An abstract of the acts for annuities with some observations thereupon

AN ABSTRACT OF THE ACTS for Annuities, WITH SOME OBSERVATIONS THEREUPON.

AN Additional Duty of 9d. per Barrel on Ale, &c. * 1.1 was granted for 99 Years, from Jan. 25, 1692. for raising 1000000l. by the First of May, 1693.

Out of which Duties 100000l. per Ann. was to be set apart as the Recompence to the Contributors of the said Mil∣lion, till June 24, 1700. and afterwards 70000l. per Ann. only.

This 1000000l. was to be advanced by so many Hundred Pounds upon general Survivorship before the 1st. of May, 1693. And if not compleat by that time, the remainder of the Million was to be advanced upon 14 per Cent. for a single Life, before Septemb. 29, 1693.

The Surplus of the Moneys arising by this Act above what would answer the 100000l. or the 70000l. so to be set apart as aforesaid, was to go to the King, but not to be disposed of.

The Sum of 881493l. only having been advanced on the * 1.2 former Act, the Deficiency being 118506l. was to be advanced by May 1, 1694. upon 14 per Cent per Ann. for every Hundred Pounds for a single Life.

For raising 1500000l. upon the Duty of Tunnage, granted * 1.3 for Four Years from the 1st. of June, 1694. and upon another, 9d. per Barrel on Ale, &c. granted for ever (after the 17th. of May, 1697.) the sum of 140000l. per Ann. out of the said Duties, was to be the Fund to the Contributors, where∣of 100000l. or five sevenths was to be the Fund for 1200000l. for Establishing the Bank of England, and the other 40000l. or two Sevenths, seems to remain as the Fund to the Contri∣butors of the remaining 300000l. upon 14 per Cent. per Ann. for every Hundred Pound for a single Life; 12 per Cent. for two Lives, and 10 per Cent. for three Lives.

There having been 1300000l. advanced upon the three pre∣ceding * 1.4 Acts, whereof 981619l. upon single Lives at 14 per Cent. and the rest upon general Survivorship, or upon the Survivor∣ship of two or three Lives, the Sum of 618420l. was to be raised by this fourth Act, by converting the the said single Lives into a Term certain of 96 Years, from Jan. 25, 1695. by paying (before July 24, 1695.) 63l. or 4½ Years Purchase for each 14l. per Ann. so reserved upon the 981619l. advanced upon single Lives.

And upon default of such Purchasing by the Persons Inte∣rested in such single Lives; any Stranger between the said July 24, 1695. and Novemb. 12. 1695. might Purchase the Term over at 70l. or five years Purchase for each 14l. as aforesaid.

But the said Purchasers coming in slowly, other subsequent Acts passed for Enlarging the time, and Lowering the Rates of Pur∣chasing the Term over to four Years Purchase, whereupon by Anno, 1698. all the Term over (of the Nominees in being) was Purchased in; But as to the 203 Nominees Deceased, they still remain in Observation.

Observations on the foregoing Acts.

I. Whereas by the Act 4 W. Ma. 100000l. per Ann. was to be reserv'd for the Contributors to the Million, till June 24, 1700. and afterwards 70000l. per Ann. only. It is to be observed, that the said 70000l will not answer the several Annuities of 14 per Cent. Payable to the Contributors upon that Act, now that the Termover is Purchased in, by reason the whole number of those Annuities will subsist to the end of the Term of 99 Years, ex∣cept the 203 Lives or Nominees already Deceased, and there∣fore the said Clause will want to be Repealed.

II. That whereas 618420l. was to be raised by converting the single Lives into a Term certain, or by Purchasing the Term over at 4½ Years Purchase for every 14l. Annuity; There will be some Deficiency therein by lowering the Rate to four Years Purchase, besides what the Purchasing the Term over of the 203 Nominees Deceased would have amounted to, which answering to about 353 Annuities of 14l. per Annum if they had been sold at 4½ Years Purchase, or 63l. for each 14l. Annuity, would have raised 22239l. which Sum must be wanting of the 618420l. intended to be raised by Purchasing the Term over.

III. That this Deficiency of 22239l. by reason of the 203 Nominees Deceased, and what other Deficiency there may be, by lowering the Rate of Purchasing the Trem over (which the House may command an Account of) may be made up by its own Fund with a considerable Surplus, by directing that these 203 Nominees Deceased may be supplyed by constituting a gene∣ral Nominee, and thereupon the 353 Annuities so fallen, may be purchased for the remaining Term of the 99 Years now un∣expired.

IV. That the Sale of these 353 Annuities so fallen, will not endanger the Security of the Annuities now subsisting; for that the Fund 9d. granted by the first Act, is not brought in by the Treasury among the present Deficiencies, but may be ra∣ther concluded to afford a considerable Surplus, since it rais'd in the Year ending June 24 1694. 147000l. and in the Year 1697. above 145000l. as may be collected by Dr. Davenants Discourses on the Publick Revenues, page 250, where the three Ninepences Additional Excise, are there said to produce together 435590l. per Annum.

Which if true, the three Ninepences are a sufficient security for what is charged upon them, though Tunnage be taken away, and Salt may fall short.

Notes

• * 1.1

  Act 1. An. 4. W. Ma.
• * 1.2

  Act 2. An. 5. W. Ma.
• * 1.3

  Act 3. An. 5 & 6. W. Ma.
• * 1.4

  Act 4. An. 6 & 7. W. 3.