An Ansvver to a letter to a gentleman in the countrey giving an account of the two insurance-offices, the Fire-Office & Friendly-Society.

An Ansvver to a letter to a gentleman in the countrey giving an account of the two insurance-offices, the Fire-Office & Friendly-Society.

Table of contents

AN ANSWER TO A LETTER To a Gentleman in the COUNTREY, Giving an Account of the Two Inſurance-Offices; THE Fire-Office & Friendly-Society.

§

AN ANSWER TO A LETTER To a Gentleman in the COUNTREY, Giving an Account of the Two Inſurance-Offices; THE Fire-Office & Friendly-Society.

[Page]

I Have received yours of the 26th of January, being an Account of the Two Inſurance Offices, the Fire Office, and the Friendly Society; and, according to your deſire, return you this Anſwer.

Wherein to obſerve your Own Method, I ſhall conſider,

1. The Securities of each Office.

2. The Charge of Inſuring.

And in Comparing them one with another, the Arguments I uſe, ſhall ariſe from thoſe you make in your Letter to me, and the Inſurers of the Fire Office, have formerly made in their Papers directed to the City.

The Inſurers of the Fire Office have, as you ſay, ſetled in Ground Rents to the value of Fifty thouſand Pounds, (which admitted) tho I fear Rents of 2100 l. per Annum, a great part of them lying in Marine Square, Wall-Street, near Ratcliff, and other Places thereabouts, would hardly yield 24 years Purchaſe.

On this Security by their Deed of Settlement, they have Liberty to Inſure 5000 Houſes, which the Inſurers themſelves (in the ſaid Printed Papers to the City) have valued at 400 l. a Houſe one with another; which doth charge their Security of 50000 l. with no leſs than Two Millions of Pounds.

But you ſay when any Loſs happens to the Fire Office, it is Paid out of the Bank of the Office, and the Land which is the Fund is never the Leſs.

This indeed were a great Argument, if the Praemiums received by them were Paid into a Bank, and that Engaged for the Payment of their Loſs; but there is no ſuch thing, neither is any Perſonal Security given, but eſpecial Care taken that nothing in their Settlement ſhould Charge their Perſons; ſo that they may Pay, or not Pay, as they pleaſe; which, tho no Default in Payment may be feared from thoſe Gentlemen who are the preſent [Page] Inſurers, yet in After-times 'tis not unlikely but it may ſo happen, when the whole Number is Inſured, that they may find it their Intereſt not to Pay away their ready Money, but leave the Loſs to be Paid out of the Rents.

But it can never be the Intereſt of the Inſurers in the Friendly Society to ſtop Payment; becauſe their Office becomes thereby Immediately diſſolved, but whilſt they continue to make good Payment, the ſeveral Perſons in the Society are ingaged to Pay it them again. Therefore there is no reaſon to fear a Default which muſt be ſo pernicious to them if they do not Pay and of ſo little hazard (as you ſay) if they do.

And tho from thence it be true that they are not 10 Perſonally concerned to be at the Charge to keep Men to put out the Fire, yet they are now ſetting them out, and did ſo Propoſe from the Beginning; which altho they may be Raw at the preſent, may ſoon become as well Diſciplin'd as the others.

And whereas you ſay the Fund of the Fire Office is ſo large, That Conſidering the Houſes Inſured, are diſpers'd at ſeveral Diſtances, it is very Improbable (unleſs the whole City be Deſtroyed) that any Loſs at one time ſhould Exceed the Fund.

Wherefore to put this on the Tryal, I will ſuppoſe that for the Future, as well as in the Three laſt Years (as you ſay) there will be Seven thouſand Pound to be Paid out of theſe Rents, to anſwer the Loſs by Fire, then at that rate, in 31 Years (for, for that time as many as pleaſed of the firſt Three Thouſand, might have Secured their Houſes; as by the Table of their firſt Printed Rates appear) there will be Paid Seventy thouſand Pounds, which is Twenty thouſand Pounds more than their whole Stock amounts to at 24 years Purchaſe.

But not to attend ſo long a Time as 31 years for the Event of this Tryal, ſuppoſe only that when the firſt Seven thouſand Pound comes to be Paid by the Truſtees, out of the ſaid Rents, the reſt of the Five thouſand Perſons whoſe Houſes are Inſured and not Burnt, ſhould prefer their Bill in Chancery, and deſire the Court that an Injunction may be Granted, that the Ground Rents may not be Sold right out; but that they whoſe Houſes are Burnt, may be Satisfied out of the growing Rent, leſt in ſome time they ſhould be wholly left without Remedy, and ſome be Paid all, and others none at all; which, if the Court thinks fit to Grant, (as to me ſeems very Equal and Juſt) pray let us then ſee how the Caſe will ſtand, in the Fire Office, which will undoubtedly be thus,

The whole Ground Rents being but 2100 l. per Annum, will not Anſwer the ſaid 7000 l. in leſs than Three years and a half, and then if 7000 l. more be Burnt, whilſt the firſt is receiving, the Owners of the Houſes Burnt muſt ſtay (I cannot ſay how long) for the Second Payment. But the Third or Fourth Loſs will ſcarcely be Paid (for ought that I can foreſee) in this Generation.

The Security given by the Undertakers in the Friendly Society, and ſettled in the Hands of the Right Honorable the Lord Mayor, and others, as Truſtees, amounts to the Value of 16000 l. in Land of Inheritance, Rent Charge of Inheritance, and ſome few Houſes; and they do likewiſe give their Perſonal Security for all the Money depoſited in their Hands to be Repaid after the ſeveral Terms of Inſurance Expire, which is Five Parts of Six, of the whole Money Paid down to the Inſurers.

Now to prove that this Security is abundantly Sufficient to Anſwer any Loſs may probably happen, I argue thus.

Since the Beginning of September laſt, which was the Time they firſt Opened their Office; Suppoſe there were but a Thouſand Houſes Inſured in the Friendly Society (tho there are ſome Hundreds more) which at Three hundred Pound a Houſe one with another, raiſes a Stock of Four thouſand Five hundred Pounds; and if the Number encreaſe at that Proportion for Three years, the Stock will be Twenty ſeven Thouſand Pound, to Anſwer the Loſs of every ſingle Fire; beſides the Sixteen thouſand Pound ſettled on the Truſtees.

Whereas the Fund in the Fire Office will not Anſwer above Five thouſand Pound for the Loſs that ſhall happen in the whole Three years, which is moſt apparent by the former Calculation; Now if this be truly ſtated, (as I firmly believe it is,) I do not underſtand why you Aſſert ſo Poſitively, that their Security in the Fire Office, is better than that of the Friendly Society.

And now having done with the Validity of the Securities given in each Office, let us compare the Charge of Inſuring one with the other, and to do which I ſhall (as I have already) [Page] make my Tryal from what hath been Matter of Fact, and allowed in their Papers, and not by Dark, Forreign, and Unreaſonable Computations, things barely poſſible, but never (I hope in God) likely to happen.

Firſt, to Inſure Three hundred Pound on a Brick Houſe in the Fire Office for Twenty one years, will Coſt Seven Pound Ten Shillings in ready Money, the bare Intereſt of which comes to Nine Shillings per Annum.

And had you Inſured Three hundred Pound on a Brick Houſe in the Friendly Society, for Fifteen years next after the Great Fire, the whole Charge to the Loſs by Fire, and the yearly Payment to the Inſurers would have Coſt but Six Shillings per Annum, as by the following Computation (formerly inſerted in their Printed Propoſals) will moſt plainly appear. Suppoſe then the City and Liberties were Inſured by the Friendly Society.

In London and the Liberties, in the ſaid Fifteen years, there were Ninty ſeven Houſes Burnt; (the ſeveral Numbers and Streets are mentioned in their Printed Papers to the City) but to avoid a Fraction in the Account, I ſuppoſe them a Hundred; which at Three hundred Pound a Houſe, one with another, the whole Loſs amounts in the Fifteen years to Thirty thouſand Pound; and Divided into Fifteen Parts, makes Two thouſand Pound Loſs every year, to Anſwer which Loſs, ſuppoſe that in London and the Liberties, there were but Twenty thouſand Houſes (but there are really Twenty four Thouſand) and they all Secured at Three hundred Pound a Houſe, then muſt the Inſured Pay to Diſcharge the Thirty thouſand Pound by Two thouſand Pound per Annum, the Sum of Two Shillings per Annum, and no more.

From whence you may obſerve what unreaſonable Calculations you have made, in ſuppoſing a Loſs will exceed Thirty Shillings for a Hundred Pound, when in that Fifteen years, the real Loſſes did amount but to Eight Pence per Annum for a Hundred Pound, which I hope will eaſe you of the Fears you have, that many will leave the Society on that account.

But admitting the Loſs of the ſaid Fifteen years had amounted to Seventy five Thouſand Pound, inſtead of Thirty thouſand Pound, it had yet kept within the Intereſt of the Money Paid in the Fire Office (viz.) Nine Shillings per Annum; becauſe if Two Shillings per Annum Paid for Thirty Thouſand Pound Loſs, then Five Shillings per Annum (which with the Four Shillings to the Office, makes Nine Shillings per Annum the Intereſt of the Money Paid to the Fire Office) will Pay for Seventy five Thouſand Pound Loſs.

And whereas you may Object that the Friendly Society Inſure but for Seven years, and you for Twenty One, that makes no Difference in the Charge, becauſe in the Friendly Society a Houſe of Three hundred Pound may be Inſured for the ſame Money (viz.) Four Shillings per Annum as long as you pleaſe: but in the Fire Office, when the Twenty One years are Expired, they muſt Pay Seven Pound Ten Shillings more, and then inſtead of Four Shillings a year Paid to the Friendly Society, the Intereſt of their Money will amount to Eighteen Shillings per Annum, and Fifteen Pounds beſides out of Purſe to the Inſurers own Uſe.

By this time (I hope) you are Convinced, that the Fund in the Fire Office is neither Greater, nor the Inſurance Cheaper, than in the Friendly Society, which hath been made plain to you, not barely by Gueſs and Imagination, but by Matter of Fact.

There reſts only, that I ſhould clear ſome Things unjuſtly laid to the Charge of the Inſurers in the Friendly Society, (viz.) That the Sixteen Thouſand Pound Security in Land, is not Security for the Loſſes, but only for the Inſolvent. To which I anſwer, that (admit it were ſo) If the Solvent Pay for themſelves, and the Inſurers Pay for the Inſolvent; pray where is the Loſs, or what's the Inconveniency?

But I wonder in Reading the Settlements of the Friendly Society, you ſhould overlook the moſt Material Articles in it; where it is carefully Provided, That if the Money Inſured on any Houſe Burnt, Blown up, or Demoliſhed, be not Paid by the Inſurers within Fifty days after the Rate is Set, the Truſtees by Mortgage, or Sale of the Lands, or Rents, are Impowred to Pay the ſame.

And likewiſe (with ſome Complements to the preſent Inſurers) you ſay they may (as ſometime the Pariſh Aſſeſſors) Rate thoſe that are Solvent, ſomething the more, to Pay for thoſe that are Inſolvent: Whereas in another Article it is provided, That the Rate ſhall be made by ſuch Perſons as the Truſtees (who are Members of the Society) ſhall [Page] appoint; who will not (I ſuppoſe) over-tax themſelves for the Advantage of the Inſurers. The like miſtake (I fear a wilful one) you make about loſing the Money Depoſited, and being Caſhiered out of the Society; as if there were no more to be done in caſe they once omitted to Pay what became Due to the Inſurers but preſent Caſhering them.

It likewiſe is affirmed by you, That the Profits of the Inſurers in the Friendly Society, are greater than in the Fire Office. I cannot Imagine how you Compute it? For in the Paper directed to the City, they Eſtimate the Charge of Executing their Office at a Thouſand Pound per Annum; and it is plain that Two thouſand Houſes Inſured in the Friendly Society at Three hundred Pound a Houſe, brings in to the Inſurers but Four Hundred Pound per Annum, notwithſtanding the Execution of their Office, muſt needs be more Chargeable than that of the Fire Office in getting in their Money.

And to make your Letter all of a piece, you affirm, That the older the Fire Office, the better; but the Friendly Society the worſe, (whoſe contrary is true) for any one that can count his fingers, muſt know that if 300 l. is to be paid by the Society, it will be eaſier ſure to have it paid by 1000 Perſons than by 500; and every 100 l. Inſured adds 30 s. to their Fund, which (if occaſion requires) muſt be anſwered either by the Inſured or the Inſurers, which may ſatisfie all concerned, that beſides the great charge of their Office, they have not their ſmall Praemium of 16d per Annum only for holding Stakes.

You argue alſo, That when a loſs happens to the Friendly Society, it being paid out of the Premiums, leſſens the Security, when any man hath paid 10 s. or 15 s. Which is another miſtake, for the Security is the ſame after any payment, as it was before; but theſe things may ſerve to amuſe ſome, tho not to convince any.

As for your Diſcoveries that a Thouſand Hundred to One, makes One Hundred Thouſand to One, and that Four times Eight makes Two and thirty, with a great deal more I cannot tell to what purpoſe, I thank you for it; but I know not at preſent what uſe to make of it, but will remember it if Occaſion ſerve hereafter.

But in the next Calculation, you are very unmerciful in Seven years time to Burn a Fourth part of the Houſes Inſured by them, deſtroy their little Town, blow up their Office, and diſſolve the Society.

But ſince it cannot be helpt, but ſo you will have it, let me turn the Tables, and ſee if a quarter of the Houſes ſecured by the Fire Office, be Burnt in the ſame time (for I believe the Fire will not be Partial) whether Matters would be much mended.

The Fourth part of the Houſes Inſured in the Fire Office, are, as you confeſs, a Thouſand; to Anſwer the Loſs of which when Burnt, will require (by your own Eſtimate of Four hundred Pounds a Houſe,) Four hundred Thouſand Pound, which being taken out of Fifty Thouſand Pounds (the Fund ſo magnified by you) what will remain to Anſwer the Loſſes of the Three thouſand Houſes by them Inſured, and not Burnt.

Having now made it appear, (by arguments raiſed from your Letter, and their own Papers) That no leſs then Twenty hundred Thouſand Pounds will be Charged on the Fund of the Fire Office, when their 5000 Houſes are Inſured, and that no payment can reaſonably be expected from thence but out of the growing Rent, (there being no Bank ſettled to make other payment as is pretended,) And that the Charge of Inſuring in the Friendly Society, had not (though the Loſs had been more than Double in the 15 Years before mentioned) exceeded the Bare Intereſt of the Money given to the Fire Office. And that it cannot be the Intereſt of the Inſurers in the Friendly Society to ſtop payment; but may be of the Fire Office. I may now with great Reaſon reſolve to Inſure my Houſes with the Friendly Society; and the rather, becauſe Sir Francis Pemberton, Sir William Dolben, and Mr. Trinder, who Drew and Peruſed their Settlement, beſide a great Number of Eminent Lawyers and Perſons of Honour and Quality, have already made themſelves Members of the ſaid Society.

Sir,

I am your Humble Servant H. S.

§

LONDON, Printed by William Horton, 1684. Theſe Papers are to be had Gratis, at the Office, in Falcon-Court over againſt St. Dunſtan's Church in Fleet-ſtreet.

Information about this book

Title statement

An Ansvver to a letter to a gentleman in the countrey giving an account of the two insurance-offices, the Fire-Office & Friendly-Society.

Edition statement

1684

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Publisher

Text Creation Partnership,

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Date

2007-01 (EEBO-TCP Phase 1).

ID [DLPS]

A59726

ID [STC]

Wing S32

ID [STC]

ESTC R8685

ID [EEBO-CITATION]

11982926

ID [OCLC]

ocm 11982926

ID [VID]

51898

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(EEBO-TCP ; phase 1, no. A59726)

Transcribed from: (Early English Books Online ; image set 51898)

Images scanned from microfilm: (Early English books, 1641-1700 ; 76:17)

Source

— An Ansvver to a letter to a gentleman in the countrey giving an account of the two insurance-offices, the Fire-Office & Friendly-Society., H. S., Barbon, Nicholas, d. 1698..

Extent

4 p.

Printed by William Horton,. London :: 1684.. (The letter which is being answered is by Nicholas Barbon.) (Caption title.) (Letter signed: H.S.) (Imprint from colophon.) (Reproduction of original in British Library.)

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