RATE OF MORTALITY. 1091 
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RATE OF MORTALITY. 
_ ~ As all calculations connected with Life Annuities or Assurances are 
7 based on the proportion of deaths to the number of living at the several 
N ages of human existence, and the average rate of interest that may be 
made by the employment of money, it is of importance that these mate- 
sit rials of calculation should be obtained as accurately as possible, 
The variations in the prices of stock may be ascertained by means of 
the periodical press ; but the rate of mortality to be employed for cal- 
fae culating the premiums of assurance is by no means easy to determine 
fy up upon. The first observations entitled to much attention were those at 
—" Chester and Northampton, from which valuable tables were formed by 
- Dr. Price. 
il Since these were "published, tables have been given by Mr. Milne, 
ep deduced from observations made at Carlisle; by Mr. Morgan, from the 
Be age experience amongst the members of the Equitable Assurance Office, and 
by Mr. Finlaison from the rate of mortality amongst the Government 
poo Annuitants, 
+ The favourable rates of mortality indicated by these observations, espe- 
J cially the Equitable, added to the profits obtained by the old companies, 
: have had the effect of calling various other assurance offices into exist- 
tor ence, offering every variety of inducement to the public to transact 
business with them. 
| The great evil to be apprehended from this competition is the reduc- 
tion of premiums to such an extent as will prove incompatible with the 
permanent stability of the office; and already have one or two offices 
advertised rates which, after deducting the commission allowed to the 
Boer be agents, will be found at some ages less than the premiums obtained by 
ge calculating from the Equitable Experience at 3 per cent interest. 
n Another office, which advertises the rates at which it will grant annui- 
1 ties and assurances, offers terms which allow in some instances an abso- 
® lute interest of £5 15 per cent—as an examination will show that £100 
, may be laid out in the purchase of an annuity, out of the yearly receipts 
of which the premium for assuring the £100 in case of death may be 
paid, still leaving the difference of £5 15 to be enjoyed by the party. It 
is scarcely necessary to state what must be the result.* 
The principal features to be traced amongst the inducements held 
out by offices recently established are, the advance of money to 
assurers upon approved personal security, and ‘the permission to pay a 
portion only of the premium due, leaving the remainder to be repaid at 
compound interest, both of which plans are at variance with the original 
* This paragraph, which refers to the Independent West Middlesex, was written 
before that nest of swindlers had run its race, and exposed in its true colours the 
gross fraud upon the public. 
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