Star.
London, England, 1824-08-10 00:00:00

CoNsuLTnin

Bevricie Lynn, Mb+
-...--Joieph Girth, Esq. Edward. Amen, Bal. and Janice
Savage, Esq.
THIS COMPANY has been established under the'
Authority of a special Act of Parliament and Deed of Set.
dement, for the profitable Investment of C.ipital in the purcheie of
Annuities, secured upon Freehold, Copybold, ansi Lealelhola lid
tate., Money in the Government Funds, Parish Bonds, Turnpike
Tells, and other eligible Property.
The nature of annuities not being generally understood, it may be
dbillrable to enter somewhat into detail in the explanation of. them:
An annuity is a sum ef money annually paid by a person, wh
is called the Grantor, to another person, who is denominated die
Gnats* la emedieinhon of a sum of money paid by the latter to
the fectess lathe purchase-money for the duty. This annual pad-
:strut bawd* dark," the Ilk of one or more individuals named by
the grantee, and on the extinction of the last life the annuity ceases.
This, A pays to B £1 ,000 as the purchase of an annuity of £lOO
per annum, payable during the lives of C, D, and S At the death
of the last surviior of these the annuity ceases ; but the parchale-
money is not• thereby loaf since, in 'wdm• to secure the return of
the 21,000 the grantee may insure that sum at a moderate pre7
Winn in an Insurance Oboe In this case Ais the grantee and B
is the grantor.
•As to at invettMent of money in this .way, although the Legisla-
ture has limited the rat. of interest to free per cent. on mortgage,
mid all loans for a hied period, it has never attemp.ed to regulate
the terms of annuities between the pardes, but bas simply passed
Acts to direct the enrolment of the deeds, and to secure the par
meats and the equitable protection of .the rights of all conterneill
The substance of the Acts formerly passed on this subject is limbo.
died in the Act 53 Geo. HI. c. 141, which has been further a&
plalned by the Act 3 Geo. IV. c. 92. Prior, however, to the fortneit
of these Acts being passed, many Insurance Companies obtained
private Acts for this purpose. Since that period all purchases .
annuities have been effected on the authority of the General AA-
tiuity
By the law of the land, therefore, any sum whatever,owhich •
ties choose to agree upon, may be 148E1 secured for any • • die.'
pending on the contingency of one, two, three, Or any peobill
lives, or the last survivor of them. •
Awing the last.war, the usual a,nnnity granted he the um '
1,0001. was 1001. a-yeg, or ten per cent. add where, from skit
tut of the security, it was dependent on the lib if the gtiltilils
much more was givewas was sufficient to pay the annual
for the Insurance of the sum advanced, at an Insurance 0&7011;
this mode, the person who advanced the money obtained ataadvia..
tageous return for its use, and was in no risk whatever' f the.loes
of his capital; for if the annuity 'was paid off by the grantor, then
the grantee received his money back ; and if the grantorlied with:
out paying it off, still tke grantee received it at the once at vgbiclt
it was insured.
Experience has proved to the monied interest, thaf sallnuitieS on
tingle lives, which an be•ifistired, are highly profitable and .
tageous, as well as perfectly secure to the grantees'. but annuities
panted freebdi Mid other perpetual securities, without the
expense of insuraneknapy be rendered equally, or even more profit-
kb*, and be much Mem moderate towards the grantor.
In such cams the mmultles are usually gran Ascestimse during
the lifetime of the last survivor of three or more person. The lives
ire selected by. the indhddual purchasing the entliltp, who natu-
rally chooses young roans of good constitution.
That this hum.' mode of investment is 'very profitable can be
clearly demonstrated, duce it has been found by long and invari-
able experience, that although a single life Is of very uncertain du-
ration, yet in the case.of three or more welLseleetad Ilms, the ca.
malty ceases, and an average fixed period may be riled upon.
This period Is generally not less than 60 years, but let it be
' assumed to be only 56 ; by referring to tables of compound interest
it will be seen that 11. per annum, improved at 5 :per cent. will
amount in 56 years to 2671. 16s. 1 led. and therefore 31. 10s. per
annum, regularly paid and improved at that rate, will in the same
time amount to 1,005/..145. 4ed. It 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 "he receives back his 1,0001. bet if another
person lay out 1,0001. in the purchase of an annuity of 531. 10s. per
annum, payable for 56 years, he will have ad equal advantage, for
if he lay by 31.105. a-year to accumulate at compound interest, it
10111, as has been already seen, in 56 years, more than replace the
1,0001. invested.
If, therefore, a portion of the annuity be laid aside to form an
accumuliting 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 for the use of the money. Besides this
advantage, as the annuities are frequently paid off, tht 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. 10s. for:1,000/.
and none are granted so low, be receive 1001. 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 he will immediately derive in'ast.
vantage of 461. 10s. per annum, which he can obtain only by this
mode of investment.

It may, however, be inquired by some persons, why should indi-
viduals prefer to raise money by this method on their estates and
property, which, whilst it is advantageous to the Grantee, must
surely be burdensome to the Granter? 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 Gentleman
mite Money by mortgage, be cannot generally bh secure against
being called upon to repay it for more than six months, unless un-
der particular circumstances—as for instance, &malts being trust
money. He is therefore placed at the mercy and caprice of the
lender. The Money be was of cOurie in want of, or he Would not
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. When he applies fir a
fresh loan he is subjected to unusual difficulty and suspicion, even
from the circumstance of his estate being already mortgaged for the
very suns be is called upon to pay off. Hence it may be impos-
sible to obtain the money, and he staffers the consequences, which•
are not unfrequently sale or foreclosure. But in the case of rais-
big money by granting annuities It id different; for so long as the
Grantor continues to pay the annuity granted, he cannot be called
upon to pay off the purchase Money, ahhisugh be may do so *hen be-
' finds it convenient, upon giving a short notice, or paying a small fine.
Proprietors of Leasehold Property aie, fOr like reasims,lodticed
to prefer • raising money by annuityto. mortgage.; and ituisu fee-
ique.ntly occurs that they are unable to obtain money by mortgage
satin, although the deration.of their interest In the property maybe.
'amply sufficient for securing the payment of the annuities they are
Wilting to grant.
Proprietors of Shares In Roads, Canals, Bridges, and other Pub-
lic Works of this nature. Whin they may deent it an unfa4ottrible
thue to sell, are able to give good securit y for ati advance amine),