The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-10-02

ordinarily act only with selected lives-on lives
which are supposed to be those most likely to
enjoy longevity. We have seen that occupa-
ton has much to do with the question; so has
climate; so also has the abundance or scarcity
of food as it is plain that these and other SINH
lar causes affect the rate of mortality, and for
that reason form elements which enter into the
actuary's calculations
AS, then, the success Of assurance societies
depends, in the first place, on the selection of
proper table of mortality as the basis of their
calculations, Il is necessary briefly to notice the
origin and general characteristics of the various
tables that have been prepared and published
with more or less authority. The tables referred
to British in their origin, but they are acted
upon in the United States, with certain modi-
fications, which the relative difference in the
rates of interest renders expedient and safe.
First in point of date and celebrity are the
Northampton tables, which were constructed
from the mortuary registers of that town in the
years l77l, 1880. In 1920 a select commit
tee Of the House of Commons, having heard evil
dence from FINLAYsoN, DAWES, BABBAGE,
and other men of acknowledged eminence, re
ported that "there is not even primG tacie
case in favor of the Northampton tables"
They were Originally formed upon hypotheti-
cal data" derived from observations extending
over comparatively limited period. The
main error in these tables is, that they greatly
overrate the mortality among young lives. Ac
cording to them, one-half the number born
die before attaining the eighth year; whereas,
more extended observations show that this is
an extremely unfavorable view of life. As a
consequence of this error, the numerous offices
which have adopted these tables exact much
too high premium for the assurance of young
lives. The premiums charged to persons as
surfing at the age of twenty are 81 per cent.
above more correct rates, while those charged
to persons assuring at sixty are but % per cent.
too high. The Northampton tables were orig
inally employed by the British government
when granting annuities, and their use caused
a loss to the country of several millions of
pounds before those in authority could be made
to understand the error.
Another table which has been largely used
as the basis of calculation by many prosperous
offices is the Carlisle table, so named from hav-
ing been constructed by DR.. HEYsHAM, of that
city. 1t rests on enumerations of the inhab-
itants of Carlisle, and of their ages, at two pc
RODS from 1879 to 1887, and on records of births
and deaths during that time.
The third table, in point of date, has been
constructed from the experience of the London
Equitable Society, between 1862, the period of
its formation, and 1929.
Fourthly, Mr.. FlNLAYsoN, the actuary re-
tanned by the British government, published in
1929 series of tables constructed on observa-
tons made upon the lives of government an
nuitants and the members of Tontines Not
less than $4,000 lives were taken into account.
and the period over which they ranged was
about one hundred years. They are described
by their author as having been "eight years
in preparation, with all the means of perfecting
them which the government could supply,' and
to which no private individual previously had
access.
Another series has been constructed on data
supplied by the actual experience of assurance
societies. Seventeen societies contributed re
turns embracing 63,905 policies; these were
classified and sifted by committee of the lead
ing actuaries in London; and one of the most
eminent Of their number constructed a table of
mortality resting on 60,537 assurances-an
amount, speaking in round numbers, nearly
thrice aslarge as that on which Mr.. FINLAYsoN
rests his calculations, and many times larger
than that which enters into the data of the
other tables.
Lastly, table, called the "English Life
Table," has been constructed, founded upon
information supplied by the last census and the
official return of deaths in England during lS4l
If we have enumerated the merits of these
tables with more precision than may seem ne
cessary 1t is because we are about to affirm
that the prevalent use-as well in the United
States as in Britain-of tables giving an erro-
neously unfavorable estimate of the duration of
life, tends strongly to restrict the application of
the principle of life assurance.
1t will be admitted, perhaps, that the tables
just enumerated furnish an abundance of evil
dence to enable us to Judge Of the sufficiency of
premiums exacted to provide the sums assured,
and further to provide the means of meeting
possible contingencies. Argument is not need
ed to prove that it would be unjust to measure
the premiums to be paid by healthy persons, by
a standard which, instead of representing fair
comparison, represents life in the mass-min-
Cling together the robust and the sickly, the
strong in constitution and those who inherit ia
tai disease, the temperate and the dissolute, the
prudent and the wasteful. This would be
course not less rude, not less unjust, than that
which, in the early dawn of life assurance ex-
acted one uniform rate from assurers of all ages.
Yet that which, in the abstract, is unreasonable
and lmpolItlc, is at this moment the practice OF
the majority-of nine out of ten--of existing
societies and companies. The English offices
generally-we may say the influential ones, al
most without an xception-employ the North