stamp-duty to Government, would all be saved.
No investigation as to the state of health
of the assured would be necessary. The
subscriber, by the simple act of nomination, would
afford the best evidence of his perfect confidence
therein. There could be no danger of fraud—no
legal expenses to be incurred. All the contingen-
cies that must be taken into account in individual
cases, and which increase the rates of premium, would
be avoided. There can, therefore, be but little
doubt that a system combining the tontine and life
assurance principles would prove highly remunera-
tive to shareholders. Now it is in this manner
that Mr. Wasosr imposes that the sum of 4,000,0001.
sterling should be obtained, to be invested in the
purchase and improvement of Irish estates. These
should be divided into four classes, the capital of each
class to be 1,000,000/. sterling, in shares, halves,
quarters, and eighths, of 1001., 501., 251., and 12/.los.
respectively, so that even the humblest farmer or
tradesman might be enabled to obtain an interest in
the undertaking. As all the lives of the nominees
would be assured by the association, Mr. WASON sug-
gests that the profits should only be distributed every
ten years, by which means all those whose nominees
lived for t .verity years would receive about ten per
cent. more than their original subscription, while, in
case of death during any part of the interim, the
original subscription would be returned without any
deduction whatever, the only loss being the current
interest, if the party should die within the first ten
years.
From the present value of Irish estates there is
M. 114 doubt that at least 5 per cent. could be obtained
on tbe amount invested, and that on the most satis-
factory security ; so that there would be at least
50,0001. per annum belonging to each class
iq the
rP Tory meucement, and it would be inipcs-
i474'
Tory,.
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