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The Scheme of the Proposals for making a Fund for grant∣ing Annuities for Lives, &c. With the terms of Joyning the same to the Million-Bank. Answered, and the fallacy detected.
HAving heard the said Proposals for granting Annuities, &c. very highly applauded, and meeting the Project in Print, dated the 24th of October, 1695. I expected to find some∣thing extraordinary therein; but at the first reading thereof, I found it a project cunning∣ly put together, with a design to deceive Innocent and Well-meaning Persons, and to draw them into an apparent loss, under the pretence of Letting them into a more than ordinary Profit and Advantage.
It was affirmed some time since, That the design was laid to serve the Million Bank, the ill Managery whereof had rendred their Credit suspected. And that which might be a reasonable ground of such Report, was, That the Projector of the Annuities is Father to one of the Di∣rectors of the said Bank, and very well acquainted with the rest of them, who being a person of a Fair Reputation, was made use of by them as a fit Instrument to accomplish such their designs.
But to wave what might be said in relation thereto, I shall apply my self to the Printed Paper, wherein the Directors of the Million Bank bring up the Rear. And that the Reader may not be confounded with their different Proposals; I shall take notice thereof, as it is already divi∣ded by them into three parts. The first consisting of nine particulars, I will for distinctions sake call the Proposals.
The second part consisting of eleven particulars, I shall call the Propositions.
The third part consisting of six Particulars, being their Project of Union, I shall call the Project.
In the Proposals, it is Provided, That any Person may Subscribe Money or Land for granting Annuities for term of years, or for One, Two, or Three Lives, at 10, 12, and 14 years pur∣chase, renewable at any time for a reasonable Fine.
That the Money-subscribers should have six pounds per Cent. per Annum Interest for their Money. And the Subscribers for Land should be accommodated with Money at three pounds per Cent. per Annum Interest, and the remainder of the Profit to be divided between the Land and Money.
That any Person may Subscribe to purchase Annuities at the aforesaid rates, and the Sub∣scribers of Money may, if they think fit, transfer the same to the account of Annuities for a term of years, or for One, Two, or Three Lives, as they like best. But that the Money or what is purchased therewith, shall in the first place be liable to pay the said Annuities; and in case they fall short, the Land to be charged. With liberty given to the Subscribers, of revoking till the 4th of November next.
The Propositions tells us how much the Fund of Money and Land is intended to be, viz. 120000 l. to be paid before the 9th of November, 100000 l. whereof to be laid out in purchasing 20000 l. per Annum in Reversions, on the Lives in the Exchequer: and the remaining 20000 l. to buy about 3000 l. per Annum of Lottery Tickets for 15 years: which 20000 l. per Annum, in Reversion, and the 3000 l. per Annum in possession for 15 years, is to be backt with 20000 l. per Annum Land, whereupon to grant Annuities for One, Two, or Three Lives, to the value of 20000 l. per Annum; which at 11 years purchase (the Medium of the rates proposed) will come to 220000 l. with 120000 l. of which they propose to purchase 17000 l. per Annum more of Lottery Tickets to make the first 3000 l. per Annum. 20000 l. per Annum in possession; and the remaining 100000 l. is to be lent to the Land-subscribers at 3 l. per Cent. per Annum, and the Remainder of the profits is to divided, viz. Two thirds to the subscribers of the 120000 in money, And one third to the subscribers, of 400000 l. value in Land, being 20000 l. per Annum at 20 years purchase; which (say they) by a modest computation may make 16 l. per Cent. per Annum to the money, and near 30 l. per Annum on every 100 l. per Annum in Land. And that the said Fund may not fail, one fifth part of the profits, shall during the 15 years be annually laid out to pur∣chase something to answer those lives that may happen to be then left, of those that the reversions were purchased from the Exchequer.
Having thus briefly run through their Proposals and Propositions, it remains, That I examine how the proposed profit is like to arise, and what the fifth part of the profit will amount to that is to be laid out annually to purchase an equivalent to the lives that happen to be left as aforesaid. And that the Gentlemens modesty in their computation may more plainly appear; I shall for once state their accompt of profit by way of Debtor and Creditor, viz.