In looking over some papers of the late Francis Baily, at the request of his sister, for the purpose of advising on their disposal, I found in one packet a number of letters addressed to him by the late George Barrett, the inventor (in this country) of the method for calculating life contingencies which now goes by his name. I also found the manuscripts of Baily’s three works—on leases, on interest, and on life assurances: these are now in their proper place, the library of the Institute of Actuaries.

From Baily’s methodical habit of arranging his papers, I feel confident that the letters alluded to are all which he received from Barrett: unless, indeed, some passed which he preferred not to preserve. The interest with which actuaries look upon the method published in these letters makes me think it desirable to give some account of them in a work which all actuaries consult.

In discussing the subject of assurance valuations and the most approved methods of making them, I have often had occasion to draw attention to the great importance of ascertaining with the utmost possible accuracy the rates of mortality and interest which have been found to prevail in any case under consideration, so as to determine what rates of premium are really required to provide, independently of other exigencies, for the sums assured, and how far the particular rates charged are sufficient or more than sufficient for that purpose. I have insisted the more strenuously on the necessity of this proceeding, from the conviction that in almost every Association some peculiarity in the prevailing mortality will be found to exist, distinguishing it from that of its neighbour, and arising from the different character of such influences as the condition of life of the persons whose lives are assured, the mode of selection, the greater or less predominance of the male sex and of assurances made by persons on their own lives over such as are effected on the lives of others, the constitution of the Company, and so on.

The Report of the Select Committee of the House of Commons on the subject of “Decimal Coinage,” of 1st August 1853, sets entirely at rest any doubt or question as to the great advantages and facilities which would be afforded by the adoption of a system of decimal numeration and decimal coinage.

That the change will accordingly be made, I feel confident; and as the basis of the new arrangement, as well as the method of carrying it out, are of vast importance to the public at large, and in business generally, I have considered it a fit subject of deliberation for this Institute. It may be said that we should have taken an earlier and more prominent part in originating and promoting a change of system, of the importance of which we had individually, I may safely assume, been long convinced; but I am inclined to think that we have wisely reserved our opinions, and that they will be more valuable in the present stage of the discussion (now that the Report of the Select Committee, and the evidence taken before them, has been published), than they would have been earlier in the day.