The subject of Life Assurance Investments does not seem to have been discussed for a long time at the meetings of the Institute. Two valuable and instructive papers, bearing the honoured names of Mr. Samuel Brown and Mr. Arthur H. Bailey, were read to the Institute respectively on 25 January 1858 (J.I.A., vii, 241) and 24 February 1862 (J.I.A., x, 142), but they appear to be the only contributions of importance, dealing with the question in its entirety, to be found in the Journal. Notwithstanding the lapse of time which has taken place since the latter date, the principles of investment as defined by these two distinguished authorities are still very generally applicable to present needs; and the articles themselves have lost none of their charm for the student of life assurance finance, characterized as they are by soundness of judgment and by felicity of expression.

Another investigation into the mortality experience of life assurance companies by the Institute of Actuaries will, in all probability, take place at no very distant period; and I think it is extremely desirable that this subject should previously be ventilated in the pages of the Journal. A very elementary acquaintance of that branch of the doctrine of probabilities which treats of the law of “Errors of Observation” will suffice to enable anyone to follow my reasoning in the following pages, and to form his own opinion as to whether the conclusions which I have arrived at are right or wrong.