PROVINCIAL (WELSH) INSURANCE COMPANY.

On the 6th June, a public meeting of the friends andsupporters of the above institution was held in the City of London, at which upwards of 300 were present. Mr. Hugh Owen presided, in the absence of Mr. John Williams, of Bronwylfa. Among those present we observed the Rev. J. Evans, B.D., of the Welsh Church; the Rev. Daniel Davies; Mr. Osborne Morgan; Mr. Morgan Lloyd; Mr. Griffith Davies; Mr. Thomas Barlow; Mr. James Bennett, &c. A letter was received from the Right Hon. Sir Benjamin Hall, Bart., M.P., regretting that a previous engagement prevented his having the pleasure of attending. Letters were also read from the Hon. Colonel Rowley and B. W. W. Wynn, Esq., regretting their inability to be present, but expressing their entire approbation of the objects of the meeting, which was to hear a lecture, by the Rev. Owen Thomas, on the advantages of life assurance. The reverend lecturer commenced by observing, that it might be considered rather inappropriate that a minister of the Gospel should undertake to lecture on the subject of life assurance, as being too trivial for one whose peculiar office was to teach the principles of religion, and to advocate claims and interests more important than those of commerce and business. He admitted that the chief object of a minister's calling was to present the interest of the spiritual world before men's minds, yet a minister of the Gospel, being a man and a member of society, stood in need of temporal objects, had temporal interests, and could not properly disengage himself from secular affairs. He did not therefore feel that any apology was required for thus addressing them on the subject of life insurance. The ethics of life insurance would in themselves form the subject of an interesting lecture, but as many whom he addressed were yet unacquainted with the first principles of insurance societies, he should at once proceed to explain fully their nature and objects. cieties were formed for the purpose of enabling the representatives of any individual to receive, after his death, a certain sum, upon his paying an annual amount during life, so that, by the payment of but a comparatively small sum annually, or otherwise, a large amount would accrue to his successors. Some had supposed that societies of this kind were in existence among the ancients, but this would appear to be a groundless supposition, originating probably in a wish in some persons to ascribe everything great and good to antiquity. Probably the first society of this character was one established in Florence, for the purpose of securing property against losses at sea. merchants of that city, then eminent for its commerce, formed a comOn the 28th of January, 1532, five pany to insure themselves and others against risks and hazards by sea, according to a form of policy said to be still in use at Leghorn. At that time, no attention was paid to life assurance, but at a subsequent period Lorenzo Tonti, of Naples, made a proposition to the French government, to raise a loan for supplying the national treasury by paying a certain amount down, for which an annual payment was to be received. Each shareholder contributed £30, and with this sum an annuity was purchased, and as each shareholder died, the increased amount was divided among the survivors, and the last subscriber, a Mrs. Bonny, received the large sum of £36,000 annually, when, at her death, the whole reverted to the French government. In the same manner the property now called Colquitt-street, Liverpool, was purchased by 100 shareholders, and when 98 had died, the two survivors divided between them £10,000, the produce of £100 each originally.

These so

The reverend gentleman then adverted to the establishment of several societies in the early part of the eighteenth century, which, he said, were very

imperfect in their principles, each individual paying the same amount (£5 per cent.), whatever might be his age, or state of health, or profession, just as many benefit societies existing in Wales do at the present time. A new principle, however, was discovered after some time, which acted most invariably, though it appeared to be based upon most uncertain data. He illustrated the principle by an anecdote of an Irishman, who, during the heat of a naval engagement, having observed a cannon ball enter the side of a ship, thrust his head into the hole, apparently calculating that hardly one shot in a thousand would take the same direction; and whatever might be thought of his courage, his calculation was correct. It was, he said, exceedingly uncertain when a particular fire might break out, but by taking the average of a large number of cases, an approximate result could be arrived at. The death of an individual was proverbially an uncertain event; yet this uncertainty recurred with the utmost regularity, and this law might be acted upon with perfect safety. He here instanced the number of deaths in London, which last week amounted to 1,073, whilst the average in the corresponding weeks from 1845 to 1854 was 1,029, and the births bore a similar proportion. After the discovery of this law, tables were framed, by which the amount of risk was fixed, and he felt proud to state that they were first framed by a Welshman, corrected by another, and finally perfected by a third, the late Mr. Griffith Davies, The reverend lecturer entered into some interesting details on the expectancy of life at different ages of 100,000 persons born at the same time. The average life of stonecutters, who inhale the dust and minute particles of stone, was only 34 years; that of millers, 42; painters, 44; carpenters, 40; lawyers, 41; medical men, 54; merchants, 62; gardeners, 60; masons, 55; ministers of the Gospel, 63; and justices of the peace, 69. The average length of life thus being discovered, the knowledge was turned to a profitable account, and it was found that a good amount of interest might thus be derived for capital; and this was the first class of societies formed. Another kind was formed on the principle of dividing the profits amongst the parties assuring; and a third, combining the principles of the two former, applied a part of the profits to lessen the future payments. It depended, the lecturer observed, much on the age of the person assuring, which of these forms of assuring would prove most profitable. The annual premium for assuring £100 was £2 1s. (age 20); but, according to the participating principle, this sum would gradually accumulate, and after some years it would become doubled, or the premium might be greatly reduced, so as to render it more convenient for those who desire to employ their capital otherwise, and at death, a person who has thus assured for a moderate amount, would have secured to his family, if not an independent fortune, at least a competency. How frequently had it happened that families, educated and comfortably provided for during the lifetime of him on whom they were dependent, had been reduced on his death to difficulties, and some even to the workhouse. He then drew the attention of the audience to the moral influence of the principle of life assurance on the character of the assured. A merchant would, as a matter of prudence, choose for a clerk one who had assured, in preference to a person who had not, although in other respects he possessed the same qualifications; for, as he had exhibited prudence in his own affairs, he would be adjudged most likely to exercise the same discretion towards his employer. Some persons objected to the principle of assurance societies, as having a carefulness inconsistent with a proper trust in Providence. Supposing a man to live to the age of 70, except he had made provision for himself before that time, there was nothing by which he could obtain subsistence, to say nothing of comforts. But the chances were greatly against his living to that age; he might die the next

week or the next day, and therefore it could not be a want of trust in Providence to make due provision for events so precarious. It was surely more proper to characterise the contrary conduct as tempting Providence. Some parties feared they would not be enabled to continue the payments, but this could only be a very slight objection where the premium would be gradually decreased, and thus all danger of failing in payments be removed, and a sum may even be taken out for the purpose of meeting future payments. The reverend lecturer concluded his interesting address by saying that the Provincial Insurance Company was peculiarly a Welsh society, and was carried on by gentlemen of position and high respectability, who felt an interest in the well-being of their fellow countrymen, and who were well known for their philanthropic and patriotic feelings. In a local society, such as this, there was not the same danger of assurers being deceived as in some of the small offices established in other parts of the United Kingdom, and the energy with which it had hitherto been conducted, and the economy which characterised its management, rendered it deserving of general support.

The lecture was listened to throughout with attention, and at its conclusion a complimentary vote of thanks was passed to the reverend gentleman. The remainder of the proceedings was occupied with addresses by influential supporters of the institution, detailing its general advantages and objects.

Communications.

To the Editor of the Bankers' Magazine.

FOREIGN BILLS ON DEMAND.

SIR, Are foreign bills drawn on demand subject to the stamps as on inland bills, or will merely the 1d. stamp do for any amount?

Liverpool, May 10th, 1855.

Yours truly,

W. P. H.

[This question is similar to E. M.'s, answered in this number, except that E. M.'s question speaks of a cheque on a London banker, and W. P. H.'s of foreign bills. We think, however, that, in this respect, bills and cheques are on the same footing.]

CHEQUE DRAWN ABROAD.

SIR,-Will you kindly inform me, in your next number, whether a cheque on a London banker, drawn abroad, and payable either to bearer or order, requires a penny draft, or foreign bill stamp ?

Sussex, June 19th, 1855.

Yours very obediently,

E. M.

[The general opinion is, that the penny draft stamp will do; the act says foreign bills are to pay the same duty as an inland bill of the same amount. and tenor.]

PENNY STAMPS ON BANKERS' CHEQUES.

SIR,-How will the penny stamp, proposed to be charged on all bankers' cheques, affect customers' letters advising payment of bills, such letters being, by us, considered as vouchers ?

In the event of their being liable to stamp duty, will it be sufficient to affix one stamp to an advice list (such as the enclosed), irrespective of the number of advices, or will it be necessary to affix a stamp for each advice?

Pray excuse my troubling you with such trivial queries; but, in the event of the Chancellor's proposition becoming law, it will be of importance to know this. Yours respectfully,

26th April, 1855.

A GLO'STERSHIRE CLERK.

[We do not think the letters of advice referred to would be affected by the now abandoned proposal of the Chancellor of the Exchequer. If they would be liable to duty under that proposal, they are so now, in cases where they are remitted a distance of more than fifteen miles, but we consider they are clearly not liable to duty.]

RECEIPT GIVEN IN A FOREIGN COUNTRY.

SIR,-Be so good as to state, in your next, if it be necessary that a receipt given by a firm in Paris to a house in England, for cash paid for goods, should have one penny stamp upon it, and oblige,

Birmingham, May 15th, 1855.

Your obedient servant,

F. T.

[If the receipt be dated and signed in Paris, we consider it does not require a stamp, but it is obviously desirable that it should be stamped, in order to save discussion as to these points.]

DRAFT IN FULL OF ALL DEMANDS.

SIR,-Will you be good enough to inform me whether a draft on a banker, with a penny draft stamp, impressed on the following form, is equivalent to a stamped receipt in full of all demands?

64 'To the

On demand, pay to

Bank.

Your obedient servant,

A COUNTRY BANKER.

or order, the sum of

in full of all demands on J. B. and Co."

[We do not consider this equivalent to a receipt, and if it be, we think it would require the penny receipt stamp, as well as the penny draft stamp. A document of this kind might give rise to many questions, and should not be adopted.]

STAMPS ON BANKERS' DRAFTS.

SIR,-Now that the subject of the stamp on cheques is under consideration, I hope you will draw the attention of your readers to the subject of the stamp laws, as they affect bankers' short bills, and in which a grievous injustice exists, which might be removed with advantage both to bankers and to the revenue.

By 9 Geo. IV., c. 23, bankers may, on taking out an annual license, at a

cost of £30 for each of their branches, issue on plain paper bank notes and short bills up to twenty-one days after date, paying a trifling rate of ecmposition on the average weekly amount of notes and bills outstanding. This was all very fair until Peel's Bank Charter Act, which prohibited the issue of bank notes by any banker not previously issuing. I am one of this class. but although I wish to be able to draw twenty-one days' bills. I cannot afford to pay £30 a year for each of my branches for this privilege alone. Had the issuing of notes been still legal, I could not have complained; for if, having paid for two things, I thought proper only to makə use of one of them, it would have been my own doing: but now I should be obliged to pay the Government for that which, after having paid for, they will not allow me to have, and which I do not want, viz., the privilege of issuing notes.

It is extremely unfair by non-issuing banks not to have the facility for drawing at short dates on their London agents, when their issuing neighbours can do so under their issuing license.

The remedy is very simple. Let the license duty be reduced, say to £20, and include the issuing of notes only, and let bankers bills, not exceeding twentyone days' date, be charged with a stamp duty of about 3d. per cent. or thereabouts; for the present bill of exchange stamp of 1s. per cent. is in fact a total prohibition on short bills.

Country bankers ought to join in petitioning for relief from this grierance, and as you are always willing to assist them, I trust you will either agitate the question yourself, or insert this letter.

I am, yours obediently,

A COUNTRY BANKER. [We can add nothing to these remarks, except to express our concurrence in them.]

DISHONOURED CHEQUES.

SIR,-Some few weeks since, I received a cheque from a customer in the country for four pounds odd, drawn by another person on a joint-stock bank in his neighbourhood, and upon my presenting it for payment, it was dishonoured, the drawer not having sufficient funds in the banker's hands to meet it. The other day, I was offered another cheque drawn by the same person upon the same bank, and for about the same amount; and feeling a little curious to know if it would be paid, I took it, and sure enough it was duly honoured. Permit me, therefore, to ask. what you think of a banker allowing a person to carry about and use cheques upon him, after he has virtually acknowledged, by his own act, that he does not consider such person trustworthy to the extent of five pounds. I always thought that before a banker would open a drawing account with a person, he took some pains to satisfy himself that he was a person of fair credit and responsibility; but from inquiries made on the spot, I ascertained that such was not the practice of the bank in question; and was informed by three or four very respectable persons, that the manager was in the habit of going round to the small shopkeepers, begging them to open accounts with him, and as a natural consequence, the town was inundated with small cheques. Now, sir, as I have a very strong impression that a large majority of the country bankers would consider such conduct derogatory, I should be glad to hear what some of your correspondents think of the matter. I am sir, your obedient servant,

AN OLD SUBSCRIBER.

VOL. XV.

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