In a paper which was read before the Institute of Actuaries on the 8th January, 1855, the idea was first suggested by Mr. Farren of introducing into the theory of life contingencies the hypothesis of a constantly fluctuating rate of interest, in lieu of the supposition hitherto adopted of a uniform rate.

Abundant reasons are assigned, in the paper referred to, for making the proposed change; and no one, at all acquainted with the practice of life assurance, can fail to see that the effect of Mr. Farren’s suggestion, if carried out, will be to base all computations upon an assumption which is in the closest possible accordance with actual facts.