Alexandria Gazette

TONTINES.—Among the movements in London, notwithstanding the extent of the Railroad mania, there are not wanting ways and means for age, and the enlarged and beneficial uses of the Life Insurance Companies. We notice what appears to be a revival of the old Tontine scheme. Such an association in this country we believe that is not sent, though near enough to take their name. The London papers now before us contain the advertisement of a Tontine Life Insurance Company, which has a capital of 2,000,000. Something of the principle of the association may be gathered from the following statement:

"This Company, in submitting the subject of Tontine annuities to the public, is influenced by the belief that there are many persons who, from the hope of longevity, and the desire of ease and affluence as they progress through life, will gladly avail themselves of this mode of investment, by which they will secure a large remunerative and increasing income, guaranteed to them by the Company during their own lives, or the lives of the nominee.

"The following is an illustration of the principle of the Tontine Annuities. If one thousand persons subscribe £100 each, they or their respective nominees, being of an age to enter the class in which the annuity granted is £6 per cent, per annum, each subscriber or nominee will, during the continuance of all the lives, receive an annuity of £6; but as the lives drop, the share of the deceased parties will be divided among the survivors, until they are reduced to six, each of whom will then receive £1000 per annum for life; but as they respectively die off, the £1000 per year which the deceased party received will fall into the funds of the Company, for the benefit of the shareholders: and so in proportion for a larger or smaller number of subscribers or their nominees.

"This mode of investment will place it in the power of almost every individual, at some period of life, by prudently and legitimately appropriating a comparatively small sum of money which, in many instances, would be otherwise uselessly expended, to secure independence and comfort in their declining years."

We need scarcely tell our readers that "Tontines" were invented by an Italian, named Lorenzo Tontine, about 1650. His plan, of course, differed from the one above stated, but it is the basis of all the Tontines originated since his time. The London plan, above noticed, has a company separate from the subscribers, and that company becomes the heir of the fund and income. Tontine's plan was to have a certain number of subscribers. The fund was to be let out, perhaps to the government. That was the way in France, in 1653. The subscribers were divided into classes by ages. The youngest received the smallest amount, and each class received an additional income in proportion to its age; and as one died, the income was divided pro rata among the survivors, until at length one man might enjoy the whole income, but at his death, the borrower (generally the government,) obtained the whole capital, without paying more interest.

U. S. Gazette.