ufst

gravel is played upon by hydraulic power it is of broken up, and carried by the force of the water through long paved channels, in the bottom of which is quicksilver, in which the gold is caught and retained, while the gravel is swept on by the water. Nothing could well be simpler, surer, or cheaper than this process, and so, by its means, it is quite possible to make a handsome profit out of a mine which could only in the ordinary way be worked at a loss. All that is wanted is a gravel deposit, a steep gradient to carry away the gravel after the gold is deposited, and a plentiful supply of water."

"Then, in your opinion, the mines of Colombia fulfil all these conditions?"

"Undoubtedly, and you will see that those who have shared my faith in them will have no reason to repent of it, and that within a comparatively short time. Anything else I can tell you?"

"Yes. I should be glad if you would acquaint me with your views upon the proposed new Mining Exchange.' "Those you will find stated pretty fully in the last issue of my Circular. Briefly, they are that a Mining Exchange is almost, if not quite, a necessity, alike for the protection of the public and the outside brokers. The so-called outside brokers do an enormous business, and upon terms which must be more advantageous to the public than are those of the "House;" but they are hustled about the streets in the neighbourhood of the Exchange as if they they were so many loafing ne'er-do-wells. They have accordingly determined upon making an Exchange of their own. It is not intended to raise up any opposition to the "House," but to work in harmony with it. The terms of admission will be published shortly, and for the present it must suffice to say, guarantees for the respectability of members will be a sine qua non. There will be a strong Committee, and guarantees given to the public for the safe conduct of their business such as, I believe, are not at present afforded by the Stock Exchange. Among others, the public will be invited to complain to the Committee of the New Mining Exchange in the event of transactions not being carried out to their satisfaction, and the press will be admitted during certain hours. I may add, the rooms for the New Exchange have already been taken, the necessary alterations are being made, and it is hoped everything will be in working order within the next fortnight or so. All the most respectable members of the outside market are affording their cordial support, and I may say that the Committee will be one such as will command the confidence both of the public and the dealers."

"Thank you, Mr. Thompson; I think you have now told me almost more than I could have expected."

"Not a bit of it. I am delighted to find you so interested in a subject which, I freely confess, is the most interesting thing to me in the world." And with a cordial grip of the hand, Mr. Thompson returned to his Colons and other pet protégés, and I left the auriferous neighbourhood of Angel Court, a wiser, but by no means a sadder man.

UNDER THE PUMP.

The Legacy of Cain. By Wilkie Collins. Three vols. (London: Chatto and Windus).-Despite advancing age and long spells of wearying illness, Mr. Wilkie Collins remains one of the most vigorous and fascinating story-tellers of our time. A cleverly-woven plot, an abundance of bright and natural dialogue, a sprinkling of shrewd wit and epigrammatic humour, need never be sought in vain in his pages, and over them all is cast the glamour of a style which is as pleasant as it is peculiarly the author's own. In his latest story, The Legacy of Cain, Mr. Collins adopts, to a large extent, his favourite plan of letting his dramatis persona tell their part of the story of their lives in their own way and their own words; hence we find the familiar form of extracts from "Helena's

Diary," ," "Eunice's Diary," and so on. The theory which Mr. Collins applies himself to illustrate in this story, is the transmission of mental or moral qualities from parent to child; and he has taken an extreme case by selecting as his heroine the daughter of a woman who is hanged for the murder of her husband while her child is yet an infant in arms. The opening scenes between the mother, condemned to death, the governor of the prison, the doctor, and a noble-minded minister, the Rev. Abel Gracedieu, is full of dramatic power and deepest pathos; and the subsequent story of the life of Mr. Gracedieu and his daughters, Helena and Eunice-about the identity of whom a mystery is cleverly kept up-is told with great felicity and force. A delightful old maid, Miss Gillgall, a treacherous, dangerous masseuse, Mrs. Tenbruggen, a whimsical old bibliopole, and his handsome, wavering son, Philip Dunbogue, are all drawn with lifelike fidelity, and the interest of the reader is sustained unbroken from the first page to the last. The physiological and psychological part of The Legacy of Cain is somewhat superficial, but perhaps, if it were deeper it might develop a tendency to bore the reader, who will certainly find in the book, as it stands, a thoroughly interesting and enjoyable example of the delightful art of one of the few really great tellers of stories left to us in these degenerate and superfine days of novels " with a purpose' other than to honestly interest and amuse all who turn to them in the hope of being taken for a while out of themselves into the pleasant country to which pure fiction should invariably transport its devotees.

Books received:-Investment Hints. By Maurice C. Hime, LL.D. (Dublin: Hodges, Figges and Co.; (London: Simpkin, Marshall and Co.); Herbert Severance. By M. French Sheldon. (Saxon and Co.).

General.

INSURANCE.

Some Offices receive so little new blood

Westminster and;, in the way of new business, and are so small and comparatively young in themselves, that it is a matter of wonderment how they manage to keep in the swim and afloat, year after year. The same principles applied to any other business would mean putting up the shutters; but the wise precaution of basing premiums upon the assumption that no new lives need be assured to ensure the permanency of an Office, has saved many of them from seeking the wall. Of course, policy-holders have to pay for the luxury of supporting such Offices, but then, as a rule, they don't know it, and so n' importe. To such a class belongs the Westminster and General, that now for the weary length of fifty-three years has slowly dragged its life along. During the last five years, ending Dec. 31, 1888, its new business has averaged but £115,679 yearly. This is pitiable. No amount of sophistry can make presentable. this miserable showing. The average premium income on this new business for the same period has been £3,914 annually. The average expenses of management have been £8,763 for each corresponding year. From this it will be seen that this new business, mean as it is in amount, has not been got without an expenditure, and a large one at that. After allowing 7 per cent. on Renewal premiums, it has cost over 139 per cent. of the new premium income earned by it, to obtain it. Such expenditure as this is excessively high, and unwarranted. As it really comes out of the policy-holders' pockets, however, they are the ones to be pitied, and one almost might say to be blamed, for casting in their lot where such things exist.

The natural sequel to a small new business is a corresponding heavy death-rate, and there is no exception to the general rule in the experience of this Office. In 1884, the death claims and endowments amounted to £33,133; there has been almost a steady increase since then. In 1887, we find they were £55,505, or over £7,000 more than the total premium income; and in 1888, the mortality was but £2,100 less than that, and again exceeded the total premium income; this time, by nearly £3,300. In addition to such expenses, and such amounts of claims, it appears that, during the five years mentioned, the sum of £31,186 was paid out in dividends and bonuses to

shareholders and "other outgo." This means an average of £6,235 a year in this direction. As the shareholders' actual paid-up capital amounts to but £5,000, this would seem a fairly good return on the money invested.

One might naturally say, if the policy-holders of these Offices are satisfied, the general public and assurance press ought also to feel satisfaction, and let well enough alone. But then, one must bear in mind that this pseudo satisfaction is only a case of "ignorance and bliss," and is only due to the fact that the want of dissemination of accurate information has brought it about.

Offices.

Life assurance premiums are based upon Senility of Life an assumption which, if applied to any other business, would be scouted as imbecile. And that is, an Office can close its doors, at any time, against new entrants. In fact discontinue active business, and gradually die a natural death, finally expiring itself with the death of the last policy-holder; and yet pay each successive claim, as it occurs, and also current expenses of management. Such an idea in ordinary business would not be entertained for an instant, for it simply means placing a premium upon indolence and inactivity, when once the membership has swelled to a good figure, and the Life Funds have accumulated up to the millions. When men grow old, and the vigour of youth and manhood is past; when the down grade of life towards the grave has begun, the desire for the struggle and activity of business fades with declining years, and is supplanted by a wish for retirement and repose. Hence it is that many Offices, after they have passed a period of existence that ages the officials in connection with them, feel the reflex of that senility in their management and business. Unreasonable conservatism grows with old age, and an antagonism to innovations creeps on with increasing years. With all due respect to our seniors, old-fogyism is an incontrovertible fact, and clogs the wheels of progress; for, with a lowering action of the heart, courage fails, and caution supersedes all other qualities.

The temptation, therefore, to those who have grown old in harness, to be satisfied with results already achieved and to rest on their oars-when they are aware that the contingency of no new business, of non-progression, is amply provided for-is great. Those who dwell within the inner circle of information of a Life Office, know what the experience of that Office has been in regard to lapsed or discontinued policies. They also know that the premium is calculated upon the assumption that makes no allowance for the element of lapse; and also that no new contracts need be secured in order that the Office may remain valid, always providing its funds have not been depreciated by injudicious investment, or frittered away in extravagant expenses of management. With the possession of this knowledge comes also the inclination to be satisfied, a status of affairs that will last their time, and to this cause may be traced the non-progression and lethargic state of many existing Life Offices.

Refuge Assurance Company.

Notwithstanding the unwarranted villifying this Office has undergone during the past year, at the hands of that portion of the Insurance Press that offers its goods for sale to the highest bidder, success, marked and noted, has attended it, and the report which was given at the recent annual meeting is the best vindication of the Company that can be offered. Whenever an Office is found to be progressive in the face of opposition and the detrimental reports of its enemies, no better endorsement can be given it, for the reason that all sorts of adverse matter has first to be overcome, before business can result; and those who give their allegiance to it, do so after they have waded through a mass of matter, true and untrue, that, irrespective of merit, must have an unsettling effect upon the mind of a proposer. Under such circumstances, it is pleasing to note that not only does the Industrial Branch of this growing Company show increased and increasing business, but the Ordinary Branch has sprung into vigorous life in the first year of its existence. In issuing policies as small as £25 under Ordinary Insurance premiums, this Office is taking a step in the proper direction, and one that cannot but be highly appreciated by that great mass of the people who are thriftily inclined, but who are debarred from saving their money except in small sums.

for

This Office is doing a work of magnitude and beneficence. The Premium Income in toto for the past year was within a comparatively small amount of £500,000. As the great bulk of this came from the Industrial Branch, it simply means that this vast sum has been rescued from being wasted, and is held in trust and disbursed, as claims come in, to meet the exigencies of death and sickness. The Actuary reports that the "Company is wisely extending its operations, and is in a sound and highly-prosperous condition." There is a tendency, and a natural one, Directors' Reports Directors to give their annual reports a couleur de rose. Weak points are carefully garnished over, and those that are able to bear the "lily painting," as a rule, get it. Directors are responsible for the state in which a Company may be at the close of each fiscal year; and it would be almost too much to expect of human nature for them to come forward and cry peccavimus. Even when affairs are far from being right, they prefer to delude themselves into the belief that there is nothing radically wrong, nothing but what time will rectify. Then again, they may know very little of the true state of affairs, as is lamentably too often the case, and depend for their knowledge and information upon the statements made by Secretaries, Actuaries, and Managers, and, under such circumstances, are liable to be perennially deceived by them, as was the case in the Medical and Briton. The Sovereign Life is a very good instance of the Micawber-like faith that gentlemen of this ilk have in the turning up of something that will miraculously put all things right. This Office continued to do business, and receive the public's money, TEN years after it was hopelessly insolvent.

Directors' Reports in this country must always be taken with the prescribed pinch of salt, for they are not checked over by Government authorities, nor "sworn to," as is the case in the United States. We believe that all, or nearly all the Reports of this naturę, are issued in good faith, and that the Directors themselves have utter confidence, as a rule, in the truth of these statements; but as they have to depend for their knowledge upon those who are brought in practical daily contact with the working of an Office, and as these men are not liable to point out their own errors, but rather to gloss them over, their exact knowledge is often of the most meagre description.

The only conclusion to be formed, then, is that, notwithstanding the high personnel of a Directorate, its Report cannot always be received as a statement of verity, for the reason that the Directors, having been deceived themselves, cannot avoid deceiving the public in their turn. Another reason for Government supervision.

At the close of 1888 the amount of funds Equity and Law of this Society stood at £2,160,339, which Life Assurance embodied an increase of £48,476 during the Society. year. The total net premium income amounted to £165,581, whilst the total net death claims were less than £115,000. Income from interest, dividends, &c., and other sources, equalled £95,130 in amount. For eight years past the new business of this Office has averaged but £450,000 annually, which from a comparative standpoint is exceedingly small. For instance, the new business secured by the Prudential (Ordinary Branch) in 1888 was within £31 of £4,400,000. The burning question, however, is not in regard to the relative amounts of new businesses, but as to what disposition will eventually be made of funds that, despite small new businesses, despite death claims which we are told are in amount about the expectation, continue to grow and increase year after year. When we find the premium income is sufficient to pay the cost of mortality at the forty-fourth year of existence of a Society, and then leave a margin that would pay nearly 50 per cent. heavier mortality than experienced, though it was up to tabulated expectation, we feel convinced that the charge is higher than is required for the purposes of pure

assurance.

The Equity and Law is only one among the many whose experience evinces this truth; and it is noteworthy that wherever you find an Office that is honestly and economically managed, there you will find excess of funds for the actual practical requirements of assurance. We are aware that some of the excess is returned to policy-holders in the way of bonus, and in the case in point the amount so added

was £29,600. It is, however, a moot question whether it is more in the interests of policy-holders to give them assurance at a cheaper rate or to add to their policies a certain profit after years of membership.

It must be borne in mind that of the £2,160,000 represented in the funds, the paid-up share capital is but £60,000. Consequently, over £2,000,000 has been paid by and accumulated out of policy-holders' money. Cui bono.

THE LAW SOCIETY OF IRELAND.

AFTER Working under their charter of 1852 for more than a quarter of a century, the Law Society of Ireland have found it advisable to apply to the Crown for a supplemental grant, making important changes in their constitution.

The alteration has not been made without notice. We believe that so far back as 1885 complaints were made at the general meetings, that the council did not adequately represent the country members of the Society, and it was urged that a change in the constitution was advisable in the interests of the profession.

These complaints were from time to time renewed, and in 1887, the council in their annual report advised an application for a supplemental charter, and brought forward at the November general meeting of the Society a resolution to apply for it, which was passed, practically unanimously.

It is hardly necessary here to allude in detail to the enormous alterations which have been made in legal procedure since 1852. Great as have been the changes effected by the Common Law Procedure Act, the Chancery Regulation Act, the various Land Acts, and the Judicature Act, all of them together have not had so much influence upon the solicitors' profession as the extension of County Court jurisdiction. It has effected a revolution, alike in procedure and in the profession. When the charter of 1852 was obtained, the vast bulk of the legal business of the country was concentrated at the Four Courts, and the solicitors of the capital practically represented the profession. A single fact shows the difference now it appears by the Law Society's own report for 1888, that of the 1205 solicitors in Ireland, only 561 pay the Dublin duty, and of these 89 practise in Dublin and elsewhere, leaving only 472 whose business is confined to Dublin.

Side by side with the increase of the country solicitors, has been the growth of legal business in the capitals of Munster and Ulster. Belfast has a large contingent of solicitors, upwards of a hundred; Cork, in proportion to its size, has even more; and both of them long since established law societies of their own, with practically the same objects as that in Dublin-but between the three there was no connection and comparatively little communication, so that there have been three isolated bodies acting to the best of their ability in the interests of the profession, but without the strength that arises from unity of action.

The cause of weakness did not escape the attention of the Dublin reformers, who had originally suggested a change in the constitution of the council. The new charter, which has just been obtained, has evidently been framed with the express purpose of securing upon the council the representation not only of the country solicitors but of the Northern Law Society and the Southern Law Association. A delegate from each province will specially represent his brethren, while five members from the Belfast council and five from that of Cork will secure the adequate representation of the north and south, who thus obtain what they had not previously enjoyed-recognition by Royal charter.

The change may not be altogether pleasant for the Dublin council, but if they have lost a little of their isolated dignity, they have acquired additional strength by the alliance; and as they acted voluntarily in the matter, we can only conclude that they weighed the pros and cons and made their decision accordingly.

The change must necessarily affect the position of country solicitors, as they will now have the opportunity of having their complaints and suggestions considered by those who have themselves experienced the difficulties of which they complain, and the Law Society of Ireland and its council will, therefore, have an additional claim on their support.

We ourselves believe that the reform is a wise one, and that the Law Society of Ireland, basing their influence upon the whole country, and in particular upon the great cities of the north and south, will secure increased weight and influence from the change, while the whole profession will obtain the benefits proverbially arising from unity of action.-Irish Law Times.

CAPEL COURT.

THE Continental uncertainty to which reference was made in this article last week, if it continues at all, is certainly of a less chronic and irritating nature. For one thing, the French scare, which has been agitated and artificially provoked by certain financial writers in London, is comparatively dead. That failures on the Paris Bourse are imminent is certain, but the amount of the liabilities of these unfortunates is fairly well discounted both in Paris and London, and it is now known that speculators, if they have to deal only with report, are perfectly safe in continuing operations. It is this more hopeful aspect of affairs which has produced new business, because in the face of the settlement which commences to-night that would be impossible —but has studied the present markets and prevented falls which appeared certain to ensue.

not

These have, in accordance with my notes Home Rails. of last week, considerably improved, and that improvement is likely to continue is evident from traffic returns, seeing that these go on increasing, in spite of bad weather or a falling off in the passenger receipts. The fact is, trade is reviving, reviving in every direction, and, as a consequence, the carrying powers of railway companies have been taxed to an extent greater than for some years past. In southern lines, there have been notable increases in the receipts of the Brighton and South-Western, whilst even South-Eastern and Chathams mark a considerable advance. In regard to the last two mentioned lines, there can be no question that receipts will be materially assisted by the opening of the Paris Exhibition, and as a consequence dividends will be augmented. Whether the very optimistic views of some of my brother writers are going to be realised is another matter, perhaps really this is not so; but it would seem clear that there must be benefit to be derived from an event of the importance of the coming exhibition. In the case of Great Easterns, it would seem as if prices were as high as they could well go; but Caledonians, in the face of a tremendous bear account, upon the next settlement, are not at all unlikely to make all the improvement their best friends could wish them. North British and North-Westerns are immensely firm, and it would seem almost impossible to put further prices on them.

It will be remembered that I have for three Canadian Rails. weeks been religiously writing up Canadian Pacific Rails. I pointed out that they had reached the points when absolute lowest must be called; this was in my article of March 20, when those shares actually scored as low as 49. The price is an absurd one, and how astute purchasers of sound guaranteed stock and shares ever permitted them to get at this figure is a question not easy of solution. They have assuredly found absolute bottom price at 49. I know of no investment offering it on a such absolute security for money, or having such an immense future before them, as Canadian Pacifics, and though they have somewhat recovered the depressed condition in which they appeared last week, having dropped to 49, I still think at their better price, 51, they are a good purchase. There is no reason why Canadian Pacifics should be a fraction lower than 60, and I maintain there is little question that they will run up to that price before the end of the coming summer. With regard to Grand Trunks, whilst not wishing in any way to cry down the line, there is no doubt that the Pacific route will always command traffic and freight, even when the Trunk has proved itself to be all its friends have represented it. The Trunk may someday pay its way as a railway company; but I must confess I quite expect to see, if I ever see one or the other, Canadian Pacific shareholders drawing ten per cent. dividends before the Trunks get three.

American Rails.

The fact that New York has turned buyer of these shares has given a big lift to the market, and many of the speculative lines so used for gambling have much improved. The Pacific routes are naturally favourites, though, perhaps, Norfolks are as much fancied as anything else just now. Readings are easy, but are a good purchase. There are many things more unlikely than a big advance in these shares. Eries shares and Preference have been well bought during the last twenty-four hours, and appear likely to continue the upward movement, seeing that some very astute folks are manipulating the markets on their behalf. Lake Shores, though fluctuating, are again firm set at fair, and, judging by appearances, may very readily make up the ground lost during the past three months.

The week has been somewhat uneventful Foreign Railways. in connection with these securities, but what changes have taken place have been in favour of stronger rates. Nitrate Rails are steadily recovering their lost ground, or rather, I ought to say their lost fractions, seeing that, in spite of a big bear account running, the depreciation has been of the most fractional character, though at the moment of writing I do not know the makingup price, and I am disposed to think shares will make up a little stronger than at the last account. Mexican Rails are steady, and, an unusual state of affairs in this security, should show little variation from last settlement. Uruguays, after being largely dealt in, now show some slight depreciation, and yesterday the falling off was as much 1; a portion of this has, however, been recovered to-day. Matters are not evidently quite couleur de rose with Buenos Ayres investments, and, judging by the speculations in rails in this part of the world, I should say some unpleasant news has been received during the past twenty-four hours. All rails are down-particularly the Northern route of this series, which, commencing with a drop of 1 yesterday, followed up with a further fall of to-day. Hitherto, Buenos Ayres lines have been very strong and much sought after by followers of sound securities. I do not say there is anything specially wrong now, and only draw attention to the importance of all those securities dropping away at one and the same moment.

The Mining Market.

The fact that to-day commences the settlement has led to a general stagnation of all classes of securities in the market. Copper has become firm, and if a lower price than I forecast it would settle down at, still the bottom has unquestionably been reached. Paris is very glum with regard to this commodity, and it is only on rare occasions that she opens her mouth at all through her London representatives. When, however, the approaching French account is closed and speculators are allowed more breathing room, I am of the opinion that Tintos will make a fresh start, not to go up again to 28; this they never do, but I do expect that they will become firm at something like 15 or 16. It is between these prices and those now holding where I expect the buyers at the present moment to come in. When the present account is concluded and French affairs become adjusted, as they will be next week, we may hope for a substantial rise in Copper securities. The market for South African Mines has been quiet in the extreme, but this quietude is such as speculators have by this time become accustomed to. Even at the time when speculation in Witwatersrand was most brisk, the approach of the fortnightly settlement was used as a lever for putting prices down. Those shares in this field of which I wrote last week have not advanced. I did not expect they would do so, but I shall be greatly deceived if they do not take a huge rise in the course of the coming week. week. Modderfontein's present a particularly healthy appearance, and, though no decided upward movement has been made with them, I anticipate such a movement in the near future. The returns from the mine are everything that could be wished, and what is more to the point is that important discoveries have been made, which indicate further accession of wealth to the proprietors of the mine. I expect to see these-Modderfonteins-St. Augustines and Dornkops show a profit during the next account, and those who buy now will have much the best of the deal. Esmeraldas are stronger, but not nearly so strong as they will go. New Emmas are quiet, but may at any moment jump; they are worth buying at present price.

£202,046

£64,760

1,206,570

1,120,759

MERCATOR.