14001.

16001.

1570l.

Northampton Table Carlisle Table Government Table (males) Government Table (females) 1690l. We cannot suppose that the annuity could be bought for less than would be required by the Carlisle Tables.

To find the value of an annuity on a life whose age lies between two of those given in the table, the process must be followed which has been already explained in treating of annuities certain.

An annuity on two joint lives is one which is payable only so long as both the persons on whose lives it is bought are alive to receive it.

TABLE VI.-Present Value, or Purchasemoney, of an Annuity of One Pound on two Joint Lives.

Age. 0.

Carlisle.-4 per cent.

10. 20. 30. 40. 50. 60. 70. 0 8.9 12.3 11.7 10.9 9.9 8.6 6.6 4.7 5 16.8 16.5 15 6 14 4 12.9 10.5 7.8 5.0 10 17.0 16.3 15.2 13.8 12.0 9.2 6.5 4.1 15 16.3 15.5 14.3 12.9 10.5 7.9 5.1 3.0 20 15 6 14 7 13.6 11.8 9.0 6.4 4.1 2.4 25 14.8 13.8 12.5 10.3 7.8 5.0 3.0 2.6 30 13.9 12.9 11.4 8.8 6.3 4.0 2.3 1.6 40 12.1 10.9 8.6 6.2 3.9 2.3 1.6 50 10-1 8.1 6.0 3.9 2.3 1.6

60 6.9 5.3 3.6 2.1 1.5

70 4.4 3.1 1.9 1.5 80 2.4 1.6 1.3

Northampton.-4 per cent.

Age. 0. 10. 20. 30. 40. 50. 60. 70. 1 8.3 10.8 10.1 9.4 8.6 7.5 6.1 4.4 5 13.6 13.5 12.6 11.7 10.5 8.9 7.0 4.6 10 14.3 13.4 12.6 11.5 10.1 8.3 6.0 3.5 15 13.4 12.6 11.8 10.6 9.1 7.1 4.7 2.5 20 12.5 11.9 10.9 9.6 8.0 5.8 3.4 1.7 25 11.9 11 2 10.2 8.8 6.9 4.6 2.4 0.2 30 11.3 10.5 9.3 7.8 5.7 34 1.7 7.5 5.6 3.3 1.7 3.2 1.7

40 9.8 8.8

50 8-1 7.0 5.3
60 6.2 4.9 3.1 1.6
70 4.1 2.8 1.5
30 2.1 1.3

The preceding table gives the results of the Carlisle and Northampton Tables on the value of this species of annuity, interest being at 4 per cent. The first column shows the age of the younger life, and the horizontal headings are not the age of the elder life, but the excess of the age of the elder life above that of the younger. For example, to know the value of an annuity in two joint lives,

aged 25 and 55, in which the difference of age is 30 years. In the Carlisle Table opposite to 25, the younger, and under 30, the difference, we find 10.3; and 8.8 in the Northampton. For the value of an annuity of 100l., the first tables give, therefore, 10301., and the second 8801.

The value of an annuity on the longest of two lives, that is, which is to be payable as long as either of the two shall be alive to receive it, is found by adding together the values of the annuity on the two lives separately considered, and subtracting the value of the annuity on the joint lives. For the above species of annuity puts the office and the parties in precisely the same situation as if an annuity were granted to each party separately, but on condition that one of the annuities should be returned to the office so long as both were alive, that is, during their joint lives. For example, let the ages be 25 and 55 as before, and let the Carlisle Table be chosen, interest being at 4 per cent., we have then ::

TABLE V.-Annuity at age 55

11.3

Ditto

25

17.6

The value, therefore, of an annuity of 17. per annum on the survivor is 18.6l.

The value of an annuity which is not to be payable till either one or other of two persons is dead, and which is to continue during the life of the survivor, is found as in the last case, only subtracting twice the value of the joint annuity, instead of that value itself. In the preceding case it is 8.31. For this case only differs from the preceding, in that the annuity is not payable while both are alive, that is, during the joint lives. Consequently the value in this case is less than that in the last, by the value of an annuity on the joint lives.

The value of an annuity to be paid to A from and after the death of B, if the latter should happen to die first, is the value of an annuity on the life of A, diminished by the value of an annuity on the joint lives of A and B. For the situation is exactly the same as if the

L

whence the value of the required annuity of 11. is 7.31.

The following Table, extracted with abridgment from Morgan on Insurances, deduced from the Northampton Table, with interest at 4 per cent., gives the average sum to which the savings of an individual may be expected to amount at the end of his life, improved at compound interest from the time he begins to lay by:

TABLE VII.—Probable Amount of One Pound laid by yearly, and improved to the end of Life.

Age. Amt. Age. Amt. Age. Amt. Age. Amt.

That is to say, according to the Northampton Tables, if a person were, at the age of 26 (that is, a year after 25), to begin laying by 100l. a year at interest, he might expect the amount at the end of his life to be 79.21. for each pound laid by yearly; or 7920l. Or, to speak more strictly, if 100 persons were to do this, they might expect that the average amount of their savings, reckoning the accumulations at their deaths, would be 7920/. each. As we have already observed, the mortality of the Northampton Table is greater than the fact, and the average accumulations would be greater, from young ages considerably greater, than those shown in the preceding table. We have seen that the security of the method for estimating the value of life annuities depends upon the presumption that the average mortality of the buyers is known. This average cannot be expected to hold good, unless a large number of lives be taken. Therefore, the |

granting of a single annuity, or of a few annuities, as a commercial speculation would deserve no other name than gam bling, even though the price demanded should be as high as that given in any tables whatsoever.

In the preceding tables, we would again remark, that our object has been simply to furnish the means of giving a mode most simple cases. rately near determination of a few of the We should strongly recommend every one not to venture on important transactions without profes sional or other advice on which he can depend, unless he himself fully under stands the principles on which tables ar constructed. The liability to error, eve in using the most simple table, is very the subject; and most cases which aris great, without considerable knowledge o in practice contain some circumstance peculiar to themselves, which have no and could not have been provided for in the general rules.

The following references to works or this subject may be found useful :

ANNUITIES CERTAIN. 1. Smart's Table of Interest, &c., London, 1726. There is an edition published in 1780, which is said to be very incorrect. The values for the intermediate half-years given in this work are not correctly the values of the annuities on the supposition of halfyearly payments; in other respects it is to be depended upon. 2. Corbaux, Doctrine of Compound Interest, &c., London, 1825. 3. Baily, Doctrine of Interest and Annuities, London, 1808. Smart's Tables are republished in this work from the correct edition. Works on life-annuities generally contain principles and tables for the calculation of annuities certain.

4.

LIFE ANNUITIES. 1. Price, Observations on Reversionary Payments, &c. edited by W. Morgan, London, 1812. (Seventh Edition.) 2. Baily, on Life Annuities and Assurances, London, 1810. 3. Milne, On the Valuation of Annuities and Assurances, &c., London, 1815. Morgan, on the Principles of Assurance, Annuities, &c., London, 1821. 5. Davies' Tables of Life Contingencies, London, 1825. 6. Finlaison, On the Evidence and Elementary Facts on which Tables of Lije Annuities are Founded. Printed by the

7. Gompertz, Estimation of the value of Life Contingencies, in Philosophical Transactions, 1820.

ANNUITY, SCOTCH. The 53 Geo. III. c. 131, does not extend to Scotland. In that part of the country a fixed sum per annum paid periodically, though secured on heritable property, is called an annuity. Such an annuity is generally secured for life, and it may either be created by reservation in a transfer of the absolute property of the lands, thus constituting a burden on the new proprietor's title, or it may be granted by the absolute proprietor, the annuitant making his title real, as in the case of an absolute estate in land, by an "infeftment." Provisions to widows and children may be thus secured. This species of security on land is to be distinguished from an annual-rent right, which has a reference to a capital sum, and was generally the form in which the payment of the interest of money lent on heritable security was made a real burden on the lands before the more effective security was devised of making a redeemable disposition of the lands themselves to the creditor. The annual-rent right had its origin in the laws against usury. The taking of interest on a sum borrowed was illegal, but an irredeemable annuity was not affected by the law; and thus the lender was invested with a perpetual estate in the land. The form used for this purpose was afterwards, as above stated, brought in to aid of the heritable bond, but it is now seldom employed. When the obligor of an annuity became bankrupt, there was until lately no statutory provision in Scotland for ranking the annuity creditor, i. e. for enabling him to prove. The Court of Session was in use to interpose equitably to allow the annuitant to draw a dividend on the value of the annuity. By 2 & 3 Viet. c. 41, §§ 40 and 41, provisions similar to those of the 6 Geo. IV. c. 16, §§ 54 and 55, relative to the claims of annuitants against the bankrupt estate of the principal debtor, and against sureties, were applied to Scotland.

ANNUS DELIBERANDI, in the law of Scotland, is the term of a year

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ANTI-LEAGUE. [LEAGUE.]

APANAGE (Apanagium, Apanamentum), the provision of lands or feudal superiorities assigned by the kings of France for the maintenance of their younger sons.

Some of the proposed etymologies of the word apanage are mentioned by Richelet, Dictionnaire de la Langue Françoise.

The prince to whom the portion was assigned was called apanagiste, or apanager; and he was regarded by the ancient law of that country as the proprietor of all the seigniories dependent on the apanage, to whom the fealty (foi) of all subordinate feudatories within the domain was due, as to the lord of the "dominant fief."

Under the first two races of French kings, the children of the deceased king usually made partition of the kingdom among them; but the inconvenience of such a practice occasioned a different arrangement to be adopted under the dynasty of the Capets, and the crown descended entire to the eldest son, with no other dismemberment than the severance of certain portions of the dominions for the maintenance of the younger branches of the family. Towards the close of the thirteenth century the rights of the apanagiste were still further eircumscribed; and at length it became an established rule, which greatly tended to consolidate the royal authority in that kingdom, that, upon the failure of lineal heirs male, the apanage should revert to the crown.

The time at which this species of provision was first introduced into France, the source from which it was borrowed,

and the origin of the term, are matters on which French writers are not agreed. (Pasquier's Recherches, lib. ii. cap. 18.; lib. viii. cap. 20; Calvini, Lex Jurid. "Appanagium;" Ducange, Gloss. "Apanamentum;" Pothier's Traité des Fies; and Henault's Hist. de France, Anno 1283.)

"It is evident," says Mr. Hallam, "that this usage, as it produced a new class of powerful feudatories, was hostile to the interests and policy of the sovereign, and retarded the subjugation of the ancient aristocracy. But an usage coeval with the monarchy was not to be abrogated, and the scarcity of money rendered it impossible to provide for the younger branches of the royal family by any other means." "By means of their apanages and through the operation of the Salic law, which made their inheritance of the crown a less remote contingency, the princes of the blood-royal in France were at all times (for the remark is applicable long after Louis XI.) a distinct and formidable class of men, whose influence was always disadvantageous to the reiguing monarch, and, in general, to the people." (Middle Ages, vol. i. p. 121, 2nd edit.)

By a law of 22nd November, 1790, it was enacted, that in future no apanage real should be granted by the crown, but that the younger branches of the royal family of France should be educated and provided for out of the civil list until they married or attained the age of twenty-five years and that then a certain income called rentes apanagères was to be granted to them, the amount of which was to be ascertained by the legislature for the time being.

By a law of March 2, 1832, which regulates the civil list of the present king of the French, it is provided, that in case of the insufficiency of the private domain of the crown, the dotatious of the younger sons of the king and of the princesses his daughters shall be subsequently arranged by special laws. Before this law, the head of the house of Orleans was in possession of all that remained of the ancient apanage of his house, in virtue of art. 4 of the law of 15th January, 1825, according to which the property restored to the

branch of Orleans in execution of several royal ordinances of 1814, would continue to be possessed by the chief of the Orleans branch until extinction of male issue, when the property would return to the state. The conditions attached, according to the old law, to precedents, and the law of 1825, to the possession of the Orleans apanage, were as follows:-1. The prince apanagist owed an allowance to his sons and brothers, and a portion to his daughters and sister. 2. If the prince came to the throne, his apanage was united to the crown domain, from which it was not distinct before 1791. 3. This opened to the princes whom it deprived of their claims on the apanage, a similar claim for themselves and their descendants on the domain of the crown. The law of 15th Jan. 1825, formally maintained these conditions and rights. At the revolution of 1830 the apanage of Orleans was united to the crown, which gave the younger princes a claim for compensation from the country, recognised by the 21st art. of the law of March 2, 1832. This claim, according to the terms of the article, is only admissible when the pri vate domain of the crown is insufficient, and the right is co-existent only with the insufficiency. (Moniteur Universel, 30th June, 1844.) No allowance from the state has yet been made to the family of the present King of the French.

The system of Apanages was mainly formed in Germany by the high nobility. An apanage is there defined to be a provision for the proper maintenance of the younger members of a reigning, house upota the establishment of the law of primogeni ture, and out of the property which is sub jected to this law of descent. In the middle ages, the German princes and nobles contrived to make those powers hereditary and a kind of private property, which were originally only offices granted to them by the emperor; and it followed as a natural consequence of this change, that they applied the same principles to the lands which were subject to their jurisdiction. They began to divide these lands according to their pleasure, and they soon became reduced to such small portions as to be insufficient for the maintenance of the dignity of those to whose