LIFE INSURANCE IN ENGLAND.

The readers of the Merchants' Magazine will perceive, from the following extracts from a late number of the London Economist, that the subject of Life Insurance is attracting some attention in the British Parliament:

"The motion which we announced a fortnight ago, for a committee to inquire into the present condition of Life Assurance Associations, was submitted to the House of Commons on Tuesday, and was acquiesced in with very general approbation. Only one honorable member, Mr. T. Chambers, (Hertford,) made some objections, chiefly on the ground that the public took care of themselves, while he deprecated calling on these societies to publish their assets and liabilities oftener than once in five years."

As to the applicability of the General Law of Corporations to Life Companies, the writer says

"So far as Assurance Companies fall within its scope, it is not effectual; it gives to those Companies the sanction of the State; generates in the public, by that sanction, a sentiment of confidence and trust in them; and takes no means, not even insuring that any portion of the capital shall be paid up which is professed to be subscribed, to make the Companies honest, respectable, or trustworthy. They are, in most cases, honest and respectable; and it is for the few exceptions to the general rule that all the precautions of the penal laws, as well as acts to regulate joint stock companies, are necessary. Prohibitions to commit crimes unenforced by punishments if committed, would be unavailing; and so the present acts relating to Assurance Companies, which prescribe the performance of certain things, and leave the nonperformance unpunished, are incomplete and unavailing." * * *

#

The existence of great evils is admitted; the remedy for them is now to be found out. If it be to leave the people wholly and entirely to take care of themselves, that may be proved. If it be to make laws which now exist sufficient for their object, the means of doing that may be shown. But the evil being notorious and the subject amazingly important, nothing less than the means of providing for the future welfare of large and intelligent classes merely by securing them against fraud, it is quite impossible that the evil should be recognized and no efforts made to correct it. It may be true, as Mr. Hume stated, that legislation cannot take care of individual interests: but, in fact, all legislation has this for its object. All interests are individual. The human race are all individuals, and corporate interests of all kinds are only superinduced on individual interests. The national interests are nothing more than the interests of all the individuals composing the nation, and only to be ascertained and judged of by the well or ill being of individuals. To say, especially after the Legislature has interfered to regulate joint stock companies-after it has made laws to give them a legal as well as a social existence,-that the Legislature is not to interfere with individual interests, is to say that it must not make its own laws effectual: is to sanction its interference, and admit that it has worked evil, and refuse to make interference useful. The great question, how far the Legislature should interfere with individual interests, the most subtle question in politics, as Burke said, that ever engaged his attention,-is left wholly untouched by the resolve to inquire how interference, already authorized, can be made to accomplish the end contemplated. This is all that is proposed by the committee. A sum nearly equal to the whole of the income tax is involved in these societies; it is money laid by for the future, which cannot, like railway shares or bank stock be disposed of at a market price if any doubt be enter tained of the security; and if it be desirable to take multiplied legislative precautions to secure the proper management of railways and joint stock banks, it must also, but in a stronger degree, be desirable to take legislative precautions to secure the proper management and solvency of Assurance Companies.

The Banker's Circular also takes up the subject of Life Insurance, as follows:— 'Mr. J. Wilson, the member for Wesbury, has brought forward a motion for the appointment of a committee to inquire into the existing state of Life Assurance Companies. We need scarcely say that this is a subject which has long demanded some attention from government, and though we are no advocates for too much interference by Parliament into the business transactions of the country, we certainly think that the subject of Life Assurance is one that may be investigated with great benefit to the public. At the same time, whatever is done should be performed with the greatest care, so as not to injure the confidence placed in those institutions that are known to be founded upon sound principles, and conducted by men of the highest integrity."

BANKS AND BANKING IN BRAZIL, AND HER DEBT.

Mr. J. Gardner, for many years one of the leading shipping merchants at Rio Janeiro, whose contributions, (relating to the coffee trade,) for the Merchants' Magaine, have attracted the notice of importers and consumers of the article, gives, in a private letter to a merchant of Baltimore, a few facts relating to banking and the public debt of Brazil, which we here subjoin:

Brazil was never in so flourishing and prosperous a condition as at the present time. Her 6 per cent stocks are 5 per cent above par; in 1832 they were 65 per cent discount. Her revenues have increased, and the river Platte question being settled there will probably be a surplus, so that the export duty on coffee, &c., will be reduced in July. Some change is also contemplated in the tariff upon imports. The domestic funded debt amounts to about 56 million of millreas or 32 million do!lars. The foreign debt to nearly 6 million pounds or 30 million dollars-to which is to be added the notes in circulation on the faith of the government, about 20 million dollars, making a total of 82 million dollars. The interest of the debt having always been punctually paid, her credit stands so well in London, that a loan last year, for about £1,000,000 of 41 per cent stock was taken at 95 per cent; it was to pay off a loan falling due. Very much is due to the present inspector of the customs, by whose good management, in a great measure, they have risen from 8 million miilreas in 1846 to 14 millions in 1852. Great improvements have also been made in the custom-house to facilitate business. In fact, improvement here, as elsewhere, is the order of the day, but not to the same extent. Railroads are projected to the interior, and one already in progress, but it will take time to complete them through the mountainous districts. Water has been introduced into the city in the greatest abundance, and it will soon be lighted with gas. The latter has been done by one of the active and enterprising citizens, Senor Ireneo Evangelista de Souza, he is "a man of an age." He is the proprietor of an extensive shipbuilding establishment, in connection with a foundry and machine shop, which would do credit to any country; three and four hundred persons are constantly employed. Three steamers have been launched in one day, and they are constantly building. Senor Ireneo has a privilege for two railroads, for the navigation of the Amazon, and is building a large floating dock. The government very wisely afford him every encouragement.

As part of the debt of Brazil I included the notes in circulation, (generally called bank notes,) without an explanation, you may be at a loss to understand what they are. A National Bank was established about 1820 when exchange was at par 674or 125 per millrea. The government were large stockholders, and controlled the direction. During the Buenos Ayrean war from 1825 to 1828, the issue of paper to supply government wants was about ten times the nominal capital, the consequence was, that at the close of the war in 1828, it so depreciated that the exchange in London was 32d. per millrea. The affairs of the bank becoming more and more embarrassed, the government took charge, paid off the private shareholders, and assumed the responsibility of the notes, making them a legal tender, but not redeemable in specie.

Further issues have been made from time to time, to supply deficits, and some have been burned, the proceeds of certain appropriations for the gradual redemption, leaving the amount now in circulation about 30 million millreas. No issues have been made for several years, and it is probable that no more will be, but eventually all redeemed. Exchange on England was 194d per millrea in 1842, from that time till 1845 it had many fluctuations. About that time the Chambers passed a law regulating the value of gold at the treasury and of certain foreign coins, making them legal tenders. This was virtually a reduction of the par of the millrea to 27 or 55 cents. Since then the fluctuations have been less; the last three years being above par, so that large amounts of gold have been imported at a profit, and being recoined, forms a large part of the circulating medium of Rio, the notes having gone to the distant provinces. This will be the case so long as exchange continues above 274d.

The Commercial Bank for discounts and deposits, with 2 millions capital, was established in 1835. Receiving sums of any amount on interest, it had a large capital to discount upon. Their certificates of deposit from 1 a 4 months being often used in payments, thereby increasing the circulating medium. It has been very judiciously managed, has never met with a single loss, although the annual discounts have been from 12 to 15 millions; has paid from 10 to 15 per cent dividends annually. No bills are discounted except with two good signatures, and the signature of a director is not admitted as one. This would not suit your banking institutions. The stock rose to

50 per cent premium. In 1851 the capital was increased to 6 millions, and the stock is now worth 40 per cent. A fine granite banking house, to cost about 2 million millreas, is being built, which will be an ornament to the city!

Trade demanding further facilities, in 1851 the Bank of Brazil, with 10 millions capital, with privilege of branches, was chartered, and is now in operation upon a rather more extended plan. Both are joint stock banks, and government has no interest whatever in them, or control over them in the management. Since their interference in the affairs of the old National Bank the public are very jealous of them.

PROPOSED DECIMAL COINAGE IN ENGLAND.

The following memorial to the Chancellor of the British Exchequer, in favor of a proposed system of decimal coinage, was recently forwarded by the Manchester Commercial Association:

66

That it has been satisfactorily demonstrated by many scientific and practical persons, that very great advantage would accrue to the commercial community from the adoption of a decimal system of coinage, (particularly in cases where calculations are made by way of per centages and averages;) and that the necessary change from the smaller description of coins, now in circulation throughout the United Kingdom, to those required for the proposed decimal system, might be effected with the greatest facility. That the first step towards the introduction of a decimal coinage has been taken by the issue of the florin, or "one-tenth of a pound sterling." That no change would be required in the number or value of the silver coins now most commonly in circulation, although it might be found desirable, in order to avoid confusion, to withdraw all pieces of greater value than the florin, which would then become the "second coin of account." That all shillings and sixpences might continue to circulate, as half and quarter florins respectively, and all newly coined silver should be issued with its value, as one florin," "half florin," or "quarter florin," stamped legibly thereon. That the nature and amount of the change required in the copper money of the realm is insignificant, being not greater than four per cent in actual value. That by the division of the florin into one hundred parts, called cents, the present threefold denomination of coins of account might be retained, and the difficulty attending the introduction of one-tenth of a florin, as a fourth coin of account, might be avoided. That every amount written in pounds, florins, or cents, might then be treated as a simple number of pounds sterling, of florins, or of cents, without any other reduction than that required by the removal of the decimal points. That every combination of cents, from the florin down to one cent, equal to one farthing, could be made in copper, by the employment of only two copper coins, and every combination and payment of five, ten, fifteen, twenty, &c., cents could be effected in silver by the coinage of one new piece, equal to fifteen cents, value about 3d., and the withdrawal of the present pieces of fourpence and threepence, greater facility and more accurate subdivision of payment being thus accomplished by means of a smaller number of pieces than are now in use. That the present time of peace and commercial activity, of vastly increased intercourse with all parts of the world, especially with the United States and with France, where the decimal system already prevails, and when attention is generally directed to the subject of the currency from the discoveries of gold in California and Australia, offers as good an opportunity as can fairly be expected for the execution of this design, now too long delayed. That the adoption of a decimal coinage would, when introduced, form the first and most necessary step in a series of laws for the regulation and simplification of our measures of capacity, weight, and length; the former of which especially require early attention, on account of the abuses now notoriously prevalent which call loudly for the interposition of the legislature. That your memorialists believe, that by judicious management in the introduction of the proposed new system, very little inconvenience need be inflicted upon the mass of the people during the transition from one system to another, and that the same might be accomplished with little loss or cost to the nation, and absolutely without any injury whatever to individuals. That for these reasons your memorialists pray that the early and earnest attention of government may be directed to this subject; and they would undertake to co-operate heartily with the legislature in promoting the successful working of an improvement, small perhaps in appearance, but fraught, as your memorialists believe, with important benefits to the general trade and Commerce of the country. And your memorialists will ever pray.

BRITISH BANKRUPT STATISTICS.

The annexed returns exhibit the number of bankruptcies gazetted in each year from 1843 to 1852 inclusive :

The Belfast Mercantile Journal copies from a London cotemporary the subjoined statement:

The progress of any new branch of industry is ever regarded with feelings of interest, and there is as much reason to be solicitous about the development of any general principle that will come in aid of commerce generally. We have arrived at the conclusion, after various inquiries and information obtained, that the possibility of safely insuring mercantile houses against bad debts had been fully tested by the Commercial Credit Society, Those who were cognizant of the working of the association at Paris, since the year 1847, never entertained a doubt of satisfactory results being obtained here when the system was well understood. M. Amand Mancel de Valdoner, the founder of the "Securite Commerciale," at Paris, has furnished such statistics of its operations as to explain the formation of three or four minor associations on the same plan. The Paris company has 2,000 assurers among the principal mercantile firms, and in the year 1852, gave an immense number of references as to character, by means of its 3,200 correspondents established throughout France. The Commercial Credit Society here, owes its success to the untiring exertions of Mr. Augustine Sargood, the chairman, and the earnest enthusiasm of the small, but working board of the directors, the manager, Mr. Sewell, and the other officers. Although active operations were commenced only in June last, there are already insurances upon £1,300,000. Among the Manchester houses the objects of the Society are being warmly seconded, and at a meeting of the Council of Reference and the Directors the details given of the working of the undertaking, by a happy combination of the mutual system with just such a small infusion of the proprietary principle as to give vitality, were most encouraging. The precise objects of the society are to reimburse to the assured com. mercial losses, to assist them in the recovery of debts, and to make advances when losses occur, with the view of preventing temporary embarrassment and ultimate failure. The idea that there is great difficulty in applying the 'principle of assurance to the objects of the society has been dispelled by the opinion of Alexander B. Glen Finlaison, Esq., the Actuary of the "National Debt and Government Calculator," to whom the society at the outset submitted for perusal the synopsis and general rules, and that gentleman has stated his belief" that the plan contains within it the strongest element of success." The full benefit of all the premiums will be given by the society to the assured and not to the shareholders, who are satisfied out of a commission allowed. One moiety of the surplus of the year's premium will be applied to the reduction of the next year's premium of those whose losses have not amounted to the sum of their annual premium, and the other moiety is for the formation of a fund to grant loans to be assured at limited interest. The rules require the premiums not to be paid in advance, but at the end of the half-year. The assured, on making a claim, must give the society power, in his name, to act against the debtor; but the assured must not act without the sanction of the society. No claim for less than £10 must be sent in. The society will afford any information that lies in its power respecting the

commercial stability of traders; and expects in time not alone to promote the security of the assured, but also to affect beneficially the whole trading community, by averting unforeseen calamities, on the one hand, and by the exposure of fraudulent traders, on the other, which individual creditors could of themselves seldom or ever bring about.

DEFAULTING BANKS OF FLORIDA.

Some years since the State of Florida loaned its credit to certain banking institutions incorporated by that State. The committee, or inspectors, to whom was referred (at the last session) a bill entitled, an Act to put in liquidation all defaulting banks of the State, reported as follows :—

That we have had the matter involved in said bill under consideration, and while we feel no sympathy for such corporations, and would be glad to see all matters connected with those banks finally settled up and disposed of, yet the committee are unable to discover any great necessity for, or public good likely to result from, putting these banks in liquidation at the present time. The mortgages held by these banks cannot be foreclosed at this time, nor would it be politic, in the opinion of the committee, to do so, if they possessed the power. The only effect, then, likely to result from the provisions of the bill, would be the transfer of the management of the affairs of those banks from their directors to the hands of commissioners; and, inasmuch as the legally constituted authorities of this State have disclaimed the binding efficacy of the bonds issued by said banks on the people of this State, for reasons which it is unnecessary for the committee to reiterate, it would, in our opinion, be both unwise and impolitic for this State to interfere, unless the public interests should imperiously demand it. The committee, for these reasons, recommend that the bill be indefinitely postponed.

SYNOPSIS OF THE FREE BANKING LAW OF FLORIDA.

The legislature of Florida have passed a free banking law. The main features of the bill are, that any association having a capital of at least one hundred thousand dollars, or any individual having a capital of at least fifty thousand dollars, may commence the business of banking, having first deposited with the controller of the State Treasury, State or United States stocks, equal to 6 per cent stocks, for which he (the controller) shall issue an equal amount of notes of various denominations, having first countersigned and registered the same in his office. Prior to commencing business the banker has to cause to be registered in the office of the register of the county in which he purposes to do business, a memorandum, specifying the name of the bank, its place of business, amount of capital stock, and number of shares into which it is divided, the names and residences of shareholders, and number of shares held by each -a copy of which memorandum is filed in the office of the Secretary of State. If at any time the bank fails to redeem its notes, the holders can have the same protested for nonpayment, and file such protest with the controller of the State; and if, at the expiration of ten days, said notes are still unredeemed, he (the controller) can give notice that the notes of the said bank will be redeemed out of the trust fund in his hands, and proceed to sell the stocks deposited as aforesaid with him for that purpose.

BULLION IN THE BANK OF ENGLAND.

A return to the British Houses of Parliament has been issued, from which it appears that, on the 16th of April, 1853, the bullion in the bank was £19,037,000. The monthly issue of notes in circulation in England, Scotland, and Ireland, in the four weeks ending the 16th of April, 1853, was £40,096,235

CONVERSION OF SOUTH SEA STOCK.

The new act of the British Parliament (16 Vict. cap. 23) for the reduction of the National Debt by South Sea and other annuities commutation, is now in operation. Proprietors of South Sea stock, three per cents, may for £100 of their stock receive £82 10s. new three and a half per cent, £110 two and a half per cent, or £100 Exchequer Bond carrying interest at £2 15s. per cent, not later than the 1st September