clusions may be formed. Thus their application to the wants of the working man does not appear to have been altogether successful, at least until the introduction of the Freehold Land Societies. The subscriptions have been too high, and if the operative could but just afford to pay them whilst in full employ, how could he meet them when unable to procure work, or incapacitated for it by illness. Labouring under misfortunes such as these, he could never hope to pay up even the arrears on his subscriptions, much less any fines. Some Freehold Land Societies 2, indeed, profess to obviate the difficulty by allowing temporary suspension of subscriptions without imposing fines. This is an arrangement which can only be carried out where the period of subscriptions is left indefinite, to be determined by the time when the amount of a share shall have been paid up. And even then, if it be applied to those members who have received advances, we question whether it does not operate with a degree of unfairness on those who have not done so, not to mention the necessity of enforcing the utmost regularity in adjusting the finances of any large undertaking. The system, however, is more suitable to the circumstances of those persons who depend on some periodical income; yet, even with them, it has often failed of success. In some cases the scheme has been eagerly embraced by those who fancied that they had discovered schemes of golden promise, and have afterwards realised the unpleasant fact that they had been paying extravagantly for their anticipations. In others the affairs of Associations have met with grievous mismanagement, which has led to consequent losses. We maintain, however, that to the borrower who has the prospect of a tolerably regular income, and who, for the sake of obtaining a loan, can prudently afford to pay a high rate of interest, the system ought to be eminently useful. We repeat ought to be so, for whether it will be so, must in great measure depend upon the constitution and official management of the individual association which he selects.

1 Evidence before Committee on Savings of Middle and Working Classes, 507. 552-554.

* See Financial Reform Almanac, p. 57.

Mr. Scratchley has some remarks well worthy of attention, on the care to be exercised in the choice of officers, the framing of the rules, and in the calculation of the original tables, by which rates of interest and discount are to be regulated; and of the annual financial statements, which are to test the success of an Association. The strictest impartiality and integrity are indispensable qualifications for all the officers. It is necessary also to have an accurate secretary, prudent surveyors and solicitors, but more than all a skilful actuary, as upon him must chiefly depend the original constitution of a Society. and he is the person who can best judge of its progress.

Our sketch of Building Societies would be incomplete without a brief notice of a subject which falls under the peculiar province of the actuary the mode in which the principle of Assurance is applicable to their objects. Mr. Scratchley has, in the second edition of his work, discussed this topic at some length, and especially with reference to a projected scheme for colonization, and we shall, therefore, content ourselves with stating some of the results at which he appears to have arrived, and refer our readers to his useful book for further information.

The income of many a subscriber to Building Societies is dependent on his own exertions, and consequently ceases with his death; and it is obvious that to such a person it may be a matter of great convenience to pay a slightly increased subscription, if, by so doing, he can relieve his representatives from the burden of any payments to which they might otherwise be liable, in the event of his dying previously to the natural expiration of the term of his subscription. This object is to be attained by Assurance. On principle there does not seem to be any reason why any Building Society should not unite with its specific objects, and for the use of its own members, the business of Assurance, and thus secure to itself any resulting profits; but as these Societies are not always sufficiently extensive to obtain a proper average of risks, and as neither their constitution under the existing law, nor their management, present facilities for thus extending their operations, they almost invariably avail themselves of the assistance of some distinct Assurance company.

The methods in which a borrower assures are usually as follows: He may at once effect an Assurance, equal to the amount of his loan, by a whole life policy; or he may effect a temporary policy for securing, in the event of his death before the natural expiration of the term of his subscription, either such portion of his loan as may for the time being remain owing, or (which is perhaps a more simple method of arriving at the same result) the payment by the Company of all the subscriptions and other payments for which his representatives would otherwise have become liable. Circumstances must decide the question whether, in any individual instance, a whole-life or a temporary policy is preferable, but for a whole-life policy the premiums are of course much larger than those required for a temporary Assurance. According to the system of temporary Assurance just mentioned, it is evident that in proportion as a larger amount of subscriptions has been paid, the amount secured by the Assurance, and consequently the risk diminishes; and for this reason the premiums are generally made to decrease, either uniformly, or, more correctly, by a rate proportional to the decrease of the risk itself. This plan is, however, open to the objection that at the commencement of the Assurance the payments are disproportionately large; and that, too, in all probability, at the very time when the borrower is least able to afford them, although there may be instances where the converse is true; as, for example, in loans for the purchase of house property, in which, whilst the premiums continue large, the expenses of repairs are usually trifling. On the other hand, the plan of paying uniform premiums presents, according to Mr. Scratchley, the twofold difficulty -that, if the assured dies during the first half of the period of subscription, the assurance company has received too little in proportion to the risk incurred, but if he survive this interval the contrary takes place, and then, as he will be paying dearly for his risk, he will have a direct motive for dropping his policy.

Mr. Scratchley suggests as á solution of the difficultý that the first year a larger premium should be paid, and afterwards that the premium should be uniform. This plan appears to

to us to diminish, but not to remove, the difficulty. We would suggest that it should be optional to a borrower to choose the decreasing, uniform, or even increasing, rate of premium, but that his election once made should be irrevocable, and that the Society should keep up the policy, and charge the premiums as well as subscriptions upon the secu→ rity given by such borrower. He would thus be prevented from redeeming his security, except on the terms of paying an equivalent, as well for future prémiums as for future subscriptions; and since, while the risk would decrease, the value of the security to the borrower would increase, he would not be under any temptation to incur the chance of the sale or foreclosure of his security by discontinuing the policy. With such a check on the person who had assured, and assuming that the average probability of his dying in the first or second half of the term of subscription can be calculated, we do not see why it should be any objection that the Company will, in fact, lose in the one case or gain in the other. The amount of the uniform premium would, of course, be regulated by such average probability. We need only add that, with slight modifications, the same plan of Assurance might be extended to mere investers.

The project for the application of the system of Building Societies to colonisation is merely an extension of the scheme of Freehold Land Societies; and the remarks which we have made upon the latter, generally speaking, apply with equal force to the former.

It is proposed that societies be formed having for their object the purchase of large quantities of land in the colonies (or in Ireland,) and the land thus obtained is to be retailed in small portions, but at wholesale prices, to the subscribing members. The price of any such portion is not to be paid in a gross sum, but to be secured by a rentcharge, which may either last for a term certain, or, with the aid of the machinery of Assurance, for a determinable period.

The scheme must depend on the rapid increase of the value of the property purchased, and whenever this result can be ensured, either from increase of population, improvement of cultivation, or any other cause, it may prove highly suc

cessful. If, however, this system of colonisation be profitable, when carried on by societies according to the plan proposed, we question whether it might not be more advantageously prosecuted by Assurance companies, who, with large capital, might be able to avail themselves of the best opportunities for investment, and to command the best management. To such companies it might afford a ready means of at once disposing of surplus capital, and also extending their business of Assurance. Mr. Scratchley's project, however, is well worth consideration; and we are indebted to him for having bestowed upon it so much attention.

ART. II. -LEGAL EDUCATION. - PROFESSOR

FOSTER'S INTRODUCTORY LECTURE.

It is an unseemly thing when one undertakes to lead others in the way of learning, without any foreshadowing of the course he intends to pursue. And in regard to the science of Jurisprudence we have a higher stimulus. In tracing its limits, and exploring its treasures, the master minds of ages have delighted to be employed. And although their presence in the same field must needs abash all but the very ignorant, yet in that very fear lurks something secretly inclining us to follow. And we hope to light on regions they have left yet unvisited, and add some new stores to the knowledge of our times.

I therefore proceed to state to you as I best may, what the subject is of which we have to treat. It is obviously not that which may belong to any individual Legislative system, but something which must pervade all that are permanent. They are no doubt greatly varied, both in their origin and development. In some we are wont to observe a more or less rigorous Feudalism. Others appear to us to

1 Delivered at the opening of the Course in University College, London, on Nov. 5. 1850. This Lecture has been communicated to this Review at the request of its conductors.