The enquirer. [volume] (Richmond, Va.) 1804-1815, 1804-09-05

money, and ,oleifsu the snr,al RAE ofiniilrance
nus Tor initance, le! u f'pCuf. ne dividend
| IN It's aockto be per cent then Il will nor be
diihcut with the preceding daiA - calculate the
rate ot mfrrance. For the frf ysar thc intr-
| reit OF The mon will only be tCc dollars lefs
than is iuicient 10 pay the lones 4, the end
OF the hrt year therefore the an cunt of its funds
will DC 1890, initcad OF. :, $50 dollars During
the next year, the iutcrcit will he TOO dollars
LET'S than the amount Of lofes. Duiint. The frN
two years, therefore, with thele data and e<cIu-
i've of the nccehary eSpences of the inaitu;ion,
the mere lnteref OF the money would be fuffici-
EFT TO pay the lofs of one houie, and there would
DC 1914 dollars over; that is it would nearly paw
Tor the Destruction of two houics In the fame
manner 1t the calculation be kept up for a ferries
OF years, each year the intereit becoming lefs
for the dimnution of the principal, it will be
round that the number of years in which the
premiums will expire, will be much greater, and
the calculated premium for one wear will he.
much iets, than under fyftem, where the
funds are permitted to lie idle and unprodu5 Give
In comparing fuch plan, therefore, with
the other form of an nfurance fociety where the
profits OF the premiums are confined to the COM
pany lttelf and not extended to the injured. this
advantageous operation deferves to be particu-
larry noticed.
The law has even carried this principle fur
Their. 1t has looked forward to the time, where
the lntereit tthe premiums ihall not merely in.
create the money which is to pay the lones, but
where 1t ihall become efficiently great to paw
all the lo!ies, without encroaching upon the
principal. 1T declares that where the premiums
are Insufficient to pay the loifes, that new re-
quifltlons fhall be made of the fubicribers and
that 9 thete quotas fha always be 70 rated, As
to raie and keep up fund, 70 that the interef
thereof may be deemed by the prefident and di-
rectorS iufflcient to pay the annual locs and ex-
pences." When this deiirable period fhall ar
ilVe IL is VAIN FOR human calculation to attempt
TO determine.
Whether the intereft alone is fuf1icient TO nav
all the loffes, or whether part of the PRINCIPAL
ltieit mutt be employed for this purpofe in eli
ther Gale, the advantage of making the focietv
general will be very confiderable. Ifthc lofles
are paid ont of the intereft alone, the greater
the lnteref that is, the greater the number of
| hcnieS injured the greater number NAV perth
W'thout any encroachments upon the Capital
II 'or ihifance out of every 1000 houfes floud
ourn every year; if each houfe ihould be worth
| 1000 collars; if the average premium on them
| mould be per cent: and if the average intereft
on this fund fhould be 6 per cent: then the an
nhal lntereH would be 500 dolls Tlis intereft
would be InfuthcIent to pay for two houfes. But
| II twice as many houfes that is 5000, had been
injured, the intereft would be $500 dolls. that
iS' 8 tunes as many houfts might be permitted to
perrin. 1t the fame calculation be carried on, it
| Will be found, that while the number ofinTured
| houies is eXprefIed by the ferries |, 9 80 E the
number o. houfeS which may be paid for with
out breaking IN upon the capital, will increafe in
It'll greater ratio, and will be reprefented bv the
ier1es l, 8, s, 7, 9. The little balances of
intereit which remain after paying for one houfe
| out OF every 1000, will thus, by their accumula
tion, be fufhcient to pay for greater number
| of houies.
But if the houfes are to be paid for, not out of
| the intereft, but out of the premiums, or out of
new quotas, the more general the fociety, the
more advantageous will be TO thofe who have
injured III 1t. This will not 70 readily anDear
1t may be fuppofed at irf, that if the owners
OF 1000 honies have TO pay d certain quota. the
owners or 5000 houies will have to paw twice as
much. They turely contribute twice as much
premium at hrft to the funds of the focietv. but
their loiles will be twice as great, becaufe the
number or their houies is twice as great. 1t
may be aiked,i therefore, where is the advan-
tage OF having more houfcs injured, iince the
ratio OF the loiies comes at lait to be the
very fame 1t would certainly be the fame,
II the fame number of houfes were detrov-
ed IN the fame ihort periods. In the courfe
or 100 years the number of houfes deftroved ont
OF 1000 might be the fame as the number def
troyed IN another century bccaufe the great
number OF houfes, which burn in one wear NAV
make up for the fmall number in another. But
from year to year, from one fhort period to ano-
Their, the number is very variable. A great ma
ny houfes may be reduced TO afhes at one time.
When thefe great loncs happen, it will fall
more lightly upon any one Individual when
there are many in the afociation. 1t will fall
more lightly upon him, even though thefe ereaf
lolies were to happen more Frequently. 1t is ca
| her for man, when he is to be fuddenly called
upon for certain fun of money, to pay fome
part of it at one time and fome at another, than
to pay the whole of it at once. A demand for
large fun when he had no reafon to expect il, or
when, although he had fome reafon to expect it,
he has made no proviion for paying it, will al
ways iubject him TO greater Inconvenience and
lois, than demand for ievera fmaller fums. IF
houfes only were injured, neither of the pro-
prletors would probably have to pay new quo
ia for long time, becaufe it is not probable that
one of thefe houfes would burn down for long
time. 1T then he WIS 20 referve certain part
of his annual income for the payment of the iofs,
when 1t really happens, the quota tho it would
not be due once for SO years, would fubiect him
to little Inconvenience. But no man makes this
proviiion. No man ever lays up part of his in
come no man ever thinks OF keeping money
for an iniurance company, until it makes its re-
quiftion. II would be much better, therefore.
If nftead of s, there had been $50 houfes infIr-
ed. Each man WOtIld have TO nav \ cert ain G,,,