Itejjort of the Auditors. 
xiii 
have to be met out of the present capital, to subjoin the following state- 
ment, showing: the number of years that the 3,825 Life fTOvernors and Life 
Members on the books on January 1, 1890, had already exercised their 
privileges : — 
Year 
Members 
Year 
Members 
Year 
Members 
Year 
Members 
Year 
Member 
1838-40 
35 
1850 
17 
i860 
19 
1870 
82 
1880 
127 
1841 
15 
1851 
2. 5 
1861 
41 
1871 
81 
1881 
96 
1842 
21 
1852 
1853 
13 
1862 
92 
1872 
87 
1882 
144 
1843 
10 
27 
1863 
71 
1873 
102 
1883 
210 
1844 
7 
1854 
29 
1864 
52 
1874 
80 
1884 
217 
1845 
22 
1855 
21 
1865 
33 
1875 
148 
1885 
130 
1846 
li) 
1856 
43 
1866 
20 
1876 
92 
1886 
101 
1847 
12 
1857 
• 29 
1867 
30 
1877 
• 93 
1887 
90 
1S4S 
H 
1858 
29 
1868 
40 
1878 
112 
1888 
114 
1849 
17 
1859 
30 
1869 
96 
1879 
262 
1889 
506 
The gi'oss number of years during which these 3,825 Members had already 
exercised their vi'ivileges on January 1, 1890, was 54,974, or I45 years on 
the average. The experience of the last seven years (including 1890) shows 
that t he average period which a Life Member remains on the books is twenty- 
six years. AVe might therefore have taken 11§ years as the average remainder 
of the lives of those who compounded before 1890, if the number that entered 
year by year had been fairl}- regular; but as an unusually large number 
entered in the year 1889, the total average must be raised to 12| years. 
Some will live longer and some less than the average ; but, to provide for all, 
■we need such a sum as would yield 14s. for 3,825 Members for 12| years: 
calculating interest at 2^ per cent., 28,750/. is required. We desire to draw 
special attention to the fact that the amount of the Society's funded capital, 
30,000/. New Consols (valued at 29,062/. 10s. on January 1 , 1890), was little 
more than sufficient to meet the future cost of providing its Life Members 
with the privileges which by its acceptance of their Life Compositions it has 
contracted to give them. 
8. Quinquennial Invest if/at ion sufff/ested. — As the Life Composition has 
been raised from 10/. to 15/., it is not improbable that there may in the future 
be some change in the average duration of Life Membership. We think it 
will be well, therefore, to follow the example of life insurance companies, 
and at intervals of five years to re-investigate the two questions of (1) the 
average duration of Life Membership, and (2) the annual cost of Members' 
privileges. 
0. Recommendation. — In framing the Statements of Account for the year 
1890, which we herewith append with our certificate that they are correct, 
we have followed the plan indicated above, as we are of opinion that the 
Council and the Members generally will thus be enabled to estimate more 
closely the available income upon which' they can properly count in a 
particular year, and to .see more clearly than before whether the Society's 
assets and liabilities are increasing or diminishing ; and whether, therefore, 
the Society is financially stronger or weaker at the end of each year's 
operations. 
r FRANCIS SHERBORN. 
Signed^ A. II. JOHNSON. 
Lc. G. ROBERTS, 
March 2, 1891. 
