Star.
London, England, 1824-08-12 00:00:00


NM( fait 11,696.]

Tn SOAY, ApyrsT 12 1824.

Ces choose to agree upon, may be legally esetred for any period de-
pending 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-
ture of the security, it was dependent od the life of the grantor, 'as
Much more was given as was sulicient to pay the enduel premium
for the insurance of the sum advanced, at ao Insurance Office. By
this mode, the person who advanced the money obtained an ethane,
Orgeous return fur its use, and was in no risk whatever of the losi
-of his capital ; for if the annuity was paid off by the grantor, then
the grantee received his money back; milt' the grantor died with-
out paying it off, still the grantee received it at the cage at which
it was insured. •
Expetieuce has proved to the monied interest,7 this annu•• ides on
single live., which can he 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
expense of insurance, may be rendered equally, or even more profit-
, able, and be much more moderate towards the grantor.
In such cases the annuities are ustuilly granted to continue during
the lifetime of the last survivor of three or more persons. The lives
are selected by the individual purchasing the annuity, who natu-
rally chooses young person: of good constitution.
'Bat this latter mode of investment is very profitable• can be
clearly demonstrated, since it has been found by long and invari-
able experieiscic that although a single life Is of Cory ineertaindu-
ration, yet in the ease of three oe male* Wlldieolieeted lives, the Ca-
sualty ceases,. sod an average fixed period may be retied upon.
This perbid is generally, not' less than 60 years, but let it be
assumed to be only 56 ; by referring to tablet of compound interest
it will be seen that 11. per annum, improved at 5 per tent. will
amount in 56 years to 2871. 16s. 111t1. and therefore 31. 10s. per
annum, regularly paid and improved at that rate, will in the same
time amount to 1,0051. 14r. eed. If 1,0001. be lent at 5 per cent.
interest, the individual who makes the loan obtains 501. a-year, and
when the loan is repaid be receives back his 1,0001. but if another
person lay out 1,0001. in the purchase of an annuity of 531. 10s. per
annum, payable for 56 years, he wilt have an equal advantage, for
if be lay by 31. 10s. a-year to accemulite at compound interest, it
will, as has been already seen, in 56 years, more thus replace the
1,0001. invested.
If, 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-
sidered as the sum given fbr the use of the money. &sides this
advantage, as the annuities are_frequently paid off, the whole sum
laid aside as an accumulating fund, 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 an annuity of 531. 10,. for 1,0001.
and none are granted so low, he receive 100/. per annum, then it is
evident that not only at the expiration of 56 years he Will obtain
back his 1,0001. but every year be will immediately derive an ad-
vantage of 461. 104. per annum, which he can obtain only by this
mode of investment.
It may, however, be inquired by some persons, why should indi-
eiduals prefer to raise money by this method on their estates and
property, which; whilst it is advantageous to the Grantee, must
deftly be burdensome to the Grantor? To this question it is
replied, there are ample and important reasons, in addition to the'
difficulty of procuring money at 5 per cent. for any given length-of
time, which induce many individuals possessed of undoubted free.
hold and copyhold securities, as well as public bodies, to prefer
raising money by way of annuity. For example, if a Gentlem*
raise money by mortgage, be cannot generally be secure against
being called upon to repay it for more than sit months, unless un-
der particular cirgeimstances--.as for instance, from in being trust
, money. He is therefore placed at the mercy and caprice of the
lender. The mosey be Was of course in want of, or he would not
have borrowed ft, and it may be difficult In so short a time u six
months to repay it.. k May have been' expended in the improve-
ment of his estate, oe in such a speculation that it may be a very
unhsvoerable time to .aeU his property. When be applies for a
fresh loan he is subjected to unusual difficulty and suspicion, even
from the circumstance of his estate being already mortgaged for the
very sum be is called upon to pay off. Hence it may be impos-
sible to obtain the money, and he suffers the consequences, which
are not unfrequently sale or foreclosure. But in the case of rais-
ing money by granting annuities it is different; for 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 be
finds it convenient, upon giving a short notice, or paying a small fine.
Proprietors of Leasehold Property are, for like reasons, induced
to prefer raising money by annuity to mortgage ; and it also fre-
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 are
willing to grant.
Proprietors of Shares in Roads, Canals, Bridges, and other Pubs
lit Works of this nature, when' they play deem it an unfavourable
time to sell, are able to give good security for an advance almoner
by way of annuity, to such an extent as the value of their shares
will cover.
Parishes are unable to raise money by mortgage, because they
cannot give a pourer of sale, and can only grant a security on the
rates from time to time as they come in. It is also deemed inequi.
table to lay the whole burden of defraying the eapense of a church
or other public object, the benefit of width 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.
The Proprietors of unincumbered but entailed Estates cannot
raise money by mortgage, as they have only a life interest in the
property. It is frequently impossible to out off the entail, and
sometimes a proprietor does not desire to do so ; hence, when money
is raised, it must be by way of annuity; and such an annuity is
granted as will remunerate for the arse 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 off by any means. In that
part of the United Kingdom all securities on land are registered,
and take priority in the order in which they are registered; and the
system of registering is universal throughout the country, and is re-
duced to such a degree of simplicity, that it may at once be 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 Bri-
tish Annuity Company has already had applications from Scotland
for mofiey to a very considerable amount.
All persons deriving an income for If. or Tor lives, secured on
land, by marriage settlement, attachable pensions from Govern-
ment, money in the Funds, or other good securities depending on
life, must, from the nature of such securities, when they raise mo-
ney, do it by way of annuity. As in such cases insurance is re-
quired, the parties raising the money must grant an annuity to such
an amount as will insure the money advanced, and yield a remune-
ration for its use.
Good Irish Securities *ill also meet with the consideration of
the British Annuity Company, *berme they ere offered in undis-
turbed and mercantile districts; and the Proprietors will now have
the Opportunity, by means of this Company, of obtaining money on
their estates, which they have hitherto been unable to procure, and '
at low rates of interest yet unknown in the sister kingdom.
To prevent unnecessary trouble to applicants, it is proper to state,
that this Company does not advance money in purchase of annuities
on mere personal security, but only of annuities secured on property.
It is therefore the opinion of the Directors of this Company,
tbunded on investigation and evidence obtained from public records,
as well as the best possible sources of private information, that the
Company will be enabled to invest the whole of its capital, and to
!divide dnhually at least from 6 to 7 per cent. besides leaving a fund
for contingencies. For many years there have been annually ef-
fected and enrolled in London, on an average, 1500 annuities, be-
eidee those secured on freehold property anti copyhold estates of
larger annual value than the annuities granted, and exclusive of
annuities granted on land and other property in Scotland and Ire-
land. The suns so invested in the purchase of annuities Within the
last three yetirs and enrolled in London, has been from three mil-
lions and a half four millions sterling.
During this period, whieb hat been a time of peace, the rate pet
.nettaabrairetd,after defraying' Insurance where necessary, has been
1 from 7 to 13 per case mcordieg so the nature of the securities ; and
ail ii ;heiefiire coadently'arititipited, that a great pubile Company,
!minicietinselts business on equitable terms,willbare such nuthertius
kgets as to !usable it to seOect the Ur4t undeniable securities, and to
Itniroie its capital snore idiratttagedttsly than Can possibly be dun
bfutly ptilatelndletenals4
that the Iwblic wants atrongly called for, the establishment of
folds a Uumpeny as the present, Ti esidiiiceirfrnm the immense