15 A P E R 
ON AN 
I N I FORM STANDARD 
OF 
MORTALITY AND INTEREST, 
FOR 
STATE LIFE INSURANCE VALUATIONS. 
PREPARED BY 
lion. WILLIAM BA ILXES. 
EX SUPERINTENDENT OF THE INSURANCE DEPARTMENT OF THE 
STATE OF NEW YORK. 
ALBANY, N. Y.: 
WEED, PARSON'S AND COMPANY, PRINTERS. 
MDCCCLNXI. PAPER 
ON AN 
UNIFORM STANDARD 
» 
OIT 
MORTALITY AND INTEREST, 
FOR 
STATE LIFE INSURANCE VALUATIONS. 
PREPARED BY 
Hon. WILLIAM BABHES, 
ITT 7 
EX-SUPERINTENDENT OF THE INSURANCE DEPARTMENT OF THE 
STATE OF NEW YORK. 
ALBANY, N. Y.: 
WEED, PAESOXS AXD COMPANY, PEIXTERS. 
MDCCCLXXI. Hon. Gustavus W. Smith, 
Oliver Pilsbury and 
George M. Brinkerhoef, Committee of the National Insur- 
ance Convention, on Table of Mortality and Rate of Interest 
for the valuation of the policies of life Insurance companies: 
Gentlemen, — On your invitation, I was present at a meeting of 
the committee, at the May session of the National Insurance Con- 
vention, in the city of New York, and, having been called upon by 
the chairman, made some unprepared remarks on the subject under 
discussion, mostly conversational, and in response to special inquiries 
by the members of the committee and other delegates present at 
the meeting. 
The great importance of this subject to the future prosperity of 
the business of Life insurance in this country has induced me to 
prepare the following Paper, which I now submit as containing my 
matured views. 
I present it to you, and through you to the Convention, to the 
Legislatures of the different States, and to the great body of the 
American people, as the results of a somewhat varied and extensive 
experience as an executive and supervising officer. 
I beg leave to premise in advance, that your organization will 
become a permanent one, and that it will hold annual sessions of 
greater or less duration in different parts of the country, for the 
continuous discussion and promotion of the great interests entrusted 
to your supervision. 
I have long felt the need of some National body in which inter- 
state insurance interests, laws and regulations, could be calmly and 
disinterestedly discussed, for the promotion of the general good and 
the full development of harmony, in accord with the National 
constitution and the peculiar autonomy of the different States of 
the American Union. This body of Insurance Superintendents 
should be a permanent one, having continuous existence in the 
successive State officers invested with the functions of official 
inspection and supervision of insurance companies in the different 
States. 4 
Animal meetings, for purposes of personal acquaintance, discus- 
sion and consultation, should, and undoubtedly will, lead to the 
promotion of the common interests of the Fire, Marine and Life 
insurance companies, and of the great body of the people, whose 
interests it is their duty to foster and promote. 
Your decisions and recommendations here, however, although 
justly entitled to great consideration and influence, are not, and 
should not be, final and conclusive as to the various points under 
discussion. Your action is simply reconnnendative, and is subject 
to reconsideration by future conventions of your own successors in 
office, and open also to the critical supervision of the Legislatures 
of forty-eight different States and Territories, and of their successors 
in office, upon whom the direct and immediate responsibility rests, 
so far as legislation is concerned. It will therefore, readily be seen 
that sound policy and wise statesmanship will counsel slow progress, 
and the adoption only of such action as will be entitled to receive, 
and which will probably meet with, the general concurrence of the 
different States and the approval of the insurance companies and ot 
future conventions of Superintendents. 
It would be very unfortunate, if through ill-advised and precipi- 
tate or inconsiderate action, recommendations should be made which 
failed to commend themselves to the sound judgment and true 
interests of the different States, or which, after being adopted by the 
present Legislatures, should be repealed by succeeding ones. 
The most important point which can claim your attention is, 
undoubtedly, that of a standard Table of Mortality and Rate ot 
Interest for Life Insurance Yaluations and calculations. Here, uni- 
form action, if in the right direction, is more important than in any 
other, as the Table of Mortality and the rate of interest permeate 
the whole constitution and being of a Life insurance corporation, 
and a divorce or change, after the lapse of a few years, becomes 
very difficult and complicated. 
Numerous and convenient Tables will also multiply in various 
forms, whenever a common mortality and uniform rate of interest 
have been adopted by the companies and the Legislatures of the dif- 
ferent States. 
In approaching this subject, it is of the first importance that we 
should definitely understand what are the existing laws of the 
various States of the Union, now actually in force, prescribing 
Rates of Interest and Tables of Mortality, for determining the 
liabilities of Life insurance companies. 
The following is a summarized statement of the laws of the dif- 5 
ferent States which have prescribed, by statute, Tables of Mortality 
and Bates of Interest to be assumed , in testing the soundness and 
solvency of these institutions: 
NEW YOEK. 
The standard in this State is the American Experience Table of 
Mortality, with four and a half per cent interest. 
Chronologically, the subject has been legislated upon in New 
York as follows : 
a. d. 1828. 
During this year that portion of the Devised Statutes was passed 
which related to “Moneyed Corporations,” which term was defined to 
cover, among others, every corporation authorized by law to make 
insurances. 1 A. A. 598, § 51. Moneyed corporations (and insurance 
companies, therefore), which were incorporated after 1828, or the 
charters of which were renewed thereafter, were required to make 
annual statements to the Comptroller yearly, on the first day of 
January, in a form prescribed by said statute and by that officer. 
Under this statute Fire and Marine insurance companies reported 
to the Comptroller with more or less regularity from the year 1830 
to the passage of the general insurance act of 1849. 
See Barnes’ N. T. Condensed Insurance Reports, rol. 1, passim; 1 Ii. S., 
Part 1, chap, xviii, title 2, § 19, p. 593, first edition. 
During tliis year the first genera] insurance Act was passed under 
the provisions of the Constitution of 1846, which thereafter abolished 
sub modo all special charters, and required the passage of general 
insurance laws. 
This act was passed April 10, 1849, and was entitled “An act to 
provide for the incorporation of insurance companiesS>ess. Laws, 
chap. 308. 
By the provisions of the seventh and thirteenth sections of said 
Act, insurance companies of this and other States and foreign countries 
doing business in New York, were required to make annual state- 
ments yearly in the month of January, showing their condition, as 
prescribed by statute, under a blank form to be furnished by the 
Comptroller; and in case the capital of any company, through 
losses and expenses, or otherwise, had become deficient or impaired to 
the extent of twenty-five per cent thereof, the company was obliged 
to make an assessment, wind-up its affairs, or discontinue business in 
a. d. 1849. 6 
this State. This statute did not in express terms refer to the sub- 
ject of re-insurance as a liability of an insurance company. 
a. d. 1851. 
During this year the first act was passed expressly relating to Life 
insurance companies only. It was entitled “An act in relation to 
all companies transacting the business of Life insurance within 
this State! Passed April 8, 1851. Chap. 95, Sess. Laws, 1851. 
This act required a deposit with the Comptroller, by all Life insur- 
ance companies doing business in blew York, of $100,000.00, for the 
security of policyholders. 
By the fourth section of this act special reports were required from 
Life insurance companies of sister States and foreign governments, 
showing certain specified items of information, among which was 
“ the amount of fund reserved for re-insurance.” 
The fifth section empowered the Comptroller to appoint one or 
more competent persons to examine into the affairs of Life insurance 
companies transacting business in this State, to examine their 
books, etc. 
If the assets appeared to be insufficient to insure the outstanding 
risks, or the company to be in an unsound condition, it was required 
to be dissolved; or, if from another State, to discontinue its business 
in blew York. §§ 6 and 7 id. 
a. d. 1853. 
During this year the first general Life Insurance Act was passed, 
which act has since that period mainly regulated the business of Life 
insurance in this State. It was entitled “An act for the incorpora- 
tion of Life Insurance Companies, and in relation to agencies of 
such companies.” Passed June 24, 1853. Sess. Laws, 1853. 
By the twelfth, fourteenth and fifteenth sections of this Act all Life 
companies doing business in this State were required to make annual 
statements of their affairs on the first day of January, or within 
sixty days thereafter, containing certain detailed and specific informa- 
tion in a blank form, which was to be furnished and modified by the 
Comptroller. The re-insurance liability is not specifically mentioned 
in this section, except that a tabular and classified statement was 
required of the policies in force, showing the ages and years of issue 
in such a manner as to enable the Comptroller to make or have 
made a valuation of the outstanding policies. 
bio standard of valuation was prescribed; blank forms were how- 7 
ever printed, under which classified tables of policies were returned 
by the companies for several years. 
This statute embodied the main Life insurance laws in force on 
the organization of the Insurance Department in 1860. 
a. d. 1866. 
During this year the first act was passed which relieved the 
Superintendent from the personal duty of fixing upon a rate of 
Interest and table of Mortality. 
By chapter 785, § 1, Laws of 1866, the English Life Table No. 3, 
Males, at five per cent interest, was fixed upon as the legal standard. 
See Sess. Laws, 1866. 
a. d. 1868. 
Tlie Act of 1866 was superseded by the one of 1868 {chap. 623, 
§ 1), which fixed upon the American Table of Mortality and four 
and a half per cent interest. This Act was passed under the cir- 
cumstances and for the reasons detailed in my annual Report of 
1869. See p. lxxxii, Life Report. 
The practical results of these two standards ran very nearly 
together, the higher rate of interest in the English Table of one- 
lialf per cent which diminished the reserve, being offset by the 
larger mortality of the English Life Table, as compared with the 
American Experience. 
The existing statute of New York is as follows: 
Ҥ 13. * * * It shall also be the duty of the said Superintendent, at least once 
in every five years, and annually, in his discretion, to make valuations of all the 
outstanding policies, additions thereto, unpaid dividends and all other obliga- 
tions of every American Life insurance company transacting business in this 
State ; and for the purposes of such valuations, and for making special examina- 
tions under the seventeenth section of this act, and for valuing registered Life and 
other policies under chapter seven hundred and eight of the laws of eighteen hun- 
dred and sixty-seven, the rate of interest assumed shall be four and a half per 
cent per annum, and the rate of mortality shall he that established by the Ameri- 
can experience table, in which table the expectation of life and the numbers of 
living and dying at each age, from ten to ninety-five out of one hundred thousand 
persons living at age ten, are as stated in the schedule hereto annexed. 
The Superintendent may, in his discretion, vary the above standards of interest 
and mortality, in cases of companies from foreign countries, and in particular 
cases of invalid lives or other extra hazards. The Superintendent may also, in 
his discretion, value policies in groups, use approximate averages for fractions of 
a year and otherwise, and calculate values by the net, the actual or the gross 
premiums or otherwise, deducting, in cases of gross valuations, from the gross 
value of future premiums, one-sixth thereof for future expenses and contingencies. 
(Schedule follows,containing the Table.) 
Laws of 1853, chap. 463, § 13, as amended by Laws of 1866, chap. 785, 
§ 1, and by Laics of 1868, chap. 623, § 1. Wolford's Lns. Laws, p. 484. 
The Portsmouth, or Northampton, Table of Mortality, at six per 
cent, singularly enough, is still the standard for determining the 8 
gross present sum payable in commutation to tenants for life by the 
curtesy or in dower, under Pule 85 of the Supreme Court of this 
State. 
Population, census of 1870, is 4,382,759 
Area, square miles 46,085 
Number of Life insurance companies 41 
CALIFORNIA. 
The rule in this State is the American Experience Table, four 
and a half per cent interest, as provided in the following statute : 
A. D. 1870. 
§ 1. Every Life insurance company organized under the laws of this State shall, 
on or before the first Monday in January of each year, furnish the insurance com- 
missioner the data necessary for determining the valuation of all its policies out- 
standing on the thirty-first day of December next preceding, which said valuation 
shall be based upon the rate of mortality as established by the American experience 
life table. The rate of interest to be assumed shall be four and one-half per 
centum per annum. For the purpose of making such valuation the insurance 
commissioner of this State is authorized to employ a competent actuary, whose 
compensation for such valuation shall be three cents for each thousand dollars of 
insurance, to be paid by the respective companies for which the valuation is made. 
Section 1 of the act approved April 4, 1870, entitled 11 An act to provide 
for the official valuation of Life insurance policiesSess. Laws 1869- 
1870, chap. JDLX, p. 859 ; Wolford's Supplement, pp. 8 and 9. 
§ 2. When the certificate of the insurance commissioner, of the official valuation 
of the policies as provided in section one of this act, issued to any company organ- 
ized under the laws of this State, shall not be accepted by any other State, in lieu 
of a valuation of the same by the insurance officer of such other State, then all 
companies organized under the laws of such other State, doing business in this 
State, shall be required to have a separate valuation made, under the authority of 
the insurance commissioner of this State, as in this act provided. 
Same act, § 2 ; Laics 1869-1870, p. 860. 
Population, census of 1870 560,247 
Area, square miles 188,981 
Number of Life insurance companies 2 
KANSAS. 
This State has adopted the American Experience Table at four 
and a half per cent interest, as embodied in the following section of 
the act of 1871: 
A. D. 1871. 
§ 14. It shall be the duty of the said superintendent, once in three years, to make, 
or cause to be made, net valuations of all the outstanding policies, additions there- 
to, unpaid dividends, and all other obligations of every Life insurance company 
transacting business in this State ; and for the purpose of such valuations, and for 
making special examinations of the condition of Life insurance companies, as 9 
provided in the laws of this State relating to Life insurance companies, and for 
valuing all policies of whatever description, and for any purpose whatever, the 
rate of interest shall be four and one-lialf per cent per annum, and the rate of 
mortality shall be established by the tables known as the American experience 
tables ; provided, that whenever the laws of any other State of the United States 
shall authorize a valuation of Life insurance policies by some designated State 
officer, according to the same standard as herein provided, or some other standard 
which will require a reserve not less than the standard herein provided, the valua- 
tion made according to the said standard by such officer of the policies and other 
obligations of any Life insurance company not organized under the laws of this 
State and certified by said officer, may be received as true and correct, and no 
further valuation of the same shall be required of such company by the superin- 
tendent of insurance ; the superintendent may, in his discretion, value policies 
in groups, and use approximate averages for portions of years and otherwise, but 
he shall in all cases calculate values by net premiums ; the superintendent may, 
in his discretion, vary the above standard of interest and mortality in cases of 
companies from foreign countries, and in particular cases of invalid lives or other 
extra hazards. 
Section 14, chap. 8, of the act entitled ‘ ‘ An act to establish an Insurance 
Department in the State of Kansas, and to regulate the companies doing 
business therein.” Approved March 1, 1871, and published March 9, 
1871 ; Sees. Laws 1871, p. 219, chap. KOHL; Wolford's Supplement, 
p. 37. 
Special provisions relating to personal examinations are made by 
sections 7 to 13 of said act. 
Sections 50 to 53 regulate the issue of Registered life policies 
which are to be valued by the American Experience Table at four 
and a half per cent. 
Wolford’s Supplement, pp. 49, 50. 
Population, census of 1870 364,399 
Area, square miles 120,000 
Number of Life insurance companies 1 
KENTUCKY. 
The State of Kentucky has adopted the American Experience 
Table at four and a half per cent interest, as provided by the fol- 
lowing laws: 
a. D. 1870. 
§ 13. Upon some day in each year designated by him, the commissioner shall 
calculate the existing values of all outstanding policies of Life insurance in 
companies authorized to make insurance on lives in this State, according to the 
standard designated and established by the laws of this State ; provided, hoicever, 
that if any company, incorporated by any State where a regularly organized 
insurance bureau or department exists, shall furnish a certificate, under seal, in 
due form, of the insurance commissioner or Superintendent, setting forth the 
existing values of all its outstanding policies, such certificate shall be received as 
evidence by the insurance commissioner of this Commonwealth, and no valuation 
of the policies of such company shall be made by him. The cost of making every 
valuation under this section shall be assessed on the company whose policies are 
so valued. 
Section 14 of the act entitled “ An act to establish an Insurance Bur earn.'''' 
Approved March 10,1870. 10 
§ 29. When the actual funds of any Life insurance company doing business in 
this Commonwealth are not of a net cash value equal to its liabilities, counting as 
such the net value of its policies, according to the “American experience ” rate 
of mortality, with interest at four and one-half per centum per annum, it shall be 
the duty of the insurance commissioner to give notice to such company and its 
agents to discontinue issuing new policies within this Commonwealth until such 
time as its funds have become equal to its liabilities, valuing its policies as afore- 
said. Any officer or agent who, after such notice has been given, issues a new 
policy from and on behalf of such company, before its funds have become equal 
to its liabilities as aforesaid, shall forfeit, for each offense, not exceeding one 
thousand dollars. 
Wolford's Supplement, pp. 49 and 50. Section 29 of the act entitled “An 
act for the incorporation and regulation of Life Insurance Companies.” 
Approved March 10, 1870. Wolford's supplement to General Insurance 
Laws of the United States, p. 74. 
a. d. 1871. 
An act was passed in this State during the present year, entitled 
“An act to authorize Life insurance companies to make special 
deposits of securities in the Lnsurance Department.” This act regu- 
lates the issue of Registered policies which are to be valued by the 
legal standard. 
§ 4, Wolford's Supplement Ins. Laws, p. 100. 
Population, census of 1870 1,320,011 
Area, square miles 40,500 
Number of Life insurance companies 2 
MISSOURI. 
This State has adopted the American Experience standard of 
mortality, with four and a half per cent interest, as follows: 
§ 29. It shall be the duty of said superintendent, once in every five years, to 
make or cause to he made, valuations of all outstanding policies, additions thereto, 
unpaid dividends and all other obligations of every American Life assurance 
company doing business in this State, and for the purpose of such valuation, and 
for making special examinations under the forty-first section of this act, the rate 
of interest assumed shall be four and a half per cent per annum, and the rate of 
mortality shall be that established by the American experience table, in which 
table the expectation of life and the numbers of living and dying at each age, 
from ten to ninety-five out of one hundred thousand persons living at age ten, are 
as stated in the schedule hereto annexed. The superintendent may, in his dis- 
cretion, value policies in groups, and use approximate averages for fractions of 
f ears and otherwise, but he shall in all cases calculate values by the net premiums. 
Schedule of the Table annexed.] 
A. D. 1869. 
Section 29 of the act entitled “ An act for the incorporation and regulation 
of Life Assurance Companies.” Approved March 4, 1869. Wolford's 
Ins. Laws, pp. 368, 369; Sess. Laws 1869, p. 35-37. 
See section 41, same act (jSess. Laws 1869, p. 40), for the provis- 
ions relating to personal examinations of Life companies and the 
proceedings thereon. 11 
A. D. 1871. 
§ 2. * * * Prior to the first day of January, 1871, the Superintendent 
shall make or cause to be made, in the manner provided by sections twenty-nine 
and forty-one of an act entitled “An act for the incorporation and regulation of 
Life Assurance Companies,” approved March 10, 1869, an examination and valua- 
tion of the assets and liabilities of every Life insurance company doing business 
in this State, which has not been heretofore examined by him, or under his 
direction; and if said Superintendent shall be satisfied, after such examination 
and valuation is made, that any company is in an unsound condition, or that its 
actual assets are less than all its liabilities, he shall proceed against it as provided 
by law in the case of unsound life insurance companies. The costs of making 
the examination and valuation herein designated shall in each case be assessed 
upon and paid by the company examined. ******* 
Section 2 of the act approved March 24, 1870, entitled u Insurance, depart- 
ment of, An act to amend sections seven, eleven, thirteen, sixteen and 
seventeen of an act entitled ‘An act to create an insurance department” 
Approved March 4, 1869; Sens. Laws 1870, p. 51. 
Population, census of 1870 1,721,295 
Area square miles 67,380 
Number of Life insurance companies 8 
MICHIGAN. 
This State has also adopted the American Experience Table of 
Mortality, with four and a half -per cent interest, as its standard tor 
Life insurance valuations and calculations, as per the following 
statutes: 
§ 17. No policy of insurance on life, issued after this act shall take effect, by any 
company organized under the laws of this State, shall he forfeited or become void 
by the non-payment of any premium thereon, after the first, any further than as fol- 
lows : The net value of the policy, when the premium becomes due and is not 
paid, shall he ascertained according to the ‘ ‘American experience table ” rate of 
mortality, with interest at four and one-half per centum per annum. Three- 
fourths of such net value shall be considered a net single premium of the whole 
life insurance, and the amount it will insure shall he determined according to the 
age of the party at the time when the unpaid premium became due, and the 
assumption aforesaid in regard to interest and rate of mortality ; hut if no appli- 
cation be made to the company for such paid-up policy within one year after 
default shall have been made in payment, then all liability on the part of the 
company on the policy on which the party is in default shall cease. 
§ 18. Every company doing a business of life insurance within this State shall, 
annually, in the month of January, furnish to the Secretary of state, the data 
necessary for determining the amount of all its liabilities and the valuation of 
all its outstanding policies, to be made by the Secretary of state or under his 
authority ; and, in making such valuation, the rate of interest to be assumed shall 
be four and one-half per centum.per annum, and the rate of mortality shall be 
that established by the “American experience life table,” as shown in the schedule 
hereto annexed ; and such company shall pay to the Secretary of state, as a com- 
pensation for such estimate, one cent for each thousand dollars insured ; provided, 
that where, by the laws of any other State, an annual valuation is required to be 
made by an insurance commissioner or other State officer, the official certificate 
of any such commissioner or officer, being filed with the Secretary of state, and 
showing the annual official valuation of the policies of any company doing busi- 
ness within such State, and showing also the basis of such valuation, shall be suffi- 
cient, and stand in the place of any valuation of the policies of such company by 
or under the directions of the Secretary of state of this State ; but no company 
shall be permitted to transact business within this State, unless the amount of its 
assets shall equal the net value of all its outstanding obligations, as determined 
according to the assumptions in regard to rates of interest and mortality as herein- 
A. D. 1869. 12 
before provided ; and in case the assets of any company, transacting business 
within this State, shall at any time be less than is required by the provisions of 
this act, the Secretary of state shall serve a written notice upon the person desig- 
nated by such company to receive service of process under the laws of this State, 
or shall address such notice by mail to the principal office of such company, and 
publish the same at least three times in some newspaper circulated daily in this 
State ; and if, after the expiration of ten days from the service or publication of 
such notice, any agent or officer of such company shall receive applications for 
policies, or issue policies, while such deficiency of assets exists, and the costs of 
giving such notice remain unpaid by such company, he shall be subject to the 
penalties provided in section ten of this act; provided, further, that when the cer- 
tificate of the Secretary of state, of the official valuation of the policies issued by 
any company organized under the laws of this State, shall not be accepted by any 
other State in lieu of a valuation of the same by the insurance officer of such 
other State, then all companies organized under the laws of such other State shall 
be required to have a separate valuation made under the authority of the Secretary 
of state of this State, as herein provided. [Schedule of table of mortality 
annexed.] 
Sections 17 and 18 of an act entitled “A?i act in relation to Life Insurance 
companies transacting business in this State;" approved March 30, 1869; 
Wolford's Ins. Laws, pp. 303, 304 and 308 ; Sess. Laws, 1869, No. 77, 
p. 136. 
For provisions relating to special examinations, see § 12, same act. 
Population, census of 1870, 1,184,069 
Area square miles 56,243 
Number of Life insurance companies 1 
WISCONSIN. 
The State of Wisconsin has adopted the American Experience 
Table, assuming interest at the rate of four and a half per cent. 
A. D. 1870. 
§ 10. When the actual funds of any Life insurance company doing business in 
this State are not of a net value equal to the net value of its policies, according to 
the American experience table of mortality, with interest at four and one-half per 
cent per annum, it shall be the duty of the Secretary of State to give notice to 
such company and its agents to discontinue issuing new policies within this State, 
until such time as its funds have become equal to its liabilities, valuing its poli- 
cies as aforesaid. ********* 
Section 10 of the act entitled “An act to regulate the business of Life Insur- 
ance;" approved March 14, 1870. Wolford's Supplement U. S. Ins. 
Laws, p. 227. 
Population, census of 1870 1,054,670 
Area, square miles 53,924 
Number of Life insurance companies 1 
MASSACHUSETTS 
a. d. 1855. 
By cliap. 124, Laws of 1855 (Sess. Laws, p. 569 to 572) an act 
was passed entitled “ An act to establish a Board of Insurance 
Commissioners A 
A board of three commissioners was constituted with full powers 
for making special and general examinations, and of initiating legal 
proceedings in cases of insolvency. The commissioners wrere re- 13 
quired to report annually in the month of December, to the Secre- 
tary of the Commonwealth. 
ISTo special provisions were enacted for defining the liabilities of 
Life insurance companies. 
a. d. 1858. 
By chap. 177, Laws of 1858 (Sess. Laws, p. 152), an act was 
passed entitled “ An act for the letter establishment of the Board of 
Insurance Commissioners.” 
The board was reduced from three to two commissioners. It was 
further provided by the second section of said act as follows: 
§ 2. * * And it shall be the duty of said commissioners to calculate the 
existing value, on some day in every year designated by them, of all outstand- 
ing policies of Life insurance in companies authorized to make insurance on lives 
in this Commonwealth ; and such calculated values shall be included by the 
insurance commissioners in their annual report to the legislature. All companies 
making insurance upon lives, or their agents in this Commonwealth, shall fur- 
nish to the commissioners an attested statement, certified in the same manner in 
which their returns are now required to be certified, setting forth in form the 
number, date and amount of each policy, and the age of the insured at the period 
of its date, in default whereof the said companies or their agents shall be liable 
to the same penalties as are imposed by law for neglect to make returns. 
Id., § 2, Sess. Laws, p. 153. 
Here, for the first time in Massachusetts we find provisions relating 
to State valuations of Life insurance policies, but no Table of Mor- 
tality was prescribed or rate of interest fixed by statute. 
a. d. 1861. 
In the celebrated non-forfeiture law of 1861, we first find any 
allusion in Massachusetts statutes to Tables of Mortality and Rates 
of Interest; this act, for the purposes of surrender values only, fixed 
upon the Actuaries Table at four per cent. 
§ 1. No policy of insurance on life, issued on and after the tenth day of May in the 
year eighteen hundred and sixty-one, by any company chartered by the authority 
of this Commonwealth, shall be forfeited, or become void, by the non-payment of 
premium thereon, any further than regards the right of the party insured therein to 
have it continued in force beyond a certain period, to be determined as follows, to 
wit: the net value of the policy, when the premium becomes due and is not paid, 
shall be ascertained according to the “combined experience ” or “ actuaries’ ” rate 
of mortality, with interest at four per centum per annum, after deducting from such 
net value any indebtedness to the company or notes held by the company against 
the insured, which notes, if given for premium, shall then be canceled; four-fifths 
of what remains shall be considered as a net single premium of temporary insur- 
ance, and the term for which it will insure shall be determined according to the 
age of the party at the time of the lapse of premium and the assumptions of 
mortality and interest aforesaid. 
Laws of 1861, chap. 186, § 1, pp. 495; 496. 
See also the second section of this Act, id., p. 496. 
a. d. 1863. 
During this year, 1863 (April 13th), an act was passed, entitled 
“ An act concerning Life insurance,” which provided as follows: 14 
“When the actual funds of any life insurance company doing business in this 
Commonwealth are not of a net cash value equal to its liabilities, counting (as 
such) the net value of its policies according to the rule of valuation adopted in 
chapter 186 of the act of 1861, it shall he the duty of the insurance commissioner 
to give notice to such company, and its agents, to discontinue issuing new policies 
within this Commonwealth until such time as its funds have become equal to its 
liabilities, valuing its policies as aforesaid. And any officer or agent who shall, 
after such notice has been given, before its funds have become equal to its liabili- 
ties as aforesaid, issue a new policy from and on behalf of such company, shall 
be subject to the penalties provided in chap. 58, sec. 77, of the general statutes.” 
Act of 1863, Sess. Laws, p. 458; Wolford's Ins. Laws, p. 271. 
With the exception of the act in the State of Georgia, hereinafter 
alluded to, this Massachusetts act of 1863 was, so far as my informa- 
tion extends,(the first.attempt by any legislative body to fix upon a 
specified Table of Mortality and rate of interest to be assumed in 
determining the amount of reserve included as a debit among the 
liabilities of a Life insurance company. 
a. d. 1866. 
By chap. 255 (passed May 23) of the laws of this year, the office 
of Insurance Commissioners was abolished affer the first of July 
then next, and one commissioner was substituted in lieu of the old 
board of two commissioners. 
Bess. Laws 1866, chap. 255, p. 243. 
On the 16tli day of February, 1866 (Sess. Laws, chap. 33, p. 23), 
an act was passed, entitled “ An act in relation to the distribution 
of surplus funds of Life insurance companies,” the first and 
second sections of which enacted in substance as follows: 
§§ 1 and 2. Life insurance companies which do business upon the principle of 
mutual insurance, or the members of which are entitled to share in the surplus funds 
thereof, may make distribution of such surplus as they have accumulated, annually, 
or once in two, three, four or five years, as the directors thereof from time to time 
determine. In determining the amount of the surplus to be distributed, there 
shall be reserved an amount not less than the aggregate net value of all the out- 
standing policies, said value being computed by the “ Combined Experience” or 
“Actuaries’ ” rate of mortality, with interest at four per cent. 
Act of 1866, Sess. Laics, p. 8, §§ 1, 2; Wolford's Ins. Laws, p. 257. 
Population, census of 1870 1,457,355 
Area, square miles 7,500 
Number of Life insurance companies 6 
CONNECTICUT. 
This State in July last adopted the old Actuaries Table at four 
per centum interest, allowing however, to Connecticut companies 
only, an impairment equal to one-fourth of a company’s liabilities, 15 
before the Insurance Commissioner is obliged to apply for the appoint- 
ment of a receiver or trustee; but allowing him, in his discretion, to 
apply, when the impairment ranges less than one-fourth of the 
liabilities, including of course, as a portion of the liabilities, the 
statute re-insurance fund;—the Company so impaired being obliged 
to stoj3 all further dividends to either stock or policyholders, and to 
issue no new policies so long as the impairment continues. 
§ 23. Upon receipt of such report the commissioner shall, without delay, make 
a valuation of the policies of each company, and ascertain the amount of re-insur- 
ance reserve proper to be held on account thereof. He shall for this purpose 
assume the rate of mortality shown by the so-called actuaries or combined 
experience table, and four per cent compound interest; and he shall value only 
net premiums. 
A. D. 1871. 
Section 23, chap. 5, of the act entitled “An act in addition to and in alter- 
ation of '■An act concerning communities and corporations;' ” approved 
July 27, 1871. 
§ 28. If it shall appear from any report, valuation or examination, as herein 
provided, that the assets of any company chartered by this State to grant insur- 
ances or make contracts contingent upon lives, are less than its liabilities, or if it 
shall fail to comply with any requirements of this act, the commissioner shall 
forthwith notify such company to cease the issue of new policies, and the pay- 
ment of dividends to stock and policyholders until such time as the deficiency 
shall be supplied ; and he may, at his discretion, bring his petition to the court of 
probate for the district in which the principal office of such company is located, 
setting forth the facts upon which it is founded, and praying for an appointment 
of a trustee to take possession of the property of such company for the benefit of 
its creditors : such trustee, if appointed, shall proceed as directed by section 
twenty-nine of this act. 
Sections 24 and 25, provide for special personal examinations of 
Life insurance companies both in and out of Connecticut. 
§ 29. In case it shall appear that the assets are less in amount than three-fourths 
of the liabilities of such company, the commissioner shall, without delay, bring 
his petition to the court of probate for the district in which the principal office of 
such company is located, in the manner and form provided in section twenty- 
eight of this act; and the court shall thereupon appoint a trustee, who shall file 
with said court his oath of office, and a bond in such amount with such security 
as the court may direct, and who shall take possession of all books, papers and 
property, and receive all moneys belonging to such company, and apply the same, 
under order of the court, to the settlement of all claims against it, and to the 
re-insurance of its risks in some company or companies of good standing, prefer- 
ence being given to companies chartered by this State. The trustee shall make a 
full report of his doings in the premises to the court appointing him; and the court 
shall, upon the re-insurance of its risks, and the transfer of its property for that 
purpose, declare the dissolution of the company by an order to be published for one 
month in a paper of general circulation published in the county where the com- 
pany is located. 
§ 30. Any company organized or incorporated in another State, or by the Gov- 
ernment of the United States or of any foreign country, to grant insurances or 
make contracts contingent upon lives, before being admitted to do business in this 
State, and receiving the commissioner’s license therefor, and on or before the first 
day of March in each year, shall furnish to the insurance commissioner a certifi- 
cate of the proper officer of the State or Government by whose authority it is 
organized or incorporated, setting forth a true and full copy of its report to such 
officer of its condition upon the thirty-first day of December last preceding, a val- 16 
uation of its policies and contracts by said officer, by a standard equivalent to that 
provided in section twenty-three of this act, and that the company has complied 
with all the laws of the State or government by whose authority it is organized or 
incorporated, and is authorized to transact business therein. If such certificate 
shall substantially furnish the information required from companies chartered by 
this State, and it shall appear therefrom that the company furnishing the same is 
solvent, and if it shall have complied with all other provisions of law necessary 
thereto, the commissioner shall thereupon issue his license to such company to 
transact business in this State for one year from the thirty-first day of December 
last preceding. 
§ 31. In default of the certificate aforesaid, or if any other State or country shall 
refuse to license Life insurance companies chartered by this State to transact busi- 
ness in such other State or country upon a similar certificate from the commissioner 
of this State, no license shall issue to any company organized or incorporated in 
such other State to transact business in this State, until it shall have made a 
report in the manner and form required from companies chartered by this State, 
and until a valuation of its policies and contract shall have been' made by the 
commissioners as hereinbefore provided. 
§ 32. If it shall at any time appear to the satisfaction of the commissioner, from 
personal examination, or from any report or valuation, or certificate of the same, 
that any life insurance company, organized or incorporated in another State, or 
under the authority of the government of the United States, or of any foreign 
country, does not possess assets equal in amount to its liabilities ascertained as 
hereinbefore provided, he shall forthwith revoke his license to said company and 
to its agents to transact business in this State, and shall cause notice thereof to be 
published for one month in two newspapers of general circulation printed, one in 
the city of Hartford and one in the city of New Haven. License to such com- 
pany to transact business may be re-issued when the commissioner shall become 
satisfied of its restoration to solvency. 
Sections 28, 29, 80, 31 and 32 of the above act of July 27, 1871; Wolford's 
Supplement, pp. 21-23. 
Population, census of 1870 537,454 
Area, square miles 4,764 
Number of Life insurance companies 9 
This State has also followed Massachusetts in adopting the old 
Actuaries or Combined Experience Table A four per cent. 
MAINE. 
A. D. 1870. 
Whenever it shall come to the knowledge of the commissioner that the actual funds 
of any Life insurance company doing business in this State, are not of a net cash 
value equal to its liabilities, including the net value of its policies according to 
the “combined experience” or “actuaries rate of mortality,” with interest at 
four per cent per annum, it shall be his duty to give notice to such company and 
its agents to cease issuing policies within this State. The commissioner may 
have authority to purchase and use the life valuation tables adopted by the insur- 
ance department of Massachusetts for this and all purposes of valuation under 
this act ************* 
Section 18 of the act entitled 11 An act concerning insurance and insurance 
companies." Approved March 21,1870, chap. 156, Sess. Laics, pp. 115, 
120. 
Population, census of 1870 626,915 
Area, square miles 32,628 
Number of Life insurance companies 1 17 
NEW HAMPSHIRE. 
New Hampshire has also adopted the same standard as Massachu- 
setts, the Actuaries or old Experience Table at four per cent. 
A. D. 1870. 
§ 1. That no Joint-Stock insurance company not organized under the laws of this 
State, shall be permitted or allowed to transact the business of such company in 
this State, unless it shall have a bona fide paid up capital invested in securities 
readily convertible into cash of at least one hundred thousand dollars, nor unless 
such company shall have in addition to such capital assets equal in amount to all 
its outstanding liabilities, reckoning fifty per cent of premiums on outstanding 
fire risks, the whole amount of premiums on marine risks, and the premium 
reserve on life risks, based on the actuaries table of mortality, with interest at 
four per cent as a liability ; provided, that the insurance commissioner may, at his 
discretion, license any company to do business in this State, whose impairment 
of capital does not exceed twenty per cent on the above rate ; nor shall any 
Mutual, Fire or Life insurance, or Co-operation insurance company, association or 
society not organized under the laws of this- State, be permitted or allowed to 
transact the business of such company in this State, unless it possesses assets 
amounting to one hundred thousand dollars, invested in securities readily con- 
vertible into cash, nor unless it possesses such assets equal to all its outstanding 
liabilities (including re-insurance to be estimated as in case of Joint-Stock insur- 
ance companies above named, and including the amount of guarantee capital as 
a liability); nor until all the laws relating to insurance companies of other States 
enacted by this State shall have been complied with. 
Seceion 1 of the act entitled ‘1 An act in relation to insurance companies 
and their agents." Approved July 2, 1870; Sess. Laws, chap. 1, p. 395. 
Population, census of 1870 318,300 
Area, square miles 9,411 
Number of Life insurance companies None. 
ILLINOIS. 
Illinois is the only State out of New England which has adopted 
the old Actuaries Table at four per cent interest, although its legal 
rate of interest ranges from six to ten per cent, and its actual average 
business rate is about nine per cent. 
A. D. 1869. 
§ 10. Where the actual funds of any Life insurance company, doing business in 
this State, are not of a net value equal to the net value of its policies, according 
to the “combined experience” or “actuaries’” rate of mortality, with interest 
at four per cent per annum, it shall he the duty of the Auditor to give notice 
to such company and its agents to discontinue issuing new policies within this 
State, until such time as its funds have become equal to its liabilities, valuing 
its policies as aforesaid. ******** 
Section 10 of the act entitled “ An act to organize and regulaee the busi- 
ness of Life Insurance in the State of Illinois." Approved March 26, 
1869. Wolford's Ins. Laws, p. 136; Sess. Laws 1869, p. 229-235. 
Population, census of 1870 2,539,891 
Area, square miles 55,405 
Number of Life insurance companies 4 18 
This State has a double standard, English life Table No. 3, at 
fire per cent interest, or the Actuaries Combined Experience Table 
of mortality, at four per cent, as provided in the following section : 
IOWA. 
§ 9. As soon as practicable after the filing of said statement of any company 
organized or doing business under the laws of this State, in the office of the 
Auditor of State, he shall proceed to ascertain the net cash value of each policy in 
force, upon the basis of the New York standard of valuation of life policies, it 
being Dr. Farr’s English life table No. 3, for males, with interest at five per cent, 
or actuaries combined experience table of mortality, with interest at four per 
cent; but in case such valuation has been made in New York, or any other State, 
upon the basis above specified, a certificate of the Auditor, comptroller, or chief 
financial officer of such State, shall be taken by the Auditor of this State as suffi- 
cient evidence of the valuation of such policies, and of the amount so required 
for such re-insurance, and for the purpose of making such valuations. When not 
already done as aforesaid, the Auditor may employ a competent actuary to do the 
same, who shall be paid by the company for which the service wTas rendered, but 
nothing herein shall prevent any company from making said valuation herein 
contemplated, which shall be received by the Auditor upon such proof as he may 
determine. Upon ascertaining the net cash value of policies in force in any com- 
pany organized under the laws of this State, or doing business in this State, and 
which has not made the deposit required in section four of this act, the Auditor 
shall notify said company of the amount, and, within thirty days after the date of 
such notification, it shall be the duty of the officers of such company to deposit 
with the Auditor the amount of such ascertained valuation of all policies within 
this State in stocks of the United States or of this State, or any other State of this 
Union, or in bonds and mortgages on real estate within the limits of this State, or 
within the State where such company is located, of at least double the value 
loaned thereon; provided, that no Joint-Stock company organized under the laws 
of this State, or doing business therein, shall be required to make such deposit 
until the cash value of the policies in force, as ascertained by the Auditor, exceeds 
the amount deposited by said company under section two of this act; and pro- 
vided', that foreign companies doing business in this State are not required to make 
a deposit in this State, provided such deposit has been made in the State where 
located, or in any other State, when they shall have complied with section four of 
this act. 
Section 9, chap. 173 of the act approved April 8, 1868, entitled “An act 
to regulate Life insurance companies." Wolford's Ins. Laws, pp. 179, 
180; Bess. Laws 1868, p. 251. 
Section 12 of said act provides for special personal examinations 
of any Lite insurance company doing business in the State of Iowa. 
GEORGIA. 
a. d. 1859. 
During this year an act was passed in this State, entitled “ An 
act to regulate the agencies of foreign Insurance Companies, and to 
provide for the appointment of an Insurance Commissioner 
Approved Dec. 12, 1859. 
See Hunt's Merchants' Mag., vol. 42, 1860, p. 623. 
The second section of this act provided, among other things, for 
the contents of the annual statement, among which were, that life 
companies should furnish the data for valuations : 19 
‘ ‘ 8th. The amount of life insurance premiums received during the preceding 
year for whole life policies, the amount for temporary policies and the amount of 
other policies, the whole amount insured and at risk on the 31st day of December 
preceding, or at the end of the last fiscal year, on temporary life policies, and the 
amount at risk on the whole life policies issued for a single premium, or for 
which the company have received full payment, with the policyholders, on the 
31st December preceding, or at the end of their last fiscal year, and the amount at 
risk on whole life policies for which a uniform, annual, semi-annual, or quarterly 
premium is payable, with the several years for which each portion of this amount 
has been issued, ancl the amount for each of these years, the table of premium 
charged for different ages, and the average age of the insured for each year when 
the policies were taken ; and also such particulars of all other contracts for insur- 
ance, or endowments or annuities, that were in force on the 31st day of December 
preceding, or at the end of their last fiscal year, as are needed to determine the 
present worth of their liabilities; or, instead of these requisitions, any other state- 
ment of their future liabilities that will enable the commissioner to determine 
their present worth, etc.” 
The following is a copy of the fourth section of said act: 
§ 4. ISTor shall he issue a license to any agent or agents of any life insurance 
company, unless he is satisfied that the cash value of their assets exceeds all dues 
and claims against the company, and the calculated present worth of all their 
future liabilities, counting the rate of mortality at twenty-five per cent above the 
average of the best tables, and the rate of interest at four per cent, and the annual 
expense at the percentage paid by the company in the preceding year. 
This section is, I believe, the first attempt in any country to fix 
upon a legal standard for the valuation of life insurance policies by 
the State. The responsibility and honor of this laudable effort are 
due to that eminent scholar and actuary, Prof. C. F. McCay (now 
residing in Baltimore), and who had constructed a table of mortality 
in accordance with the provisions of this act, which table is minutely 
explained in a series of elaborate articles (FTos. 1 to 10), published 
in Blunt’s Merchants Magazine for the years 1860 and 1861. 
The act proving to be unsatisfactory to the insurance companies, 
action under it was suspended by the legislature and it never went 
into practical operation. Historically considered, however, the Act 
is one of great interest as the pioneer enactment of a legislative 
actuarial basis for testing the solvency of Life insurance companies. 
RECAPITULATION. 
The following is a statement of the names of the various States 
which have adopted the American Experience Table, at four and a 
half per cent interest, and of those also which have adopted the 
Actuaries’ or old Combined Experience Table, at four per cent 
interest, as State standards of solvency, with the population, area, 
and number of Life insurance companies in said States respectively : 20 
TABLE No. 1. 
American Experience Table per cent). 
NAME OE STATE. 
Population. 
Area. 
(sq. miles.) 
No. of Life 
Ins. co’s. 
1. New York 
4,382,759 
40,085 
41 
2. California 
500,247 
188,981 
2 
3. Kansas 
304,399 
120,000 
1 
4. Kentucky 
1,320,011 
40,500 
2 
5. Missouri 
1,721,295 
07,380 
8 
6. Michigan 
1,184,009 
50,243 
1 
7. Wisconsin 
1,054,070 
53,924 
1 
Total (7 States) 
10,587,450 
573,113 
50 
TABLE No. 2. 
Actuaries or old Combined Experience (4 per cent). 
NAME OF STATE. 
Population. 
Area. 
(sq. miles.) 
No. of Life 
Ins. co’s. 
1. Massachusetts 
1,457,355 
537,454 
626,915 
318,300 
2,539,891 
7,500 
4,764 
32,628 
9,411 
55,405 
6 
9 
1 
0 
4 
2. Connecticut 
3. Maine 
4. New Hampshire 
5. Illinois 
Total (5 States) 
5,479,915 
109,708 
20 
The population has been taken from newspaper reports of the 
recent census, and may not be entirely accurate. 
LEGAL RATES OF INTEREST. 
The above summary gives the existing laws of the different States 
of the Union which have, up to this date, established legal standards 
of Mortality and Interest. 
In connection therewith it is important to know what are the 
existing laics of the various States regulating the legal Bates of 
Interest, the penalties for usury, and the actual average rates of busi- 
ness interest received on various classes of loans and investments. 
I have accordingly, with considerable labor and care, collected the 
following information on this subject from the several States and 
Territories. In order to avoid errors and to allow an opportunity 
for checking them, I have given specific references to the Statutes 
and in many cases copied them literally, as affording more full and 
satisfactory information to both lawyer and layman. 21 
In this State the statute on the subject of interest is as follows: 
ALABAMA. 
§ 1827(1519). Rate of interest fixed at eight per cent. The rate of interest upon 
the loan or forbearance of money, goods or things in action, is eight dollars upon 
one hundred dollars for one year; and at that rate for a greater or less sum or a 
longer or shorter time. 
Revised Code of Alabama, prepared by A. J. Walker, 1867, part II, title 3, 
chapter 2,-p. 406, § 1827. 
§ 1831 (1523). Interest on usurious contracts cannot be collected; and, if paid, to 
be deducted from the principal due. All contracts for the payment of interest upon 
the loan or forbearance of goods, money, things in action, or upon any contract 
whatever, at a higher rate than is prescribed in this chapter are usurious and can- 
not be enforced except as to the principal; and if any interest has been paid the 
same must be deducted from the principal, and judgment rendered for the balance 
only. 
Id. § 1831, p. 40G. 
As to the actual business rate of interest in this State, Mr. Doug- 
lass Yass, a leading commission merchant in Mobile, writes to me, 
under date of August 3, 1871, as follows: 
“ Our banks, bankers and insurance companies, which do most of 
the lending of 'money to merchants, take off the face of the paper at 
the rate of eight per cent for the time the paper has to run, making 
the transaction at the rate of eight per cent discount per annum, 
which is equal to about nine per cent interest. For instance, if a 
note at twelve months, for one thousand dollars, is offered to me for 
discount, I, would take off eighty dollars, and pay the borrower nine 
hundred and twenty dollars. Nine per cent interest on what he gets 
($920) would be $82.80. Although eight per cent is the legal rate, yet, 
money, during the business season and tight times, is loaned at two 
to three per cent per month; but such transactions are made on the 
honor of the borrower, and I have never knoAvn an instance in twenty- 
five years’ business experience where any conflict or contention has 
occurred about the extra rate. As is usual, these excessive rates are 
paid only under extreme necessities. 
The Constitution of this State prohibits the passage of any usury 
law by the legislature. 
ARKANSAS. 
§ 21. The General Assembly may, by general law, declare the legal rate of 
interest upon contracts in which no rate of interest is specified, but no law limit- 
ing the rate of interest for which individuals may contract in this State shall ever 
be passed. 
Art. XV, Miscellaneous Provisions, § 21, Constitution of 1868, ed. of 1870, 
by James M. Pomeroy, p. 45. 
§ 1. That the rate of interest upon all contracts and agreements, written or verbal, 
expressed or implied, for the payment of money, shall be six per cent per annum 
upon every hundred dollars, unless otherwise expressly stipulated by the parties, 
or unless otherwise provided by law. 
Sec. 1 of the act entitled “An act to fix the rates of interest on money con- 
tracts, judgments, mortgages and other commercial paper." Approved 
July 13, 1868. Session Laws 1868, No. IX, p. 32. 22 
§ 3. That in all contracts hereafter to be made, whether verbal or written, it 
shall be lawful for the parties to stipulate the rate and agree on any sum of interest 
that may be taken and paid upon any one hundred dollars of money loaned, or in 
any manner due and owing from any person or corporation to any other person 
or corporation in this State. 
Id. § 3, p. 32. 
§ 6. No plea of usury nor defense founded upon any allegation of usury shall 
he sustained in any court in this State. * * * 
Id. § 6, p. 33. 
Under date of August 14, 1871, Mr. J. B. Bond, of Little Rock, 
Ark., writes as follows in reference to the actual business rate of 
interest in that State: 
“ The announced ‘ bankable rate ’ on best paper is one and a half per 
cent per month ; but little, if any, is loaned at that figure; hence, the 
borrower is forced to apply to the ‘curbstone broker/ who charges him 
never less than two and a half per cent per month, generally five, 
according only • to his necessities. Balances on accounts, notes for 
deferred payment for real estate, and similar debts, command ten per 
cent; but for cash transactions in legitimate business one and a half 
per cent per month is the lowest figure I can place. I know of no 
transactions at less than three per cent. It is fair, however, to say 
that twenty thousand dollars will most probably cover the existing 
loans at five per cent. I have submitted the above to Mr. S. H. Tucker, 
banker, and he approves the statements.” 
CALIFORNIA. 
The statute in this State is as follows : 
Section 1. When there is no express contract in writing fixing a different rate 
of interest, interest shall be allowed at the rate of ten per cent per annum for all 
moneys after they become due on any bond, hill, promissory note or other instru- 
ment of writing; and for money due on the settlement of accounts from the day 
on which the balance is ascertained, and for money received for the use of another; 
and the rate of interest on any judgment recovered before any court in this State 
for money lent, shall he seven per cent per annum. 
Act of April 4, 1870, § 1, chap. 478Session Laws 1869-70, p. 699. 
§ 2. Parties may agree in writing for the payment of any rate of interest what- 
ever, on money due or to become due, and it shall he allowed according to the 
terms thereof until the entry of judgment thereon ; but whatever may be the 
rate of interest agreed upon, no judgment or decree in any court of this State 
shall draw interest at a rate to exceed seven per cent. 
§ 3. The parties may in any contract in writing, whereby any debt is secured 
to be paid, agree that if the interest on such debt is not punctually paid, it shall 
become a part of the principal, and thereafter bear the same rate of interest as 
principal debt. 
Chap. 429, § 2, Act of March 30, 1868 ; Session Laws p. 553. 
Section 3, chap. 13, Act of March 13, 1850. 
As to the business rate of interest now prevailing in this State, 
Mr. J. R. Dameron, a practicing lawyer in San Francisco, writes me, 
under date of August 5, 1871, as follows: 23 
“ The prevailing rate of interest is one per cent per month on short 
loans; often as high as one and a half per cent per month on short 
loans. Loans made on real estate for a year, or longer, from eight to 
twelve per cent per annum. Until lately, the rates of interest have 
been higher; present rates are owing to the large amount of capital in 
the savings banks, and the small demand for loans for improvements, 
as there is little or none going on, comparatively, at present. There 
are opportunities to loan money at as high rates as two to three per 
cent per month on mining stocks and poor collaterals, which is often 
done; but often the capital and interest are both lost.” 
CONNECTICUT. 
In this State, unsuccessful efforts have been recently made to 
repeal or modify the usury laws, as a large amount of capital leaves 
the State annually for investment elsewhere at higher rates of 
interest. 
AN ACT to restrain the taking of usury. 
Section 1. Be it enacted, etc., That no person upon any contract for the loan of 
money or goods, wares, merchandise, or any property whatever, shall take, directly 
or indirectly, more than the value' of six dollars for the forbearance of one hun- 
dred dollars for a year, and after that rate for a greater or less sum or for a longer 
or shorter time. 
General Statutes of Connecticut. Revision of 1866, p. 731, title LXVI. 
In case of usury all the interest, legal and illegal, is forfeited. 
See id., §§ 2, 3, 4, 5 and 6, pp. 732, 733. 
DELAWARE. 
The legal rate of interest in this State is six per cent. 
Section 1. The legal rate of interest is six per centum per annum; and if any per- 
son shall directly or indirectly take for the loan or use of money more than six 
dollars for the loan or use of one hundred dollars for one year, and in that pro- 
portion, he shall forfeit and pay to any one who will sue for the same, a sum 
equal to the money lent, one-half for the use of the person so suing and the other 
half for the use of the State. 
Revised Code of 1852, title Ninth, chap. 63, § 1, p. 183. 
Mr. John II. Paynter, Secretary of state, writes under date of 
Aug. 10th, ult., that the business rate is the same as the legal rate. 
FLORIDA. 
When there is no agreement the rate is eight per cent; any con- 
ventional rate however is legal. 
AN ACT to untrammel capital and to repeal all laws on usury. 
Chapter 1,562 [No. 29]. 
Whereas, Money or its representatives, like other property and commodities 
thrown upon market for sale or loan, should no more than these be trammeled by 
law, but that an enlightened policy makes it judicious that its loan should be left 
to the laws of demand and supply, and to the sense of the mutual interest of 
loaner or borrower, therefore, 24 
Section 1. Be it enacted by the Senate and House of Bepresentatives of the State of 
Florida, in General Assembly convened, That hereafter it shall not be usury to loan 
or to borrow money, bonds or notes, at rates beyond that now allowed by law ; 
provided, that in all cases where interest shall accrue without a contract having 
been made, and on judgments, the rates of interest shall remain as now fixed, or 
may be hereafter fixed by law. 
Session Laws of 1866, 2d session, p. 27. 
The legal rate is fixed at eight per cent where no agreement has been made 
fixing the rate. 
Act of January 13, 1866 ; Session Laws, 1st session, 1866, p. 66. 
Mr. Jonathan C. Greeley, the city tax collector of Jacksonville, 
Florida, writes to me under date of Sept. 2d, ult., that,— 
“ The prevailing interest is from ten to twelve per cent, though it 
ranges to thirty-six per cent. I have frequently loaned money for 
parties outside the State at twenty per cent per annum, with real 
estate security.” 
GEORGIA. 
Article V. — Interest and Usury. § 2023. Lawful interest in this State shall 
be at the rate of seven per cent per annum. 
Code of Georgia, revised by D. Irwin, 1866, p. 404. 
§ 2024. Usury is the reserving and taking, or contracting to reserve and take, 
either directly or by indirection, a greater sum for the use of money than the law- 
ful interest. 
§ 2025. The effect of usury is to annul and make void the contract for the 
usury ; the lender having the right to recover the principal sum loaned, with 
legal interest. All titles to property made as a part of an usurious contract, or to 
evade the laws against usury, are void. 
Id. p. 405 ; see, also, § 2026 to § 2031, inclusive. 
Mr. JR. JH. Atkinson, Private Secretary to the Governor, writes 
to me from Atlanta, under date of Sept. 2d, ult., that,— 
“ The prevailing or average rate of interest which money will com- 
mand among business men in this State, is from one to two per cent 
per month. Money can be loaned at these rates with good security.” 
ILLINOIS. 
The rate of interest upon all contracts and agreements, written or verbal, 
express or implied, for payment of money, shall be six per cent per annum upon 
every one hundred dollars, unless otherwise expressly stipulated by the parties, or 
unless otherwise provided by law. 
Act of 1857, § 1, entitled “An act to legalize ten per cent interest when it is 
agreed upon between parties." Sess. Laws, p. 45. 
§ 2. That in all contracts hereafter to be made, whether written or verbal, it 
shall he lawful for the parties to stipulate or agree that ten per cent per annum, or 
any less sum of interest, shall be taken and paid upon every one hundred dollars 
of money loaned or in any manner due and owing from any person or corporation 
to any other person or corporation in this State. 
Id. § 2, p. 46; also Gross' (3d ed.) Statutes of Illinois, chap. 54, pp. 370, 372. 25 
§ 3. If any person or corporation in this State shall contract to receive a greater 
rate of interest than ten per cent upon any contract, verbal or written, such per- 
son or corporation shall forfeit the whole of said interest so contracted to he 
received, and shall be entitled only to recover the principal sum due to such person 
or corporation. 
Sec. 3, id. ; Sess. Laws of 1857, p. 46. 
See,also, for other provisions, Gross’ (3d ed.) Illinois Statutes, chap. 54, §§ 13 to 
16, pp. 371, 372. 
Mr. George W. Wade, of Chicago, a reliable authority, writes 
under date of July 31st, ult., that the average rate of actual business 
interest is nine per cent. 
INDIANA. 
Section 1. Be it enacted, etc., That interest upon the loan or forbearance of 
money, goods or things in action shall be at the rate of six dollars a year upon 
one hundred dollars, and no greater rate of interest shall be taken, directly or 
indirectly, unless the agreement to pay a higher rate of interest be made in writing 
and signed by the party to be charged ; but such rate of interest shall in no case 
exceed the rate of ten dollars a year on one hundred dollars. But it may be 
taken yearly or for any shorter period in advance. 
Chap. LXXII, Laws of 1867, p. 151: Act entitled '■‘■An act concerning 
interest on money, and to provide for recoupment of usurious interest." 
Approved March 9, 1867. 
All interest exceeding the rate of ten per cent per annum shall be deemed 
usurious and illegal as to the excess only, etc. , • 
Id. § 2. 
Gen. Nathan Kimball, of Indianapolis, writes under date of July 
29th, that,— 
“ The prevailing or average rate of actual business interest which 
money will command is ten per cent. We could loan hundreds of 
thousands of dollars at ten per cent on first class real estate (mort- 
gages) security, interest payable semi-annually.” 
IOWA. 
The rate of interest shall be six cents on the hundred by the year on money due 
by express contract, unless a different rate be expressed in writing. * * * 
Revision of 1860, title 13, chap. 72, art. 2, § 1787, p. 316. 
§ 1788. Parties may agree in writing for the payment of interest not exceeding 
ten cents on the hundred by the year. 
Id. p. 316. 
Penalty for usury, forfeiture of ten per cent of contract to State for benefit of 
school fund, and forfeits all interest and costs. 
Id. § 1791, pp. 316, 317. 
Mr. John E. Henry, a lawyer in Davenport, writes under date of 
Aug. 1st, ult., that,— 26 
“ Money commands ten per cent interest, clear. In cases of money 
loaned by the savings banks and insurance companies the borrower 
furnishes an abstract of the title to the land offered as security, and 
pays the cost of conveyancing and recording, and foreclosing if neces- 
sary.” 
KANSAS. 
Section 1. Creditors shall be allowed to receive interest at the rate of seven per 
cent per annum, when no other rate of interest is agreed upon, for all money after 
it becomes due; for money lent or due on settlement of account, from the day of 
liquidation of the same and ascertaining the balance; for money received for the 
use of another and retained without the owner’s knowledge of the receipt; for 
money due and withheld by an unreasonable and vexatious delay of payment or 
settlement of accounts; for all money due and to become due for the forbearance 
of payment whereof an express promise to pay interest has been made; and for 
money due from corporations and individuals to their clay or monthly employes, 
from and after the end of each month, unless the same shall be paid within fifteen 
days thereafter. 
Chap. XCV, § 1, Sess. Laws of Kansas, 1871, p. 250, act entitled “An act 
to amend an act entitled an act regulating the interest of money." 
Approved February 29, 1868. 
§ 2. The parties to any bond, bill, promissory note or other instrument of writ- 
ing for the payment or forbearance of money, may stipulate therein for interest 
receivable upon the amount of such bond, bill, note or other instrument, at any 
rate not exceeding twelve per cent per annum. 
Chap. 51, Interest sec., General Statutes of Kansas, 1868, p. 525 
In cases of usurious contracts all the interest is forfeited, the principal alone is 
recoverable. 
Sec. 4 id., p. 526; see, also, id. §§ 3, 5 and 6, same title, of Interest. 
Messrs. Crawford and Wright, of Leavenworth, Kansas, inform 
me that twelve per cent is the “ actual business interest.” 
KENTUCKY. 
Section 1. Legal interest shall he at the rate of six dollars upon one hundred 
dollars for a year, and at the same rate for a greater or less sum and for a longer 
or shorter time. 
Chap. LIII, Interest and Usury, § 1, Revised Statutes of Kentucky, p. 419. 
The act approved March 14, 1871, makes it lawful to contract in writing for 
interest not exceeding ten per cent per annum. 
If any rate is contracted for exceeding ten per cent, the whole interest iB 
forfeited. 
Id. § 5 ; see, also, id. §§ 3 and 4. 
Mr. John C. Bonny castle, of Louisville, writes under date of Aug. 
1st ult., that “ about nine per cent per annum has been, during the 
past two years, the average rate of interest paid on business transac- 
tions in Kentucky.” 27 
LOUISIANA. 
§ 1883. All debts shall bear interest at the rate of five per cent from the time 
they become due, unless otherwise stipulated. 
Revised Statutes of Louisiana, 1870, § 1883, of Interest, p. 373. 
§ 1884. Article 2895 of the Civil Code shall be so amended that the amount of 
conventional interest shall in no case exceed eight per cent, under pain of forfeiture 
of the entire interest so contracted. 
Id. p. 373. 
§ 1886. The holder of any circulating note which may have been protested for 
non-payment shall be entitled to damages at the rate of twelve per cent per annum 
in lieu of interest until final payment, payable out of the general fund of the insol- 
vent party. 
Id. p. 373. 
§ 1889. The owner of any promissory note, bond or written obligation for the 
payment of money to order or bearer, or transferable by assignment, shall have 
the right to collect the whole amount of such promissory notes, bonds or written 
obligations, notwithstanding such promissory notes, bonds or written obligations 
may include a greater rate of interest or discount than eight per cent per annum; 
provided, such obligations shall not bear more than eight per cent interest per 
annum after their maturities until paid. 
Act of 1860. 
§ 1890, “The banking institutions of the State of Louisiana” authorized to 
discount paper at the rate of eight per cent. 
Id. § 1889, p. 374, Act of 1866. 
Mr. L. F. Geneves, banker, of New Orleans, one of the most relia- 
ble and competent authorities in that city, informs me through Col. 
Samuel Flower, under date of August 28th nit., as follows: “ Good 
business or factors’ paper, factors’ acceptances of planters’ drafts, have 
ranged during the past year from twelve to fifteen per cent; same, 
or other paper with collaterals, State securities, etc., has averaged 
about ten per cent. First-class mortgages have averaged about nine 
per cent. It is now impossible to get more than eight per cent for 
first-class mortgages (with vendor’s lien), at least it is an exception 
to get more than that. In this connection, also, it is, perhaps, 
proper that I should mention the action of the directory of the 
Bank of America, one of our leading banks, a few days since, in 
reducing rate of interest for less than sixty days at six per cent, 
which fact I state without venturing any opinion as to how far they 
may be indicative of any permanent change, or of future rates.” 
Section 1. In the absence of any agreement, in writing, the legal rate of 
interest shall be six per cent per annum. 
MAINE. 
Chap. 124, § 1, “An act concerning the rate of interest." Approved March 
11, 1870. Sess. Laws of 1870, p. 95. 28 
Usury laws repealed by chapter 169. 
Laws of 1870, Sess. Laws, p. 130. 
Mr. Mark Harden, Acting Private Secretary of the Governor, 
writes under date of Augusta, August 8th, ult., that — 
“Money at the banks here on deposit is worth seven per cent; good 
paper, small amounts, on short time, the ruling price is eight per cent.” 
MARYLAND. 
Section 1. Interest may be charged or deducted at the rate of six per centum 
per annum, and the same may be calculated according to the standard laid down 
in Rowlett’s tables. 
Sec. 1, Art. XGV, Usury, Maryland Code, Public General Laws, vol. 1, 
p. 696. 
Legal interest is recoverable ; all the excess forfeited to the defendant. 
Secs. 4 and 5, p. 697 ; see, also, §§ 2 and 5, id. 
Mr. Henry C. Wagner, of Baltimore, writes, under date of July 
29th, as follows: 
“Money commands, upon mortgage loans in Baltimore, eight to 
nine per cent, the former for long terms (three to five years), and the 
latter for short terms (one to two years); and in the counties of the 
State, nine to twelve per cent, according to margin and time. A 
‘bonus’ of the amount of ‘extra interest’ for the whole time is de- 
ducted from the amount of mortgage, and interest at six per cent upon 
whole amount collected quarterly or semi-annually. This is the uni- 
versal practice of capitalists and loan associations, and is considered 
safe against a plea of usury. ‘ Call loans ’ upon good collateral security 
are often made at low rates—four, five and six per cent; but our 
banks (State and national) receive for discounting good commercial 
paper, sixty days to four months, seven to nine per annum, according 
to agreement and the demand for money; it is very irregular.” 
MASSACHUSETTS. 
Section 1. When there is no agreement for a different rate of interest of money 
the same shall continue to be at the rate of six dollars upon one hundred dollars 
for a year, and at the same rate for a greater or less sum, and for a longer or shorter 
time. 
Sec. 1, of “An act concerning the rate of interest.''' Approved March 6, 
1867. Chap. 56, Sess. Laics, p. 500. 
§ 2. It shall be lawful to contract to pay, or reserve discount, at any rate, and 
to contract for payment and receipt of any rate of interest; provided, however, 
that no greater rate of interest than six per centum per annum shall be recovered 
in any action, except when the agreement to pay such greater rate of interest is 
in writing. 
Sec. 2 of the same act. 
Bonds issued by railroad or other corporations, under authority of law, may 
bear interest not exceeding the rate of seven per centum a year. 
Act approved May 28, 1870 ; 8'ess. Laws, p. 213. 29 
The prevailing actual business rate of interest is the same as that 
above provided for railroad and other corporate bonds — about seven 
per cent. 
MICHIGAN. 
The legal rate is seven percent; parties may stipulate in writing for the pay- 
ment of any rate of interest not exceeding ten per cent per annum. 
Compiled Laws of Michigan, 1857, Vol. I, p. 42 (1314) sec. 2. 
Plaintiff may recover the principal and legal interest, exclusive of the usury. 
Id., p. 425 (1315), see. 4. 
Compound interest may be collected not exceeding the legal or conventional 
rate. 
Act of 1869, Session Laws, p. 12, No. 11 entitled “ An act relating to 
interest upon installments falling due upon written contracts.” 
Mr. William C. Green, Insurance Manager and Agent, of Detroit, 
writes, under date of August 2d, ult., as follows: 
“ I think that it is safe to say that the average rate of actual business 
interest which money will command is not less than ten per cent. 
Some few loans may be made on mortgages at a less figure, but almost 
any amount of money could be readily invested at ten per cent inter- 
est (payable semi-annually) on excellent real estate security. Bankers, 
in some localities readily obtain from one to three per cent per month 
on good business paper.” 
MINNESOTA. 
Section 1. Interest for any legal indebtedness shall be at the rate of seven 
dollars upon one hundred dollars for a year, unless a different rate is contracted 
for in writing, and all contracts shall bear the same rate of interest after they 
become due as before, if it clearly appears therefrom that such was the intention 
of the parties; but no contract for a greater rate of interest than twelve dollars 
upon one hundred dollars for a year shall be valid for the excess of interest over 
twelve per cent. 
Chapter XXIII, § 1, Revision of 1866 of Statutes of Minnesota, p. 226; 
Article, Interest of Money. 
Mr. A. II. McGill, Private Secretary to the Governor, writes as 
follows, under date of August 23d, ult.: 
“The prevailing rate of business interest on money is twelve per 
cent per annum. This is the rate charged by all of our banks.” 
MISSISSIPPI. 
Abt. 1. The legal rate of interest on all bonds, notes, accounts, judgments, 
and contracts, shall be six per cent per annum, but contracts may be made in 
writing for the payment of a rate of interest as great as ten per cent per annum. 
And if a greater rate of interest than ten per cent shall be stipulated for in any 
case, such excess shall be forfeited, on the plea of the party to be charged there- 
with; and all judgments and decrees founded on any contract, shall bear interest 
after the rate of the debt on which such judgment or decree was rendered. 
Art. I, Chap. L, Revised Code of Mississippi, 1857, p. 370. 
See also idem, p. 370, articles 2, 3 and 4. 30 
Messrs. Mathews <& Arnold, a leading firm of lawyers in Colum- 
bia, Miss., write, on the 9tli day of Aug., ult., as follows: 
“ The average rate of business interest which money will command 
in this State we should say would be about ten per cent, though we 
cannot speak with confidence on this branch of the subject.” 
The rate where there is no agreement is six per cent. 
MISSOURI. 
Wagner's Statutes, Vol. II, % 1, p. 782. 
The parties may agree in writing for as high a rate as ten per cent, and, also, 
for interest compounded annually. 
Id. § 2, p. 783; 21 Mo. Rep. 432; 38 Mo. Rep. 461. 
If more than the legal rate is contracted for the party loses all of the interest, 
and the same is forfeited to the county for the use of the common schools. 
Id. § 5, p. 783. 
Mr. Henry IF. Hough, of St. Louis, a Fire and Life insurance 
officer, writes, under date of September 2d, ult., that,— 
“Known business men can obtain what money they need from 
banks or savings institutions, short loans, at eight per cent; those not 
so well known pay ten during the winter; outside operators one and a 
half per cent per month in St. Louis. Take the State at large, the 
prevailing or average rate of actual business interest which money will 
command is ten per cent. On very choice city property, eastern capi- 
talists will loan at nine and often at eight per cent.” 
Rate ten per cent, if there is no agreement; parties may agree on rate not 
exceeding twelve per cent. 
NEBRASKA. 
Revised Statutes of Nebraska, July 1, 1866, p. 241, article “Interest," as 
amended thereafter. 
If illegal interest has been contracted for, principal only recoverable, and the 
defendant shall recover costs. 
Id. § 5, p. 241. 
Mr. T. IF. T. Richards, a practicing lawyer at Omaha, writes under 
date of Aug. ldtli, ult., that,— 
“ All bank loans are made at the rate of twelve per cent, and interest 
deducted in advance, and loans never made for a longer time than 
ninety days. The banks will only loan at this rate to their own 
depositors. Outsiders pay all the way up from twelve per cent per 
annum to five per cent per month. A very large amount of money 
is now being loaned to this class of persons on safe security at two to 
three per cent per month. In such cases the law is of course evaded 
in some one of the many ways, by which the lender is protected. 
Almost any amount of money can at present be loaned in Nebraska 31 
upon the very best securities, both real and personal, at twelve per 
cent, and in advance. In Omaha and vicinity pretty safe securities at 
rates largely in excess of this. As to real estate securities in Nebraska, 
and the West generally, I must say that I regard them as quite as safe, 
and in some respects better, securities, than like securities in the older 
States. In the West property is constantly appreciating in value, 
owing to the very rapid development of the West; and what would to- 
day be a safe security for a specified amount of money, in five years, 
wrould be doubly safe.” 
NEVADA. 
§ 4. When there is no express contract, in writing, fixing a different rate of 
interest, interest shall be allowed at the rate of ten per cent per annum for all 
moneys after they become due, on any bond, bill or promissory note, or other 
instrument of writing, on any judgment, recovered before any court in this Ter- 
ritory, for money lent, for money due on the settlement of accounts from the day 
on which the balance is ascertained, and for money received to the use of another. 
Laics of 1861, chap. XXXIV, § 4, p. 100. 
§ 5. Parties may agree, in writing, for the payment of any rate of interest 
whatever on money due or to become due on any contract. Any judgment ren- 
dered on such contract shall conform thereto, and shall hear the interest agreed 
upon by the parties, and which shall he specified in the judgment; provided, only 
the amount of the original claim or demand shall draw interest after judgment. 
§ 5, id. p. 100. 
From this State Mr. C. II. Belknap, Private Secretary to the 
Governor, writes from Carson City, Aug. 18th, ult., that,— 
“ The rate of interest varies from one and a half to two per cent 
per month.” 
HEW HAMPSHIRE. 
§ 2. In rendering judgments, and in all business transactions where interest is 
paid or secured, it shall be computed and paid at the rate of six dollars on a hun- 
dred dollars for one year, unless a lower rate is expressly stipulated. 
Sec. 2, chap. CGXIII, title, Judgments, General Statutes of New Hamp- 
shire, 1867, p. 433. 
§ 3. If any person upon any contract receives interest at a higher rate than six 
per cent, he shall forfeit three times the sum so received in excess of said six per 
cent to the person who will sue therefor. 
Id. § 3, p. 434. 
Contract not invalid for the principal and legal interest. 
Id. § 4, p. 434. 
§ 5. Nothing in this chapter shall extend to the letting of cattle or other usages 
of like nature in practice among farmers, or to maritime contracts, as bottomry 
insurance, or course of exchange as heretofore used. 
Hon. Oliver Pilsbury, Insurance Commissioner, writes on the 
30th day of Aug., ult., as follows: 
Id. § 5, p. 434. 
“ The average prevailing rate of ‘ actual business interest ’ at this 
time will not vary much from seven per cent. I think, however, that 
a gradual decline is going on, and the present indications are that six 
per cent will be reached.” 32 
The legal rate is seven per cent. 
NEW JERSEY. 
Chap. CLXXI, Laws of 1866. Approved March 15, 1866. Sess. Laws, 
p. 406, act entitled “A further supplement to the act entitled ‘An act 
against usury.’” Nixon’s Digest (4th ed.), Laws of New Jersey, 
1709-1868, p. 439. 
In case of an usurious contract principal may be recovered without any interest. 
Act of 1864, p. 714; Nixon’s Digest, p. 439 
Mr. William L. Dayton, counselor, etc., of Trenton, N. J., writes 
under date of Aug. 7th, ult., that 
“ The prevailing or average rate of actual business interest in this 
State, is, I think the legal rate, seven per cent. This is of course on 
the best securities. More is no doubt some times obtained, seldom 
less. This is, however, merely an individual opinion. Money may 
command higher rates in other parts of the State than in this city.” 
The Revised Statues (Vol l,f>- 772) allow the excess of interest 
over the legal rate of seven per cent to be recovered back, and declare 
any contract tainted with usury to be “ void.” 
NEW YORK. 
See chap, IV, title 3, §§ 1 to 8, pp. 771,773, vol. 1, first ed. 
NORTH CAROLINA. 
The legal rate when there is no special contract is six per cent; for the loan of 
money only eight per cent is allowed by a special agreement in writing. 
In case of an usurious contract the principal alone is recoverable; all the interest 
is forfeited. 
Chap. 24, Laws of 1865, ’66, p. 80. 
Messrs. Bragg <& Strong, one of the leading law firms of the 
State, write from Raleigh Aug. 25th, ult., that,— 
“We have consulted with nearly all the hank officers in town, and 
with several persons having control of and lending money, and we are 
satisfied that twelve per cent per annum is an outside average figure. 
The banks themselves will lend from three to six months at eight per 
cent on a deposit of government securities, which can be converted 
into money at the day the money falls due; and private individuals 
will loan upon mortgage at eight per cent for a year or longer. We 
thought money would average throughout the State one and a half 
per cent per month, because in the transactions of individuals we had 
known so much larger rates to be demanded and paid, coupled with 
the fact that the ordinary bank operations range from one to one and 
a half per month. We are now satisfied that we were in error, and 
that eight to ten per cent per annum, secured by mortgage, is a fair 
rate.” 33 
Mr. Kemp P. Battle, counselor at law, also of Raleigh, N. C., 
writes as follows, Aug. 25th, ult.: 
“ The usual bank rates for thirty or sixty days are from one to one 
and a half per month, according to circumstances, but rates higher 
than these have, I think, ceased. When money is lent on mortgage 
on long time, I know some cases where by charging a bonus in the 
shape of a fee or commission, ten per cent per annum is realized. But 
in the case of companies whose business is not to bank or speculate, 
but merely to invest in first-class securities on time, eight per cent, the 
legal interest, is usual, and I know of divers cases where private indi- 
viduals demand only that interest. In my opinion an insurance com- 
pany should obey the laws of the land and demand only legal interest. 
In no other way can the confidence of the public be gained. In North 
Carolina the causes which have produced the present enhanced rates 
are of a temporary nature. Business will not justify for a long time 
their continuance. Debtors will be ruined if they are kept up.” 
Section 1. Be it enacted, etc., That the parties to any bond, bill, promissory 
note, or other instrument of writing, for the forbearance or payment of money 
at any future time, may stipulate therein for the payment of interest upon the 
amount of such bond, bill, note, or other instrument of writing, at any rate, not 
exceeding eight per centum per annum, payable annually. 
OHIO. 
Sec. 1, of an act entitled “An act to amend ’An act fixing the rate of 
interest.'’” Passed May 4,1869. Sess. Laws, p. 91. 
Rate, six per cent when there is no agreement. 
Id. § 3, p. 92. 
Mr. W. F. Colburn, Insurance Manager of Cincinnati, writes as 
follows: 
“ The prevailing or average rate of actual business interest is, or 
rather has been, nine per cent. Eor three or four months past 
money has been in the hands of bankers to an unusual extent, with 
small demand from their regular customers or outsiders, conse- 
quently, money can be readily obtained at from six to eight per 
cent. The general opinion is that this state of things will not con- 
tinue longer than through the fall months. I have no doubt the old 
rates will prevail again, unless money flows in from outside sources.” 
The rate of legal interest is ten per cent when there is no rate stipulated, and in 
other specified cases. But on contracts interest at the rate of one per centum per 
month may be charged by express agreement of the parties, and no more. 
OREGON. 
Chap. XXIV, § 1, General Laws of Oregon, 1845-1864, compiled by M. P. 
Beady, p. 755. 
In case of an usurious contract the principal is forfeited to the State for the 
benefit of the school fund of the county, and the plaintiff pays the costs of suit, 
the defendant escaping the payment of any interest. 
Id. § 3, p. 756/ see, also, id. §§ 2, 4 and 5. 34 
Mr. George P. Holman,, attorney at law, of Salem, Oregon, writes 
under date of Sept. 19th, ult., that 
“The prevailing or average rate of actual business interest which 
money will command in this State is twelve per cent per annum, or 
one per cent per month.” 
Mr. Henry H. Gilfry, Private Secretary to the Governor, writes 
to the same effect, and also that, before the passage of the statute, it 
was customary to charge from twenty to twenty-five per cent per 
annum. 
PENNSYLVANIA. 
The lawful rate of interest for the loan or use of money in all cases, when no 
express contract shall have been made for a less sum, shall be six per cent per 
annum ; and the first and second sections of the act of March 2, A. D. 1723, entitled 
“An act to reduce the interest of money from eight to six per cent per annum,” 
be and the same is hereby repealed. 
No. 557, § 1, of “An act regidating the rate of interest.” Approved May 
28, 1858. Bess. Laws, p. 622; Purdon’s Digest, Brightly, 1700-1861, 
p. 561, Article, Interest, § 1. . 
Commission merchants, in certain cases, may charge at the rate of seven per 
cent. 
Pardon’s Digest, § 3, p. 561; article, Interest. 
The charters of some savings banks allow a rate of ten per cent. 
The lender forfeits the excess of interest over the legal rate ; no other penalty. 
Act of May 28,1858, § 2. 
Mr. J. Morris Harding, of Philadelphia, writes, September 1st 
ult., that 
“ The prevailing or average rate of interest is so unsettled in the 
several sections of the State, owing to various influences, that it is 
impossible to give a rate or even an approximation; e. g., in Phila- 
delphia the market closely follows New York; in Lancaster it is six 
per cent; in Titusville and oil regions eighteen per cent; in Pittsburgh 
ten per cent,” etc. 
Mr. David W. Bell, attorney at law, of Pittsburgh, writes, August 
1st, ult, that 
“ The prevailing or average rate of actual business interest which 
money commands in this State at present (because it varies) is about 
eight per cent; but parties often get nine and ten. We would say 
eight per cent was a fair average at present.” 
SOUTH CAKOL-INA. 
Rate fixed at seven per cent in lieu of eight per cent, by act of January 2, 1777. 
Statutes at Large of S. C., Vol. IV, p. 363. 35 
Act of December 18, 1830, the former penalties for usury reduced to a for- 
feiture only of all interest, the principal sum alone being recoverable without 
costs. 
Ld., Vol. VI p. 409. 
See act of 1831, also 48, 49. 
I am informed by Mr. John Heart, Private Secretary to the Gov- 
ernor, that there are no usury laws in force, and that any rate agreed 
upon by the parties is recoverable, but I do not find the statute law 
to this effect. 
“ The prevailing or average rate of actual interest varies with the 
condition of the money market, from one, one and a half, to two per 
cent per month. The second (one and a half), is about the average 
rate. Any amount of money can be loaned on landed security.” 
Mr. Heart also writes, under date of August 10, ult., that, — 
RHODE ISLAND. 
Section 1. Interest in the rendition of judgments, and in all business trans- 
actions where interest is secured or paid, shall be computed at the rate of six dol- 
lars on a hundred dollars for one year, unless a different rate is expressly stipu- 
lated. 
Chap. 582, § 1, Laws of 1865, passed March 17, Sess. Laws,p. 209. 
Mr. John R. Bartlett, Secretary of State, writes, August 8th, ult., 
that,— 
“ There is no fixed rate of interest at our banks. When money is 
scarce, seven, seven and a half, and even eight per cent has been 
charged by our banks, while the present rates are from five to five and 
a half per cent.” 
TENNESSEE. 
The legal rate as established by the code of Tennessee (Meigs and Cooper’s ed., 
1858), is six per cent, article 1944, p. 398, chap. 14, entitled of “Money and 
interest.” 
See Articles 1943 to 1955 inclusive. 
The code was amended February 23, 1870, by the passage of an act entitled 
“An act to amend the usury laws of the State, and to establish a conventional 
rate of interest.” 
Chap. LXLX of General Laics p. 86. 
The first section of this act makes it lawful to contract for “ any 
rate of interest not exceeding ten per cent per annum, provided 
that the rate of interest he in writing and expressed on the face of 
the instrument creating the debt or obligation.” 
By the third section, if unlawful interest is contracted for, it shall 
operate as a release of the debtor for all interest in excess of six per 
cent. 
By the fourth section, parties guilty of usury may be indicted and 
fined not less than one hundred dollars. 36 
Gen. G. W. Go?'don, writes from Nashville, under date of August 
30th, ult., that,— 
“ Money will readily command ten per cent interest in this State.” 
TEXAS. 
Extract from the Constitution of July, 1869 : 
Art. 12, Sec. XLIY. All usury laws are abolished in this State, and the Legis- 
lature is forbidden from making laws limiting the parties to contracts in the 
amount of interest they may agree upon for loans of money or other property; 
provided, this section is not intended to change the provisions of law fixing rate 
of interest on contracts where the rate of interest is not specified. 
When there is no agreement the rate of interest is eight per centum per annum. 
Art. 3940, Laws of Texas (2d ed.) 1869; Paschal’s Annotated Digest, p. 
665, Article, Interest. 
Before the Constitution of 1869 the maximum or conventional rate of interest 
was not exceeding twelve per cent. 
Id. art. 3941, p. 666. 
Mr. T. N. Waul, a practicing lawyer in Galveston, writes under 
date of September 8th, ult., that, — 
“ The prevailing or average rate of actual business interest is, in 
bank, twelve per cent discount on sixty and ninety days; on the street, 
from one and a half to two and a half per month, frequently at much 
higher rates; loans on undoubted and unincumbered real estate, twelve 
per cent per annum, payable quarterly or semi-annually, for one, two 
and three years. Large amounts could be securely invested on long 
loans at ten per cent per annum.” 
VERMONT. 
Rate of interest six per cent. 
Sec. 3, Chap. 79, p. 507, General Statutes of Vermont, 1863, Article, 
Interest of Money. 
Excess of interest may be recovered back, with interest, in an action of 
assumpsit. 
Provisions relating to interest shall not extend to the letting of cattle, or other 
usages of a like nature, among farmers, or maritime contracts, bottomry or 
course of exchange, as has been customary. 
Id. Sec. 4. 
§ 5, id. p. 508. 
Dr. Julius Y. Dewey, President of the National Life, of Mont- 
pelier, writes under date of August 30th, ult., as to the average rate 
of business interest, — 
“Our people manage to get something more than legal interest. 
One mode is by purchasing mortgage notes at some discount, say, one 
or two per cent on notes that draw six per cent. Most of the national 
hanks discount about legal rates.” 37 
VIRGINIA. 
Extract from the new Constitution: 
Usury. Upon debts hereafter contracted it shall be lawful to receive any rate 
of . interest, not exceeding twelve per centum per annum, which may be agreed 
upon by the parties and be specified in the bond, note, or other writing evidenc- 
ing the debt. When there is no such agreement, the rate of interest shall be six 
per centum per annum for the use and forbearance of every hundred dollars. 
Article X; see Session Laws 1869, ’70, p. 627. 
This provision of the Constitution was enacted into a statute 
March 15, 1810 : 
The penalties for usury continue to be a forfeiture of all interest with payment 
of the costs of suit. 
Code of Virginia, 1860, Chap. CXLI, Title 42, of Money and Interest, 
Nos. 5 to 10. 
Col. T. F. Owens, Aid-de-camp to the Governor, writes from 
Richmond, August 28th, ult., that, — 
“ The average rate of business interest is about nine per cent.” 
WEST VIRGINIA. 
§ 4. Legal interest shall continue to be at the rate of six dollars upon one 
hundred dollars for a year, and proportionably for a greater or less sum, or for a 
longer or shorter time ; and no person, upon any contract, shall take, for the loan 
or forbearance of money or other thing, above the value of such rate. 
Sec. 4, chap. XCV1, of Money and interest, Code of West Virginia, 1868, 
p. 533. 
§ 5. All contracts and assurances made directly or indirectly for the loan or for- 
bearance of money or other thing at a greater rate of interest than six per cent, 
except when such greater rate is now allowed by law, shall be void as to the 
excess of interest agreed to be paid above that rate, and no further. 
Id. § 5, p. 533. 
Mr. JR. G. Barr, a leading lawyer of Wheeling, writes under 
date of July 31st, ult., that, — 
“ The average business interest is from ten to twelve per cent. In 
some portions of the State it never commands less than twelve per 
cent.” 
WISCONSIN. 
Kate is seven per cent; but parties may contract for a rate not exceeding ten 
per cent in case such rate “be clearly expressed in writing.” 
Sess. Laws, 1866, chap. 120, § 1, p. 168. 
The instrument reserving usurious interest is valid for the principal, but no 
interest shall be recovered thereon. 
Sess. Laws of 1871, chap. 93, p. 128. 38 
No information has as yet been received on the subject of rates of 
interest. 
ARIZONA TERRITORY. 
ALASKA TERRITORY. 
No information on the subject of interest. 
Section 1. The legal rate of interest on the forbearance or loan of any money, 
when there is no agreement between the parties, as specified in the third section 
of this chapter, shall be at the rate of ten per centum per annum. 
COLORADO TERRITORY. 
Revised Statutes of Colorado, 1868, chap. LXIV, article, Interest, § 1, 
p. 363. 
§ 3. The parties to any bond, bill, promissory note or other instrument of writ- 
ing, may stipulate therein for the payment of a greater or higher rate of interest 
than ten per centum per annum, and any such stipulation contained in any such 
instrument of writing may be enforced in any court of law or equity in the 
Territory. 
Id. § 3, p. 362. For other provisions, see id. §§ 2 and 4. 
Mr. D. C. Dodge, General Agent of the Kansas Pacific Railway 
Company, writes from Denver, under date of Sept. 5tli, ult., that, — 
“ The average rate of business interest at present is one and a half 
per cent per month on good security; long time, good real estate 
security, fifteen per cent per annum could be readily obtained. 
Loan on call, twelve per cent per annum.” 
DAKOTA TERRITORY. 
No information has as yet been received on the subject of rates of 
interest. 
DISTRICT OF COLUMBIA 
Be it enacted by the Senate and House of Representatives of the United States of 
America, in Congress assembled, That the rate of interest upon judgments or 
decrees, and upon the loan or forbearance of any money, goods or things in 
action, shall continue to be six dollars upon one hundred dollars for one year, and 
after that rate for a greater or less sum or for a longer or shorter time, except as 
hereinafter provided. 
Chap. LIX, § 1 of an act to amend the usury laws of the District of 
Columbia. Approved April 22,1870. U. 8. Statutes at Large, vol. 16, 
p. 91. 
§ 2. And be it further enacted, That, in all contracts hereafter to be made, it 
shall be lawful for the parties to stipulate or agree, in writing, that the rate of ten 
per cent per annum, or any less sum of interest, shall be taken and paid upon 
every hundred dollars of money loaned or in any manner due and owing from 
any person or corporation in this District. 
Id. § 2,p. 91. 
Usurious contract, all of the interest is forfeited, the principal alone recoverable. 
Id. §§ 3 and 4. 39 
Mr. Vedant B. Edwards, a practicing lawyer, writes Aug. 25th, 
from Washington, as follows, — 
“ The practical or business rate of interest has always been ten 
per cent, as wre could borrow from Baltimore at ten per cent.” 
IDAHO TERRITORY. 
Section 1. Section five of said act is hereby amended so as to read as follows: 
§ 5. Parties may agree iu writing for the payment of any rate of interest what- 
ever on money due or to become due on any contract. Any judgment rendered 
on such contract shall bear the same rate of interest that the contract bore until 
satisfied. 
Chap. VII, § 1 of the act approved January 9, 1866, entitled “An act 
to amend an act entitled ‘An act in relation to money of account and 
interest.' ” Sess. Laics, p. 135. 
When there is no express contract in writing fixing a different rate of interest, 
the legal rate is ten per cent. 
Sec. 4 of an act approved January 18, 1864, entitled “An act in relation 
to money of account and interest.” Sess. Laws, 1863, 1864, p. 605. 
Mr. E. J. Curtis, Territorial Secretary, writes under date of Oct. 
1st inst., that the,— 
“ Prevailing rate of interest is two per cent per month.” 
MOHTAHA TERRITORY. 
The legal rate is ten per cent when no rate is specified by agreement; parties 
can contract at any rate agreed upon if it is stipulated in writing. 
Laws of Montana, 1865, p. 535, 
There are no laws against usury. 
Governor B. F. Potts, writes from Virginia City, under date of 
September 9th, ult., that, — 
“ The average rate of interest in Montana is from two to three per 
cent per month. Comity warrants bearing ten per cent per annum 
can be purchased here for sixty to seventy-five per cent on the dollar, 
running probably two, and not longer than three, years, and are 
perfectly safe as an investment. Territorial warrants are worth eighty 
cents, drawing ten per cent per annum, and payable in one, and not 
more than two, years. We have had a little trouble here by a small 
defalcation of the Territorial Treasurer, but we have arranged the 
matter so there will be no loss to any body.” 
HEW MEXICO TERRITORY. 
Ho information lias been received. 40 
§ 1. Be it enacted by the Governor and Legislative Assembly of the Territory of 
Utah, That it shall be lawful to take ten per cent interest per annum, when the 
amount of interest has not been specified or agreed upon. 
UTAH TERRITORY. 
Sec. 1 of the act approved Feb. 19, 1869, entitled “ An act in relation to 
interest.” 
Parties can fix a conventional rate by agreement, and there are no penalties for 
taking more than ten per centum. 
Id. 
Justice James B. McKean writes, under date of Salt Lake City, 
September 7th ult., in reference to the actual rate of business 
interest, that,— 
“ One per cent a month (twelve per cent a year) is a common rate 
of interest agreed upon, although the banks sometimes charge and get 
two per cent per month.” 
WASHINGTON TERRITORY. 
Section 1. Be it enacted by the Legislative Assembly of the Territory of Wash- 
ington, That the legal rate of interest shall be ten per centum per annum. 
§ 2. Any rate of interest agreed upon by parties to a contract, specifying the 
same in writing, shall he valid and legal. 
An act to regulate the interest of Money. Washington Statutes, 1854, 
p. 880. 
No information has as yet been received on the subject of a rate 
or rates of interest. 
WYOMING TERRITORY. 41 
GREAT BRITAIN. 
a. d. 1545. 
The statute 37th Henry VIII (also 13th Eliz.) fixed the legal rate 
of interest at ten per cent. 
This rate was the same as in Genoa, then the great monetary 
centre. 
Under the Commonwealth (Cromwell) the legal rate was reduced 
to six per cent. 
The statute of 25 Jac. I, cap. 17, reduced the legal rate to eight 
per cent. 
The act 12 Charles II, cap. 13 (Aug. 27, A. D. 1660), reduced the 
Tate to six per cent. 
The act of 2d and 3d Victorse, cap. 37, provided in its first section 
for exempting certain bills of exchange and promissory notes from 
the laws relating to usury. The second section enacted as follows: 
Sec. 2. Provided always, and be it enacted, that nothing in this act contained 
shall be construed to enable any person or persons to claim, in any court of law 
or equity, more than five per cent interest on any account or on any contract or 
engagement, notwithstanding they may be relieved from the penalties against 
usury, unless it shall appear to the court that any different rate of interest was 
agreed to between the parties. 
Statutes of Great Britain and Ireland, Vol. XV, p. 88. 
The average rate of interest realized in England, on investments 
in the public funds, is about three and a quarter per cent. 
Mr. Samuel Brown remarks as follows in reference to the invest- 
ments of Life insurance companies : 
“I. have assumed three a\id a half, four and four and a half, because, 
practically, these afford about the limits which prudent and well 
organized companies obtain for their investments. Some of the old 
companies, not. having yet considered the new sources of investment 
which have of late years opened up, are still only realizing three and 
a half per cent on the average on their whole funds; while others of 
equal standing have, by changes and by skill and attention to this 
business, secured four and a half per cent on the whole. It will prob- 
ably be found that four per cent is very near the average interest on. 
the capital of all the existing companies, including their productive 
and non-productive funds.” * * * 
Address by Samuel Brown, V. P. I. A., on the Investments of the Funds 
of Assurance Companies. Journal of the Institute, vol. VII, p. 243. 
The following Table Uo. 3 digests the substance of the laws of 
the different States and Territories of the United States on this 
subject: 42 
Compiled by William Barkes, shoiving the legal rates of interest in the different States and Territories of the Union, 
where there is no special contract or agreement; also, the highest legal rate allowed to be fixed by agreement, and the actual 
business rate of interest, and the various penalties, if any, for usury. (September, 1871.) 
NAME OF STATE. 
Population. 
Legal rate 
Swhere there 
is no agree- 
ment. 
Highest legal 
rate allowed 
to be fixed by 
agreement. 
Actual busi- 
ness rate of 
interest. 
Penalty for usury. 
Alabama 
996,992 
8 
8 
9 & 24 to 37 
Loss of all the interest. 
Arkansas 
484,471 
6 
No limit. 
10 to 36 
Constitution prohibits any usury law. 
California. 
560,247 
7 & 10 
No limit. 
8 to 18 
No penalty. 
Connecticut 
537,454 
6 
6 
6 + 
Loss of all the interest. 
Delaware 
125,015 
6 
6 
6 
Loss of the principal, forfeited, etc. 
Florida 
187,748 
8 
No limit. 
10 to 12 & 36 
No penalty. 
Georgia 
1,184,109 
7 
7 
12 to 24 
Loss of excess of interest. 
Illinois 
2,539,891 
6 
10 
9 
Loss of all the interest. 
Indiana 
1,680,637 
6 
10 
10 
Loss of excess of interest. 
Iowa 
1,191,792 
6 
10 
10 
Loss of ten per cent of principal, all int., etc. 
Kansas 
364,399 
7 
12 
12 
Loss of all the interest. 
Kentucky 
1,320,011 
6 
10 
9 
Loss of all the interest. 
Louisiana 
726,915 
5 
8 & 12 
6 to 15 
Loss of all the interest. 
Maine 
626,915 
6 
No limit. 
7 to 8 
No penalty. 
Maryland 
790,849 
6 
6 
7 to 9 & 12 
Loss of excess of interest. 
Massachusetts 
1,457,355 
6 
No limit. 
7 
No penalty. 
Michigan 
1,184,059 
7 
10 
10 & 12 to 36 
Loss of excess of interest. 
Minnesota : 
439,706 
7 
12 
12 
Loss of excess of interest. 
Mississippi 
827,922 
6 
10 
10 
Excess forfeited. 
Missouri 
1,721,295 
6 
10 
8 to 18 
Loss of all int., forfeited to Co. for schools. 
Nebraska 
122,993 
10 
12 
12 to 60 
Loss of all the interest. 
Nevada 
42,491 
10 
No limit. 
18 to 24 
No penalty. 
New Hampshire 
318,309 
6 
6 
7 
Forfeiture of three times the excess of int. 
New Jersey 
906,096 
7 
7 
7 + 
Loss of all the interest. 
New York 
4,382,759 
7 
7 
7 + 
Loss of principal and interest; contract void. 
TABLE No. 3. 43 
North Carolina 
1,071,361 
6 
8 
8 to 18 
Loss of all the interest. 
Ohio 
2,665,260 
6 
8 
6 to 9 
Loss of excess of interest. 
Oregon 
90,923 
10 
12 
12 
Forfeiture prin. to sch. fund, and loss of int. 
Pennsylvania 
3,521,791 - 
6 
6 
6 to 18 
Loss of excess of interest. 
South Carolina 
705,606 
7 
No limit.(?) 
18 
Supposed, no penalty. 
Rhode Island 
217,353 
6 
No limit. 
5 to 8 
No penalty. 
Tennessee 
1,258,520 
6 
10 
10 
Indictable offense; loss of excess of interest. 
Texas 
818,579 
8 
No limit. 
12 to 30 
No penalty; Const’n prohibits usury laws. 
Vermont 
330,551 
6 
6 
7 
Loss of excess of interest. 
Virginia 
1,225,163 
6 
12 
9 
Forfeiture of all int.; rate fixed by Constit’n. 
West Virginia 
442,014 
6 
6 
10 to 12 
Loss of excess of interest. 
Wisconsin 
1,054,670 
7 
10 
9 
Loss of all interest; if paid, treble recover- 
able back. 
Average rate (37 States) 
38,122,212 
67 
Territories. 
9,658 
Colorado 
39,864 
10 
No limit. 
15 to 18 
No penalty. 
14,181 
District of Columbia 
131,700 
6 
10 
10 
Loss of excess of interest. 
14,999 
10 
Montana 
20 j 595 
10 
No limit. 
24 to 36 
No penalty. 
91,874 
Utah 
86,786 
10 
No limit. 
12 to 24 
No penalty. 
23,955 
10 
No penalty. 
9,118 
Average rate (11 Territories) 
442,730 
Grand average (48 States & Ter.).. 
38,564,942 
7.7 44 
I. 
STANDARD TABLE OF MORTALITY FOR THE 
STATE VALUATION OF LIFE INSURANCE POLI- 
CIES AND ENDOWMENTS. 
In the May session of the Convention there was such an almost 
entire harmony and unanimity in approving and recommending the 
American Experience Table of Mortality, that I need not reiterate 
here my well-known views that it is the one best adapted to the 
actual state of Life insurance business in this country, and there- 
fore the best one upon which to secure uniformity throughout the 
Union. 
It was constructed from actual American Experience, principally 
that of the Mutual Life Insurance Company of Hew York, and 
was first tabulated by Mr. Charles Gill and subsequently by Mr. 
Sheppard Homans, both formerly actuaries of that company. It 
has been graduated and modulated with admirable skill and tact by 
Mr. Homans, with all the aids of the established and standard tables 
of Europe and records of mortality in this country; and it will 
remain long after his death as the most perfect and honorable work 
which he has matured and given to the world. The American 
Experience Table, even as first formulated on narrow experience by 
Professor Gill, was in singular unison with that of the Gotha Life, 
the largest company on the continent, and as finally tabulated by 
Mr. Homans, harmonizes wonderfully also with theActuaries’ Hew 
Experience Table in Great Britain; which latter Table, according 
to Mr. Samuel Brown (in a letter to me, dated July 19, 1869) 
contains, — 
“ The law of mortality of assured lives in any country, for I cannot 
(he says) imagine much difference would be found in selected lives, 
whatever difference there may be in various classes of the populations. 
We further propose to publish a second volume of official tables,” etc. 
In the course of five, ten or more years it may be advisable to gather 
and tabulate the new and further experience of the American com- 
panies and combine the same in a new American Experience Table, 
which can then be made to cover a very large number of lives and 
an experience wider and more extensive than any yet published of 
actual insured lives. If such collected facts, when tabulated, require 
any modification of the present Table it can then be made. 45 
In order to give to the Convention the ready means of comparing 
the Death-force at each age of life in this and the other leading Life 
Tables, I have prepared the following tabular comparison (Table 
No, 4, pp. 46-49), both of the percentage of mortality and the num- 
ber out of which one will die at each age, according to the seven 
following leading standards. 
It will readily be apprehended that the Percentage Table, by 
changing the decimal point, is applicable to a single or any number 
of lives at the specified age. The ratio carried out indicates the 
average probability of dying during a period equal to a whole year; 
by substracting the percentage from one hundred or one we obtain 
of course the opposite chance or probability of surviving during 
the year, both chances making, when added together, one hun- 
dred or unity. 
In that part of the Table (No. 4), which shows the number out 
of which one will die during a year, it is assumed that, at the speci- 
fied age, the full number of lives, or persons indicated, is exposed to 
risk for an entire year, whether made up of integers alone or of 
integers and fractions. 
Table No. 5 (see post pages, 50 to 52), shows the first order of 
the differences in the following six Tables: 
(1) American Experience Table. 
(2) Actuaries or Old Combined Experience. 
(3) Actuaries or New Experience. 
(4) English Life Table No. 3 (males). 
(5) Carlisle Table. 
(6) Deparcieux (French) Table. 
The second and third orders of differences are also shown in the 
American Experience and Old Combined Experience Tables. (See 
pp. 50, 51, 52.) 46 
Showing the Percentage of Mortality at each age of Life, according to the (1) American Experience, (2) Actuaries or 
old Combined Experience (3) Actuaries or new Combined Experience (4) English No. 3 Males, (5) Carlisle, 
(6) Deparcieux, and (7) Einlaison’s Government Annuitant Tables of Mortality; and, also, the number out of which 
one will die at each age of life, according to the same tables, except Finlaison’s. 
mmmhm mmmmm h- 
©©CO-1© C^rf^COMMO 
Age. 
0.7490 
0.7516 
0.7543 
0.7569 
0.7596 
0.7633 
0.7660 
0.7688 
0.7736 
0.7765 
0.7804 
American 
Experience. 
PERCENTAGE OF MORTALITY AT EACH AGE : 
0.6760 
0.6786 
0.6813 
0.6848 
0.6896 
0.6944 
0.7003 
0.7063 
0.7134 
0.7306 
0.7391 
Actuaries or 
Combined 
Experience ® 
(old). 
"6:7900 
0.0000 
0.4033 
0.3543 
0.4063 
0.3343 
0.0000 
0.4190 
0.6056 
0.7033 
0.5833 
Actuaries or 
Combined 
Experience @ 
(new, not 
graduated). 
16.3595 
6.4397 
3.5493 
3.3850 
1.7819 
1.3590 
1.0831 
0.9160 
0.7636 
0.6464 
0.5617 
0.5059 
0.4770 
0.4709 
0.4853 
0.5173 
0.5639 
0.6301 
0.6854 
0.7559 
0.8385 
English No. 3 
(Males.) * 
15.3900 
8.0605 
6.4918 
3.7943 
3.8733 
1.7810 
1.3383 
0.8796 
0.6579 
0.5083 
0.4489 
0.4830 
0.5000 
0.5183 
0.5535 
0.6191 
0.6708 
0.6914 
0.6963 
0.7011 
0.7061 
Carlisle Table. 3 
3.000 
3.368 
1.899 
1.613 
1.431 
1.330 
1.134 
0.909 
0.688 
0.693 
0.698 
0.703 
0.708 
0.831 
0.838 
0.845 
0.853 
0.983 
Deparcieux’s 
Table. ® 
.97843 
.90657 
.83656 
.76938 
.70510 
.64638 
.59736 
.56457 
.55346 
.56309 
.59678 
.65335 
.73907 
.83413 
.93333 
1.04714 
1.16130 
1.35790 
Finlaison’s 
Government 
Annuitants. 
(Males.) 
1.07493 
.93789 
.83780 
.74139 
.67448 
.61379 
.56991 
.54910 
.55087 
.57348 
.61345 
.66601 
.73000 
.76770 
.80440 
.83793 
.83833 
.83999 
Einlaison’s 
Government 
Annuitants. 
(Females.) 
MMMMM H-iMMMM M 
©©CC-1© ©COCO -3 05 Or CO tO M © 
Age. 
133.51 
133.04 
133.58 
133.11 
131.64 
131.00 
130.54 
1:10.06 
139.43 
138.77 
138.13 
American 
Experience. 
NUMBER OF LIVES OUT OF WHICH ONE WILL DIE 
DURING THE TEAR : 
147.93 
147.36 
146.80 
145.87 
145.03 
144.03 
143.81 
141.59 
140.18 
138.77 
137.16 
Actuaries or 
Combined 
Experience ® 
(old). 
136.58 
0.00 
348.01 
383.33 
346.18 
445.63 
0.00 
338.66 
165.12 
143.40 
171.76 
Actuaries or 
Combined 
Experience 3 
(new, not w 
graduated). 
6.11 
15.55 
38.17 
41.93 
56.13 
73.58 
93.43 
109.17 
130.95 
154.69 
178.03 
197.66 
309.65 
313.34 
306.06 
193.31 
177.65 
161.36 
145.89 
133.39 
130.70 
English No. 3 
(Males.) * 
6.41 
13.40 
15.40 
36.35 
34.83 
56.17 
81.41 
113.09 
153.00 
196.76 
233.76 
207.45 
200.00 
193.97 
181.00 
161.54 
149.05 
144.63 
143.63 
143.63 
141.63 
Carlisle Table. @ 
33.33 
44.09 
53.93 
61.99 
70.37 
75.18 
88.96 
110.01 
145.34 
144.30 
145.34 
143.24 
141.24 
120.33 
119.33 
118.34 
117.23 
101.72 
Deparcieux’s 
Table. ® 
MMMMM MHMMM M 
©©CO-1© ©©CO-1© Ox rf*- CO tO M © 
Age. 
TABLE No. 4. 47 
21 
0.7855 
0.7377 
0.7008 
0.8466 
0.6946 
0.993 
1.32700 
0.83706 
21 
127.30 
135.56 
142.69 
118.12 
143.98 
100.70 
21 
22 
0.7906 
0.7464 
0.6215 
0.8645 
0.6994 
1.003 
1.36380 
0.83247 
22 
126.48 
133.97 
160.90 
115.67 
142.98 
99.70 
22 
23 
0.7958 
0.7564 
0.7738 
0.8819 
0.7043 
1.013 
1.36790 
0.82857 
23 
125.65 
132.20 
129.23 
113.39 
141.98 
98,71 
23 
24 
0.8011 
0.7666 
0.6837 
0.8987 
0.7093 
1.023 
1.34300 
0.82701 
24 
124.83 
130.45 
146.26 
111.27 
140.98 
97.17 
24 
25 
0.8064 
0.7770 
0.5163 
0.9160 
0.7314 
1.034 
1.30200 
0.82909 
25 
124.00 
128.70 
193.68 
109.17 
136.72 
96.71 
25 
26 
0.8130 
0.7887 
0.6919 
0.9333 
0.7368 
1.044 
1.25530 
0.83542 
26 
123.00 
126.79 
144.52 
107.15 
135.72 
95.78 
26 
27 
0.8196 
0.8006 
0.6532 
0.9507 
0.7768 
1.055 
1.21060 
0.84611 
27 
122.00 
124.91 
153.09 
105.19 
130.00 
94.78 
27 
28 
0.8264 
0.8139 
0.7781 
0.9688 
0.8699 
1.067 
1.17380 
0.86084 
28 
121.00 
122.86 
128.51 
103.22 
114.96 
93.72 
28 
29 
0.8344 
0.8275 
0.7400 
0.9877 
0.9828 
1.078 
1.14820 
0.87894 
29 
119.83 
120.85 
135.13 
101.24 
101.75 
92.76 
29 
30 
0.8436 
0.8425 
0.8234 
1.0074 
1.0103 
1.090 
1.13580 
0.89876 
30 
118.66 
118.69 
121.44 
99.26 
98.98 
91.74 
30 
31 
0.8510 
0.8578 
0.7293 
1.0283 
1.0206 
1.102 
1.13710 
0.91898 
31 
117.50 
116.49 
137.11 
97.25 
97.98 
90.74 
31 
32 
0.8607 
0.8747 
0.8363 
1.0504 
1.0130 
1.114 
1.15090 
0.93866 
32 
116.18 
114.33 
119.57 
95.30 
98.72 
89.76 
32 
33 
0.8717 
0.8919 
0.8320 
1.0741 
1.0051 
1.127 
1.17550 
0.95716 
33 
114.71 
112.12 
120.19 
93.10 
99.49 
88.73 
33 
34 
0.8830 
0.9095 
0.8735 
1.0994 
1.0151 
1.140 
1.20810 
0.97412 
34 
113.24 
109.93 
114.48 
90.96 
98.49 
87.71 
34 
35 
0.8946 
0.9288 
0.8232 
1.1265 
1.0257 
1.153 
1.24280 
0.98916 
35 
111.78 
107.66 
121.47 
88.77 
97.49 
86.73 
35 
36 
0.9088 
0.9485 
0.8768 
1.1555 
1.0552 
1.166 
1.27540 
1.00230 
36 
110.03 
105.44 
114.05 
86.54 
94.77 
85.76 
36 
37 
0.9234 
0.9687 
0.9553 
1.1874 
1.0855 
1.032 
1.30310 
1.01393 
37 
108.29 
103.23 
104.67 
84.22 
92.12 
96.89 
37 
38 
0.9408 
0.9906 
1.0360 
1.2210 
1.1167 
1.043 
1.32440 
1.02467 
38 
106.29 
100.95 
96.52 
81.90 
89.55 
95.87 
38 
39 
0.9586 
1.0131 
1,0588 
1.2575 
1.1877 
1.054 
1.33890 
1.03537 
39 
104.31 
98.71 
94.44 
79.52 
84.20 
94.87 
39 
40 
0.9794 
1.0362 
1.9850 
1.2971 
1.3005 
1.065 
1.34790 
1.04797 
40 
102.10 
96.51 
101.52 
77.10 
76.89 
93.89 
40 
41 
1.0008 
1.0612 
1.0440 
1.3591 
1.3775 
1.077 
1.35330 
1.06378 
41 
99.92 
94.23 
95.78 
74.68 
72.59 
92.85 
41 
42 
1.0252 
1.0894 
1.0798 
1.3844 
1.4373 
1.089 
1.35710 
1.08360 
42 
97.54 
91.79 
92.60 
.72.23 
69.58 
91.82 
42 
43 
1.0517 
1.1251 
1.0540 
1.4337 
1.4582 
1.101 
1.36200 
1.10770 
43 
95.08 
89.00 
96.87 
69.75 
68.58 
90.82 
43 
44 
1.0829 
1.1697 
1.1793 
1.4856 
1.4798 
1.113 
1.37020 
1.13620 
44 
92.35 
85.49 
84.79 
67.31 
67.58 
89.84 
44 
45 
1.1163 
1.2212 
1.2460 
1.5419 
1.4809 
1.125 
1.38840 
1.16800 
45 
89.58 
81.89 
80.25 
64.85 
67.53 
88.88 
45 
46 
1.1562 
1.2839 
1.2474 
1.6017 
1.4816 
1.301 
1.42120 
1.20290 
46 
86.49 
77.89 
80.16 
62.43 
67.49 
76.86 
46 
47 
1.2000 
1.3516 
1.4079 
1.6660 
1.4603 
1.318 
1.47220 
1.24010 
47 
83.33 
73.99 
71.02 
60.02 
68.48 
75.87 
47 
48 
1.2509 
1.4260 
1.4147 
1.7344 
1.3935 
1.503 
1.54340 
1.27960 
48 
79.94 
70.12 
70.68 
57.66 
71.76 
66.53 
48 
49 
1.3106 
1.5061 
1.5297 
1.8071 
1.3683 
1.525 
1.63570 
1.32120 
49 
76.30 
66.39 
65.37 
55.34 
73.08 
65.57 
49 
50 
1.3781 
1.5938 
1 6497 
1.8845 
1.3418 
1.721 
1.74190 
1.36520 
50 
72.56 
62.74 
60.61 
53.06 
74.53 
58.10 
50 
51 
1.4541 
1.6898 
1.7333 
2.0217 
1.4292 
1.926 
1.85570 
1.41190 
51 
68.77 
59.17 
57.69 
49.46 
69.97 
51.92 
51 
52 
1.5389 
1.7947 
1.7070 
2.1223 
1.5201 
1.964 
1.97190 
1.46200 
52 
64.98 
55.72 
58.58 
47.12 
65.78 
50.91 
52 
53 
1.6333 
1.9093 
1.7221 
2.2262 
1.6148 
2.004 
2.08640 
1.51620 
53 
61.22 
52.38 
58.06 
44.92 
61.93 
49.90 
53 
54 
1.7396 
2.0313 
1.8996 
2.3365 
1.6896 
2.230 
2.19630 
1.57540 
54 
57.48 
49.23 
52.42 
42.80 
59.19 
44.84 
54 
55 
1.8571 
2.1664 
2.2966 
2.4549 
1.7923 
2.281 
2.30020 
1.63880 
55 
53.85 
46.16 
43.54 
40.73 
55.79 
43.84 
55 
56 
1.9885 
2.3126 
2.3045 
2.5837 
1.9000 
2.335 
2.39960 
1.70740 
56 
50.29 
43.24 
43.39 
38.70 
52.63 
42.82 
56 
57 
2.1335 
2.4679 
2.3919 
2.7261 
2.0897 
2.590 
2.49760 
1.78300 
57 
46.88 
40.52 
41.80 
36.68 
47.85 
38.61 
57 
58 
2.2936 
■ 2.6386 
2.5133 
2.8830 
2.4206 
2.658 
2.59970 
1.87270 
58 
43.60 
37.90 
39.78 
34.68 
41.31 
37.62 
58 
69 
2.4720 
2.8246 
2.5285 
3.0579 
2.8274 
2.731 
2.71170 
1.96800 
59 
40.45 
35.40 
39.54 
32.70 
35.37 
36.61 
59 
60 
2.6693 
3.0336 
3.1197 
3.2514 
3.3489 
2.808 
2.84630 
2.08950 
60 
37.46 
32.96 
32.05 
30.75 
29.86 
35.61 
60 
61 
2.8880 
3.2612 
3.2551 
3.4678 
3.5785 
2.889 
3.01230 
2.23860 
61 
34.62 
30.66 
30.72 
28.84 
27.94 
34.61 
61 
62 
3.1292 
3.5121 
3.4551 
3.7075 
3.7408 
3.204 
3.21550 
2.41840 
62 
31.96 
28.42 
28.94 
26.97 
26.73 
31.21 
62 48 
00 CO 00 00 00 
CtxMCOtOM 
© © 00 -3 © 
-1 -3 -5 
OX M CO to M 
—5 © © © © 
©©©-5© 
Ox £ CO 
Age. 
15.8605 
17.4397 
19.1561 
21.1359 
33.5552 
10.2311 
11.1064 
12.0827 
13.1734 
14.4466 
6.7665 
7.3733 
8.0178 
8.7028 
9.4371 
4.3707 
4.7647 
5.2002 
5.6762 
6.1993 
3.3943 
3.6873 
4.0129 
American 
Experience. 
3 
15.1436 
16.3194 
17.5913 
18.9678 
30.5095 
10.3180 
11.1469 
12.0444 
13.0065 
14.0406 
7.0158 
7.5805 
8.1884 
8.8468 
9.5560 
4.7614 
5.1474 
5.5630 
6.0087 
6.4933 
3.7840 
4.0826 
4.4082 
Actuaries or 
Combined 
Experience 
(old).- 
15.9699 
16.9154 
20.6731 
18.0303 
21.6266 
10.6244 
10.8685 
12.3026 
13.5940 
14.0805 
6.2011 
7.9809 
7.8641 
10.5373 
9.4621 
4.6650 
4.8932 
5.5426 
6.0906 
5.6156 
3.7474 
4.0101 
4.3602 
Actuaries or 
Combined 
Experience 
(new, not 
graduated). 
£0 
| 
O 
g 
a 
> 
15.1943 
16.2489 
17.3543 
18.5119 
19.7191 
10.6422 
11.4541 
12.3159 
13.2247 
14.1846 
7.2707 
7.8549 
8.4839 
9.1577 
9.8750 
4.9467 
5.3373 
5.7626 
6.2257 
6.7282 
3.9728 
4.2674 
4.5909 
English No. 
3 (Males.) 
$ 
Q 
H 
O 
*4 
g 
O 
MMMMM 
» 
H 
btcoobw 
M CO 00 -5 tO 
M M© M © 
to © tO CO M 
M © M tO © 
Ox © © © © 
C'MMMCr, 
tO © 1— tO M 
tO © —5 © © 
M © © M tO 
£ © crj © § 
ox © © © to 
M © © 
©M tO 
© -1 OX 
MM© 
Carlisle 
Table. 
Ox 
g 
H 
MHHMM 
©GO 05 05 OX 
MMM^-x 
rf^COHC© 
© ©-5-5 © 
G5 Ox Ox M M 
CO CO CO 
Deparcieux’s 
3 
> 
H 
g ©g 
M tO © © © 
©CO © © © 
-5 Ox© CO© 
§8x©©m 
Ox© © ©CO 
M -5 M © tO 
tO -1 © -1 M 
© Ox —5 © M 
MM CO 
MOO© 
Table. 
Q 
w 
14.11770 
15.18100 
16.23580 
17.28210 
18.34280 
9.28040 
10.07860 
10.99010 
11.99850 
13.05170 
6.60210 
7.06130 
7.53160 
8.02690 
8.59990 
4.42510 
4.81820 
5.24080 
5.68930 
6.14540 
3.45860 
3.74220 
4.06530 
Finlaison’s 
Government 
Annuitants. 
(Males.) 
3 
o 
K 
12.31570 
13.36860 
14.45910 
15.58710 
16.76040 
7.84690 
8.59580 
9.42750 
10.33630 
11.30300 
5,17900 
5.60950 
6.07950 
6.59680 
7.18200 
3.42690 
3.73420 
4.06110 
4.40960 
4.78090 
2.62970 
2.87190 
3.13890 
Pinlaison’s 
Government 
Annuitants. 
(Females.) 
M 
© —1 —5 —5 -5 
© © ©M © 
-5 -5 -5 -5 -5 
OxMCOlOM 
—3 © © © © 
©©©-3© 
63 
64 
65 
Age. 
M M Ox m © 
© M © © © 
mmmmm 
©MtOCOM 
M M M tO tO 
©-3© ©to 
to to to 
Mm © 
American 
Experience. 
3 
a 
>SgjS32o 
© OX tO © -5 
tO © © © -5 
© M M Ox -5 
©©-5©© 
M© tO© © 
CO to CO © © 
© MM 
to to© 
§ 
3 
M Ctx Ox 05 © 
-5-5©©© 
MMMMM 
© M tO CO M 
M M M M tO 
Ox © —1 © M 
to to to 
tOM© 
Actuaries or 
Combined 
3 
H 
E3 
O 
*4 
CDM©M© 
© m © co © 
©©CO© © 
M©©M© 
M CO tO M tO 
© © M © Ox 
© M ox 
©©oo 
(old). 
g 
a* 
Sg 
6.20 
5.91 
4.83 
5.54 
4.62 
-5-5©© © 
© Ox tO © M 
16.12 
12.52 
12.71 
9.49 
10.56 
21.43 
20.43 
18.04 
16.41 
17.80 
26.68 
24.93 
22.93 
Actuaries or 
Combined 
Experience 
(new, not 
graduated). 
3 
OX OX ox©© 
tO © Ox CD 
9.40 
8.73 
8.12 
7.56 
7.05 
13.75 
12.73 
11.79 
10.92 
10.13 
20.21 
18.74 
17.35 
16.06 
14.86 
25.17 
23.43 
21.78 
English No. 
3 (Males.) 
3 
a § 
s* 
Is 
a a 
Ox © © M M 
M CO © M M 
HOWM^ 
©co©©© 
16.99 
14.68 
12.80 
11.09 
10.47 
23.53 
22.53 
21.53 
20.36 
19.36 
26.14 
25.14 
24.34 
Carlisle 
Table. 
3 
o 
a 
H 
3 
H 
P 
M Ox Ox © © 
©-5 © © © 
MMMMM 
M M tOCO M 
M M M tO tO 
© —3 © MW 
Deparcieux’s 
Table. 
© 
tr> 
« 
3 
CO CO © © CO 
OWH*lM 
M Ox Ox © © 
M Ox Ox Ox Ox 
© Ox Ox Ox M 
QOCOtOMM 
MMMMM 
goto to 
CO QO © © © 
OxMCOtOM 
©-5-5-5-5 
© © © -5 © 
—5 —5 —5 —5 —5 
Ox M CO tO M 
M © © © © 
©© ©M© 
8x£So 
Age. 
Showing the Percentage of Mortality at each age of Life, etc. 
TABLE No. 4—(Continued). 49 
86 
26.5681 
22.2480 
21.6981 
20.9610 
19.3461 
23.684 
19.44770 
17.98910 
86 
3.76 
4.49 
4.61 
4.77 
5.17 
4.22 
86 
87 
30.3020 
24.2234 
21.6868 
22.2617 
21.6216 
24.138 
20.63250 
19.28710 
87 
3.30 
4.13 
4.61 
4.49 
4.62 
4.12 
87 
88 
34.6692 
26.5274 
28.4616 
23.6036 
21.9828 
27.273 
21.95490 
20.67350 
88 
2.88 
3.77 
3.51 
4.24 
4.55 
3.66 
88 
89 
39.5863 
29.2382 
19.3548 
25.0000 
21.5470 
31.250 
23.48940 
22.17560 
89 
2.52 
3.42 
5.16 
4.00 
4.60 
3.20 
89 
90 
45.4546 
32.3730 
22.6666 
26.4151 
26.0563 
36.364 
25.03750 
23.69250 
90 
2.20 
3.09 
4.41 
3.78 
3.84 
2.79 
90 
91 
53.2468 
36.0987 
31.0345 
27.8917 
28.5714 
42.857 
26.93510 
25.38080 
91 
1.88 
2.77 
3.22 
3.58 
3.50 
2.33 
91 
92 
63.4259 
40.5263 
45.0000 
29.4059 
28.0000 
50.000 
29.21510 
27.25200 
92 
1.58 
2.47 
2.22 
3.40 
3.57 
2.00 
92 
93 
73.4177 
45.7227 
65.9090 
30.9457 
25.9259 
100.000 
3J.91890 
29.32050 
93 
1.36 
2.19 
1.51 
3.23 
3.86 
1.00 
93 
94 
85.7143 
51.6306 
0 0000 
32 4959 
25.0000 
36.64755 
34.07231 
94 
1.17 
1.93 
0.00 
3 08 
4.00 
94 
95 
100.0000 
68.4270 
33.3333 
34.2137 
23.3333 
42.76044 
40.41080 
95 
1.00 
1.71 
3.00 
2.92 
4.28 
95 
96 
64.8649 
100.0000 
35 7664 
21 7391 
50.45997 
48.58419 
96 
1.54 
1.00 
2 79 
4 60 
96 
97 
69.2308 
37 5000 
22 2222 
59.94855 
58.84070 
97 
1.44 
2.67 
4.50 
97 
98 
75.0000 
39 0909 
21 4286 
71,42857 
71.42857 
98 
1.33 
2.56 
4.68 
98 
99 
100.0000 
41.0448 
18 1818 
85.10245 
85.10245 
99 
1.00 
2.44 
5.50 
99 
100 
41.7721 
22 2222 
100.00000 
100.00000 
100 
2.39 
4.50 
100 50 
Showing the first order of differences in the (1) American Experience, (2) Actuaries or old Combined Experience (3) 
Actuaries or new Combined Experience (4) English Life Table No. 3, males, (5) Carlisle Table, (6) Deparcieux Table, 
and the second and third orders of differences in the American Experience and the old Actuaries Tables of Mortality. 
Ago. 
(1) 
American 
Experience 
1st differ- 
ence. 
(2) 
Actuaries 
or old 
Combined 
Experi- 
ence 1st 
difference. 
(3) 
Actuaries or 
new Com- 
bined Expe- 
rience (not 
graduated) 
1st difference. 
(4) 
English, 
No. 3, Males 
1st differ- 
ence. 
(5) 
Carlisle 
Table 1st 
difference. 
(6) 
Deparcieux 
Table 1st 
difference. 
(1) 
American 
Experience 
2d difference. 
(2) 
Actuaries or 
Combined 
Experience 
(old) 2d dif- 
ference. 
(1) 
American 
Experience 
3d difference. 
(2) 
Actuaries or 
Combined 
Experience 
(old) 3d dif- 
ference. 
Age. 
o 
0 
1 
-9.9298 
-7.3295 
1 
2 
-2.8804 
-1.5687 
2 
3 
-1.1643 
-0.6975 
3 
4 
-0.6031 
-0.9220 
-0.732 
4 
5 
-0.4229 
-1.0913 
-0.369 
5 
6 
-0.2779 
-0.5537 
-0.286 
6 
7 
-0.1661 
-0.3487 
-0.192 
7 
8 
-0.1524 
-0.2217 
-0.091 
8 
9 
-0.1172 
-0.1497 
-0.206 
9 
10 
-0.0847 
-0.0591 
-0.215 
10 
11 
+0 nngfi 
+0 0026 
-0.7900 
-0.0558 
+0.0331 
-0.221 
11 
12 
n on2fi 
0.0026 
+ 0.4032 
-0.0289 
0.0180 
+ 0.005 
+ 0.0000 
+ 0.0000 
12 
13 
0.0027 
0.0036 
-0.0490 
-0.0061 
0.0182 
0.005 
+0.0001 
0.0010 
+ 0.0001 
+ 0.0010 
13 
14 
0.0027 
0.0048 
+0.0520 
+ 0.0144 
0.0343 
0.005 
+ 0.0000 
0.0012 
-0.0001 
+0.0002 
14 
15 
0.0037 
0.0048 
-0.1818 
+0.0320 
0.0666 
0.005 
+ 0.0010 
0.0000 
+0.0010 
-0.0012 
15 
16 
0.0027 
0.0059 
-0.2244 
+ 0.0456 
0.0517 
0.123 
-0.0010 
0.0011 
+ 0.0000 
+0.0011 
16 
17 
0.0028 
0.0059 
+0.4190 
0.0572 
0.0206 
0.007 
+ 0.0001 
0.0000 
-0.0009 
-0.0011 
17 
18 
0.0038 
0.0072 
+0.1866 
0.0653 
0.0048 
0.007 
0.0010 
0.0013 
+0.0009 
+ 0.0013 
18 
19 
0.0039 
0.0072 
+0.0966 
0.0705 
0.0049 
0.008 
0.0001 
0.0000 
-0.0009 
-0.0013 
19 
20 
0.0039 
0.0085 
-0.1200 
0.0726 
+ 0.0050 
0.130 
0.0000 
0.0013 
-0.0001 
+ 0.0013 
20 
21 
0.0051 
0.0086 
+0.1186 
0.0181 
-0.0115 
0.010 
0.0012 
0.0001 
+ 0.0012 
-0.0012 
21 
22 
0.0051 
0.0087 
-0.0793 
0.0179 
+ 0.0048 
0.010 
0.0000 
0.0001 
-0.0012 
+0.0000 
22 
23 
0.0052 
0.0100 
+0.1523 
0.0174 
0.0049 
0.010 
0.0001 
0.0013 
+ 0.0001 
+ 0.0012 
23 
24 
0.0053 
0.0102 
-0.0901 
0.0168 
0.0050 
0.010 
0.0001 
0.0002 
+0.0000 
-0.0011 
24 
25 
0.0053 
0.0104 
-0.1674 
0.0173 
0.0221 
0.011 
0.0000 
0.0002 
-0.0001 
+ 0.0000 
25 
TABLE No. 5. 51 
26 
0.0066 
0.0117 
+ 0.1756 
0.0173 
0.0054 
0.010 
0.0013 
0.0013 
+ 0.0013 
+0.0011 
26 
27 
0.0066 
0.0119 
-0.0387 
0.0174 
0.0400 
0.011 
0.0000 
0.0002 
-0.0013 
-0.0011 
27 
28 
0.0068 
0.0133 
+ 0.1249 
0.0181 
0.0931 
0.012 
0.0002 
0.0014 
+ 0.0002 
+ 0.0012 
28 
29 
0.0080 
0.0136 
-0.0381 
0.0189 
0.1129 
0.011 
0.0012 
0.0003 
+0.0010 
-0.0011 
29 
30 
0.0082 
0.0150 
+0.0834 
0.0197 
0.0275 
0.012 
0.0002 
0.0014 
-0.0010 
+ 0.0011 
30 
31 
0.0084 
0.0153 
-0.0941 
0.0209 
+ 0.0103 
0.012 
0.0002 
0.0003 
+ 0.0000 
-0.0011 
31 
32 
0.0097 
0.0169 
+ 0.1070 
0.0221 
-0.0076 
0.012 
0.0013 
0.0016 
+ 0.0011 
+0.0013 
32 
33 
0.0110 
0.0172 
-0.0043 
0.0237 
-0.0079 
0.013 
0.0013 
0.0003 
+0.0000 
-0.0013 
33 
34 
0.0113 
0.0176 
+ 0.0415 
0.0253 
+ 0.0100 
0.013 
0.0003 
0.0004 
-0.0010 
+ 0.0001 
34 
35 
0.0116 
0.0193 
-0.0503 
0.0271 
0.0106 
0.013 
0.0003 
0.0017 
+ 0.0000 
+ 0.0013 
35 
36 
0.0142 
0.0197 
+0.0536 
0.0290 
0.0295 
+ 0.013 
0.0026 
0.0004 
+0.0023 
-0.0013 
36 
37 
0.0146 
0.0202 
+0.0785 
0.0319 
0.0303 
-0.134 
0.0004 
0.0005 
-0.0022 
+ 0.0001 
37 
38 
0.0174 
0.0219 
+ 0.0807 
0.0336 
0.0312 
+0.011 
0.0028 
0.0017 
+0.0024 
+ 0.0012 
38 
39 
0.0178 
0.0225 
+0.0228 
0.0365 
0.0710 
0.011 
0.0004 
0.0006 
-0.0024 
-0.0011 
39 
40 
0.0208 
0.0231 
-0.0738 
0.0396 
0.1128 
0.011 
0.0030 
0.0006 
+ 0.0026 
+ 0.0000 
40 
41 
0.0214 
0.0250 
+ 0.0590 
0.0620 
0.0770 
0.012 
0.0006 
0.0019 
-0.0024 
+0.0013 
41 
42 
0.0244 
0.0282 
+ 0.0358 
0.0253 
0.0598 
0.012 
0.0030 
0.0032 
+ 0.0024 
+ 0.0013 
42 
43 
0.0265 
0.0357 
-0.0258 
0.0493 
0.0209 
0.012 
0.0021 
0.0075 
-0.0009 
+ 0.0043 
43 
44 
0.0312 
0.0446 
+ 0.1253 
0.0519 
0.0216 
0.012 
0.0047 
0.0089 
+ 0.0026 
+0.0014 
44 
45 
0.0334 
0.0515 
+ 0.0667 
0.0563 
0.0011 
0.012 
0.0022 
0.0069 
-0.0025 
-0.0020 
45 
46 
0.0399 
0.0627 
+0.0014 
0.0598 
+ 0.0007 
0.176 
0.0065 
0.0112 
+0.0043 
+ 0.0043 
46 
47 
0.0438 
0,0677 
+0.1605 
0.0643 
-0.0213 
0.017 
0.0039 
0.0050 
-0.0026 
-0.0062 
47 
48 
0.0509 
0.0744 
+0.0068 
0.0684 
-0.0668 
0.185 
0.0071 
0.0067 
+0.0032 
+0.0017 
48 
49 
0.0597 
0.0801 
+0.1150 
0.0727 
-0.0252 
0.022 
0.0088 
0.0057 
+0.0017 
-0.0010 
49 
50 
0.0675 
0.0877 
+0.1200 
0.0774 
-0.0265 
0.196 
0.0078 
0.0076 
-0.0010 
+0.0019 
50 
51 
0.0760 
0.0960 
+0.0836 
0.1372 
+ 0.0874 
0.205 
0.0085 
0.0083 
+0.0007 
+ 0.0007 
51 
52 
0.0848 
0.1049 
-0.0263 
0.1006 
0.0909 
0.038 
0.0088 
C.0089 
+o.oooa 
+ 0.0006 
52 
53 
0.0944 
0.1146 
+ 0.0151 
0.1039 
0.0947 
0.040 
0.0096 
0.0097 
+0.0008 
+ 0.0008 
53 
54 
0.1063 
0.1220 
+ 0.1775 
0.1103 
0.0748 
0.226 
0.0119 
0.0074 
+0.0023 
-0.0023 
54 
55 
0.1175 
0.1351 
+0.3970 
0.1184 
0.1027 
0.051 
0.0112 
0.0131 
-0.0007 
+ 0.0057 
55 
56 
0.1314 
0.1462 
+ 0.0079 
0.1288 
0.1077 
0.054 
0.0139 
0.0111 
+ 0.0027 
-0.0020 
56 
57 
0.1450 
0.1553 
+ 0.0874 
0.1424 
0.1897 
0.255 
0.0136 
0.0091 
-0.0003 
-0.0020 
57 
58 
0.1601 
0.1707 
+0.1214 
0.1569 
0.3309 
0.068 
0.0151 
0.0154 
+0.0015 
+0.0063 
58 
59 
0.1784 
0.1860 
+0.0152 
0.1749 
0.4068 
0.073 
0.0183 
0.0153 
+ 0.0032 
-0.0001 
59 
60 
0.1973 
0.2090 
+ 0.5912 
0.1935 
0.5215 
0.077 
0.0189 
0.0230 
+ 0.0006 
+ 0.0077 
60 
61 
0.2187 
0.2276 
+ 0.1354 
0.2164 
0.2296 
0.081 
0.0214 
0.0186 
+ 0.0025 
-0.0044 
61 
62 
0.2412 
0.2509 
+ 0.2000 
0.2397 
0.1623 
0.315 
0.0225 
0.0233 
+ 0.0011 
+ 0.0047 
62 
63 
0.2651 
0.2719 
+0.2923 
0.2653 
0.0842 
0.106 
0.0239 
0.0210 
+ 0.0014 
-0.0023 
63 
64 
0.2930 
0.2986 
+ 0.2627 
0.2946 
0.1521 
0.113 
0.0279 
0.0267 
+ 0.0040 
+ 0.0057 
64 
65 
0.3256 
0.3256 
+0.3501 
0.3235 
0.1316 
0.374 
0.0326 
0.0270 
+0.0047 
+ 0.0003 
65 
66 
0.3578 
0.3532 
+0.3048 
0.3558 
0.1415 
0.414 
0.0322 
0.0276 
-0.0004 
+ 0.0052 
66 
67 
0.3940 
0.3860 
+0.2282 
0.3906 
0.1886 
0.459 
0.0362 
0.0328 
+ 0.0040 
-0.0032 
67 52 
Age. 
(1) 
American 
Experience 
1st differ- 
ence. 
* <2) ■ 
Actuaries 
or Com- 
bined Ex- 
perience 
(old) 1st 
difference. 
(3) 
Actuaries or 
new Com- 
bined Expe- 
rience (not 
graduated) 
1st difference. 
(4) 
English 
No. 3, Males 
1st differ- 
ence. 
(5) 
Carlisle 
Table 1st 
difference. 
(6) 
Deparcieux 
Table 1st 
difference. 
(1) 
American 
Experience 
2d difference. 
(3) 
Actuaries or 
Combined 
Experience 
(old) 2d dif- 
ference. 
(1) 
American 
Experience 
3d difference. 
(3) 
Actuaries or 
Combined 
Experience 
(old) 3d dif- 
ference. 
Age. 
68 
0.4355 
0.4156 
+0.6494 
0.4253 
0.2062 
0.517 
0.0415 
0.0296 
+0.0053 
+ 0.0005 
68 
69 
0.4760 
0.4457 
+ 0.5480 
0.4631 
0.2659 
0.588 
0.0405 
0.0301 
-0.0010 
+0.0005 
69 
70 
0.5231 
0.4846 
-0.4750 
0.5035 
0.2536 
0.354 
0.0471 
0.0391 
+ 0.0066 
+0.0090 
70 
71 
0.5672 
0.5225 
+ 0.5855 
0.5425 
0.7204 
0.744 
0.0441 
0.0379 
-0.0030 
-0.0012 
71 
72 
0.6068 
0.5647 
+ 1.7798 
0.5842 
0.9280 
0.507 
0.0396 
0.0422 
-0.0045 
+0.0043 
72 
73 
0.6445 
0.6079 
-0.1168 
0.6290 
0.9988 
0.588 
0.0377 
0.0432 
-0.0019 
+ 0.0010 
73 
74 
0.6850 
0.6584 
+2.6732 
0.6738 
1.2051 
0.690 
0.0405 
0.0505 
+0.0028 
+ 0.0073 
74 
75 
0.7343 
0.7092 
-1.0752 
0.7173 
0.5354 
0.347 
0.0493 
0.0508 
+0.0088 
+0.0003 
75 
76 
0.7940 
0.7620 
+ 1.1623 
0.7672 
0.7448 
0.891 
0.0597 
0.0528 
+ 0.0104 
+ 0.0020 
76 
77- 
0.8753 
0.8289 
+ 0.2441 
0.8119 
0.4462 
1.087 
0.0813 
0.0669 
+ 0.0216 
+ 0.0141 
77 
78 
0.9763 
0.8975 
+ 1.4341 
0.8618 
0.1389 
0.705 
0.1010 
0.0686 
+0.0197 
+0.0017 
78 
79 
1.0907 
0.9621 
+ 1.2914 
0.9088 
0.9588 
1.547 
0.1144 
0.0646 
+0.0134 
-0.0040 
79 
80 
1.2732 
1.0341 
+ 0.4865 
0.9599 
0.3312 
1.172 
0.1825 
0.0720 
+0.0681 
+0.0074 
80 
81 
1.4139 
1.1030 
+1.8894 
1.0097 
1.2090 
1.435 
0.1407 
0.0689 
-0.0418 
-0.0031 
81 
82 
1.5693 
1.1758 
+ 0.9455 
1.0546 
0.6879 
0.629 
0.1553 
0.0728 
+ 0.0146 
+0.0039 
82 
83 
1.7264 
1.2719 
+3.7577 
1.1054 
1.0193 
0.430 
0.1572 
0.0961 
+ 0.0019 
+0.0233 
83 
84 
1.9798 
1.3765 
-2.6428 
1.1576 
0.7907 
1.743 
0.2534 
0.1046 
+0.0962 
+0.0085 
84 
85 
2.4193 
1.5417 
+3.5963 
1.2072 
1.6491 
2.189 
0.4395 
0.1652 
+ 0.1861 
+0.0606 
85 
86 
3.0129 
1.7385 
+0.0715 
1.2419 
1.8180 
2.851 
0.5936 
0.1968 
+0.1541 
+0.0316 
86 
87 
3.7339 
1.9754 
-0.0113 
1.3007 
2.3755 
0.454 
0.7210 
0.1369 
+ 0.1274 
-0.0599 
87 
88 
4.3672 
2.3040 
+ 6.7748 
1.3-119 
+0.3612 
3.135 
0.6333 
0.3286 
+ 0.1123 
+ 0.1917 
88 
89 
4.9171 
2.7108 
-9.1068 
1.3964 
-0.0448 
3.977 
0.5499 
0.4068 
-0.0834 
+ 0.0782 
89 
90 
5.8683 
3.1348 
+ 3.3118 
1.4151 
+ 4.5093 
5.114 
0.9512 
0.4240 
+0.4013 
+ 0.0172 
90 
91 
7.7922 
3.7257 
+ 8.3679 
1.4766 
+2.5151 
6.493 
1.9239 
0.5909 
+0.9727 
+ 0.1669 
91 
93 
10.1791 
4.4276 
+ 13.9655 
1.5142 
-0.5714 
7.143 
+ 2.3869 
0.7019 
+0.4630 
+0.1110 
92 
93 
9.9198 
5.1964 
+ 20.9090 
1.5398 
-2.0741 
+50.000 
-0.2593 
0.7688 
-2.1276 
+0.0669 
93 
94 
12.2966 
5.9077 
-65.9090 
1.5502 
-0.9259 
+ 2.3768 
0.7113 
+2.1175 
-0.0575 
94 
95 
+ 14.2857 
6.7966 
+33.3333 
1.7178 
-1.6667 
+ 1.9891 
+0.8889 
-0.3877 
+0.1776 
95 
96 
fi 4379 
+ 66.6667 
1 5527 
-1.5942 
-0.3587 
-0.5302 
96 
97 
6.3659 
1.7336 
+ 0.4831 
-0.0720 
-0.2867 
97 
98 
5 7693 
1.5909 
—0.7936 
-0.5967 
+0.5247 
98 
99 
+1.9539 
-3.2468 
+ 19.2308 
+ 18.6341 
99 
100 
+ 0.7273 
+4.0404 
100 
TABLE showing the orders of difference, etc.—(Continued). 53 
It will readily be seen, from the above orders of differences, by 
even the casual observer, that the American Experience Table will not 
suffer, in comparison with any other of the leading Tables, so far as 
evenness of graduation and gentleness of curve is concerned. This 
merit, however, is not the chiefest in a mortality table. Accuracy 
and fidelity to nature is its primal beauty, to which all artificial 
graces must inexorably yield. 
Mr. David Chisholm, the eminent Edinburgh actuary, wrote to 
me in August, 1869, as follows : 
“ It strikes me that the American rate of mortality is not so very 
different from that which is found to obtain in this country among 
assured lives, judging from certain results, though I have not yet had 
an opportunity of examining it minutely. But the materials which 
you have at your disposal, in the registry of half a million of policies, 
so far exceeds any thing which can be brought together in this country 
to work upon that I would look forward with considerable interest to 
the completion of a mortality table based upon such an extensive area. 
The resulting rates of mortality, from the bare facts alone, would, I 
apprehend, hardly require graduation, as the average of the lives at 
risk at each age would probably be sufficient to maintain the natural 
progression in close harmony with the increase of age, and I was 
much gratified to observe from your letter that you have something of 
this kind in view when your registers are complete. If, in a normal 
state of society, a reliable table of mortality from your abundant facts 
could be got up, such a table would, I think, express more satisfactorily 
the law of mortality which prevails among assured lives than any 
which we now possess, and could not fail in being interesting to the 
actuaries of this country. 
“ Graduated Tables of Mortality do always, more or less, disturb the 
natural complexion of a Life Table, and the system of graduation 
which least interferes with this is much to be preferred.” 
(The italics are mine.) 
Mr. Edward Sang, of Edinburgh, one of the most scholarly and 
philosophic of the learned body of Scotch actuaries, in speaking of 
graduating or “ smoothing ” Life Tables, uses the following beauti- 
ful language : 
“ Now, it must be clear to you that if, instead of recording the actual 
observations astronomers had been in the habit of previously‘Smooth- 
ing them down to suit the supposed proper curve, we should never 
have been able to expiscate the true law of the variations, because the 
data from which alone it is to be found would have been concealed. 
“It is the same in our business. There is, we must presume, a 
fundamental law of life, accompanying the organization of the human 
being; but this law is traversed by many artificial and accidental 
conditions; just as the disturbing attraction of the planets are com- 
bined with that of the sun. The disturbances caused by these con- 
ditions take the appearance of unevenness in the life-line, and to 
smooth these down, for the sake of accommodating them to any pre- 54 
conceived idea, is virtually to prevent our learning any tiling about 
them. 
“We can hardly overestimate the influence of circumstances upon 
the duration of life. Think on the ravages of helminths and other 
parasites before the discovery of fire, and when all food was eaten raw; 
consider the catarrhs and bronchitis, and the nauseous skin diseases, 
when men wrapped themselves in untanned hides. Or, not to go so 
far back, remark the change which has been caused by the discovery 
of vaccination by Jenner; or the immunity from ague, obtained by 
the use of quinine; from scurvy by that of lime-juice. Every improve- 
ment in life, every fluctuating fashion of dress, each new article of 
food, each new material for clothing, each change in our customs, 
must produce its effect, and leave its impress on the life-line; so that 
the sinuosities which we attribute to accidents in our observations, 
may, in truth, indicate the existence of active influences. Those of 
the irregularities which are due to minute errors in observation will 
gradually be compensated, while such as depend on changes in the 
state of society will continue to be represented in the returns for suc- 
ceeding years; and, hence, on all accounts, we must declare against 
the smoothing down of results obtained from trustworthy data.” 
Address to the Actuarial Society of Edinburgh, 1868. Pamphlet,pp. 18,19. 
Further, on this subject from Mr. Sang 
“ It is only by the comparison of different sets of carefully made 
observations that we can ascertain whether the irregularities have been 
accidental, or whether they represent actual phenomena in the progress 
of human life. On this account, the smoothing, as it is called, of a 
Life Table, is always to be deprecated; we can only judge of the 
propriety of the smoothing, by comparison with some Table which we 
deem more trustworthy, but then we ought to adopt that which is 
more deserving of confidence.” 
Treatise on the Valuation of Life Contingencies, by Edward Sang, F. R. 
S. E. Edinburgh, 1864, pp. 4, 5. 
If we are to abandon the field of actual fact and observation for 
the purpose of rounding or smoothing a curve by graduation (as 
proposed by Mr. Tackier, see pp. 179, 180, Proceedings of May Ses- 
sion of the Convention), why not return at once to the old but 
ingenious hypothesis of De Moivre, that the probabilities of living 
decrease in regular arithmetical progression after age of 12 
(Annuities on Lives, by A. De Moivre, Preface p. 9, and p. 83, 
Second Edition, 1743); or to the theoretical but convenient Table of 
William Orchard, in which, after age 20, the decrements of life are 
one annually up to age 80, when the decrease is raised to five yearly 
until the full complement of life is entirely exhausted at age 95 
{Orchard’s Assurance Premiums, 1856, pp. 8, 20 and 21); or to the 
more philosophic Table of “ Mean Mortality,” by T. R. Edmonds, 
based upon the principle that human life covers three distinct orders 
of geometric progression in “ force of mortality,” indicated by Infancy, 55 
Manhood (or florescense) and Old Age, during which the continuous 
changes in the force of mortality are indicated by three different 
constants, that for infancy indicating a continual diminution of death- 
force, those for manhood and old age indicating a continued but dif- 
ferent increase in the force of mortality {Life Tables by T. JR. 
Edmonds, B. A., 1832, jp. 6); or, to the new formula of Mr. 
Edmonds, according to which “ there is one law of decrease of mor- 
tality at all ages after puberty; in either case the rate of mortality 
varies inversely according to constant power of the age measured from 
a fixed point. In the period below puberty, the fixed point is at 2\ 
years, or 27 months before birth-time ; in the period above puberty, 
the fixed point is at the age of 102 years, from which point distance 
in age is measured backward. The constant power or exponent of 
the age is 2,302585 =A == the hyperbolic logarithim of 10. Ac- 
cording to the new formula, the force of mortality, according to age, 
from a constant point, is expressed in the same terms as the force of 
gravity, according to space or distance from a central point. If the 
variable in space or age be called (x), then the force in either case 
will be -A. The only difference in the two cases is, that in gravity 
a = 2, while in mortality a = 2,302585 ” (.Letter of T. JR. Edmonds 
to me, dated October 6, 1868); or to the “ Uniform Law of Mortality, 
from birth to extreme old age,” as elucidated by Benjamin Gom- 
jpertz with great erudition in a Paper read before the International 
Statistical Congress at its fourth session, and in a Paper read before 
the Royal Society, June 20, 1861. 
The British Actuaries have never been united on the old Actua- 
ries’ or Combined Experience Table as the best representation of the 
Mortality of insured lives in Great Britain. 
The following is the opinion of Mr. F. G. P. Neison (see Contri- 
butions to Vital Statistics, Preface, jpjp. ix, x): 
“ There is, likewise, the Table usually denominated the ‘ Experience 
Table,’ deduced from the recorded observations of fifteen Life offices, 
in addition to those of the Equitable and Amicable Societies, already 
mentioned, reported on by the committee of actuaries appointed in the 
year 1839. In these observations, like those deduced from the Amica- 
ble and Equitable Life Offices, the principal portion of the data has no 
reference to recent years; but there is a much more serious objection 
to be brought against the results given in the ‘ Experience Table.’ 
From the indisposition evinced by the contributing offices to let their 
individual experience be known, even to the members of the commit- 
tee to whom the inquiry was intrusted, it became necessary that the 
different schedules should be submitted in an anonymous form; all 
were given with blank headings, and so completely mixed up together 56 
that it was impossible, afterward, to determine from what office any 
particular schedule came. 
“ This arrangement prevented the investigation being any other than 
one confined to policies issued by those offices, and not an estimate of 
the mortality among a certain number of lives. 
“ To those, therefore, of even limited experience, it must be obvious 
that the results are thereby deprived of all value, as indicating the rate 
of mortality among the offices contributing the facts. 
“Nothing is more notorious than the frequency with wdiich the 
same life is assured in duplicate and triplicate, not only in the same 
office, but in several offices, and it often happens that on the same life 
there has, at one time or another, been issued as many as from twenty 
to fifty policies in the different offices conjointly. 
“To take an extreme example, in order to show the nature of the 
principle and its effect in vitiating the truth of any results derived 
from a calculation founded on the number of policies, and not upon 
the number of lives: 
“It is well known, in most of the assurance offices, that a dis- 
tinguished personage was so fully assured in the life offices in this 
kingdom that it was impossible to obtain any further policies on his 
life from assurance companies, and it has been said that recourse was 
had to Lloyd’s to have the life underwritten there. The policies exist- 
ing upon this life at one time, it has been considered, could not be less 
than three or four hundred. It is hence evident that a death taking 
place under such circumstances would, in the result of such inquiry, 
appear as three or four hundred deaths, while, in fact, only one had 
happened. 
“In like manner, the fact of the life still surviving would produce 
the anomalous result of there being 1,000 or 2,000 years of risk depend- 
ing upon the duration of these policies without any recorded death. 
“ It is therefore clear, that unless the principle of repeated policies 
on the same life was uniform as to numbers, and very generally char- 
acteristic of all the assurances effected, that compensation errors could 
not be expected to take place sufficient to render the results even a 
near approximation to the truth. 
“ So far, therefore, we are yet without any satisfactory data, derived 
directly from the life offices of this country, which can be relied on as 
indicating the rate of mortality among the assured classes in recent 
years.” 
Mr. Alexander Glen Finlaison, Actuary of the National Debt 
in Great Britain, says, in his Report on the Mortality of the Govern- 
ment Life Annuitants (1st of August, 1860): 
“As regards assured life there only remains for notice one more 
table, viz., No. 11, the Experience of the seventeen Life assurance 
offices. The Tables in question are open to the objection, which may 
almost be termed fatal, that they are based on the experience of poli- 
cies, -not lives. (Number admitted, 18,282; living at close, 6,124; 
discontinued, 7,372 ; died, 4,786.) Now, as very many persons are 
insured in half a dozen offices at once, they count, when young, and 
the mortality is light, for half a dozen lives under this arrangement; 57 
but in old age, when men are few, these same persons reckon for half 
a dozen deaths in their lives falling.” 
Finlaison’s Report, 1860, p, 47. 
Mr. John Finlaison, who was for more than thirty years Actuary 
to the Commissioners of the National Debt, says, in regard to the 
old Experience Table: 
“In that Table I myself count for six, and when I die I shall count 
for six deaths. A Table so constructed cannot be depended upon for 
Life insurance purposes.” 
See his testimony before the Select Committee on Assurance Associations 
of 1853, Report, p. 64. 
Mr. David Chisholm, speaking of his Tables says: 
“ They have been computed on the Carlisle basis, as being understood 
to be that most generally used by the Assurance offices. And, although 
this basis has been held by some Actuaries not only to be limited in 
extent, but somewhat imperfect in arrangement, there is reason to 
believe, nevertheless, that in its general features the Carlisle Table 
gives a sufficiently accurate representation of the law prevailing 
among the majority of associations for Life assurance, and that the 
corrections which future experience may show to be necessary will not 
be of a very important description.” 
Preface to his Commutation Tables, vol. I, p. iv. 
Mr. William Sj?ens, an able actuary, speaks of the old Experience 
Table as follows: 
“ I still continue to think that the arrangement of the ‘Experience’ 
data by policies instead of persons is very detrimental to their value 
and authority, especially when such points as the present are involved 
(the rate of mortality among select lives). The general deductions of 
expectation of life may not be seriously affected; but for any separ- 
ate age, or for any isolated question like this, I fear that this mode 
of arrangement has rendered them almost valueless. I formerly noticed 
an instance of probable great error in consequence of this among the 
Irish male lives, when there are represented to he thirteen deaths at age 
forty in the first calendar year after entry among 347 lives at entry. 
I may notice another instance among the same lives at age sixty-two, 
from the year after entry, when nine deaths are represented. I am 
informed from a source which leaves no doubt of the accuracy of the 
statement that out of these nine there were at least six on the same 
life. 
“From what has been said above and from casual observation of 
other mortality, having so much doubt of the ‘ Experience ’ data, I 
thought it desirable to test the value of the Experience in reference to 
the mortality during the first year of selection by the collection of 
data from other experience; and the result has convinced me that 
what has been said above cannot altogether account for the very great 
difference that is shown, and that whether from the examination of 
the lives having been less carefully attended to, or whether from any 58 
other cause, the ‘ Experience ’ lives do not afford data for determining 
questions on the value of select lives.” 
See Assurance Magazine, Journal of the Institute, vol. IV, p. 2. 
Mr. Samuel Brown, the leading actuary in England, a man of 
great soundness and discretion of judgment, remarks (in a paper 
read before the Institute in March, 1854), as follows: 
“ It may be gathered from the introduction to the tables exhibiting 
the law of mortality, deduced from the combined experience of seven- 
teen Life assurance offices, printed in 1843, that not only was the task 
to each contributing company one of great labor and difficulty, but 
that the method of registering entries and ages was so different that 
some of the returns, after the time and toil expended, were quite use- 
less for the purpose required, notwithstanding the willingness of the 
managers to communicate their experience and the value of the 
information asked for. The former we may gather from the length of 
time the investigation occupied; for the circular with the forms was 
dated, as sent out, on the 25th September, 1838, and the committee 
remark £ that the whole of the returns were not received from the con- 
tributing offices until after the middle of the year 1841, and that the 
diversified classification of the assurances has added much to the com- 
plicity of the operations.’ In another part they state that ‘it was 
found impracticable to combine the facts contained in the whole of 
the returns, so as to show the exact number that died, and were dis- 
continued, and existing at each age, as some of the returns were made 
up giving the current age, and others the complete age, at entering; 
and the number existing in some returns had been exposed to the risk 
of mortality for a whole year, and in others to no part of it.’ ” 
Journal Institute, Vol. IV, p. 284. 
Mr. William Thos. Thomson, one of the most eminent of the 
Scottish actuaries, says, that,— 
“ So many actuaries acknowledge the soundness of that basis (the 
Carlisle observations) for Life assurance and annuity calculations, that 
I look forward to the day when the Carlisle tables will be admitted as 
sufficiently accurate to justify their general adoption. * * Since, 
therefore, the Carlisle tables have been proved by all recent observa- 
tions to be near the truth — as near as will ever probably be attained — 
it appears to me not unreasonable, considering the immense labor 
which has been bestowed on calculations proceeding on that basis, to 
expect that at no distant period its adoption will be general.” 
Actuarial Tables of W. T. Thomson, p. iii. 
Dr. William Farr, the world-renowned statistician and economist, 
urges an objection to the use of this table (Combined Experience) 
for the purpose of determining the premiums or valuing the assets 
and liabilities of Assurance offices, on the ground that as the aver- 
age term over which its observations extends is only eight and a 
half years, it considerably understates the mortality, which it is 
probable will prevail in insurance societies when they have attained 59 
maturity; also adding that the mortality at the advanced and most 
important ages, by the Carlisle table, is lower than that which has 
already been experienced among assured lives, and is indicated by 
this table. He adds: 
“ In the course of a century or half a century, from the observa- 
tions on a great number of assured lives, a Table can be constructed 
which will be a most valuable contribution to statistical science, and 
enable competent men to decide whether a Table of the mortality 
prevailing among the insured lives during the nineteenth century, is 
more likely to express the mortality of the persons who insure their 
lives in the twentieth century, than a Life Table deduced from the 
living, and from the deaths in the population of that day.” 
Waif or d’s Insurance Guide and Hand-Book, p. 173. 
One improvement in the American Experience Table I beg leave 
to suggest to the Convention for its consideration. A committee 
should be appointed for the purpose of collecting the data and report- 
ing at a future session of the Convention suitable numbers of the 
living and dying from age 0 to 9, inclusive, as exigencies in the 
business are now occuring for their practical use. 60 
II. 
AN UNIFORM RATE OF COMPOUND INTEREST 
FOR STATE VALUATIONS OF LIFE AND EN- 
DOWMENT POLICIES. 
I have already shown and tabulated the minimum and maximum 
and actual business rates of Interest for each State in the Union. 
It now remains, only, to give the actual rate of Interest which 
American Life Insurance Companies receive on their investments, 
as indicated by the touchstone of their financial experience; which I 
have done for twenty companies, and to the full extent which time 
and circumstances allowed. {See Tables Nos. 6 to 26, inclusive.) 
American Popular Life Insurance Company, N. Y. 
TABLE No. 6. 
YEAR. 
Average Assets. 
Interest received. 
1 
Percentage. 
YEAR. 
1867 
$184,931 79 
$8,364 32 
4.523 
1867 
1868 
246,260 50 
8,473 28 
3.441 
1868 
1869 
292,275 94 
10,906 39 
3.732 
1869 
1870 
337,174 66 
14,434 28 
4.281 
1870 
Total & Av. 
$1,060,642 89 
$42,178 27 
3.979 
Average by years (4 years) 
3.994 
Continental Life Insurance Company (New York). 
TABLE No. 7. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1867 
$601,002 79 
$24,804 03 
4.127 
1867 
1868 
148,668 00 
54,107 67 
3.659 
1868 
1869 
2,793,640. 67 
103.942 39 
4.079 
1869 
1870 
4,002,669 05 
125,289 38 
3.130 
1870 
Total & av. 
$7,545,980 51 
$308,143 47 
4.084 
Average by years (4 years) 
3.749 61 
TABLE No. 8. 
Equitable Life Assurance Society of the United States, N. Y. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1860 
$139,860 02 
$5,523 64 
3.949 
1860 
1861 
186,626 88 
8,097 50 
4.338 
1861 
1862 
267,324 49 
12,141 16 
4.541 
1862 
1863 
454,363 19 
17,461 95 
3.843 
1863 
1864 
805,047 44 
37,476 61 
4.655 
1864 
1865 
1,305,952 66 
70,922 70 
5.430 
1865 
1866 
2,332,156 12 
102,309 84 
4.387 
1866 
1867 
4,101,605 72 
183,274 40 
4.468 
1867 
1868 
6,423,250 08 
360,960 85 
5.619 
1868 
1869 
9,115,950 72 
499,097 58 
5.475 
1869 
1870 
11,873,424 50 
681,620 54 
5.740 
1870 
Total and av., 
$37,005,561 82 
$1,978,886 77 
5.349 
Average by years (11 years) 
4.767 
* Including premium on gold. 
TABLE No. 9. 
Guardian Mutual Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1859 
$114,908 03 
$2,525 59 
2-198 
1859 
1860 
129,816 06 
8,848 00 
6-816 
1860 
1861 
120,834 16 
4,610 59 
3-815 
1861 
1862 
126.693 26 
7,799 47 
6-156 
1862 
1863 
172,250 53 
8,703 35 
5-052 
1863 
1864 
273,041 80 
24,605 96 
9-012 
1864 
1865 
424,817 65 
25,492 00 
6-001 
1865 
1866 
627,115 89 
41,841 92 
6-672 
1866 
1867 
889,460 16 
47,765 14 
5-370 
1867 
1868 
1,262,388 99 
58,111 23 
4-603 
1868 
1869 
1,764,008 91 
64,103 06 
3-634 
1869 
1870 
2,161,216 37 
64,209 84 
2-971 
1870 
Total & av. 
$8,066,551 81 
$358,616 15 
4-446 
Avearge by years (12 years' 
/ 
5.191 
- 62 
TABLE No. 10. 
Knickerbocker Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1854 
$134,111 42 
$5,755 11 
4-290 
1854 
1855 
145,666 84 
9,258 38 
6-355 
1855 
1856 
160,167 09 
9,431 79 
5-888 
1856 
1857 
179,190 49 
16,611 79 
9-83* 
1857 
1858 
198,825 68 
16,932 98 
8-52* 
1858 
1859 
221,184 73 
20,109 96 
v 9-05* 
1859 
1860 
248,268 03 
15,847 81 
6-38 
1860 
1861 
267,994 96 
14,037 68 
5-35 
1861 
1862 
285,088 82 
16,964 15 
6-02 
1862 
1863 
343,002 87 
25,656 68 
7-48 
1863 
1864 
470,935 69 
30,013 99 
6-38 
1864 
1865 
700,635 33 
36,831 71 
5-26 
1865 
1866 
1,211,819 53 
61,608 75 
5-09 
1866 
1867 
2,305,101 88 
111,575 58 
4-84 
1867 
1868 
4,105,578 48 
246,221 38 
5-99 
1868 
1869 
5,925,924 36 
439,619 93 
7-42 
1869 
1870 
7,038,312 33 
351,678 78 
4-99 
1870 
$23,938,808 53 
$1,428,156 45 
5.966 
Average by years (17 years) 
- 
6.414 
* Including interest accrued. 
TABLE No. 14. 
Security Life Insurance and Annuity Company, N. Y. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1863 
$141,474 
92 
$10,817 
80 
7 
647 
1863 
1864 .... 
204,962 
00 
17,063 
02 
8 
325 
1864 
1865 
337,429 
49 
18,811 
98 
5 
576 
1865 
1866 
591,212 
93 
33,698 
47 
5 
699 
1866 
1867 
1,021,894 
40 
45,774 
21 
4 
675 
1867 
1868 
1,570,479 
90 
64,216 
60 
4 
089 
1868 
1869 
2,119,461 
47 
88,231 
02 
4 
163 
1869 
1870 
2,674,642 
38 
109,752 
69 
4 
104 
1870 
Total & av., 
$8,661,557 
49 
$388,365 
79 
4 
472 
Average by years (8 years) 
5 
534 63 
TABLE No. 11. 
Manhattan Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1852 
$167,122 21 
$2,321 79 
1.383 
1852 
1853 
200,604 47 
5,001 46 
2.443 
1853 
1854 
213,539 26 
15,234 52 
7.134 
1854 
1855 
351,649 18 
23,339 56 
6.637 
1855 
1856 
439,550 81 
29,919 85 
6.579 
1856 
1857 
552,522 11 
' 36,298 70 
6.569 
1857 
1858 
657,597 01 
41,706 79 
6.357 
1858 
1859 
789,846 41 
47,371 37 
5.996 
1859 
1860 
961,647 43 
52.406 03 
5.451 
1860 
1861 
1,090,723 80 
63,171 34 
5.793 
1861 
1862 
1,216,250 05 
89,258 49 
7.339 
1862 
1863 
1,402,063 56 
93,195 90 
6.647 
1863 
1864 
1,718,955 48 
113,895 11 
6.625 
1864 
1865 
2,278,157 27 
136,800 52 
6.005 
1865 
1866 
3,042,408 30 
190,016 74 
6.246 
1866 
1867 
3,929,097 68 
242,268 91 
6.166 
1867 
1868 
4,865,455 09 
308,227 26 
6.107 
1868 
1869 
5,816,435 01 
366,737 61 
6.306 
1869 
1870 
6,609,322 89 
392,379 32 
5.937 
1870 
Total & ay., 
$36,303,047 93 
$2,249,551 27 
6.196 
Average by years (19 years) 
5.880 
TABLE No. 16. 
Universal Life Insurance Company, N. Y. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1865 
$221,680 20 
$12,462 50 
5-621* 
1865 
1866 
278,694 36 
17,271 20 
6-199 
1866 
1867 
349,499 91 
20,153 61 
5-767 
1867 
1868 
459,866 23 
21,136 97 
4-596 
1868 
1869 
665,314 80 
22,948 27 
3-449 
1869 
1870 
823,736 36 
39,334 42 
4-775 
1870 
Total & ay. 
$2,798,791 86 
$133,306 97 
4.764 
Average by years (6 years) 
5.068 
* For eleven monthB. 64 
TABLE No. 12. 
Mutual Life Insurance Company of Mew York. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1851 
$1,306,251 27 
1,820,151 05 
2,302,218 09 
2,696,689 58 
3,014,055 92 
3,482,990 02 
4,137,994 87 
4,924,412 25 
5,360,780 52 
6,735,753 08 
7,649,479 79 
8,618,073 95 
9,893,163 16 
11,528,706 79 
13,392,408 09 
16,417,029 53 
21,245,282 76 
27,506,189 14 
34,298,244 46 
41,022,549 69 
$86,417 63 
6.615 
1851 
1852 
1853 
1854 
1855 
1856 
1857 
1858 
1859 
1860 
1861 
1862 
1863 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
1852 
1853 
154,616 34 
171,513 44 
185,756 91 
230,170 59 
277,488 -71 
298,394 06 
361,110 11 
410,441 50 
481,943 02 
552,642 59 
531,893 93* 
652,976 82' 
645,936 98* 
879,211 40 
668,438 09* 
902,158 07" 
994,008 59 
1,334,566 78 
1,769,693 76 
2,196,339 86 
2,477,772 68 
6.759 
6.360 
6.163 
6.950 
6.705 
6.060 
6.736 
6.093 
6.300 
6.412 
5.376* 
6.590 
5.602* 
7.627 
4.991* 
6.735 
6.054 
6.282 
6.434 
6.403 
6.040 
1854 
1855 
1856 
1857 
1858 . : 
1859 
1860 
1861 
1862 
1863 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
Total and av., 
$225,532,272 96 
$14,417,222 86 
6.392 
Average by years (19 years) 
6.490 65 
TABLE No. 13. 
New York Life Insurance Company. 
TEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1852 
$546,715 01 
$26,398 88 
4-828 
1852 
1853 
666,266 73 
33,025 24 
4-956 
1853 
1854 
779,784 63 
28,859 52 
3-700 
1854 
1855 
961,361 69 
36,369 12 
3-783 
1855 
1856 
1.125,277 12 
59,299 96 
5-269 
1856 
1857 
1,297,255 92 
83,857 64 
6-464 
1857 
1858 
1,499,433 90 
78,173 26 
5 • 223 
1858 
1859 
1,681,517 40 
91,517 71 
5-442 
1859 
1860 
1,877,830 46 
112,266 14 
5-978 
1860 
1861 
2,051,646 61 
107,155 03 
5-222 
1861 
1862 
2,353,699 41 
134,713 41 
5 - 723 
1862 
1863 
2,649,150 02 
136,851 73 
5-165 
1863 
1864 
3,223,372 61 
252,617 72* 
7-837 
1864 
1865 
4,379,763 77 
260,424 29* 
5-946 
1865 
1866 
6,013,770 65 
342,659 20* 
5-697" 
1866 
1867 
8,084,423 08 
487,339 94* 
6-081 
1867 
1868 
10,080,288 25 
606,988 64* 
6-020 
1868 
1869 
12,212,873 61 
718,355 44* 
5-881 
1869 
1870 
14,643,072 93 
816,489 49 
5-575 
1870 
Average .. 
$76,129,503 80 
$4,413,362 36 
5.798 
V 
Average by years (19 years) 
5.515 
* Including premium on gold. 66 
-TABLE No. 15. 
United States Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1852 
$160,307 81 
$10,004 75 
6-241 
1852 
1853 
192,137 57 
13,188 48 
6-864 
1853 
1854 
222,448 20 
14,790 38 
6-649 
1854 
1855 
260,908 18 
15,890 00 
6-090 
1855 
1856 
312,227 91 
18,036 17 
5-776 
1856 
1857 
380,904 14 
22,223 91 
5-836 
1857 
1858 
458,887 40 
26,671 07 
5-812 
1858 
1859 
536,977 93 
31,727 27 
5-909 
1859 
1860 
639,073 54 
37,007 40 
5-791 
1860 
1861 
754,711 92 
43,979 14 
5-828 
1861 
1862 
842,004 77 
50,055 30 
5-943 
1862 
1863 
971,876 48 
62,013 90 
6-381 
1863 
1864 
1,243,865 45 
93,817 59 
7-543 
1864 
1865 
1,484,873 68 
114,440 41 
7-707 
1865 
1866 
1,807,702 05 
119,563 21 
6-614 
1866 
1867 
2,238,247 26 
114,807 15 
5-129 
1867 
1868 
2,693,220 69 
155,577 95 
5.777 
1868 
1869 
3,135,087 18 
191,116 55 
6.096 
1869 
1870 
3,520,424* 03 
222,170 30 
6.311 
1870 
Total & av. 
$21,855,886 19 
$1,357,080 93 
6.209 
Average by years (19 years) 
6.226 
TABLE No. 18. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
Total & ay., 
$802,801 55 
1,215,308 83 
1,981,225 51 
3,069,565 23 
4,380,879 77 
6,155,635 89 
7,768,691 18 
$49,668 81 
66,521 70 
90,270 93 
140,484 19 
224,309 15 
332,281 46 
471,722 72 
6.187 
5.474 
4.556 
4.576 
5.121 
5.391 
6.072 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
$25,374,107 96 
$1,375,258 96 
' 5.419 
Average by years (7 years) 
5.339 
Charter Oak Life Insurance Company. 67 
TABLE No. 19. 
Connecticut Mutual Life Insurance Company. 
YEAR. 
Average assets. 
Interest received. 
Percentage. 
YEAR. 
1854 
$2,184,256 12 
$126,986 37 
5.813 
1854 
1855 
2,213,683 24 
144,552 45 
6.529 
1855 
1856 
2,373,134 72 
156,987 13 
6.610 
1856 
1857 
2,559,785 44 
134,675 44 
5.261 
1857 
1858 
2,813,739 57 
182,097 63 
6.470 
1858 
1859 
3,147,797 32 
201,303 29 
6.390 
1859 
1860 
3,537,351 17 
230,227 50 
6.507 
1860 
1861 
4,028,080 89 
254,246 67 
6.311 
1861 
1862 
4,595,552 23 
305,382 64 
6.645 
1862 
1863 
5,399,791 10 
466,618 45 
8.641 
1863 
1864 
6,817,254 27 
649,297 56 
9.525 
1864 
1865 
8.804,573 17 
526,989 06 
5.985 
1865 
1866 
11,597,402 68 
722,067 68 
6.226 
1866 
1867 
15,492,652 42 
897,201 00 
5.784 
1867 
1868 
20,168,703 08 
1,179,264 89 
5.895 
1868 
1869 
25,117,428 27 
1,456,669 70 
5.799 
1869 
1870 
29,241,218 14 
1,789,669 82 
6.140 
1870 
Total & av., 
$150,092,403 83 
$9,424,237 28 
6.278 
Average by the year (17 years) 
6.518 
TABLE No. 24. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
Total & av., 
$413,174 55 
645,819 94 
1,092,446 85 
1,749,976 64 
2,857,202 14 
4,289,186 76 
5,502,437 84 
$30,430 78 
46,289 25 
83,135 40 
119,837 82 
187,660 19 
269,191 86 
311,111 91 
7.365 
7.168 
7.610 
6.848 
6.568 
6.066 
5.654 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
$16,550,244 72 
$1,038,657 21 
6.274 
Average by years (7 years) 
6.754 
Phoenix Life Insurance Company. 68 
TABLE No. 20. 
Massachusetts Mutual Life Insurance Company. 
TEAR. 
Average assets. 
Interest received. 
Percentage. 
YEAR. 
1857 
$177,004 03 
$2,052 04 
1-159 
1857 
1J358 
212,981 83 
2,704 14 
1-269 
1858 
1859 
264,663 47 
4,392 31 
1-652 
1859 
1860 
339,463 63 
6,047 53 
1-782 
1860 
1861 
410,353 47 
96 
2-889 
1861 
1862 
475,955 33 
30,603 23 
6-429 
1862 
1863 
593.855 62 
23,376 30 
3-937 
1863 
1864 
793,727 03 
40,019 87 
5-042 
1864 
1865 
1,099,596 06 
37,842 57 
3-441 
1865 
1866 
1.384.000 11 
111,056 75 
8-024 
1866 
1867 
1,669,707 76 
84,083 05 
4-816 
1867 
1868 
2,152,136 21 
112,917 33 
5-246 
1868 
1869 
2,663,156 13 
160,314 95 
6-019 
1869 
1870 
3,149,629 58 
175,840 06 
5-582 
1870 
Total & ay. 
$15,386,230 26 
$803,110 09 
5-219 
Average for 14 years 
4-092 
TABLE No. 25. 
Union Mutual Life Insurance Company. 
YEAR. 
Average Assets. 
Interest Received. 
Percentage. 
YEAR. 
1864 
$923,348 92 
$54,316 64 
5-883 
1864 
1865 
1,237,743 30 
63,513 74 
5-131 
1865 
1866 
1,719,653 19 
84,116 00 
4-892 
1866 
1867 
2,499,856 65 
120,930 84 
4-838 
1867 
1868 
3,361,060 39 
168,384 44 
5-188 
1868 
1869 
4.071,108 61 
240,670 14 
5-912 
1869 
1870 
4,853,206 91 
269,588 34 
5-554 
1870 
Total & av. 
$18,665,977 97 
$1,001,520 14 
5-365 
Average for 7 years 
5-342 69 
TABLE No. 21. 
Mutual Benefit Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1852 
$1,412,737 68 
$77,578 69 
5-491 
1852 
1853 
1,666,548 79 
93,234 55 
5-533 
1853 
1854 
1,903,932 46 
109,197 93 
5-630 
1854 
1855 
2,131,932 47 
121,456 57 
5-232 
1855 
1856 
2,357,258 82 
138,316 90 
5-867 
1856 
1857 
2,613,918 95 
152,873 21 
5-848 
1857 
1858 
2,872,623 32 
170,987 27 
5-945 
1858 
1859 ...... 
3,201.251 65 
191,426 95 
5-948 
1859 
1860 
3,606,152 57 
214,014 19 
5-906 
1860 
1861 
3,960,538 10 
224,238 74 
5-661 
1861 
1862 
4,274,292 61 
258,249 07 
6-041 
1862 
1863 
4,952,721 85 
319,272 04 
6-446 
1863 
1864 
6,295,245 85 
306,788 16 
4-873 
1864 
1865 
8,148,965 08 
473,751 87 
5-813 
1865 
1866 
10,415,189 56 
630,011 53 
6-048 
1866 
1867 
13,023,993 64 
743,957 68 
5-712 
1867 
1868 
15,469,182 77 
903,987 85 
5-843 
1868 
1869 
17,984,657 33 
1,105,449 69 
6-224 
1869 
1870 
20,781,132 95 
1,252,357 83 
6-026 
1870 
Total & av'. 
$127,072,276 45 
$7,597,130 72 
/ 
5-978 
Average by years (19 years) 
5.794 
TABLE No. 17. 
TEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1864 
$554,877 69 
1.380,907 77 
3,141,019 78 
5,881.323 11 
8,932,756 05 
11,826,378 98 
14,027,120 24 
$39,307 
64 
7.085 
1864 
1865 
88,365 
42 
6.398 
1865 
1866 
198,863 
39 
6.330 
1866 
1867 
409,405 
95 
6.961 
1867 
1868 
611,283 
48 
6.844 
1868 
1869 
768,482 
03 
6.498 
1869 
1870 
872,786 
58 
6.222 
1870 
Total & ar. 
$45,189,505 93 
$2,949,186 
85 
6.527 
6.542 
fflt.na Life Insurance Company {Hartford). 70 
National Life Ln&urance Company of the United States of America. 
TABLE No. 22. 
TEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1868 
$1,072,921 68 
$26,781 56 
2-496* 
1868 
1869 
1,308,250 03 
54,339 08 
97,448 21 
4-154 
1869 
1870 
1,603,104 12 
6-079 
1870 
Total & ay. 
$3,984,275 83 
$178,568 85 
5-317 
Average by years (2.416 years) 
5.268 
* Fraction of a year, five months, allowed for. 
TABLE No. 23. 
New England Mutual Life Insurance Company. 
YEAR. 
Average Assets. 
Interest received. 
Percentage. 
YEAR. 
1852 
$463,811 98 
$31,810 52 
6-845 
1852 
1853 
510,913 34 
36,327 93 
7-110 
1853 
1854 
591,063 16 
40,503 19 
6-852 
1854 
1855 
718,977 56 
40,760 55 
5-669 
1855 
1856 
873,101 63 
47,713 80 
5-464 
1856 
1857 
1,068,685 79 
58,462 05 
4-534 
1857 
1858 
1,176,200 24 
65,127 60 
5-537 
1858 
1859 
1,335,333 21 
77,354 00 
5-788 
1859 
1860 
1,664,768 12 
87,081 69 
5-230 
1860 
1861 
2,017,492 44 
103,131 34 
5-111 
1861 
1862 
2,344,341 15 
122,307 72 
5-216 
1862 
1863 
2,764,420 80 
140,549 60 
5-085 
1863 
1864 
3,061,061 28 
176,317 67 
5-076 
1864 
1865 
3,430,962 15 
141,164 82 
4-114 
1865 
1866 
4,415,605 65 
247,973 26 
5-615 
1866 
1867 
5,644,162 64 
273,765 30 
4-850 
1867 
1868 
6,854,113 22 
341,200 82 
4-832 
1868 
1869 
8,053,790 70 
398,431 35 
4-947 
1869 
1870 
9,152,889 54 
509,302 87 
5-564 
1870 
Total & av. 
$56,141,694 60 
$2,949,286 08 
5.253 
Average by years (19 years' 
5.444 71 
TABLE No. 26. 
New York Life Insurance Companies. 
NAME OF COMPANY. 
No. of years. 
Total average 
Assets. 
Total interest 
received. 
Average percent- 
age interest. 
Average percent- 
age interest by 
the year. 
American Popular Life 
4 
$1,060,642 89 
$42,178 27 
3.979 
3.994 
Continental Life 
4 
7,545,980 51 
308,143 47 
4.084 
3.749 
Equitable Life 
11 
37,005,561 82 
1,978,886 77 
5.349 
4.767 
Guardian Life 
12 
8,067,551 81 
358,016 15 
4.446 
5.191 
Knickerbocker Life 
17 
23,938,808 53 
1,428,156 45 
5.906 
6.414 
Manhattan Life 
19 
36,303,047 93 
2,249,551 27 
6.196 
5.880 
Mutual Life 
19 
225,532,272 96 
14,417,222 86 
6.392 
6.490 
New York Life 
19 
76,129,503 80 
4,413,362 36 
5,798 
5.515 
Security Life 
8 
8,661,557 49 
388.365 79 
4.472 
5.534 
United States Life 
19 
21,855,886 19 
1,357,080 93 
6.209 
6.220 
Universal Life 
6 
2,798,791 86 
133,306 97 
4.704 
5.068 
Total and average 
138 
$448,899,605 79 
$27,074,873 29 
6.031 
5.371 
Life Insurance Companies of other States. 
iEtna Life 
7 
$45,189,505 93 
$2,949,186 85 
6.527 
6.542 
Charter Oak Life 
7 
25,374.107 96 
1,375,258 96 
5.419 
5.339 
Conn. Mutual Life 
17 
150,092,403 83 
9,424,237 28 
6.278 
6.518 
Massachusetts Mutual Life.. 
14 
15,386,230 20 
803,110 09 
5.219 
4.092 
Mutual Benefit Life 
19 
127,072,276 45 
7,597,130 72 
5.978 
5.794 
National Life of U. S 
2.416 
3,984,275 83 
178,568 85 
5.317 
5.268 
New England Mutual Life... 
19 
56,141,694 60 
2,949,286 08 
5.253 
5.444 
Phoenix Mutual Life 
7 
16,550,244 72 
1,038,657 21 
6.274 
6,754 
Union Mutual Life 
7 
18,665,977 97 
1,001,520 14 
5.365 
5.342 
Total and average 
99.4 
$458,456,717 55 
$27,310,956 18 
5.959 
5.675 
Grand total and average.. 
237.4 
$907,355,323 34 
$54,400,827 47 
5.994 
5.508 72 
The table of mortality used has far less influence on the reserve or 
re-insurance fund than the rate of interest assumed. It is very 
desirable that we should, if possible, adopt an uniform rate for this 
purpose throughout the United States. Let it be conceded in the 
first place that any such uniformity must be a matter of comity 
only as between the different States; each individual and sovereign 
commonwealth has a perfect right to legalize any rate it chooses for 
this purpose; the six per cent States can adopt four per cent, and 
the ten per cent States eight per cent, at pleasure, each class of States 
thus having the same actual margin of two per cent over the assumed 
rate. It is entirely natural that the States where a comparatively 
low rate of interest prevails should tend to a lower assumed rate 
than those where the high rates rule, both by statute and the laws 
of trade. IIow shall harmony be secured ? 
In the first place ten millions of people have already united on a 
medium standard rate of four and a half per cent; and about five 
millions have adopted four per cent. Shall the ten millions yield 
to the five, or vice versa? Shall all of the United States yield to 
New England or New England to the rest of the Union. \ 
Any State that chooses to do so can fix upon an elastic rate, 
adjusted to the special financial thriftiness of each company, whether 
in or out of its jurisdiction, by enacting that the assumed standard for 
State purposes of solvency shall be, say two per cent less than the 
actual average annual rate received by a company on its average 
assets from organization. Such an act would follow the law of each 
company’s financial experience, and would of course, require of New 
England companies with home investments only, a reserve much 
larger than for central and western institutions; but the rule would 
be uniform in its application to all companies, and give due weight 
to the greater ability of the same amount of assets invested at high 
instead of low rates of interest. 
It should be borne in mind that most companies are constantly 
receiving interest on considerable surplus, the receipt of which is 
entirely in excess of the necessary interest on the reserve. 
The six per cent standard. 
Mr. John II. Bewley, the active and energetic manager of the 
Universal Life Insurance Company of New York, appears as the 
first advocate of this extraordinary proposition, in the Appendix to 
the proceedings of the first session of the convention. 
The first proposition is, that the “ stock or low rate [used probably 73 
as convertible terms] companies ” should not be charged in a State 
valuation with a “ lower rate of interest than that assumed in the 
calculation of their premiums.” 
I may say, generally, that I intend all due respect to the officers 
ot companies, and to all others of whom or of whose opinions I 
may speak in this connection. If I happen to express myself 
strongly, the terms are not designed to be personally offensive but 
spring from the earnestness of my convictions in certain directions. 
Row, this proposition of Mr. Bewley’s, that the State in testing 
the status of corporations should be controlled in its principles of 
solvency by the assumptions and theories of a company, is so 
patently absurd that all argument seems to be utterly wasted. To 
the lawyer or legislator it is as irrational as to allow a culprit to be 
judged by the principles, or lack of principles upon which he bases 
his own theory of morals, in order to see, not whether he has vio- 
lated the laws of the land, but whether he has conformed to his own 
individual assumptions and theories in committing the crime in 
question. If he has lived up to them he is innocent, otherwdse, 
guilty. I assert that the theoretical beliefs and assumptions of a 
company are of no consequence wffiatever in testing its solvency, 
any more than the particular religious or other tenets of Ramases 
or Confucius. Can a company pay its debts at maturity f If it 
can it is solvent as regards policyholders. In order to pay debts 
at maturity something more is necessary than “assumptions” or 
theories of any kind whatever, 
Mr. Bewley is entitled to the credit of almost instantly perceiv- 
ing the absurdity of the claim interposed, vdien he asserts that 
“The validity and justice of this claim, and the propriety of ad- 
mitting it, evidently depend upon the sufficiency of the rate 
assumed by these companies in the calculation of their premiums?' 
Precisely, and we are at once remitted to the only pertinent inquiry 
in the premises. Another delusion should also be distinctly under- 
stood and dissipated — the materiality of the assumptions of a com- 
pany of a rate of interest in computing its premiums without regard 
to the “ loading.” The only material inquiry is, what is the amount 
of premium payable; the modus operandi, the special hypothesis or 
theory by or through which this result is reached is of no importance. 
The public and the State are only interested for this purpose, in 
knowing the amount of money demanded for one thousand dollars of 
insurance. If one company charges one hundred dollars per annum 
for life for a certain policy, and another company charges the same 74 
amount for the same policy, of what pertinence or consequence is 
it in determining the question of solvency, that one company com- 
puted its premiums on a high rate of interest, say six per cent, with 
large mortality, say English No. 3, and that the other company com- 
puted its premiums on four or four and a half interest, with a table of 
less mortality, and that the loading was so adjusted as to produce 
the same practical premium ? 
I was much interested in the able argument of Mr. Bewley to 
establish the strong probability “ that the present rates (of interest) 
will be fully maintained for at least several generations.” But, unfor- 
tunately for his inferences therefrom, even his own company has not 
actually realized six per cent interest on its average assets from 
organization. His argument seems to establish to his own satisfac- 
tion that six per cent is a safe assumption, but his own actual experi- 
ence demonstrates the fallacy of the ratiocination. Mr. Bewley fur- 
ther (p. 146, Official Beport of Proceedings of May Session) remarks: 
“It may possibly be urged by the advocates of the mutual 
or high-rate system, that if it be sufficiently safe for stock or low-rate 
companies to reserve at six per cent, it is equally safe for mutual 
companies; and that the discrimination shown in favor of the stock 
companies is an injustice to the mutuals. In answer to this it will 
at once be admitted that, so far as it affects the sufficiency of the 
reserve fund to meet maturing liabilities is concerned, a six per cent 
valuation would be equally as safe for mutual as for stock companies. 
But it must be remembered that the premiums charged by mutual 
companies are calculated upon a four and four and a half per cent 
interest and. that consequently there is an immense margin, the 
property of the policyholders, deposited as it were in trust with the 
mutual companies, and for which, in their contract with their assured, 
they enter into no written or binding obligation to return. It is to 
insure the safety of this margin for the benefit of the policyholder 
that a four and a half per cent valuation becomes requisite and appro- 
priate for mutual or high-rate companies.” 
Mr. Bewley admits what is undoubtedly true, that the same 
reserve is required for the same contract whether in a stock or 
mutual company, and that to make any discrimination in favor of 
stock companies would be an “injustice” to the mutuals. He might 
have gone further, and said that a discrimination the other way 
would be founded on the legal and scientific fact that a high rate 
company is, pro tanto, so much abler to meet its obligations at matu- 
rity, and consequently might be safely valued on a lower standard 75 
of reserve, as its excess of future premiums would counterbalance 
the smaller re-insurance fund. 
But Mr. Bewley wants to protect the members of mutual compa- 
nies as regards their “immense margin”—the “property of the 
policyholders ” on deposit. Are not these members entirely compe- 
tent to protect themselves ? What protection does Mr. Bewley offer 
them ? Simply that such companies shall be compelled by law to 
reserve “immense margins,” more than he admits to be necessary 
for purposes of solvency. Will Mr. Bewley explain how he protects 
such members by not allowing the company to declare dividends and 
pay over such surplus profits to them ? Can he find any safer or 
more appropriate place for “ the property of the policyholders” than 
their own pockets? Policyholders only want a sufficient reserve for 
entire safety and solvency; any surplus over this they want to have 
divided, and the quicker the better for them. It will not then cer- 
tainly be squandered in “ profitless extravagance.” 
Mr. Bewley seems to assume that a stock company is necessarily a 
low-rate company, and a mutual company a high-rate company. 
There is no inherent necessity in this direction. One of the oldest, 
if not the oldest, of the purely proprietary'companies in this country, 
the blew York Life Insurance and Trust Company, has now and 
has always maintained one of the highest scales of premium. The 
vicissitudes and changes which certainly occur in the relations of 
business, might alter and modify the present rates and practices of 
the various companies. Stock companies devise plans for offering 
advantages to policyholders in lieu of dividends, and mutual com- 
panies offer non-participating policies to compete with stock com- 
panies, and many new and complicated forms of policies multiply, 
in which the features of both system are so ingeniously interwoven 
as to be incapable of distinct classification. 
So far as the public is concerned, it is not the proprietary com- 
panies which permanently reduce premiums. A mutual company, 
reserving only sufficient for re-insurance, and a reasonable margin 
for contingencies, practically reduces its premiums by annual divi- 
dends after one, two or three years to the lowest safe basis. Were 
it not for this substantial reduction, stock companies, in the very nature 
of their organizations as purely financial and money-making insti- 
tutions, would increase their rates up to the exact standard, at which, 
in their business (not benevolent) judgment, they could make the 
most money. This is, always has been, and ever will be, the law of 
gravitation of a purely stock organization in any country in the 76 
world. It is the very definition of such a company, a part of the 
essence and innermost soul of its corporate being. Is there any 
profit in the life insurance business ? Capital seeks to grasp it or 
share it; for this sole and only purpose it enters into the business. 
Demonstrate that there is no profit, and capital will timidly retire 
from the field as too dry and arid to produce the pabulum on which 
only it feeds and flourishes. 
I do not complain of this law of finance and business any more 
than I do of the diurnal motion of the earth, or of the law of gravi- 
tation ; but I do protest when capital stands forth as the peculiar and 
especial guardian of the public interests instead of its own. As 
between the two classes of companies, permanent success to either 
will be due in a great degree to the enterprise, economy and 
hard labor of the managers. A stock company may be so discreetly 
handled as to be able, after a series of years, to pay fair profit to the 
stockholders, and not tax its policyholders more than mutual com- 
panies. Ho stock company can or will do business for many years 
below' actual cost; the capital is not subscribed for the purpose of 
being sunk in the payment of either expenses or losses. 
When capital is sunk beyond a safe margin a company .should be 
compelled to reduce its capital to the actual funds in hand, or to pay 
an assessment for filling up the gap. A nominal capital, which 
has been already sunk or lost in business, should not be paraded by 
either a fire, marine or life insurance company as being actually on 
hand and in existence. The fact of its destruction or impairment 
should be recognized coincident wfith the event. “ Capital,” says 
James M. Cook, Comptroller, “only comes into use upon a result 
wdiich would prevent the formation of the corporation were it 
anticipated by the corporators themselves.” 
Report of Comptroller Cook on Insurance Companies, of December 1855, 
p. 48 ; Barnes' Condensed Insurance Reports, vol. II. 
Mr. Bewley (p. 147 of May Session of the Convention) further 
claims that “ vital interests ” were allowed to be created under the 
four and a half per cent basis with a u (presumed) perfect knowledge 
on the part of the State officials charged with the administration of 
these laws, that with the increase of business the margin between 
their basis and that of six per cent upon which the stock premiums 
were calculated, and which for a period would he supplied by the 
subscribed capital, would be continually narrowing and would finally 
become extinguished.” 
Having personal knowledge in the premises, I must be permitted 77 
to deny tliis proposition. Conversely, any company which assumed 
six per cent interest in its Table of Rates, instead of the legal rate 
of four and a half per cent, was acting on its own responsibility, with 
entire knowledge that such assumption was not in harmony with 
the law of State valuations, and such a corporation must itself pro- 
vide, either by skill or economy of management, to keep up at all 
times the statute reserve. It never was my intention, while holding 
the office of Superintendent, that the capital should be allowed to 
make up any such deficiency, capital having a task which entirely 
exhausted its power in maintaining its own intactness and integrity. 
The lines which divide mutual and mixed from stock companies, and 
participating from ones are too tenuous for any 
legislative distinctions in regard to valuations, and the closest analyst 
would be incompetent to make any complete classification. 
It has been said that a four per cent reserve was necessary to pre- 
vent extravagance of management in the mutual companies; then 
why not apply the same rule to the stock companies for the same 
reason ? But an effort is made to set free about one-quarter of the 
reserve of stock companies, and for what purpose ? Is it for pur- 
poses of “ extravagance?” The argument that mutual companies 
should reserve on four per cent, in order to prevent excessive ex- 
penses, is readily met by the answer that the surplus should not be 
thus expended, but apportioned in dividends to the policyholders 
to whom it legitimately belongs. On the contrary, when executive 
and managing officers know that their reserve is eight or ten per 
cent in excess of their needs for purposes of solvency, officers are 
tempted to use the interest on this extra reserve for commuting 
commissions and for illegitimate purposes ; persecuting rival compa- 
nies, venting personal animosities, subsidizing the press, tampering 
with legislative bodies and public officials, under the hallucination 
that they are thereby promoting the special interests of their partic- 
ular company. 
A sufficient reserve for solvency is all that the public wishes and 
all that the State should absolutely require; the remaining surplus 
can go to no better purpose than in dividends to policyholders, leav- 
ing to any corporation the liberty at its option, of keeping an extra 
reserve for contingencies. 
In reference to the theory that a company should reserve on the 
same assumption of interest and mortality as that on which its table ot 
rates is based, and that such is the contract with policyholders, I dis- 
sent from it entirely. There is no such contract, express or implied, 
with policyholders; the contract, both express and implied, is that 78 
the company will pay the' policy at maturity, and that it will reserve 
sufficient and adequate funds for this purpose, and divide its surplus, 
if any, according to the provisions of the policy and its charter. 
There is no understanding on the part of policyholders that the 
reserve shall be computed on any particular table of mortality or 
rate of interest, indeed almost universally neither the table or rate 
of interest assumed are known to or inquired after by the assured. 
The policyholder desires substance not theory, safety and not tech- 
nicality. Of what possible benefit is it to a policyholder that his 
policy is secured by a four per cent instead of a four and a half per 
cent reserve, provided that the lower reserve is as must be conceded 
on all sides safe and sufficient and fully adequate to protect the pay- 
ment of the policy at maturity ? So far as the policyholder is con- 
cerned he does not receive a single dollar more, even if his policy 
was secured by a three per cent reserve; the principal debt is the 
policy, the reserve only security for its payment. A bond secured 
by a mortgage on property worth ten times its face yields no 
more than the same principal secured by twice the amount 
of the debt. Beyond the point of safety the policyholder wants 
the surplus to be divided and in his own pocket. Imagine a policy- 
holder bringing an action as suggested by Mr. Peet (Report, p. 173) 
to compel his Company to take back the money apportioned to him 
by way of dividends, and to keep it as an unnecessary reserve on 
his policy! Officers of companies may be disposed to keep more 
than is necessary for the bona ficle necessities of re-insurance, and 
strong old companies, which have already on hand a reserve of four 
per cent, may deem it policy for their companies to compel, by law, 
companies doing business on a four and a half per cent basis to 
change to a four per cent reserve, as such an act would embarrass 
their competitors, or force them into dissolution, thus leaving the 
field to be monopolized by the four per cent companies. 
Requiring companies to reserve on the same rate assumed in com- 
puting their premiums, is a basis of reserve which is as fleeting and 
changing as the sands of the ocean. Any standard table of mortality 
may be assumed, and almost any of the actual rates of interest, and, 
by adjusting the “loading,” the same rate of gross premium may be 
established, and the anomaly would thus be presented of valuing 
companies on various rates of interest, because such rates were theo- 
retically assumed by the Actuary in computing his Tables, although 
the actual gross premiums payable might be the same. Such action 
on the part of the different State legislatures would go far to render 
State supervision delusive and needless. 79 
In order to show the status of companies under the New York 
standard, the Massachusetts standard and the proposed six per cent 
standard, I have prepared the following table, which, although per- 
haps not entirely accurate, will demonstrate the practical operations 
of the three rules, as applied to the existing business of most of the 
companies on the 31st day of December, 1870. 80 
Showing the net values of policies or re-insurance funds of Life Insurance Companies, on the 31 st day of December, 1870, 
transacting business in New Yorlc and Massachusetts, according to the legcd standards of said States, and the amount 
and percentage of difference; also, the approximate net values at six per cent interest and the difference thereof as com- 
pared with the New York and Massachusetts standards. 
.Etna 
American Popular. 
Amicable 
Anchor 
Asbury 
Atlantic 
Berkshire 
Brooklyn 
Charter Oak 
Commonwealth ... 
Connecticut Gen’l. 
Connecticut Mut.. 
Continental 
Craftsmens 
Eclectic 
Economical 
Empire Mutual 
Empire State 
Equitable 
Excelsior 
NAME OP 
COMPANY. 
Hartford 
New York 
New York 
Jersey City 
New York 
Albany 
Pittsfield 
New York 
Hartford 
New York 
Hartford 
Hartford 
New York 
New York 
New York 
Providence 
New York 
New York 
New York 
New York 
Location. 
$102,195,224 00 
6,405,7]S 00 
2,052,358 82 
7,520,410 00 
6,079,148 00 
10.089,303 00 
10,027,753 00 
14,720,060 00 
61,551,512 00 
5,810,118 00 
5,532,785 00 
181,265,762 00 
53,717.629 55 
4,683,000 00 
5,440,315 00 
6 359,717 63 
10,726,107 50 
4,837,400 00 
143.970,984 00 
5,893,865 00 
Am’t of policies 
in force Dec. 
31,1870, as re- 0 
ported to N.Y. 
Dep’t (re-ins. 
deducted). 
$105,871,393 50 
6,548,612 00 
2,085,917 64 
7,506,880 39 
6,070,049 41 
10,327,304 00 
11,392,987 50 
14;726,009 00 
61.304,610 00 
5,781,118 00 
6,319,848 30 
181,265,762 32 
54,455,492 80 
4,694,500 00 
5,394,184 67 
6,771,998 11 
10,721,207 50 
4,748,600 00 
143,829,397 00 
5,962,213 00 
Am’t of policies 
in force Dec. 
31,1870, as re- 
ported to Mass w 
Dep’t (re-ins. 
included). 
$11,543,841 00 
290,113 00 
102,892 00 
234,582 00 
258,540 00 
627,303 00 
1,391,827 00 
1,434,502 00 
7,024,535 00 
224,031 00 
385,061 00 
20,282,841 00 
3,835,255 00 
205,070 00 
198,488 00 
566,270 00 
418,220 00 
134,605 00 
11,375,736 00 
317,345 00 
Net value Dec. 
31, 1870, N. Y. _ 
Dep’mt, Am. & 
Exp., 4yi per 
cent. 
iiggi ggfig gills siisi 
§1318 11318 SIS!! Sills 
33338 2S8S8 8S2&8 
Net value Dec. 
31, 1870, Mass. 
Dep’mt, Actu- •— 
aries, 4 per ct. 
$1,195,396 20 
34,713 43 
6,727 81 
15,748 88 
19,567 02 
45,742 45 
64,220 64 
80,822 66 
509,785 18 
21,603 94 
44,061 63 
1,604,964 29 
219,522 38 
13,496 94 
17,116 01 
69,539 25 
35,030 37 
8,522 87 
1,009,529 66 
21,846 72 
Difference in 
said valua- @ 
tions. 
10.36 
11.97 
6.54 
6.72 
7.57 
7.29 
4.61 
5.63 
7.26 
9.65 
11.41 
7.91 
5.73 
6.58 
8.06 
12.21 
8.38 
6.34 
8.87 
i 6.88 
Percentage of 
difference. 
$8,738,687 64 
219,615 55 
77,889 25 
177,578 58 
195,714 78 
474,868 38 
1,053,613 04 
1,085,918 02 
5,317,573 00 
169.591 47 
291,491 18 
15,354,110 64 
2,903,288 04 
155,237 99 
150,455 42 
428,666 39 
316.592 54 
101,895 99 
8,611,432 16 
240,230 17 
Estimated av- 
erage approxi- 
mate net value 
6 per cent. 
$2,805,153 36 
70,497 45 
25,002 75 
57,003 42 
62,825 22 
152,434 62 
338,213 4)6 
348,583 98 
1,706,962 00 
54,439 53 
93,569 82 
4,928,730 36 
931,966 96 
49,832 01 
48,032 58 
137,603 61 
101,627 46 
32,709 01 
2,764,303 84 
77,114 83 
Difference, less, 
as compared 
with N. Y. ® 
standard. 
c. 
$4,000,549 36 
105,210 88 
31,730 56 
72,752 30 
82,392 24 
198,177 07 
402,434 60 
429,406 64 
2,216,747 18 
76,043 47 
137,631 45 
6,533,694 65 
1,151,489 34 
63,328 95 
65,148 59 
207,142 84 
136,657 83 
41,231 88 
3,773,833 50 
98,961 55 
Difference, less, 
as compared .-g 
with the Mass. 
standard. 
TABLE No. 27. 81 
Germania 
30 378 095 00 30 ll’600 65 to M’fiS 2? W35 25 10-°° 2,344,853 65 753,704 35 1,063,639 60 
1 214 500 00 1 233500 00 ’vHcr S 44 165,433 44 6.78 1,845,197 35 592; 315 65 757 749 09 
JS&lSoO £3:83 l.Jffiffi 2,08l’718 56 157 797 56 111 1 lie’408 S 
7,099,198 00 6,948,699 31 332,033 00 3741438 60 M 80 liS 99 I® 8 61 
5,81l’600 TO 5’KoOO ?fiS ’M94 33,992 04 13.09 196,554 30 63,094 70 97,086 74 
I’Hfgg 911'981 46 *a:ig8 2f(tin «?| 1 l.mS 8 53® 1 70 SI 
MS 5;SSS S;SS 2:3 S:SS 35SS 8:33 
1L924’332 00 19,943,244 72 1,504i099 00 1,642’OH 94 94 1 138’602 P a&’fjS nt eMS 90 
2jS:S8 S:B:SSS §;MI Mi £8 5:3J:!8.3 iSSiJK 
119 600 00 3l’l39’600 00 00 3,(«,2n pn S 19'41 2,109,880 12 677,279 88 939,631 43 
13 303 60S 00 13 122 982 00 680 m 3£S 23 3’321 20 10 32 24,344 37 7,814 63 11 135 83 
242 004 488 76 242 010 194 74 38 581 ’999 m a-, no „ 43>403 78 2.72 514,945 47 165,299 53 183,793 31 
130 904 083 00 131 176 770 11 15’594 m m 2,552.858 03 6.62 29,206,006 06 9,375,262 9411,928,120 97 
±ou,yui,ueu uu ioi,i(o,7(0 11 15,594,119 00 16,915,271 56 1,321,152 56 8.47 11,804,748 09 91 5 i 110!523 47 
llil Ssi s:l! i£§ III ?:S sss «ss abs 
1SH88 1:IE 9S:S| SI IS SHE 8 S.-SB S:SS 
’ w i,odo, <ol uu 87,290 00 95,069 79 7,779 79 8.91 66,078 53 21 ] 211 47 28/991 26 
3?'933 794 44 Ml’lHI 00 8’48o’lir 60 “ 342,205 00 4 25 6,067,991 64 1,947,849 36 2,290,054 36 
MAS 1 mIP34 8:8 48! 3,85:85S 4,58:85S 
65;i86,« 8:88:88 $:SS:S 8S 5:85:255 5! 85:88 5:8 5:S:S 8 i:!8:8S S i:S:85 5 
S’MSoo 56’111’317 50 4’ll’rr m % 01 8.38 1,618,788 49 519,637 51 698,984 51 
9 388 400 TO 9 400 915 01 4’r?n r« ?S M3M84 io 403-008 9.26 3,294,218 74 1,057,457 26 1,460,465 98 
35 940 424 TO 37 506 669 nil 2 bS’qm nn o 69,158 26 8.83 507,292 32 162,842 84 222,001 11 
2 765 883 00 2 869’952 65 3’i5s’m5 sc l3 203,882 15 7.77 1,983,331 68 636,657 32 840,539 47 
4,(tw,»8dUU 2,869,9,,2 05 158,045 86 176,064 80 18,018 94 11.40 119,640 71 38;405 14 56,424 09 
ll’340 676TO 11416 176 18 695’752 m S} 106,052 91 11.89 675,635 37 216,881 63 322,934 54 
36 008 360 00 30 093 065 TO 4 n'r’70? m a ccb’FIa It 78’176 74 11 09 526,584 27 169,167 73 247,344 47 
do,wa,6bu uu o6,uao,U65 00 4,065, (81 00 4,608,950 26 543,169 26 13.36 3,077,796 22 987,984 78 1,531,154 04 
Globe Mutual 
Gov’mt Security... 
Guardian Mut 
Hahnemann 
New York 
New York 
New York 
Hartford L. & An. 
Hercules 
Hartford 
Home 
Homoeopathic 
Hope Mutual 
International 
John Hancock. ... 
Knickerbocker 
Life As’n of Am’ca 
Manhattan 
Massachusetts 
Merchants 
New York 
New York 
Jersey City 
New York 
St. Louis 
New York 
Springfield 
Metropolitan 
Mutual 
New York 
Mutual Benefit 
Mutual Protection 
National 
New York 
National 
National 
Washington 
Washington 
Boston 
National Capital .. 
New England Mut. 
New Jersey Mut... 
New York Life 
North America 
North Western.... 
Penn. Mutual 
Phoenix Mutual ... 
Provident L. & T.. 
Security 
Newark 
New York 
New Yorli 
Milwaukee 
Philadelphia ... 
Hartford 
Philadelphia ... 
Standard 
State Mutual 
Travelers 
Worcester 
Union Mutual 82 
1-3 
Eg. 
>-b 
O 
So 
p-3 
33 ® 
Total 
Widows & Orphans 
World Mutual 
3 
P 
I- 
£ 
S' 
3 
p 
United States 
NAME OF 
COMPANY. 
► 
Pr® 
0& 
3 p, 
?« 
0 
CD 
cj 
CO 
New York 
Location. 
/* 
o 
-i 
-i 
s 
1 
o 
ZJl 
$1,948,365,037 95 
$18,389,883 00 
35,951,116 91 
13,315,514 00 
5,553,947 89 
Am’t of policies 
in force Dec. 
31, 1870, as re- ~ 
ported to N.Y. hi 
Dep’t (re-ins. 
deducted). 
2 
CO 
CO 
o 
CO 
05 
00 
g 
05 
o 
CO 
y> 
l—l 
-O 
o 
s 
CO 
s 
/-* 
•o 
s 
g 
Ox 
to 
Ox 
CO 
$18,468,591 00 
36,390,360 16 
13,299,705 49 
5,585,473 73 
Am’t of policies 
in force Dec. 
31, 1870, as re- - 
port’d to Mass. ® 
Dep’t (re-ins. 
included). 
yy 
0 
8 
U 
rf** 
3 
$3,519,933 00 
3,091,769 00 
1,391,070 00 
333,367 00 
Net value Dec. 
31, 1870, N. Y. 
Dep’mt, Am. @ 
Exp., per 
cent. 
to 
JX 
CO 
s 
o 
g 
2 
■€*> 
to 
JO 
ox 
to 
CO 
to 
ox 
CO 
8 
1 
s 
$3,395,968 44 
3,367,393 13 
1,365,698 84 
353,976 54 
Net value Dec. 
31, 1870, Mass. 
Dep’mt, Actu- * 
aries, 4 per ct. 
05 
CO 
o 
05 
-1 
—$133,964 56 
175,633 13 
—35,371 16 
30,709 54 
Difference in 
said valua- @ 
tions. 
00 
’►-» 
o 
h-» 
OX 05 CO dx 
ODtsDCoi-* 
OX|—ICO CO 
Percentage of 
difference. © 
Ox 
p 
Tj 
o 
o 
o 
to 
353,383 13 
$1,583,469 14 
Estimated av- 
erage approxi- 
mate net value 
6 per cent. 
00 
o 
CO 
CO 
to 
-3 
80,983 88 
$508,399 86 
Difference,less, 
as compared 
with N. Y. % 
standard. 
$64,550,96308 
O 
05 
35 
CO 
& 
3% 
C5 
i 
CO 
1 
CO 
00 
Difference, less, 
as compared 
with the Mass. 3 
standard. 
TABLE No. 27 — (Continued). 83 
The capitals or accumulations of the following companies are 
impaired to the extent of the various amounts set opposite their 
names, respectively, in the following Table, according to the New 
York Life Insurance Report for December 31, 1870, and the Massa- 
chusetts Department valuation for the same date. 
TABLE No. 28. 
NAME OF COMPANY. 
Location. 
Amount of 
impairment, as 
per New York 
standard. 
Amount of im- 
pairment, as per 
Massachusetts 
standard. 
New York State Life Insurance 
Companies. 
$33,036 76 
30,629 15 
80,832 19 
$67,750 19 
37,356 96 
100,399 2i 
28,834 61 
76,635 04 
131,382 20 
81,050 09 
36,891 74 
48,725 28 
112,557 56 
19,667 56 
21,270 98 
92,671 43 
47,705 28 
13,976 58 
31,604 42 
112,547 06 
33,345 93 
138,808 33 
13,690 60 
25,791 39 
839 68 
43,535 78 
82,615 13 
55,031 10 
117,885 26 
63,931 08 
1,861 37 
26,878 56 
New York 
Globe 
16,255 93 
20,956 91 
74,691 09 
21,547 79 
28,283 22 
94,053 28 
23,565 82 
82,866 56 
7,772 45 
Widows & Orphans Benefit 
68,906 94 
61,905 59 
$910,894 05 
$1,399,653 03 
Life Insurance Companies of 
other States. 
Anchor 
$17,437 11 
$33,185 99 
27,855 18 
69,722 06 
91,868 58 
17,067 76 
426,228 37 
9,086 57 
40,983 64 
15,348 69 
28,450 15 
90,020 92 
6,704 31 
Hartford, Conn 
182 81 
49,472 98 
1,126 98 
254,382 45 
1,306 78 
National Life Ins. Co. of TJ.S.A. 
National Capitol 
District Columbia.. 
District Columbia.. 
8,549 55 
27,449 24 
Ohio 
6,201 96 
Totals other States companies 
Grand total (35 companies)... 
$366,109 86 
$856,522 22 
$1,277,003 91 
$2,256,175 25 84 
Under the almost startling developments of the above Table 
No. 28, it immediately becomes a practical question of vast import- 
ance— what shall be done under the circumstances? Thirty-five 
companies are impaired, according to the Massachusetts standard, to 
the extent of two and a quarter million of dollars. Shall these 
companies be put into the hands of receivers, or their licenses 
revoked as being in an unsound and insolvent condition ? 
Such action would be an unnecessary and cruel butchery of cor- 
porate life, and a wranton sacrifice of the sacred interests of perhaps 
an hundred thousand families. 
If the high reserve of the Massachusetts standard was essential to 
solvency, of course no question could be fairly raised; but it is not, 
and in any competent court it could be proved, to the satisfaction of 
bench and jury, that insolvency did not exist, and that most, if not 
ail, of said companies are in the possession of assets sufficient with 
their future premiums to pay all of their outstanding policies at 
maturity. 
Who will pay the two and a quarter millions of dollars necessary 
to meet the requirements of the Massachusetts law ? Is it right to 
tax policyholders or stockholders for this purpose to this extent? 
Will the friends of a four per cent standard themselves advance 
this money? Policyholders do not need or want it for their 
security. What shall be done? Will it be fidelity to the sacred 
and delicate interests in your charge to sacrifice them ruthlessly 
and unnecessarily? The New York standard is adequate and 
sufficient, and by uniting upon it the interests of all are alike 
protected and conserved. If Massachusetts companies ex super- 
dbundantia eautela desire to keep up the four per cent reserve, they 
can do so, and the same policy can be followed as a corporate rule 
by any company in any State. These companies are not disturbed 
in any manner by the four and one-half per cent standard, and all 
the other companies of the Union are also left undisturbed. 
The New York standard represents safety and uniformity; the 
Massachusetts standard conflict and permanent injury to the busi- 
ness ; the six per cent rule is unsafe and dangerous. 
Even under the New York standard a range of impairment must 
be allowed; and I have prepared the following Table No. 29 under 
which it is proposed to allow twenty per cent impairment on capital 
and ten per cent on reserve. 85 
TABLE No. 29. 
Showing the amount of proposed impairment allowed to several Life 
Insurance Companies, on the day of December, 1870, before said 
companies could be dissolved by compulsory proceedings or their certi- 
ficates of authority revoiced, computed on the basis of twenty per cent 
oscillation on capital and ten per cent on reserve, by the New York 
standard; all dividends ceasing to both stockholders and policyholders 
whenever any impairment exists on either capital or reserve. 
NAME OF 
COMPANY. 
Location. 
Margin of 
oscillation on 
capital (20 per 
cent). 
Margin of 
oscillation on 
reserve, Am. 
Exp. 4% (10 
per cent). 
Total legal 
oscillation 
allowed. 
$20,572 80 
$1,154,384 10 
$1,174,956 90 
American Popular 
New York 
20,000 00 
29,011 30 
49,011 30 
20,000 00 
10,289 00 
36,289 00 
20,000 00 
23,458 20 
43,458 20 
Asbury 
New York 
30,000 00 
25,854 00 
55,854 00 
22,000 00 
62,730 30 
84,730 30 
5,600 00 
139,182 70 
144,782 70 
25.000 00 
143'450 20 
168,450 20 
40,000 00 
702,453 50 
742 ,'453 50 
24,000 00 
22,403 10 
46,403 10 
88,706 10 
50,200 00 
38,506 10 
Connecticut Mutual.. 
2,028,284 10 
2,028,284 10 
20.000 00 
383'525 50 
’403|525 50 
00 
20 507 00 
60,507 00 
30,000 00 
19,848 80 
49,848 80 
20,000 00 
56,627 00 
76,627 00 
Empire Mutual 
20.000 00 
41,822 00 
61,822 00 
Empire State 
20,000 00 
13,460 50 
33,460 50 
Equitable 
20,000 00 
1,137,573 60 
1,157,573 60 
25|000 00 
31,734 50 
56,734 50 
Germania 
40,000 00 
309,755 70 
349,755 70 
Globe 
20,000 00 
243,751 30 
263,751 30 
Government Security. 
New York 
20,000 00 
2,736 70 
22,736 70 
Guardian Mutual 
New York 
25,000 00 
192,392 10 
217,392 10 
Hahnemann 
40,000 00 
33,203 30 
73,203 30 
Hartford Life & A 
Connecticut 
60,000 00 
25,964 90 
85.964 90 
Hercules 
30.000 00 
3 105 10 
33,105 10 
Home 
25,000 00 
221 256 10 
246 256 10 
Homoeopathic 
30j000 00 
23,958 40 
53,958 40 
Hope Mutual 
30,000 00 
28 665 30 
58 605 30 
International 
31.816 55 
13 115 00 
44 931 55 
20,000 00 
150 409 90 
170 409 90 
Knickerbocker 
20,000 00 
644 006 30 
664 006 30 
Life Ass’n of America 
223,651 40 
223,651 40 
20,000 00 
494 188 50 
514 188 50 
Massachusetts 
278 716 00 
278 716 00 
Merchants 
28,800 00 
3 215 90 
32 015 90 
Metropolitan 
40,000 00 
68 024 50 
108’024 50 
Mutual Life 
3 858 132 90 
3 858 132 90 
Mutual Benefit 
1,559,411 90 
1,559 411 90 ’ 
Mutual Protection 
New York 
20,000 00 
26,990 62 
46,990 62 
National Capital 
Dist. of Columbia . 
30,000 00 
8,729 00 
38,729 00 
National 
63.050 50 
63 050 50 
National Life 
Washington, D. C.. 
200,000 00 
97,493 40 
40 
National 
30,000 00 
77 174 63 
107 174 08 
New England Mut 
801,584 10 
801,584 10 
New Jersey Mut 
20,000 00 
48 981 60 
68 981 60 
New York Life 
1,329 572 50 
1 329,572 50 
North America 
444,866 10 
444,866 10 
North Western 
Wisconsin 
759,395 90 
759,395 90 86 
TABLE No. 29 — (Continued). 
NAME OF 
COMPANY. 
Location. 
Margin of 
oscillation on 
capital (20 per 
cent). 
Margin of 
oscillation on 
Reserve Am. 
Exp. (10 
per cent). 
Total legal 
oscillation 
allowed. 
$213,842 00 
435.167 60 
67;013 51 
472,432 90 
261,998 90 
15.804 58 
89,251 70 
69,575 20 
17,184 40 
406,578 10 
251,993 30 
58,042 90 
209,176 90 
139,107 00 
33,326 70 
$213,842 60 
467,167 60 
144,049 00 
492,432 90 
283,998 90 
40,804 58 
89,251 70 
169,575 20 
37,184 40 
406,578 10 
291.993 30 
98.042 90 
234;176 90 
179,107 00 
73,326 70 
$32,000 00 
77,035 49 
20,000 00 
22,000 00 
25,000 00 
Provident Life & T 
Pennsylvania 
100,000 00 
20,000 00 
40,000 00 
40,000 00 
25,000 00 
40,000 00 
40,000 00 
Widows & Orphans... 
New York 
$1,740,024 84 
$20,861,101 34 
$22,601,126 18 87 
Professor De Morgan says that the rate of interest assumed by 
Life offices should “ never be above that at which the Government 
can borrow,” namely, that regulated by the price of the funds. 
This remark was made in reference, of course, to British offices, but 
is, to a certain extent, applicable to the business of Life insurance in 
this country. The rate assumed should certainly not be so high as 
to preclude a company from purchasing, if it desires to do so, United 
States stocks, as a portion of its accumulations. Policyholders will 
not be satisfied to have the whole amount of reserve so invested on 
account of the low rate of interest; and the largest amount of the 
funds of Life insurance companies naturally flow to investments on 
bond and mortgage, which pay considerably larger interest, and 
which class of investments gives aid to policyholders in their busi- 
ness and commercial transactions. 
It is entirely clear that a Governmental standard for valuations 
will be even more than safe, if the rate of interest assumed is not in 
excess of that which can be realized by investments in the public 
funds. 
A hundred millions can now he so invested at par, in a moment 
with five per cent interest payable quarterly, and free from national, 
State or municipal taxation. Beyond reasonable question invest- 
ments can be made in the United States public funds, for an indefinite 
period of time, in such a manner as to realize four and a half per 
cent interest, compounded annually. If the rate of interest should 
ever go down to even four per cent it wall he payable quarterly or 
exempted from taxation, or possess other incidental advantages, 
which will make the practical rate realizable at least four and a 
half per cent, compounded annually. 
It would probably be practically safe in this country, considering 
the laws of the different States relating to interest, and the practical 
ruling business rates actually received, as shown above by Table 
ITSTo. 3, to assume a rate somewhat in excess of that which could be 
compounded annually on investments in United States bonds, as 
the companies do not and will not invest all of their funds in this 
manner, but in divers forms and at much higher rates. 
We cannot make and should not strive to make our Life insurance 
companies more solid and sound than the United States govern- 
ment. Attempting to maintain a four per cent reserve is a useless, 
vain and futile effort in this direction, which the people do not need 
and do not want to pay for, as the money must of course ultimately 
come from the policyholders. 
Per contra, the recent bold proposition to legalize a six per cent 88 
standard (although a not unnatural result of the over-strained rule 
of four per cent) is obnoxious to still greater objections, inasmuch 
as the one errs on the side of excessive reserve, and the other on 
that of an insufficient one. Strangely and unaccountably enough 
we are surprised to find some of the same actuaries the earnest advo- 
cates of both errors; I simply exhibit these two belligerent stand- 
ards, and each is competent to annihilate the other, leaving the field 
to be occupied by the golden mean of true conservatism, real pro- 
gress and rational safety, the four and a half per cent basis, which is 
already the legal standard for seven powerful States and over ten 
millions of people. 
It should be constantly borne in mind that it is not the object 
or purpose of a legal standard to interfere with the corporate stand- 
ard of a company ; the genius of our institutions and people requires 
in this respect the largest freedom consistent with solvency and 
safety. Let each company be entirely free in this respect to adopt 
any table of mortality, any rate of interest, any “ loading ” which 
may be satisfactory to the stock or policyholders. Keither is it the 
mission or duty of the State (unless incidentally) to adjust the 
equities between stockholders and policyholders, or between mem- 
bers of Mutual companies, except in the courts. Neither.is it the 
duty of superintendents to see that the reserve of a company is 
adequate to make large or even any future dividends, unless divi- 
dends are guaranteed ; this is a matter of internal corporate manage- 
ment, which properly belongs to the stockholders or members, and 
should not be meddled with by the State, through its Insurance 
Department. Each company should be free to carry out its own 
theories and plans in this respect, subject only to the laws of the 
land and its corporate being. 
What, then, is the proper function of the State in insurance 
supervision ? 
I answer — to use its best efforts to preserve and maintain the 
companies in a condition of solvency and safety. If a company is 
only able to pay its legal obligations at maturity, its manner of oper- 
ating and doing business, its rates of premium, dividends, etc., should 
be left to the individual judgments of those whose interests are 
affected by these questions. Hence, in fixing upon legal standards 
of mortality and interest, the only inquiry is as to the true and best 
table and rate of interest for purposes of simple solvency. Any com- 
pany may at its own option reserve for corporate purposes at four 
per cent or three and a half or three per cent, and on any table in the 
world which it selects as the law for its corporate being. In Eng- 89 
land, it seems for years to have been a stumbling-block in the way 
of Parliament, and a matter incapable of British solution to reconcile 
the governmental supervision of companies with the corporate inde- 
pendence of such organizations, and to so exercise the functions of 
the State as not “ to interfere with trade.” Here, we have solved 
the problem practically, and now have leisure to mature our theories 
afterwards. 
111. 
AN UNIFORM TABLE OF MORTALITY AND RATE 
OF INTEREST FOR THE STATE VALUATION 
OF ANNUITIES. 
Actual experience in other countries, not to be contemned, teaches 
us the lesson that it is not safe to value annuities on the same stand- 
ard of mortality as life policies. We have no American experience 
as to the duration of the lives of annuitants, and are therefore from 
necessity, compelled to seek for standards in other countries. The 
tables of the British government annuitants (Finlaison’s) are prob- 
ably best adapted to this purpose. As to a rate of interest, annui- 
ties cannot be sold in this country to any extent, if a rate is assumed, 
lower than say live and a half per cent. 
In my opinion, it would tend to solidify and strengthen the life 
companies, if annuities could be sold to a reasonable extent. 90 
ReC A PITUL A.TION. 
hirst. On Mortality Table, I recommend that the American Expe- 
rience Table be adopted for the State valuation of life and 
endowment policies throughout the whole Union. 
That the table be subjected to the test of the New Experience 
of American companies, to be collected and tabulated in five or 
ten years; and that thereafter the table shall be modified, if 
necessary, to accord with such new facts and experience. 
That measures be taken immediately to perfect the present 
table by adding thereto the numbers living and dying from 
age 0 to 9, inclusive. 
Second. Rate of interest. I beg leave to recommend/imr and a half 
per cent as a safe and judicious standard for an uniform rate for 
each State in the United States and Territories. 
Third. I would suggest, in the absence of any American Experience 
for the State valuation of annuities, the Government Annuity 
tables of Great Britain, as reported by Mr. John Finlaison, in 
1860, or the very elaborate and complete tables of Mr. Jardine 
Henry, now in process of completion, with five and one-half 
per cent interest. 
Fourth. I would recommend net valuations for all lives healthy on 
entry (impaired lives to be judged of by the special circum- 
stances), unless the rates of premium run below the net legal 
standard rates. In all cases where the rates of premium are 
less than the net rates according to the legal standard of mor- 
tality and interest, net valuations should not be allowed, but the 
principles of gross valuation should be applied, deducting from 
the present value of future premiums a sum equal to the aver- 
age percentage of expenses during the whole period of the com- 
pany’s existence, in no case less than ten per centum. Negative 
values never to be allowed as assets. 
Fifth. I would suggest that all life companies should be prohib- 
ited from declaring or paying any dividends to either stock or 
policyholders whenever the capital or reserve is impaired to any 
extent whatever; the capital at par, to be reckoned as a liability. 
Whenever, and only in cases where, a company’s capital is 
impaired more than twenty per cent thereof, and the reserve 
as per the legal standard, impaired more than ten per cent 
thereof, all Licenses or Certificates of Authority, to companies 91 
of other States of the United States to issue new policies to 
be revoked, and all domestic companies to be dissolved as insol- 
vent corporations, in accordance with State laws. This latter 
provision, as to an impairment of the reserve, to be applicable 
only to companies having over a thousand policies in force 
insuring at least two millions of dollars. 
Western Ayenue, Albany, 
October 18, 1871. 
WILLIAM BAKUES.