LADIES do not take advantage of the system of life insurance to the extent one would expect, seeing the benefits it is capable of conferring upon themselves and their belongings; and as their indifference is no doubt, in many cases, owing to a want of knowledge of the subject, a chapter thereon may be useful.
Life insurance is an admirable system, devised, in all its ramifications, to provide against loss or damage through the various contingencies to which human nature is subject.
A simple life insurance is that by which a person may leave behind him a sum of money for the benefit of those who, during his life, have been dependent upon him. For example, a husband, whose income is entirely derived from his own exertions, desires to make some pro- vision for his wife and children in the event of his dying before them. At the age of thirty he may, by paying £25 a year to an Insurance Office, secure at his death, whenever it may happen, £1,000, for the benefit of his wife or chil- dren, or as he may direct by his will. In a way insurance is a kind of savings bank, but impos- ing an obligation on the part of the depositor to save a certain sum every year. In the case of the bank, the savings are optional, and cease at death; whereas by insurance, the return of a large sum is the result of the death of the com- pulsory depositor. If a person put by £25 every year and invested that sum in the Government Funds at 2 1/2 per cent., or deposited the same sum annually in a bank, at the same rate of interest, it would take him twenty-eight years to accumu- late £1,000, if he lived so long; whereas by an insurance on his life for the same amount, if he died a week after the first payment of £25 had been made, the £1,000 insured would be paid to his representatives. It might be said that if the person lived longer than the term of twenty- eight years and went on saving the £25 every year, he would in the end accumulate more than £1,000. This, however, is met by insuring in such manner that the insurance carries "profits," that is, additions made by the gains of the office from time to time. If insurance be made in this manner, for which a slightly higher rate of pre- mium is paid, it will be found that, however long a person might live, more would accrue at death by insurance than by saving.
There are in active existence so many insur- ance companies of good repute and undoubted stability that no difficulty need be experienced in making a judicious selection. Of course, the intelligent insurer would prefer an office whose system would best suit his own requirements. There are two kinds of Insurance Companies, one known as a "Mutual" office, in which all the profits which may be earned are periodically added to the amount insured, the other in the form of a Joint-Stock Company, in which a small proportion of the profits are distributed amongst the Shareholders and the remainder added to the Insurances. The Mutual Office dividing the whole of its profits amongst the insured would appear to be the more advantageous of the two, and undoubtedly it is, all other things being equal; but insurances may be effected which do not share in the profits, at lower rate of pre- mium, and in that case one system is as good as the other. The intending insurer would do well to obtain the prospectuses of several offices, which he can easily do by writing for them direct to the head office or by applying to the several agents of the companies who abound in all towns; and carefully compare one with another. It will be found, perhaps, that one office charges a less annual premium for an in- surance than another, but this may be compen- sated for by the latter declaring larger profits, or giving advantages in other ways. For instance, a certain "Mutual" office charges for an insur- ance of £1,000, on the death of a person begin- ning to insure at the age of thirty, a pre- mium of £26 16s. 8d. per annum, whereas a certain Joint-Stock Company's demand is only £24 14s. 3d.; but the advantages offered by the former in the shape of larger bonuses, though deferred, are greater, while the benefit of a less annual payment is of course immediate. Where the insurance is effected at the same age and for the same amount, but with no other benefit or profit prospectively than the bare amount, the premium in the former case is £21 4s. 2d., and in the latter £21 15s. 10d. There are good offices, however, where the premium charged is less than this.
There is at least one office which insures upon what is called the half-credit system. One-half the usual premium is paid for a certain term of years, and thereafter the full premium is charged. This may be useful in a case where a person wishes to insure while young and the premiums are low, and at the same time is desir- ous of deferring the full payment until his income is so improved that he can better afford it. This system is carried still further by an in- surer only paying half the premium during his lifetime, the other half being accumulated until his death, and then, with interest added, de- ducted from the amount payable in respect of the insurance policy.
Having chosen the insurance office or com- pany which best suits his purpose, the proposer applies to its nearest agent and makes known his desire to insure his life. A form containing printed queries somewhat like the following (though offices differ somewhat in details) will be placed before him and the blank spaces filled in either by the agent or himself.
————————————————————————————————————————————————————————————————- | PROPOSAL FOR LIFE ASSURANCE | |———————————————————————————————————————————————————————————————-| | | Full Name _____________________________________________________ | | | Profession or Occupation ______________________________________ | | 1. Life proposed to be Assured | Business Address ______________________________________________ | | | Residence _____________________________________________________ | | | Married or Single _____________________________________________ | | —————————————————————————————————————————————————————————| | 2. Age next Birthday ________ years. Born at _________________________________________________________ | | on the ___________________________ day of _______________ in the year 18_________ | | (Evidence to be produced.) | | —————————————————————————————————————————————————————————| | 3. Has he resided out of Europe? | | | If so, where, and for what period? | | | —————————————————————————————————————————————————————————| | 4. Is he, and has he always been, of sober and | | | temperate habits? | | | —————————————————————————————————————————————————————————| | 5. Has he had any serious illness or disease | | | tending to shorten life? | | | —————————————————————————————————————————————————————————| | 6. Has any near relative died of any hereditary| | | disease? | | | —————————————————————————————————————————————————————————| | 7. (1) Has a proposal to effect an Assurance on| | | his life ever been declined? |_________________________________________________________________| | (2) Or accepted at more than the ordinary | | | rate? |_________________________________________________________________| | (3) If so, on how many occasions, and | | | when, and by what office or offices? | | | —————————————————————————————————————————————————————————| | 8. Is there any other circumstance which ought | | | to be communicated in order to enable the | | | Company to judge fairly of the risk? | | | —————————————————————————————————————————————————————————| |If the | Name __________________________________________________________ | |person has 9. (1) Who is his usual Medical Attendant? | Residence _____________________________________________________ | |never | Has known him ________________ years. | |required (2) When was he last in professional atten- | Date of Attendance ____________________________________________ | |Medical | Ailment _______________________________________________________ | |attendance, —————————————————————————————————————————————————————————| |the fact | 1st Friend. | 2nd Friend. | |should be | | (if necessary: see marginal note to | |stated, and 10. Mention an intimate friend, who is not in- | | Question.) | |reference terested in this Assurance, to be referred | Name ____________________ | ___________________________________ | |given to to for information as to health and habits | Residence _______________ | ___________________________________ | |TWO friends, of life | Profession or | | |in answer to | Occupation ____________ | ___________________________________ | |Question 10. | Has known him _____ years | Has known him _____ years. | | —————————————————————————————————————————————————————————| |If the | Name __________________________________________________________ | |Proposal be 11. Name, &c., of the person in whose favour | Profession or Occupation ______________________________________ | |upon the the Assurance is to be effected? | Business Address ______________________________________________ | |person's own | Residence _____________________________________________________ | |life these —————————————————————————————————————————————————————————| |enquiries 12. Is the pecuniary interest in the Life to be | | |need not be Assured, which is the object of this | | |answered. Assurance, to the full amount thereof? | | |———————————————————————————————————————————————————————————————-| | Sum to be Assured £_____________________________ With or without Profits? _____________________________________ | | Is the Policy to be for Life? __________________ Are the premiums to be payable Yearly? _______________________ | | I do hereby declare that the above statements are true, and that this Proposal and Declaration shall be the basis of | | the contract for effecting the above-mentioned Assurance, which Assurance is also conditional on the accuracy, in all | | respects, of the statement for the Medial Officer, made, or to be made, by the person whose life is proposed for Assurance. | | Date __________________________________ Signature of the Person in | | whose favour the Assur- _________________________________________________ | | Witness _______________________________ ance is to be effected. | | Address and Occupation ______________________________________ | ————————————————————————————————————————————————————————————————-
The proposer has now to undergo one other formality, disagreeable no doubt, but absolutely necessary, and that is the medical examination. This is done by the medical officer of the com- pany who has to certify that the proposer is free from any defect likely to shorten his natural life, and that he is sound "in wind and limb." Defi- ciency in the number of the latter is, however, not considered unsoundness, as a person with one arm, or one leg, or one eye may be just as good a "life" and therefore equally eligible for insurance with him who is perfect. All the en- quiries in the form are made by the Office and the expenses (including the doctor's fee) paid by the Company.
If the proposal is accepted, the proposer is informed of the fact and then pays his first pre- mium in advance, it may be a year's, or half-a- year's, or a quarter year's, at his own option, and he then becomes (subject to the rules of the particular company) the insured.
A few days subsequently a life policy will be sent to the insured. This is a document setting forth, in full, the terms of the agreement between the Company and the insured, and must be care- fully kept, in such wise that it may readily be discovered by the person for whose benefit it is ultimately intended. The writer once found amongst some old papers a life policy in the name of a man who had been dead for many years. On enquiry at the office it was found that the amount which was payable at his death had, by some neglect, never been claimed. The company of course at once paid the money, and a needy sister was very much benefited.
Thirty days' grace are usually allowed for subsequent payments of premium. It is custo- mary for insurance offices to forward to each policy holder a reminder, from one to four weeks before the periodical payments for premium become due, but the absence of any such notice will not be accepted as an excuse for non-pay- ment, and if the premium be not paid before the thirty days' grace allowed have expired, the policy becomes void. It may, however, be re- vived upon paying a fine and producing a medical certificate of health.
Should the proposal be declined the fact will be notified to the proposer, but he will not be informed of the reason. Proposals are rejected because of something wrong being discovered by the medical examiner, or because of intemperate habits, or that the history of his near relations in regard to health and longevity is unfavour- able; anything in short that indicated that the proposer will not, in all probability, live as long as a healthy man is expected to live is enough reason for declining to insure his life.
Insurances may be effected for a limited period, say for one, three, or five years, at about one half the premium charged for the whole term of life. If the insured dies within the period, the amount of the policy is paid, but the insurance ends with the periods of time agreed upon. This class of insurance is useful in many ways. For example: A person with a certain income for life is desir- ous of borrowing £500, to be repaid by annual instalments. There would be no difficulty in finding a lender, provided he could be sure of repayment; and this could be secured in this manner — the borrower would assign to the lender £100 a year of income for five years for the gra- dual discharge of the loan; the borrower's life would also be insured for five years and the Policy assigned to the lender. If the borrower lived for five years the loan would be paid out of the income. In the event of his death, it would be paid by means of the insurance money.
Another example: a child aged seventeen is entitled to a fortune, large or small, at the age of twenty-one, but meanwhile is wholly depen- dent on its mother who has only an annuity for her life. Should the mother die before the child becomes of age the latter would be left without the means of subsistence. In such a case the prudent mother would insure her own life for the four years which must elapse before the child could come into the fortune, for such a sum as would keep it from want, so that in case the mother died the insurance money would provide the means of living. The premium charged on this class of insurance is moderate; about £2 6s. for a person aged fifty; and the outlay by the mother could be subsequently repaid when the child was in a position to do so.
There are other special modes of insurance to prevent loss or damage in cases of remote risk; indeed almost any chance of loss through the possibility of something improbable occurring may be guarded against by insurance. For instance, a lady aged forty-five has been married for twenty years and has had no children. If she has a son her property will descend to him; if she dies childless it passes to a nephew. The chance of the lady having a son is extremely remote but still there is a possibility, and it is against loss by this possibility happening that the nephew takes out a policy of insurance for any reasonable amount, the premium charged being surprisingly small and payable in one sum down.
It has been mentioned in a previous page that insurance has the advantage over the savings bank, no matter how long a person may live, and this is brought about by the operation of Bonuses, so called. These are the whole pro- fits in the case of a Mutual Company, and the larger proportion of the profits in the case of a Joint-Stock Company, which are distributed amongst the policy holders. At the end of every five years, in some cases seven, a valuation is made of all the property of the Company and on the other hand is ascertained what the company is liable for, present and prospective. The difference between the two constitutes the sur- plus or profits, assuming of course that the assets preponderate. This seems at first sight to be a very simple process, but in reality the most intricate calculations are necessary to arrive at mathematical accuracy; but this needs no further notice here. The bonus being declared, it may be dealt with in various ways.
1. — It may be added to the amount insured,
and so payable at death.
2. — It may be commuted for an immediate
payment in cash. (In this case the amount
will, of course, be less than in No. 1.)
3. — It may be applied in a permanent reduc-
tion of the future annual premiums, or a
proportionately larger reduction of these for
the next five or seven years, and in other
ways. Most offices granting every reason-
able facility for applying profits in any way
the insured may consider desirable.
Endowment Insurance. — This is a class of insurance by which an insurer may receive the amount of a policy himself during his life, at an age to be fixed at the time the insurance is effected. Should he die before reaching the age specified, the money is payable to his represen- tatives.
It may also be so arranged that instead of receiving the money at a certain age, he may be paid a fixed sum annually for the rest of his life thereafter.
For example — a person at the age of thirty may insure £1,000 to be paid to him on attain- ing the age of sixty. The annual premiums for insurances of this kind vary with different offices; but they can be effected at the age named, at about £28 10s. for the £1,000. If the person died before attaining the specified age, the money would be paid to his representatives; if he sur- vived, he could either receive the £1,000, or be granted an annuity for the remainder of his life of £92 a year. In the case of females the annuity would be £83 only, as they are supposed to live longer than males.
Non-forfeitable Policies. — This plan provides for the continuance of insurance upon the life of a policy holder should the insured from any cause be unable to keep up his premiums. The prin- ciple of this scheme ensures that, in considera- tion of the premiums already paid, a policy for a certain amount — less of course than that named in the original policy, which would be cancelled — would be granted freed from all future pay- ments in respect of premiums, and the insurance money of the new policy would be payable at death. For example — a person insures his life for £1,000 at the age of thirty, the annual pre- mium on which would be £25 a year. At the age of forty he finds himself unable any longer to pay the annual premium, but to avoid the loss of the £250 which he has paid during the ten years, he will surrender the old policy for £1,000 and will be granted a new one, say for half the amount, payable at death, and he will not be called upon to pay any further premiums.
Settlement Policies. — This class of policy is issued under the Married Women's Property Act (1882), whereby a trust can be created for the benefit of a wife or children of an insured person, the trustee being the Insurance Com- pany. The advantage of this is that such a policy does not constitute a part of the husband's estate or become subject to his debts, either whilst living or at his death, so that in the latter event the money is paid to the widow or children direct for their own use. A policy of this kind, if necessity should arise, could also be exchanged for a non-forfeitable policy in the manner before pointed out.
Endowments for Children. — A parent, by paying a premium of about £5 5s. annually, can secure to a child aged six a sum of £100, on its attain- ing the age of twenty-one. Should the child die before reaching that age, the money paid in pre- miums is not lost, for it is all returned to the parent without deduction.
By this means a marriage portion or outfit for a girl, or a start in business for a boy can be provided to any amount that may be desired.
Insurance on Joint Lives is another mode of insurance, very useful in particular cases. For example: a mother aged fifty has an income, for her life and no longer, of £300 a year, and she has a daughter aged twenty, who has no means of her own, present or prospective, being entirely dependent on her mother. The joint lives are insured for, say, £2,000, which would cost in premium £100 a year; the insurance money to be paid at the death of the first of the two. If the daughter died first the mother would get back, by the insurance money, possibly more than she had paid in premiums. If the mother died first, say at the age of seventy, by that time the daughter would have attained the age of forty, and the £2,000 would be paid to her. With the money she might, if she so pleased, buy an annuity for life of £110 a year.
Insurance on the Longest of Two Lives, payable on the death of the survivor, is useful in cases where land or house property is held on lease, so that there may be no pecuniary loss when the lease expires. The rate of premium is in this case naturally less than where the insurance is to be paid on the earlier of the two deaths.
If from any cause it is desired to give up a policy and discontinue paying any more pre- miums, the offices will pay to the insured what is called the surrender value of the policy, at the same time cancelling it and all its conditions. This surrender value may be roughly calculated at about 40 per cent. of the premiums paid, in a case were bonuses have been added to a policy, and about 33 per cent. of the premiums paid in a case where the bonuses have not been so applied. For example: a person has paid £25 a year in premiums for ten years — in all £250 — on a policy for £1,000, to which has been added £60 in the shape of bonuses. The surrender value in such a case would be £100. But if the insured had taken his bonuses in cash, or his policy did not carry profits, then the surrender value would be £82 10s. only.
Any insurance office will lend the insured, on the security of the policy, an amount of money not exceeding the surrender value, and the rate of interest is usually moderate.
In this case there would be no necessity to abandon the policy, which would be kept alive and increased by added bonuses as before.
This is a distinct branch of insurance business, the object being to compensate a person in case of pecuniary loss through the accidental burning of his property. By paying annually a com- paratively small amount in the shape of pre- mium, a person may insure that in case of the destruction by fire of such of his goods as may be specified in a fire policy, issued by the Insur- ance Company, he will be recouped their value. Nearly all the Fire Insurance offices are agreed in charging a certain rate of premium, which is called the tariff rate. For dwelling-houses built of brick or stone with slate or tile roof, the rate is only 1s. 6d. for every £100. For more hazard- ous buildings such as thatched houses, ware- houses, inns, shops, &c., the rates are higher, according to the nature of the risk. Household furniture and the other contents of a brick or stone house can be insured at various rates, or they may be included in one insurance with the house, when the rate would be 2s. per cent. for the whole.
It should be remembered that there is a limit, usually of 5 per cent., of the whole sum so in- sured, placed on any one work of art which may be destroyed.
For instance, a picture valued at £200 maybe burnt in a house which, with the contents, is insured for £2,000 If the picture were alone destroyed, the office would only compensate to the extent of £100, being 5 per cent. on the £2,000, the total amount of the insurance. Any particular picture or work of art may, however, be specially insured by itself.
Insurances should never be made for a greater sum than the value of the property insured, as it would be paying more premium for no purpose. The offices take good care that they pay no more than the actual value of the property destroyed, which they have the means of ascertaining with some degree of accuracy.
It has been found necessary to subject the insurance of farming stock to special conditions. A farmer having stock of the value, say, of £1,000, might reason in this way: "My ricks, implements, crops, &c., are situated widely apart, and it is difficult to imagine that all could be consumed in one and the same fire; therefore, I will insure the whole stock for £500 only, then I shall have to pay only half the amount in the premium I should be liable for in case I insured to the full value." The offices are, however, quite alive to this kind of reasoning, and frustrate the intention by inserting what is called the "average" clause in the policy, the effect of which is that in the event of a claim being made for loss by fire, only one half of the value would be made because only one half of the value of the stock was insured. Live stock, however, may be separately insured without the average clause, and animals killed by lightning are paid for if insured against loss by fire.
There are other offices which insure against loss by special contingencies, such as damage to glass houses, and cattle, and garden produce, by hailstorms; destruction of boilers by explosion, of plate glass, and from accident or disease affecting cattle. There are companies, too, which insure against accidents sustained by rail, road, or water, guaranteeing a specified sum in case of death, and compensation in case of injury. Also societies which take the place of sureties and guarantee an insurer against loss or default by anyone in his employ; and companies which undertake to make good any loss arising from burglary or larceny. In all cases, of course, the liability of the office is limited to a certain declared amount.
THE main object of a Building Society is to aid a man to become proprietor of his own dwelling. This can be accomplished by means of the society in two different ways:- 1, by depositing with the society periodical money savings until, with the interest allowed, enough has been accumu- lated to buy a house; 2, by borrowing from the society a sufficient sum to purchase a house and repaying the loan, with interest, by instal- ments spread over a term of years. A person desiring to become a depositor must qualify for membership of the society by paying an entrance fee of; say, 2s. 6d. He then takes up a share and, by paying periodical instalments according to the tables, he becomes entitled at the end of the appointed time to receive £100.
The same applies proportionately to a half share of £50 or to a quarter share of £25. For example, as regards the whole share, a person paying 13s. a month regularly to the society is entitled, at the end of ten years, to be repaid a lump sum of £100, and any bonus added thereto which the profits of the society may afford. If the term be fifteen years, then, to secure £100, he will have to pay only 7s. 7d. every month, and if twenty-one years, then a monthly payment of 4s. 7d. The terms vary in different societies, but those quoted have been adopted by an exist- ing institution of repute. If the term of ten years is selected, the depositor will have saved and paid to the society (with added interest) £78 in all; if the term of fifteen years is chosen he will have paid £68 5s. in all; and if twenty-one years be adopted, £57 15s. In either case, at the end of the term he has selected, the depositor will be paid back £100. Thus any one taking a share for £100, and keeping up the instalments for twenty-one years, will in the end have paid only £57 15s. for it — the difference being met by the interest paid by borrowers from the society. The following table shows particulars of other terms and the monthly subscription payable:-
———————————————————————- | Term | Monthly Sub- | Term | Monthly Sub- | | of |scription for a| of |scription for a| |Years.| £100 share. |Years.| £100 share. | |———|———————-|———|———————-| | | £ s. d. | | £ s. d. | | 3 | 2 12 10 | 13 | 0 9 1 | | 4 | 1 18 8 | 14 | 0 8 4 | | 5 | 1 10 2 | 15 | 0 7 7 | | 6 | 1 4 6 | 16 | 0 6 11 | | 7 | 1 0 6 | 17 | 0 6 4 | | 8 | 0 17 6 | 18 | 0 5 10 | | 9 | 0 15 2 | 19 | 0 5 4 | | 10 | 0 13 0 | 20 | 0 5 0 | | 11 | 0 11 8 | 21 | 0 4 7 | | 12 | 0 10 6 | | | ———————————————————————-
After the first year a depositor may, if desirous, withdraw, on giving one month's notice, the full amount he has paid, with interest, to the date when the subscription ceases. This prevents the possibility of any loss arising to a depositor in the event of his being unable to keep up his instalments, or desiring from any cause to with- draw from the society. It may, however, in case of a loss of confidence, operate seriously against the society, by the sudden withdrawal of de- posits. The following table shows the amount that could be claimed, in respect of the monthly subscriptions paid, at the end of the several years of membership.
SHOWING THE AMOUNT WITHDRAWABLE AT THE END OF EACH YEAR FOR THE RESPECTIVE MONTHLY SUBSCRIPTIONS STATED IN THE ABOVE TABLE. ———————————————————————————————————————————————————————————— | At the | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | | | | | | | end of | 2 12 10 | 1 18 8 | 1 10 2 | 1 4 6 | 1 0 6 | 17s. 6d. | 15s. 2d. | 13s. | 11s. 8d. | 10s. 6d. | |Year of | per | per | per | per | per | per | per | per | per | per | | Mem- | month, | month, | month, | month, | month, | month, | month, | month, | month, | month, | |bership.| 3 years.| 4 years.| 5 years.| 6 years.| 7 years.| 8 years.| 9 years.| 10 years.| 11 years.| 12 years.| |————|—————|—————|—————|—————|—————|—————|—————|—————|—————|—————| | | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | | 1st | 31 14 0 | 23 4 0 | 18 2 0 | 14 14 0 | 12 6 0 | 10 10 0 | 9 2 0 | 7 16 0 | 7 0 0 | 6 6 0 | | 2nd | 64 19 0 | 47 11 0 | 37 2 0 | 30 2 8 | 25 4 2 | 21 10 6 | 18 13 1 | 15 19 9 | 14 7 0 | 12 18 3 | | 3rd |100 0 0 | 73 2 0 | 57 1 2 | 46 6 10 | 38 15 6 | 33 2 0 | 28 13 9 | 24 11 9 | 22 1 4 | 19 17 2 | | 4th | — |100 0 0 | 78 0 2 | 63 7 2 | 53 0 2 | 45 5 1 | 39 4 5 | 33 12 4 | 30 3 5 | 27 3 0 | | 5th | — | — |100 0 0 | 81 4 6 | 67 19 2 | 58 0 4 | 50 5 8 | 43 1 11 | 38 13 7 | 34 16 2 | | 6th | — | — | — |100 0 0 | 83 13 2 | 71 8 4 | 61 17 11 | 53 1 1 | 47 12 3 | 42 17 0 | | 7th | — | — | — | — |100 0 0 | 85 9 9 | 74 1 10 | 63 10 1 | 56 19 10 | 51 5 10 | | 8th | — | — | — | — | — |100 0 0 | 86 17 11 | 74 9 7 | 66 16 10 | 60 3 1 | | 9th | — | — | — | — | — | — |100 0 0 | 86 0 1 | 77 3 8 | 69 9 3 | | 10th | — | — | — | — | — | — | — |100 0 0 | 88 0 10 | 79 4 9 | | 11th | — | — | — | — | — | — | — | — |100 0 0 | 89 9 11 | | 12th | — | — | — | — | — | — | — | — | — |100 0 0 | | 13th | — | — | — | — | — | — | — | — | — | — | | 14th | — | — | — | — | — | — | — | — | — | — | | 15th | — | — | — | — | — | — | — | — | — | — | | 16th | — | — | — | — | — | — | — | — | — | — | | 17th | — | — | — | — | — | — | — | — | — | — | | 18th | — | — | — | — | — | — | — | — | — | — | | 19th | — | — | — | — | — | — | — | — | — | — | | 20th | — | — | — | — | — | — | — | — | — | — | | 21st | — | — | — | — | — | — | — | — | — | — | ————————————————————————————————————————————————————————————
——————————————————————————————————————————————————————- | At the | | | | | | | | | | | end of | 9s. 1d. | 8s. 4d. | 7s. 7d. | 6s. 11d. | 6s. 4d. | 5s. 10d. | 5s. 4d. | 5s. | 4s. 7d. | |Year of | per | per | per | per | per | per | per | per | per | | Mem- | month, | month, | month, | month, | month, | month, | month, | month, | month, | |bership.| 13 years.| 14 years.| 15 years.| 16 years.| 17 years.| 18 years.| 19 years.| 20 years.| 21 years.| |————|—————|—————|—————|—————|—————|—————|—————|—————|—————| | | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | £ s. d. | | 1st | 5 9 0 | 5 0 0 | 4 11 0 | 4 3 0 | 3 16 0 | 3 10 0 | 3 4 0 | 3 0 0 | 2 15 0 | | 2nd | 11 3 5 | 10 5 0 | 9 6 5 | 8 10 2 | 7 15 10 | 7 3 5 | 6 11 3 | 6 3 0 | 5 12 9 | | 3rd | 17 3 8 | 15 15 2 | 14 6 8 | 13 1 5 | 11 19 7 | 11 0 5 | 10 1 9 | 9 9 1 | 8 13 5 | | 4th | 23 9 9 | 21 11 0 | 19 11 10 | 17 17 5 | 16 7 7 | 15 1 5 | 13 15 10 | 12 18 7 | 11 17 1 | | 5th | 30 2 3 | 27 12 6 | 25 2 3 | 22 18 3 | 20 19 11 | 19 6 5 | 17 13 8 | 16 11 6 | 15 3 11 | | 6th | 37 1 5 | 34 0 3 | 30 18 3 | 28 4 0 | 25 16 11 | 23 15 8 | 21 15 4 | 20 8 1 | 18 14 1 | | 7th | 45 4 2 | 40 14 2 | 37 0 0 | 33 15 3 | 30 18 9 | 28 9 3 | 26 1 1 | 24 8 6 | 22 7 10 | | 8th | 53 18 9 | 49 8 3 | 44 18 0 | 40 19 10 | 36 5 8 | 33 7 8 | 30 11 1 | 28 12 11 | 26 5 2 | | 9th | 62 2 4 | 56 17 8 | 51 13 10 | 47 3 8 | 43 3 5 | 39 14 10 | 35 5 8 | 34 2 7 | 30 6 5 | | 10th | 70 13 5 | 64 14 6 | 58 16 5 | 53 13 8 | 49 2 7 | 45 4 5 | 41 7 5 | 38 16 8 | 34 11 9 | | 11th | 79 13 1 | 72 19 4 | 66 6 3 | 60 10 3 | 55 7 9 | 50 19 8 | 46 12 10 | 43 15 7 | 40 1 5 | | 12th | 89 1 9 | 81 12 4 | 74 3 5 | 67 13 8 | 61 19 1 | 57 0 5 | 52 3 5 | 48 19 5 | 44 16 5 | | 13th |100 0 0 | 90 16 8 | 82 8 5 | 75 4 2 | 68 17 0 | 63 7 5 | 57 19 7 | 54 10 0 | 49 16 3 | | 14th | — |100 0 0 | 91 1 9 | 83 2 5 | 76 1 10 | 70 0 8 | 64 1 6 | 60 0 0 | 55 1 1 | | 15th | — | — |100 0 0 | 91 8 5 | 83 13 11 | 77 0 ___| 70 9 7 | 65 18 8 | 60 11 1 | | 16th | — | — | — |100 0 0 | 91 8 5 | 84 7 8 | 77 4 0 | 72 3 5 | 66 6 8 | | 17th | — | — | — | — |100 0 0 | 92 1 10 | 84 5 3 | 78 14 5 | 72 8 0 | | 18th | — | — | — | — | — |100 0 0 | 91 13 6 | 85 11 11 | 78 15 5 | | 19th | — | — | — | — | — | — |100 0 0 | 92 16 4 | 85 9 2 | | 20th | — | — | — | — | — | — | — |100 0 0 | 92 9 8 | | 21st | — | — | — | — | — | — | — | — |100 0 0 | ——————————————————————————————————————————————————————-
For example, the depositor of 13s. a month for a ten years' term, if he desired to withdraw his savings at the end of six years, would be entitled to £53 1s. 1d.; the depositor of 7s. 7d. a month for fifteen years could claim, at the end of the ninth year, £51 13s. 10d.; and the depositor of 4s. 7d. a month for twenty-one years could get back £44 16s. 5d. at the expiration of the twelfth year. In each case the earnings of the depositor would have been increased by the interest added.
A member desiring to effect an immediate purchase of a house or property may borrow the money required by depositing the title deeds with the society as security, and repaying the loan by instalments, monthly or quarterly. Or if he elect to build a house himself; he deposits the deeds of the land with the society and takes up a loan by instalments as the work proceeds. In this case an architect or surveyor would have to give a certificate from time to time to the effect that so much money could be advanced upon the work actually done; and the repayment of the loan would only begin when the house was finished. The following table shows the repayments required, including interest for each £100 advanced:-
—————————————————————— | Term of years. | Monthly. | Quarterly. | |————————|——————|——————| | | £ s. d. | £ s. d. | | 1 | 8 14 0 | 26 4 6 | | 2 | 4 10 0 | 13 11 4 | | 3 | 3 3 0 | 9 9 11 | | 4 | 2 8 9 | 7 7 0 | | 5 | 2 0 3 | 6 1 4 | | 6 | 1 14 7 | 5 4 3 | | 7 | 1 10 6 | 4 12 0 | | 8 | 1 7 6 | 4 2 11 | | 9 | 1 5 2 | 3 15 11 | | 10 | 1 3 5 | 3 10 7 | | 11 | 1 1 11 | 3 6 1 | | 12 | 1 0 8 | 3 2 4 | | 13 | 0 19 8 | 2 19 4 | | 14 | 0 18 9 | 2 16 6 | | 15 | 0 18 0 | 2 14 3 | | 16 | 0 17 4 | 2 12 3 | | 17 | 0 16 9 | 2 10 6 | | 18 | 0 16 2 | 2 8 9 | | 19 | 0 15 8 | 2 7 3 | | 20 | 0 15 3 | 2 6 0 | | 21 | 0 14 11 | 2 5 0 | ——————————————————————
And in like proportion for larger or smaller loans.
In many societies it is a common practice to ballot amongst the members for the right to receive an advance (sometimes without carrying interest) which right may be transferred, for a consideration, to some other member.
By this table it will be seen that a person borrowing £100 for ten years would have to repay the amount by monthly instalments of £1 3s. 5d., or by quarterly instalments of £3 10s. 7d., and if borrowing for a term of twenty-one years, then by monthly instalments of 14s. 11d., or quarterly of £2 5s.
Now, if we refer to the depositor's table of rates, we shall find that he has, for a ten years' term, paid to the society £78, and received back £100; thus receiving from the society £22 (the difference) for the use of the money, plus the interest added. On the other hand, a borrower of £100 for the same term pays back, beyond the capital sum of £100, as much as £40 2s. in interest. Thus there is a difference of £18 2s. between the interest received by the depositor and that paid by the borrower. This constitutes the gross gain of the society on these trans- actions, but out of it has to be paid the expenses of the office, salaries of officials, and a reserve provided for bad debts, &c.
The social and moral utility of societies estab- lished for the direct purpose of aiding a man to become proprietor of his dwelling-house is obvi- ous, and the above calculations seem to show that a society conducted on the plan represented would earn an ample margin of profit for all contingencies.
Doubtless the greater number of the existing building societies, including the one whose figures have been quoted, are conducted in a safe and legitimate manner, but there have been, and may still be, exceptions.
As an inducement to join a building society, people are told that they have to pay, on the instalment system, the same as though they paid the rent of a house, and in a few years will become the owner. A man who has paid for three or four years only what he would have paid for rent, would have very little hesitation in throwing up his contract with the society, if the locality became objectionable to him or the in- evitable repairs of a cheap house were more than he could bear. The money borrowed is lent chiefly upon the security of small suburban houses, a kind of property always in course of depreciation, and it may be that the society would have returned upon its hands a number of houses in a bad state of repair and in a dete- riorating locality. The instalments having ceased and the houses void, the property becomes a profitless burden upon the society and a probable ultimate loss. When "jerry" builders are large customers of a building society and have some influence, direct or indirect, with its Board of Directors, the evil is greatly aggravated. Whole streets are built with borrowed money, on specu- lation until, perhaps, there are twice as many houses as can possibly be let.
The society, to protect itself, is bound to con- tinue advancing until it is drawn completely into the net and finds itself encumbered with a lot of unsaleable and useless property. To stave off the evil day when all things must be disclosed to the trusting member, "financing" is restored to, money raised on direct deposit, and advances obtained from banks. The money thus raised tides the society over their difficulties for a time, but it may be that some rumour or report influ- ences members and depositors to withdraw their money, and eventually the coffers are empty and the end arrives.
Unhappily, in the collapse of more than one building society during the last few years there have been revealed frauds and dishonesty of the most flagrant character, and hundreds of trusting investors of the industrial classes have been ruined through the machinations of scoundrels, some of whom posed as philanthropists and ultra righteous members of society. To protect the interests of members and depositors, only men of unimpeachable character and business ability should be elected Directors of a building society, and the audit ought to be of the strictest char- acter. The balance-sheet should present details of the securities upon which the advances are made, and the auditors should certify that they have examined the deeds and identified them as representing the property described in the balance-sheet. Generally speaking, the auditors appointed by the members are not lawyers, and have not the necessary skill for verifying the documents relating to the property, indeed they are not expected to do so. One of the auditors should certainly be legally qualified to ascertain that the securities of the society do represent the properties set forth in the balance-sheet, and he should give a certificate to that effect. If this course were insisted upon, such scandals as have been brought to light could hardly be repeated, where one set of deeds was made to do duty for the assets of three distinct societies, each man- aged by the same Board of Directors; and the case in which the deeds of abandoned or destroyed property were palmed off upon the auditors to represent securities which had practically no existence. The industrial classes are less careful than those above them in seeing to the safety of their investments, and some legislation seems to be called for to prevent their hard-earned savings being frittered away by bad management or rank dishonesty.
THIS institution offers a most admirable, con- venient, and secure depository for the savings of the industrial classes and of others. Its value to the thrifty and timid investor is incalculable, for here he may rest satisfied that he has abso- lute security, and the system is so hedged about with safeguards that it is difficult to discover any means by which loss can be sustained. The interest allowed is not high, but reasonable enough when the perfect security and the facili- ties offered are taken into consideration.
Money may be deposited by any person over seven years of age, and by anyone on behalf of children under seven. Also by married women, and with this advantage, that such deposits, unless and until the contrary is proved, are deemed to be the property of such married woman; moreover, the fact that any deposit is standing in the name of a married woman being prima facie evidence that she is entitled to draw the same without the consent of her husband.
Deposits may be made by two or more per- sons, provided no one of them has any other account in a Savings Bank, and by one person as trustee for another person. On opening an account a person has to sign a declaration to the effect that he takes no personal benefit from any other account in the Post Office Savings Bank or in a Trustee Savings Bank, and should this declaration not be true all sums so deposited will be liable to forfeiture.
Any person opening an account, that is, de- positing money with a Post Office Savings Bank, will receive a book in which the amount is entered, and the signature of the Postmaster and stamp of the office affixed to the entry. In addition to this he will receive from the depart- ment in London, a few days after, a receipt for the amount. Once in each year, on the anni- versary of the day on which his first deposit was made, the depositor should forward his book to the Controller of Savings Banks, London, in order that it may be compared with the books of the department in London, and that the in- terest may be inserted in it. A depositor may add to his deposits at, and withdraw the whole or any part of them from, any Post Office in the United Kingdom without change of deposit- book. It will thus be obvious that all deposit accounts, although operated upon through the branch post office, are really kept at the Savings Bank Department in London, and depositors are so kept in touch with the department that complete protection is afforded them.
Any sum from one shilling upwards (but excluding pence) may be deposited, subject to certain limits. These limits are £50 a year, that is, no more than £50 will be received on deposit in any one year, but any withdrawals during the year may be re-deposited once, and once only. No more than £200 in all can be held on behalf of a depositor. The reason for these limits apparently is that the bank was created for the encouragement of saving habits in, and providing a secure place for, the money of thrifty people of small means, and not for investment of the capital of the wealthy. Interest at £2 10s. per cent. per annum, which is at the rate of sixpence a year, or one halfpenny a month, for each com- plete pound, is allowed on ordinary deposits and added to the principal; but when, by the addi- tion of interest or from any other cause, the deposit is raised to above £200, interest is allowed on £200 only, and the excess over that sum, when it amounts to £5, is applied to the purchase of Government Stock, unless the de- positor desires otherwise. When a person has £200 to the credit of his deposit account, he cannot make any further addition thereto, but the Post Office will invest this sum, or any part of it, for the depositor in Government Stock, and he can then continue paying in money to his account as before until the sum again reaches £200. No more than £200 Government Stock can be purchased in any one year, and the total amount of stock standing in a depositor's ac- count at any one time must not exceed £500. The dividends or interest on any Government Stock is credited periodically to the holder's ordinary deposit account. When a depositor wishes to withdraw the whole or any part of his money, he has to fill up and forward to the Savings Bank Department in London, a notice of withdrawal, and a form for the purpose may be obtained at any Post Office Savings Bank. He will then receive by post a warrant, on pre- sentation of which, at any branch Post Office he may have selected, payment will be made. Pay- ment by a warrant may be made to another person on behalf of the depositor, provided the latter signs a form of authority for the purpose, which form may be obtained at any Post Office Savings Bank.
A depositor of the age of sixteen and upwards may nominate any person to receive any sum (not exceeding £100) due to such depositor at his death. Every nomination must be in writing on the proper form, which may be obtained from the Controller of the Savings Bank Department, in London, to whom the nomination must be sent during the depositor's life-time.
Where, at the time of the depositor's death, the amount standing to his credit exceeds £100, it will be necessary, in order to obtain payment, that probate of his will, if any, or letters of administration (if he has died intestate), should be obtained in the usual manner.
Where the whole amount standing to the credit of a depositor at the time of his death, inclusive of Government Stock, does not exceed £100, in default of a nomination, or probate, or letters of administration, payment may be made:-
To any person who has paid the funeral
expenses of the depositor;
To creditors of the depositor;
To the widow or widower of the depositor;
To the persons entitled to the effects of
the deceased according to the Statute of
Distribution.
To any other person establishing, to the
satisfaction of the Postmaster General, a
claim in accordance with the Statutes and
Regulations relating to the Post Office
Savings Bank.
The salient points of the Post Office Savings Bank have been placed before the reader, but in connection with the system there is another organization, for the purpose of purchasing Government Annuities and effecting Life Insur- ance, of so varied and elaborate a character that every possible requirement seems to be provided for. The "Post Office Guide," which is pub- lished quarterly, contains voluminous tables and explanations in respect of this organization, and full details and clear directions for the guidance of the public in regard to the Savings Bank.
The growing success which attends these several institutions is an unmistakable indica- tion of the value set upon them by the people. The prudent and thrifty have not been slow to take advantage of the benefits they offer, not the least of which are the freedom from doubt and anxiety they enjoy as to the safety of their money, and the certainty felt that, though other concerns may fall and involve their victims in ruin, here there is absolute and permanent security.
Example. — If a purchaser gives £88 for £100 6% stock, he will find that the rate of interest on the sum invested is £6 16s. 6d., being the amount in the column headed 6%, opposite to 88 in the first column.
——————————————————————————————————— |Price| | | | | | | | | per | 3 | 4 | 4 1/2 | 5 | 5 1/2 | 6 | 7 | |£100.| pr. ct.| pr. ct.| pr. ct.| pr. ct.| pr. ct.| pr. ct.| pr. ct.| |——-|————|————|————|————|————|————|————| | £ | £ s. d.| £ s. d.| £ s. d.| £ s. d.| £ s. d.| £ s. d.| £ s. d.| | 125 | 2 8 0| 3 4 0| 3 12 0| 4 0 0| 4 8 0| 4 16 0| 5 12 0| | 120 | 2 10 0| 3 6 8| 3 15 0| 4 3 4| 4 11 8| 5 0 0| 5 16 8| | 115 | 2 12 2| 3 9 7| 3 18 3| 4 7 0| 4 15 8| 5 4 4| 6 1 9| | 110 | 2 14 6| 3 12 9| 4 1 9| 4 10 11| 5 0 0| 5 9 0| 6 7 3| | 105 | 2 17 2| 3 6 2| 4 5 9| 4 15 3| 5 4 9| 5 14 4| 6 13 4| | 98 | 3 1 3| 4 1 8| 4 12 10| 5 2 0| 5 12 2| 6 2 6| 7 2 10| | 96 | 3 2 6| 4 3 4| 4 13 9| 5 4 2| 5 14 4| 6 5 0| 7 5 10| | 94 | 3 3 9| 4 5 0| 4 15 7| 5 6 4| 5 17 0| 6 7 6| 7 8 10| | 92 | 3 5 3| 4 7 0| 4 17 10| 5 8 9| 5 19 7| 6 10 6| 7 12 3| | 90 | 3 6 8| 4 8 10| 5 0 0| 5 11 1| 6 2 3| 6 13 4| 7 15 7| | 88 | 3 8 3| 4 10 10| 5 2 4| 5 13 7| 6 5 0| 6 16 6| 7 19 0| | 86 | 3 9 9| 4 13 0| 5 4 7| 5 16 3| 6 7 11| 6 19 6| 8 2 9| | 84 | 3 11 6| 4 15 4| 5 7 3| 5 19 1| 6 11 0| 7 3 0| 8 6 9| | 82 | 3 13 1| 4 17 6| 5 9 7| 6 2 0| 6 14 2| 7 6 3| 8 10 7| | 80 | 3 15 0| 5 0 0| 5 7 6| 6 5 0| 6 17 6| 7 10 0| 8 15 0| | 78 | 3 17 6| 5 2 10| 5 15 8| 6 8 7| 7 1 6| 7 14 3| 9 0 0| | 76 | 3 18 10| 5 5 2| 5 18 4| 6 11 6| 7 4 7| 7 17 8| 9 3 11| | 74 | 4 1 0| 5 8 0| 6 1 6| 6 15 0| 7 8 6| 8 2 0| 9 9 0| | 72 | 4 3 4| 5 11 1| 6 5 0| 6 18 11| 7 12 9| 8 6 8| 9 14 5| | 70 | 4 5 9| 5 14 3| 6 8 7| 7 2 10| 7 17 6| 8 14 3|10 0 0| | 68 | 4 8 1| 5 17 6| 6 12 2| 7 7 0| 8 1 9| 8 16 3|10 5 9| | 66 | 4 10 0| 6 0 0| 6 15 0| 7 10 0| 8 5 0| 9 0 0|10 10 0| | 64 | 4 13 9| 6 5 0| 7 0 8| 7 16 3| 8 11 10| 9 7 6|10 18 9| | 62 | 4 16 9| 6 9 0| 7 5 1| 8 1 3| 8 17 4| 9 13 6|11 5 9| | 60 | 5 0 0| 6 13 4| 7 10 0| 8 6 8| 9 3 4|10 0 0|11 13 4| | 58 | 5 3 5| 6 17 10| 7 15 1| 8 12 4| 9 9 7|10 6 10|12 1 4| | 56 | 5 7 1| 7 2 10| 8 0 8| 8 18 6| 9 16 4|10 14 3|12 10 0| | 54 | 5 11 9| 7 8 0| 8 6 9| 9 5 0|10 4 3|11 2 0|12 19 0| | 52 | 5 15 3| 7 13 6| 8 12 10| 9 12 3|10 11 4|11 10 6|13 9 0| | 50 | 6 0 0| 8 0 0| 9 0 0|10 0 0|11 0 0|12 0 0|14 0 9| | 48 | 6_15_ 0| 8 6 8| 9 7 6|10 12 6|11 9 0|12 5 0|14 11 8| | 46 | 6 10 4| 8 13 10| 9 15 0|10 17 4|11 19 0|13 0 0|15 4 2| | 44 | 6 16 1| 9 1 10|10 4 6|11 1 9|12 10 0|13 12 9|15 18 2| | 42 | 7 2 9| 9 10 2|10 19 3|11 18 0|13 2 0|14 5 3|16 13 4| | 40 | 7 10 0|10 0 0|11 5 0|12 10 0|13 15 0|15 0 0|17 10 0| | 36 | 8 6 8|11 2 2|12 10 0|13 17 9|15 5 0|16 13 4|19 15 7| | 32 | 9 7 6|12 10 0|14 1 3|15 12 6|17 3 9|18 15 0|21 17 6| | 30 |10 0 0|13 6 8|15 0 0|16 13 4|18 6 8|20 0 0|23 6 8| | 26 |11 10 0|15 7 9|17 6 3|19 5 0|21 3 6|23 1 6|26 18 6| | 20 |15 0 0|20 0 0|22 10 0|25 0 0|27 10 0|30 0 0|35 0 0| | 15 |20 0 0|26 13 4|30 0 0|33 6 8|36 13 4|40 0 0|46 0 0| | 10 |30 0 0|40 0 0|45 0 0|50 0 0|55 0 0|60 0 0|70 0 0| ———————————————————————————————————
(Sending Money by Post.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
Please place the amount of the enclosed cheques and
notes to the credit of my account and acknowledge receipt
to
Yours faithfully
JANE SMITH.
Cheque £20 0 0
Notes £45 0 0
———-
£65 0 0
(Requiring Money.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I shall be obliged by your sending me under registered
cover to the above address £15 in £5 Bank of England
notes for which I enclose my cheque.
Yours faithfully
JANE SMITH.
Blanktown.
(Acknowledging Receipt.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I have to acknowledge with thanks the receipt of £15
in bank notes.
Yours faithfully
JANE SMITH.
Blanktown.
(Transfer to Deposit Account)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I shall be obliged by your transferring £300 from
my current account to a deposit account and forwarding
me the receipt.
I enclose a cheque for the amount.
Yours faithfully
JANE SMITH.
Blanktown.
(Arranging for Cheque to be Honoured by
Another Bank.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I shall be obliged if you will advise your Branch
(or some other Bank) at Liverpool to pay me £20 on
application.
Yours faithfully
JANE SMITH.
Blanktown.
(Request for Passport and Circular Notes.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I propose during the next two or three months to travel
on the Continent accompanied by my niece, Miss Lucy
Smith, and my maid, Jane Parker. Will you kindly obtain
a passport for us and also forward me £100 in circular
notes, for which I enclose my cheque.
Yours faithfully
JANE SMITH.
Blanktown.
(Ordering Letter of Credit to Remit.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I desire to send £120 to John Smith, residing near
Winnipeg, in North America; and shall be obliged if
you will send me the necessary form to remit to him so that
he may obtain the money without difficulty or delay.
Yours faithfully
JANE SMITH.
N.B. — Remittances in this way can be sent to almost every town in the civilised world.
(Remitting in this Country.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I shall be obliged by your advising your Branch Bank
(or some other Bank) in Leeds, to pay George Jones on
application the sum of £54, for which I enclose a cheque
and a specimen of Mr. Jones's signature.
Yours faithfully
JANE SMITH.
Blanktown.
(Lodging Securities at Bank.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I shall be obliged by your taking charge for me of some
securities which you will find specified on the other side, and
hold them for safe custody. Please also cut off and collect
the coupons attached to the Bonds and place the amounts
from time to time, as they fall due, to the credit of my
account.
Yours faithfully
JANE SMITH.
Blanktown.
(Order to Receive Dividends.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
I am desirous that the dividends or interest in my stock
shall be paid to the bank direct for the credit of my
account.
Kindly send me the proper form or order for my sig-
nature.
Yours faithfully
JANE SMITH.
Blanktown.
(Ordering Investments.)
Address___________________
Date___________________
The Manager,
Blankshire Bank.
Sir,
Please purchase on my account £500 stock 2 3/4 per
cent. Consols at the market price, and send me an account
of the same when I will forward my cheque in payment.
Yours faithfully
JANE SMITH.
Blanktown.
Or
Please purchase £500 Preference (stating which stock)
Stock in the Great Blankshire Railway, at a price not
exceeding £150 per cent., in my name, and send me the
account for the same, when I will forward my cheque for the
cost.
Yours faithfully
JANE SMITH.
The same form can of course be adapted for selling out, by substituting "sell" for "purchase," writing "less" for "not exceeding," and omitting the line as to forwarding the cheque.