without a renewal of them. Many countries have, as yet, scarcely availed themselves of the system; and, in proportion as they adopt it, they will release a quantity of metal. The idea that one scale of prices is more proper than another is a great mistake: the mischief lies in sudden changes, and these will never be produced by fluctuations in the general supply of the metals. Gold cannot keep pace with the steam-engine,—as we multiply commodities by machinery they must individually represent less money. The idea of an arbitrary price for corn is at the root of all the misconceptions which distract the senses of the community.

"The increased produce of the British dominions must be something most enormous, when we reflect that we are luxuriously feeding a doubled population: need we wonder, then, that the specific price of each quarter cannot be maintained ?—or, indeed, can any good reason be given for expecting that it should, any more than that every piece of calico should be as dear as formerly?

The following questions were proposed by Mr. Hume for discussion at the Political Economy Club, besides the one which has been already alluded to.* Of questions proposed before the year 1835, there appears to be no available record.

"March 5, 1835.-Ought a compulsory provision against destitution to exist wherever there is exclusive property in land?” "December 1, 1836.—What are the causes and probable consequences of the present pressure on the money market?"

"February 10, 1839.—Are there any sufficient reasons for any duty on foreign corn ?

Of the arguments made use of in the discussion of these questions we have no information.

* Page 169.

179

CHAPTER VII.

LIFE INSURANCE-THE ATLAS-THE CUSTOMS' BENEVOLENT FUND,

"An institution which improves the condition and respectability of public servants as a class, and relieves their anxiety for their dependent families, must qualify them the better for their official situations, and therefore confer advantages also upon the public service."-Treasury Minute on the Benevolent Fund.

MR. DEACON HUME was a great advocate of life insurance. He was associated with several individuals in establishing the "Atlas," one of the oldest and most considerable of these institutions, and which owed its success in no trifling degree to his exertions. He continued to be Deputy Chairman to the time of his death.

This volume would be incomplete if it did not give some account of the rise and progress of a kindred association, the Customs' Benevolent Fund. The project originated, in 1816, with Mr. Charles Ogilvy, at that time a clerk in the long room at the Custom House. But, as the Report of the Directors in 1856 states, "it was worked out and brought to maturity entirely by the ability and influence of Mr. J. Deacon Hume, for many years, from the commencement of the institution, President of the Fund." No one could have been found more able to introduce and carry out the scheme.

As a preliminary step to its introduction, a meeting of officers and clerks of the Customs was held on the 25th of April, 1816, Mr. Deacon Hume in the chair. The object and nature of the scheme were then fully explained, and the meeting having approved of its principles, appointed seven officers of the Customs as a "Temporary Committee of Formation," to prepare a plan of the contemplated institution for the consideration of a further general meeting. The Committee was also instructed to invite the co-operation of other public departments—as the projectors desired and hoped, "that they should be able to lay the foundation of an institution which, at some future day, would be found to embrace within the range of its protection the widows and children of almost every officer of the Civil Service."

With this view the Committee, in the first instance, addressed letters to the secretaries of the Excise Office, of the Stamp Office, of the Post Office, and of the Tax Office, but no answers were received. A, letter was also addressed to the Secretary of the Board of Customs in Scotland, and that department declined to join. The notion of extending it to other public offices was abandoned. Believing, however, that the department of the Customs alone was sufficiently numerous in itself to form an association, the Committee determined to establish a fund, to be confined to the Customs alone.

Having agreed upon the outline and general principles upon which the projected institution should be governed, and having obtained the approval of a

meeting of officers and clerks of the Customs, with the consent of the Board, the Committee submitted the scheme for the approbation and sanction of the Lords of the Treasury in a memorial dated the 24th May, 1816. It was stated in this memorial, amongst other things, "That the anxiety of your memorialists for a local institution of this nature within their own department is chiefly felt in behalf of the interest and welfare of persons of small incomes who may need the prudence and decision necessary to induce them to insure their lives with any of the public companies already established." Their lordships had several conferences with the Committee, and after the project had been carefully and fully expounded to them, signified officially their consent to it in a letter to the Committee, dated the 20th June, 1816. And with the sanction and encouragement of their lordships, the Act of Parliament establishing the Fund was passed, and is dated the 22nd of June, 1816. The Act embodies two peculiar features, with which the scheme originally commenced. First, the certainty and permanency of the provision for the claimants. Secondly, the poundage charge of one penny upon salaries. It was expected that by the aid and influence of this auxiliary fund, although small, the benefits of the institution would ultimately be diffused generally throughout the department, and it could scarcely exist without it. The certainty and permanency of the provision is secured by the 11th section of the Act, which treats the produce of the insurance as an "alimentary provision" for widows and

other claimants, and bars the right of creditors thereon. It gives the form of a reversionary settlement, and this settlement, in the case of the widow, makes it secure and permanent even against the debts or control of any future husband. It is a settlement under the force of an Act of Parliament for her sole benefit for life, payable to her upon her own receipt only.

But, in connection with the security the Act affords to the insurance, the application of the insurance itself is, at the same time, limited for the sole benefit of widows, children, relatives, and, under the admission of the directors, of special nominees of subscribers. It could not be expected that, jointly with the protection, subscribers should also have an "unlimited" power to dispose of their insurances as they would in public assurance offices; and, although the Fund was to be raised on the principles of life assurance, yet this protection, and the very limited power of appointment possessed by the subscribers, materially distinguish it from other assurance offices. But Mr. Hume, who was a correct as well as a close observer of the human mind, knew well that this limitation would require substantial advantages to counteract it— advantages which would sooner or later be apparent. And it was chiefly with this view that the poundage was insisted upon. Its design was to impart such aid and support to the fund as would counteract all adverse inclinations, from whatever cause arising, by securing to it a marked preference over common assurance societies. Poundage obviously increased the value of insurances, and these