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ASSURANCE ASSOCIATIONS.

The Select Committee appointed to take into consideration the subject of Assurance Associations, after examining the Registrar and Assistant Registrar of Joint Stock Companies, the Registrar of Friendly Societies, Mr. Finlaison, the late Actuary to the Commissioners of the Notifies] Debt, Dr. Farr, of the statistical department of the Registrar-General's Office, and many of the most eminent actuaries connected with insurance- office; of every class, have.presented a report, which contains, as might have been anticipated, a complete condemnation of the Joint Stock Companies Act of 1844. From the evidence of the Registrar and Assist- ant Registrar, it appears that that enactment affords little or no security against fraud ; while it is alleged by others that the law has actually done a great deal of mischief, by enabling fraudulent assurance companies to write up " Empowered by Act of Parliament," although they are only registered under the Joint Stock Act. In such a case' as in that of the savings-banks, the public fancies that the Legislature has taken all requi- site precautions against fraud ; and the consequence is that suspicion is not sp active as it ought to be. This all arises, according to one.clasa of

witnesses, from the unwise interference of Government with what is strictly the business of the community. If the public are left to protest themselves, it is urged, they will do so. If the Legislature leads them to believe that it will protect them, they will rely upon the Legislature for protection, and will consequently be deceived because it cannot pro- tect them half so well as they can protect themselves. This, how- ever, is not the opinion entertained by the majority of the witnesses. Most of them hold that, even admitting the geneml wisdom of the prim. ciple of non-interference on the part of Government in matters of trade, there is something so peculiar in the question of life-assurance as to rens der it an exception to the general rule. They admit that the Joint Stock Act has been a complete failure; but this has been owing to inherent de- fects in that measure, which may easily be remedied. tinder the pre- sent law, there is no adequate check upon fraud; nor is there any easy mode, apparently, by which any swindling company can be called to ac-

count and punished. The perfect impunity with which men of the most disreputable character can carry-on their dishonest schemes, under the

sanction of an act passed for the protection of the public, was placed be- yond all doubt by the evidence given regarding some of the worst cases of fraudulent assurance associations which have been started during the last few years. One case was mentioned, for example, with the names

of all the parties concerned, in which a company had no sooner been re, gistered than 50,000 copies of a circular were printed, in which the Di.

rectors stated that they had issued 9000 policies, yielding a gross return of 70,0001. The same company, which was got up by two men who had been partners in a gambling club, professed to be empowered to raise 250,0001. of capital ; but the mode in which they tried to raise it was rather suspicious. One gentleman was offered a contract for the disposal of 20,000 1/. shares for 15,0001. ; and was told that as he could realize

20,000/. for them,—that is, if he found dupes willing to purchase,—

he would net 5000/. by the transaction. As might have been expected, this company very speedily came to an end; it is now winding up in the Court of Chancery, and the Master has made the first call on the share. holders to meet the liabilities : the first call amounts to 120,000/. Many offices appear to be got up by persons whose only object is to secure good situations for themselves for a few years, at the expense of the victimized shareholders, many of whom suddenly find that they have incurred liabilities sufficient to ruin them. As regards the swindling transactions referred to, the Committee appears to think that these could not be pre- vented by any amount of legislation, so long as persons are to be found who exercise so little precaution in the management of their own affairs.

What they seem to think desirable is, that something should be done, if possible, to prevent assurance or any other companies from being brought into existence with no reasonable prospect of success, and, as is too Ire. quently the case, without any bona fide intention of transacting business.

As a proof that a large amount of traffic has been carried on in sham companies, the Committee refers to the Registrar's return, from which it

appears that since the passing of the Joint Stock Act, in 1844, no fewer than 311 assurance companies have been provisionally registered, of which only 140 were completely registered, and only 96—less than ones third—are now in existence.

Although nearly all the witnesses examined appear to be strongly, in favour of Government interference, considerable diversity of opinion.ms.

Tails as to the mode and extent of that interference. The weight of ens dente, however, is evidently in favour of such precautions being taken as shall test the bona fides of new companies, and as shall from time to time afford a fair amount of information with respect to the condition of such companies, relying upon the good faith of directors and actuaries for the accuracy of the information furnished. With a view to guard against the formation of fraudulent companies, the Committee has come to the conclusion, that " no new company should be admitted to complete regis. tration until a capital shall have been subscribed, and actually paid sip at least 10,0001., and which shall be invested in the Public Funds, under such regulations as Parliament may deem fit to enact." As regards the publication of periodical accounts, the law is at present in a most unsatisfactory state, from the want of power to compel such

returns, or to prescribe such conditions as would render them of any use as a test of the actual condition of any assurance company. The Regis- trar of Joint Stock Companies told the Committee, that a large number of the companies refuse to make any return at all, and that he has no power to compel them. In some cases, after he has insisted upon a return being made, they have sent him balance-sheets which were utterly unlit% telligible, or which have been manufactured to mislead rather than to ins. form. Some of the companies comply with the form of making a return, but give no particulars ; as in the following specimen of a balance-sheet, which was presented to the Committee by one of the witnesses.

Anchor Life Assurance Company.

Balance-Sheet of the Anchor Life Assurance Company from 1st October 1849 to 30th September 1850.

RECEIPTS.

Total receipts, as per

EXPENDITURE.

By total expenditure and

cash-book £65,799 10 11 insastment, as percash-

book £63,154 0 4

Balance at bankers 2,645 10 7

£65,799 10.11

£65,799 10 11 To Liabilities :

To Assets:

Liabilities -

109,715 15 7 To assets, including ba-

lance at bank

109,715 15 7

£109,715 15 7

£109,715 15 • 7

Now, this shows nothing. A blank sheet of paper would have given quite as much information regarding the condition of the Anchor Cora, pany ; and, as the Registrar states that he has no power to compel the production of a proper balance-sheet, it is clear that the present law is not only of no use, but is worse than useless, as it has the appearance of doing a thing which it has not power to perform. After stating their conviction that no fixed form of account could be prescribed by the Le- gislature, the Committee concludes with the following recommendation. " That it shall be imperative upon each company to make a complete ins veatigation into its affairs at least once in five years, as is usually prescribed by their deeds of settlement, and at such times so prescribed, which shall show a complete valuation of their risks and liabilities, and of their 088819 to meet the same; and that all such valuation-accounts, which may be made for the information and use of their proprietors, shareholders, or members, shall' be registered in the office of the Registrar; and that in each inter• mediate year between such periodical balance-sheets or valuations, there shall also. be registered-a-statement containing authentioated_information

on the following particulars—The amount of receipts during the year for premiums on policies. The amount of expenses during the year. The num- ber and amount of new policies issued. The total number and amount of all liabilities on all current policies. The total amount of premiums re- ceiveable on the same. The whole amount of capital ; distinguishing the manner in which invested. How much in cash. How much in Govern- ment securities. How much in mortgage upon real estate. How much in other securities ; specifying their nature. The average rate of interest received upon each class of investments. The amount of such investment, if any, on which the payment of interest is in arrears. The table of mor- tality and the rate of interest used in calculating the premiums. "The evidence which your Committee has obtained leads them to believe that some such general statement would be of much greater utility in ena- bling the public to come to a correct judgment as to the condition of an office than any form of account that could be adopted. In addition to the above, in the case of proprietary companies, the amount of subscribed capi- tal should be stated, and also the amount actually paid up, and how in- vested."

THE DANUBE NAVIGATION.

Several weeks before the close of the session, Lord Palmerston, in re- ply to questions asked by various Members regarding the alleged refusal

of the Russian Government to remove the obstructions to the navigation of the Sulina channel of the Danube, said he would inquire whether any of the correspondence between the Foreign Office and the Russian au- thorities could be laid before the House of Commons. A considerable amount of correspondence on the subject has been printed, from which the history of the affair for the last four years may be gathered. There are altogether forty-three papers, extending from February 9, 1849, to July 15, 1853; but that gives by no means a complete view of the Danubian difficulty ; as it appears from a remark of Lord Bloomfield at the very outset of the correspondence now published, that the complaint was of very old date even in 1849. In a despatch to Lord Palmerston, describing an interview with Count Nesselrodc, on the impediments to commerce at the mouth of the Danube, Lord Bloomfield says—" Count Nesselrode replied, that orders had been given to the local authorities, which he hoped would in the end prove satisfactory to her Majesty's Go- vernment, but that all that was required could not be executed as speedily as we seemed to expect. I rejoined, that your Lordship had frequently, and even long before I came to Russia, called the attention of the Im- perial Government to the defective state of the navigation at the Sulina mouth; and therefore it was not to be wondered at if we feared further procrastination." As Lord Bloomfield had been many years in RIISRIR, the Danubian grievance has evidently been a very old one. From the reports made by Mr. Cunningham, our Vice-Consul at Ga- latz, it appears that England has a much greater interest in this question now than she had ten or twelve years ago. Then, the number of British vessels coming yearly to the Danube was only eight on an average of three years. In 1850, when the report was drawn up, the average of the previous three years was 215; and if we are not mistaken it has greatly increased since that time. A heavily-laden vessel draws from fourteen to seventeen feet of water ; and as the water on the Sulina bar, for some years past, has seldom been more than eight or ten feet, owing to the negligence of the Russian authorities, no such vessel can ever leave the river without paying a heavy sum for lighterage. Of course the charges vary according to the number of vessels in the river, but they are always very heavy. One case is mentioned in which an Austrian vessel paid for lighterage at Sulina upwards of 300/. 'Nor is this the only evil. "After putting enough of cargo into the lighters, the vessels and lighters wait inside the river for a favourable opportunity of going out over the bar, and when out the vessel comes to anchor outside and begins taking in cargo; but if it comes on to blow, the vessel must make sail, abandoning that part of her cargo which may be in the lighters ; the lighters on their part endeavour to return into the river ; but they are often lost, or if they can be saved the cargo they have on board is generally damaged ; besides, if saved it must be sold at a very low price at Sulina." And all this clumsy, expensive, and dangerous process, is rendered necessary simply, as appears from the correspondence, because Russia refuses to take the necessary means for keeping the channel a sufficient depth, as was always done when the river was in the hands of the Turkish Govern- ment. According to Mr. Cunningham, the annual loss upon the com- merce now carried on with the Danube is about 100,0001. ; the whole of which could be prevented by an expenditure of 4000/. or 5000/. a year, and which might easily be raised by a very light tax on each vessel passing Salina.

From the beginning of the correspondence to the close, Lord Palmerston is at much pains to persuade Count Nesselrodc that the best means of improving the navigable channel would be by the employment of a steamer with a raking apparatus to pass continually up and down the river, in order to loosen the hardened soil in the channel, and expose it to the action of the current, which would carry it off. This was the opinion of a very intelligent person, a pilot in the service of the Austrian Lloyd's Steam Company, for upwards of twenty years engaged in navigating vessels bound from Constantinople to the Danube. Time after time was this plan urged upon the notice of the Russian authorities ; who al- ways poobpoohed it, as well enough for the Turks, when there was little or no trade, but not at all adapted for the present state of things. They determined to do the work in a more scientific manner; and accordingly, they ordered a dredging-machine in England five years ago, which, after a great many delays, commenced operations in 1851; and now, after being two years at work, ;it leaves the Sulina channel worse than ever, the latest news from that quarter being that the mouth of the Danube has become impassable, and that the Austrian mails to Constantinople are forwarded for the present by Trieste. The latest diplomatic note from St. Petersburg bears date July 15; at which time the depth of water on the bar at Sulina was only from eight to ten feet. Sir George Seymour, in a letter of that date to the Earl of Clarendon, states that he had once more represented to Count Nesselrode "the grievous injury inflicted upon English navigation," just as Lord Palmerston had done ten years before, and to as little purpose apparently. "The statement," says Sir George, "appeared to produce considerable effect upon the Chancellor, and his Excellency assured me that the mat- ter should be carefully examined." Two years ago, when the affair was in the hands of Lord Palmerston, he told the Russian Government very plainly what he thought of the way in which it had neglected its duty ; and ho would, no doubt, have continued to press the matter upon the at- tanyion of Count Nesselrode in a still more energetic manner had be con- tinued at the head of Foreign affairs. In a despatch to Mr. Buchanan, of September 24, 1851, he says— "I have to instruct you to press this matter on the Russian Government; and to observe, that the very simple process with rakes recommended by her Majesty's Government did maintain a depth of sixteen feet during the time that the mouth of the river belonged to the Turks; and that Europe never will believe that what was so easily accomplished by the Turkish Govern- ment is impossible for the far more enlightened and skilful Government of Russia. Her Majesty's Government cannot disguise from the Government of Russia, that the prevalent notion is that the Russian Government cares very little about the obstruction of the mouth of the Danube, under the idea that in proportion as the commerce up and down the Danube falls off, the commerce of Odessa must increase. But it is plainly manifest that any such idea would be erroneous, and that prosperous commerce by the Danube would in no way interfere with prosperous commerce by Odessa.

" Moreover, it is to be borne in mind, that Russia, when she compelled Turkey to cede to her the outlet of a great European river, which forms the commercial highway for the mutual intercourse of many nations, undertook towards other States duties and responsibilities which her Majesty's Govern- ment are convinced the Government of Russia will take a pride in making good." In reply to this, Court Nesselrode said he had no wish to depreciate the means used by the Turkish engineers ' • but he imagined that "a dredging- machine constructed in England must necessarily, with a view to the same object, inspire more confidence, and hold out a greater prospectof success." As for the difficulties attending the navigation of the Danube, "the cause of it must be sought in the alterations which result by degrees from the nature of things." On this head he makes several philosophical remarks. Thus, he informs Lord Palmerston, that "in all countries where cultiva- tion is increasing the body of water in the greater rivers has a tendency to decrease. The Rhine, the Elbe, and with us the Dneister and the Dneiper, have undergone this law. Is it to be wondered at that the Danube does the same 2 " What reply Lord Palmerston might have made to this learned view of the question remains a mystery ; as the next despatches are from Lord Granville, who about that time became Foreign Secretary, and little correspondence on the subject appears to have taken place during the last two years.

Oun Poen PnosrEcrs.—In their last monthly circular, Messrs. Sturge stated that, according to their estimate of the yield of the present harvest, we shall require not less than 15,000,000 quarters of grain of all kinds ; that is, probably, about as much as one-half of the total quantity of corn of home produce brought to market in ordinary years, exclusive of what is consumed by farmers and used as seed. Of this enormous quantity of foreign grain, it is estimated that we shall require 10,000,000 quarters of wheat and flour, and the other 5,000,000 of barley, oats, Indian corn, and rye. At the time when this estimate was made, the weather was very unpromising ; and that, no doubt, was taken into the calculation. But al- though we have had favourable weather during the last three or four weeks, which must have greatly improved our harvest prospects as re- gents quality, there is no doubt but the deficiency will be very great. The accounts of a defective crop in France have also served to encou- rage speculators to hope that they will be able to maintain prices at their present point, at least. The latest advicea from the Baltic state that large purchases have been made on French account, and it appears that considerable quantities of wheat and flour have already been sent from this country to France. So far as the Continent is concerned, therefore, it may turn out that the supplies at our command may not be so abun- dant or to cheap as was anticipated a few weeks ago. From Canada and the United States the intelligence is highly satisfactory. Letters from Toronto, of August 7, state that "the yield of wheat this year in Upper

i Canada is enormously lam,, ; it averages 40 bushels to the acre." If such is the case all over the colony, we ought to receive at least 2,000,000 quarters of wheat and flour from Canada alone ; and as the wheat crop in the United States is said to be very large also, we shall probably obtain 3,000,000 or 4,000,000 quarters thence • making altogether, from the other side of the Atlantic, more than a half of the total quantity of wheat required. Doubts have been entertained as to whether a sufficient amount of shipping could be procured within the next twelvemonth to bring 15,000,000 quarters of corn, supposing we should require so much ; but when it is recollected that we imported 10,753,755 quarters in 1849, when there was much less shipping regularly employed in the grain- trade, the task does not seem impossible.

THE Corrox CROP or 1853.—It is too soon to speak with much con-

fidence of the new cotton crop ; but the latest advice.s from the United States say that it is certain to reach 3,300,000 bales, and that there is a prospect of its going up as high as 3,500,000. Should these anticipations be realized, Lancashire will be able to keep its mills and factories going at full time for another twelvemonth at least. The crop of 1852, which has been now nearly all received at the ports, has been estimated at 3,250,000 bales ; which, with the increased importation from India, has enabled stocks in Great Britain to accumulate to a small extent above what they were a year ago. From the rate at which consumption is going forward all over the world, it is evident that a crop of only 3,000,000 bales, which would have been reckoned extraordinary a few years ago, would now excite alarm lest supplies should fall short. Should the Eastern question prove to have been settled, and no interruption take place in our China trade, the next twelve months will probably witness a considerable increase in our consumption of cotton, unless checked by strikes or an advance in the price of the raw material.

Ova TRADE wrrn AUSTRALIA.—The progress of our export trade to

Australia, New Zealand, and Van Diemen's Land, during the ten years before the gold-discoveries, although very large, has been thrown fairly into the shade by the rate at which it has been going forward within the last two years. This will be evident from a comparison of the declared value of our exports to the Australian Colonies in 1842, 1851, and 1852; which were respectively as follows.

1842. 1851. 1852.

£958,950 £2,602,253 £4,222,205

This year will in all probability exhibit as greaten increase over 1852 as the latter does compared with 1851.

CONSUMPTION or MALT.—A Parliamentary paper recently issued shows that in the year ended 5th July 1852 there were 5,095,943 quar- ters of malt made, and that in the year ended 6th July 1853 the quantity was 6,237,602 quarters. This increase denotes an improvement in the condition of the working classes, and a slight reaction perhaps in the Temperance cause. Temperance has, however, brought down the con- sumption of malt within the last eighteen or twenty years. In 1836, for example, which was not a year of as great prosperity as we enjoy at pre- sent, the quantity of malt consumed by a smaller population was 5,484,000 quarters ; which is considerably more than our consumption last year. The increased quantity of tea and sugar consumed at present will sufficiently account for this falling-off in the consumption of malt liquor.