The following replies were written on the circular letter which was returned to the secretary:

ALPHEUS HARDY, Esq., Boston, Mass.: To first question, first clause, "7 per cent to 61⁄2 per cent;" to second clause, "generally first-rate securities;" to second question, "61⁄2 per cent;" to third question, (1) keep up the demand;" (2) "but for improved facilities the rate would be one per cent higher;" (4) "none at present;' (5) "to strengthen the market rates." To fourth question, “money may be cheaper after twenty or thirty years, not before." To fifth question, "I can't say, perhaps one-half per cent."

W. T. ALLEN, Esq., Chicago, Ill. To first question, first clause, "on centrally located city property, 8 per cent; on outside city property 9 to 10 per cent; on county land, well secured, 10 per cent;" to second clause, "first mortgages not to exceed half value; loans on farms from onethird to one-half value, in the West, are thoroughly safe and can be made at 10 per cent;" to second question, "8 to 10 per cent;" to third question, (1) to keep it up;" (2) "to keep it up;" (3) "to equalize it somewhat, perhaps to reduce it in centres; but the great demand for money for the development of the vast country in the West, will keep up rates for many years;' (4) "not to decrease rates materially; (三) "governments being of the nature of call loans, at any time convertible into cash, are not a test of ruling rates; (6) "believe the opening of the vast regions to West and North will keep up the value a long time." To fourth question, "do not believe rates on good securities will go below 7 to 8 per cent in fifty years." To fifth question, "not to exceed one-half per cent."

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W. C. RALSTON, Esq., San Francisco, Cal.: To first question, first clause, "8 to 10 per cent; " to second question, "8 to 10 per cent;" to third question, (1) "will tend to reduce it;" (2) same as above;" (3) same as above;" (4) "ditto;" (5) "if any effect, as above." He then adds, "The general tendency in this country, all things considered, is to lower rates; yet not to extreme low rates. The resources of the country are too great and will offer inducements to capital for inany years to come. I cannot be more definite."

All of which is respectfully submitted. (c)

NOTE BY THE COMPILER: The third member of the committee, Mr. George M. Brinkerhoff, Superintendent of Insurance of Illinois, having relinquished office before the October meeting of the Convention, could not sign this report.

EXPLANATORY NOTES.

(a) Mr. SMITH here remarked: We desire to say that the above report was written in July last. It was made short, not because the committee did not recognize the great importance of the subject, but because of the remarkable accord, of the sound and clear views upon "Re-insurance reserves on fire and marine risks," presented to the convention by Messrs. Hope, Oakley, Heald, and other representatives of fire and marine insurance companies, and by Mr. C. C. Hine, whose communication on this subject was referred to this committee by the convention.

In view of the recent terrible disaster to the city of Chicago, fire insurance companies should not need to be reminded that large extra reserves are essential. Policyholders and companies ought to understand that the rates charged should be sufficient to enable the companies to carry out their insurance contracts. No company is safe that divides its apparent earnings in favorable years, thus depriving itself of the means necessary to pay its losses when the fire fiend claims its own.

(6) Mr. SMITH here said: Now, gentlemen, we will come to the calculation of net annual premiums. And I will say, in going through the next ten or eleven pages, the whole theory of this is to form a net single premium into a series of equal annual premiums of the equal money value of a net single premium, This is done on this legal data fixed by the rate of mortality and rate of interest. In order to get at this, first calculate the value in hand at any particular time, of an annual premium of a dollar, and you know at that age what the net single premium will effect. The rest is a mere matter of proportion. I have given the result, which gentlemen can refer to, and they are made up on the two tables of mortality. I considered it very doubtful what this convention would do. I put these tables at 4, 42, 5 and 6 per cent, which, I thought, would be the limit of interest.

(c) NOTE.-The tables of net values embodied in the report were computed in the office of the insurance commissioner of Kentucky. Other pressing duties, and consequent want of time, prevented the thorough application of those tests which should be used in constructing tables intended for making official valuations, but the results are believed to be correct. They are certainly sufficiently so for the purpose intended — that of illustration.

HON. GUSTAVUS W. SMITH, OLIVER PILLSBURY, and GEORGE M. BRINKERHOFF, Committee of the National Insurance 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 Convention, 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 interstate 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.

Annual meetings, for purposes of personal acquaintance, dis

cussion, 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 discussions 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 recommendative, 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 of future conventions of Superintendents.

It would be very unfortunate, if, through ill-advised and precipitate 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 of interest for life insurance valuations and calculations. Here, uniform 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 different 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