240 ESSAY ON PROBABILITIES. 



do this. Unless he provide an agent to draw the divi- 

 dends immediately on their becoming due, various cir- 

 cumstances will happen to prevent the immediate in- 

 vestment of the interest. It is not at all an unfair 

 calculation to suppose that, upon each half yearly divi- 

 dend a month will he lost, so that nominal compound 

 interest for 42 years will only be really for 35 years. 

 A single pound, therefore, laid up by a man of 20, 

 and improved for the average term of his life, at 3 

 per cent., would only become 3^1. ; while, in the hands 

 of a person who lost no time, it would become 4^/., or 

 nearly a pound more. On the other hand, a company, 

 or a skilful individual who can command large sums of 

 money, can always make the best interest which the 

 market will afford. The funds, from the security of 

 their tenure, and the conveniences which they offer, 

 will always, in ordinary times, represent the lowest rate 

 of interest which money will yield. Other investments, 

 which offer better interest, are generally only accessible 

 to those who can command considerable sums, and are 

 frequently attended with risk ; so that it requires know- 

 ledge to distinguish between the sound and the unsound. 

 A company, employing the whole time of a person or 

 persons skilled in money matters, and having continual 

 large investments to make, can realise not only more 

 interest, but so much more, that there shall remain a 

 surplus worth considering, after the skill employed has 

 been paid for. It is not assuming too much to say 

 that, all expenses paid, they can command 3-^ per cent, 

 compound interest. More than this, they can obtain 

 such interest without any delay in investing the interest. 

 The process is extremely simple : it' is not difficult to 

 ascertain what sum should lie permanently at the 

 banker's, in order to meet current expenses, so that the 

 banker has general directions to buy stock as soon as the 

 balance in his hands exceeds that sum ; and all cash 

 received is paid into the bank at the close of each day. 

 Suppose it should happen that ten individuals paid 1001. 

 into the office on account of life insurance premiums, in 



