EFORE bringing to a conclusion this work, which has

BEFO

already somewhat exceeded in magnitude the anticipations of the author, numerous topics of importance which have suggested themselves, and which, from lack of homogeneity, appear to be capable of proper treatment only in a chapter which shall be devoted to subjects of a miscellaneous character, ought to be at least briefly considered. The desire on the part of the author that this work shall include all useful information and suggestion within its proper scope, and which shall be within the scope of his abilities and industry, is deemed to be sufficient reason for the addition of the present chapter, in which will be given, under appropriate headings, and without regard to regular order, such information and suggestions as are considered to be necessary or valuable.

Annuities.-Under certain conditions of age, physical or other incapacity, and smallness of principal, it sometimes becomes necessary to discover some method of obtaining, even at eventual sacrifices, larger relative incomes than may be obtained by means of any of the regular methods of investment.

If we suppose the case of a woman seventy-five years of age whose entire principal has become reduced to the small sum of three thousand dollars, and who is entirely dependent upon it for support, it will be at once evident that, unless by some means the regular annual income from this small principal, during the few remaining years of her life, may be increased to much more than the ordinary

income of about five per cent., the woman will be compelled to consume regularly each year a portion of her principal. If a means of determining definitely, and without the possibility of mistake, the remaining years of the supposed woman's life could be discovered, there would be little difficulty in computing the annual allowance, out of the principal, which may by expended in her support, without resulting in the final entire loss of her means of support. But such a means of definitely determining, in advance, the events of the future cannot possibly be obtained; and the woman of the supposed case (unless the method which will be explained shall be employed) will therefore be compelled, during the last painful years of her life, to live in bitter poverty and economy, looking forward with dread and apprehension lest her small means shall be entirely expended before her death.

For cases similar to the one which has been supposed, the method of life annuities furnishes at once an adequate remedy and a substantial relief, notwithstanding the fact that it will be open to serious theoretical objections, if it shall be considered in the light of a regular means of investment.

The principles of the method of life annuities may be explained in the following manner :

Life-insurance companies commonly make a practice of receiving certain sums of money from their patrons, with agreements to the effect that the companies shall pay (annually, semi-annually, or quarterly) to the annuitants, during their lives, specified sums of money, and that, at the deaths of the annuitants, the amounts which they have paid to the companies shall become the absolute property of the companies. The amounts of annuities are determined from the amounts which shall be paid to the companies, and from the numbers of years which (according to the established tables of longevity) the annuitants shall have yet to live. In consideration of the fact that the companies finally obtain absolutely the principals from which are derived the annuities, the companies are able to pay larger percentages upon the principals than may be obtained in any other practical manner.