The following paper was originally ritten simply as a reply to Mr. Macfadyen's, which was redd before the Institute in May last. It has since been carefully revised and to a great extent recast, in consequence of suggestions receivd, to the effect that the subject was of efficient importance to be delt with in an independent paper and submitted afresh to the consideration of the Institute. In consequence of this change, a considerable amount of personal criticism, which might hav been suitable enuf for a personal reply to another paper, has been either struck out altogether, or much modified. It will therefore be understood that, in what follows, I hav somtimes had Mr. Macfadyen's arguments in view when I hav not mentiond his name

In connexion with a series of articles I have recently prepared for the Insurance Cyclopædia, bearing upon the history and practice of Fire Insurance, the subject of the Finance of Fire Insurance Offices has been very forcibly brought under my consideration. It is no part of the main design of that work, as I believe is very generally understood, to propound new theories in regard to the conduct of insurance companies. Its humbler purpose is to give a faithful record of the past history of insurance, to examine the foundations on which the different branches of the business are based, and to criticise, upon occasion, the data which has been relied on in their establishment; as also to supplement this data by reference to the new and ever increasing sources of information. In all this it has been my aim to present the views of others, rather than my own.

The effect of selection on the mortality experienced by a life office, and the addition which should be made to its reserve when a large proportion of its policies are of recent date, are questions which have often occupied the attention of actuaries; but owing to the paucity of data, no means, so far as I am aware, have hitherto existed for calculating, with any attempt at precision, the allowance which should be made for what is commonly called suspended mortality.

The law of mortgages is not a subject in which actuaries, as such, can be supposed to take an interest; but the laying out of the large sums in the hands of insurance companies is such an important part of their business, that a few remarks on the subject may be not inappropriate in this Journal.

“A father aged 60, and his son aged 30, who hav successiv “life interests in a landed estate, jointly borrow the sum ov £10,000 “from an insurance company, at 5 per-cent interest, upon mortgage “ov their life interests and a policy for £11,000, upon the life ov “the son, effected at the annual premium ov £2. 3s. per-cent. a “private arrangement being made between the borrowers, by which “the father is to pay the interest and premium during his life, and “the son is to pay them subsequently. In what proportion shoud “the £10,000 be divided between the father and the son?”