for whether these be defrayed by a specific charge or by fines, they, the borrowers, must bear their full share.

To the question, why the necessity of repairs and other outgoings should be taken into account in the prospectuses of Building Societies ? I reply, because it is not right to tell a man that he can become his own landlord for the difference between so many years' payments to the Society on the one hand, and the like number of years' rent on the other; seeing that the latter includes an allowance for repairs, insurance, income and other taxes, failure of tenants, and partial lapsing of the lease; all of which must be separately borne by him in the former case, to say nothing of the money value of the time and trouble which must be bestowed on looking after the property. After deducting all these drawbacks, it will be found that house property affords about the same rate of interest as other investments. If it were not so, it soon would be so, in a country where an enormous amount of capital is always available for profitable employment.

The only advantage which Building Societies afford, and the only point about them which Parliament has committed itself to an approval of, is that they get over the difficulty of dealing with driblets. Here are a thousand men, each of whom can pay to the Society a pound a month. Separately they could not invest their money on house property, but collectively they are in the position of a man who can afford to lay out in this way £1000 a month. How many of our fundholders are there not, who could do this month after month for twelve years together?-ay, or for twenty years? Why don't they? If it be worth the while of one man to raise money at from 5 to 8 per cent. (by joining a Building Society), and to pay fines and expenses, in order to buy house-property, much more is it worth the while of another man to raise money at 3 per cent. (by selling his consols), without any fines or expenses, for the same purpose. Why then do not our fundholders sell out and buy houses? Because house-property, after allowing for its expenses, uncertainties, and trouble, does not afford a better return than other investments.

The public, Mr. Editor, are much indebted to you, for allowing this free discussion of so important a subject; and especially will those persons be under obligation to you, who may be induced by it to look with more caution upon the statements of these promising institutions. I did not in my former letter, nor do I now, advise a man on no account whatever to borrow from a Building Society; but I do say, "moderate your expectations; remember, that although the A.'s and B.'s, and other myths of whom you read in prospectuses, got their houses wonderfully cheap, you must pay full value for yours; and do not go to a Society which promises too much to investing members, -the better for them, the worse for you. Unless your means of repayment are limited to what you can save out of weekly earnings, it is probable that you might borrow from a friend or employer. Do so, if possible. If not, then join a respectable Building Society, in which your term of contribution is limited to a certain number of years. By all means save every shilling you properly

only that your Society be formed on sound principles, but that it be managed by practical men, who understand house property, and have some idea of the effect of compound interest. My Society was correct in principle, but it failed through errors in working. The results of similar errors in your Society will fall upon the class to which you belong."

One or two other points must be alluded to, in as few words as possible.

1. Foreclosure of a private mortgage is an inconvenience very likely to happen, where the money has been lent on land at the lowest current rate of interest, and where a turn in the market, increasing the value of money, may induce the lender to call in his capital, or demand another quarter per cent. But it is not likely where the security is house property, and the rate of interest the highest allowed by law.

2. It is obvious that the members of a Building Society can have no advantage over private investers, as regards the prices at which their houses are obtained. On the contrary, the number of persons on the look-out for investments must tend to enhance the price.

3. I have not overlooked the fact, that Mr. A. is said to have held his house on a repairing lease. I conclude, however, as Mr. Potts has done (though his figures are all wrong), that the statement is a mistake; for the results are inadmissible without this further complication.

Your other correspondents have given their names; and I was about to do the same, when it occurred to me that some might charitably suppose I had sounded this note of warning in the hope of consultation fees from the timid. I therefore adhere to my former designation of, Your faithful Servant,

"A MEMBER OF THE COUNCIL OF THIE INSTITUTE OF ACTUARIES."

Dec. 4th, 1850.

P. S.-Three months have elapsed since the date of my former letter, and I am still without my final dividend of 6s. 9d. Half-a-crown in the pound is all I have ever received. Can you afford space for the following extract from the standard work of my friend Mr. Scratchley, on this subject ?-page 38.

"In general, the statements put forth at the present day do not depend upon principles deduced from sound knowledge or careful reasoning, but seem rather to be the offspring of crude guesses, thrown out at random. The originators of the multitudinous variety of new and improved plans, promising such large benefits simultaneously to each of the two classes of members who alone constitute these Societies, might, with as much probability of success, devise a game of cards, at which all who played. should rise up winners. They do not reflect, that although a fair and reasonable benefit may be secured to the invester by lending on equitable terms to the borrower, yet any extra profit beyond that which is promised to the one, can only be obtained at the expense of the other."

No. II.

SIR,-Although some Building Societies have failed, it has not been owing to any evil principle inherent in them, but has been the result of neglect, ignorance, or dishonesty in those who had the management, or rather mismanagement, of them. There have been many brought to a

successful termination, benefiting both the purchasers of property and the investers of money; and there are many others in existence which bid fair to be conducted to a prosperous issue. I allude now to those established upon the "terminating "principle; but my opinion is, that the "permanent" principle, in relation to these Societies, is the best for both parties;-for the purchaser, because he can arrange for the repayment of the borrowed money at such a period as agrees with his circumstances; and for the invester of money, because, although he may not obtain as much interest as some of the terminating societies have paid, neither is he exposed to the losses incurred in others. When, however, Societies upon the "terminating" principle are formed, care should be taken that the prospectuses put forth concerning them should be in accordance with truth; and those about to join them should be informed more clearly than they generally have been, the amount of interest they will have to pay if they borrow money, or to receive if they invest it.

The

Some of the statements published in the CHRISTIAN WITNESS appear to me to be erroneous, and others very ambiguous, and are likely, therefore, to prove injurious to the cause they are intended to assist. In the number for August there is an extract from a publication, which, although upon the whole tolerably clear, is not so much so as I think desirable. For example, "Cole" asks, "How can they make £10 a year come to £20 in fourteen years? or how can they promise me £40 in fourteen years' time, if I pay them down £20 now?" answer is, because any sum employed for fourteen years, at five per cent, compound interest, will double itself. Now, although the latter statement is correct, the former one is not; although it is most likely only an error of the press to find the words "a year" after the £10; but supposing the words " a year" left out, both statements are ambiguous, and for this reason,that although it is true that the sums mentioned, viz., £10 and £20, will, if paid down in one sum, and used for fourteen years at five per cent. compound interest, realize £20 and £40, it is not the custom in Building Societies to receive the subscriptions in one sum. The above statement is ambiguous enough, but that which follows afterwards is more so, when " Read," who in the early part of the dialogue says, that the Society with which he is connected "only promises five per cent., and therefore only charges that," being asked by "Cole" what he shall have to pay if he joins a Society, answers thus: "That depends upon what you can afford to save. If you can save 2s. 6d. a week, you will have a £120 share after fourteen years." The ambiguity of this statement consists in this, that "Read" does not say "Cole " will have £120, but he will have an £120 share after fourteen years; but he does not inform him how much that share will be worth. Many of the prospectuses which have been published by such Societies have gone further, and stated that the shares subscribed for at that rate will be worth £120 in about twelve years; but this is untrue. Then, again, in reference to the two "funds" spoken of, viz., the "contingent" and "special," how are they provided? If the 17s. 6d. monthly payment for the loan of £100 will yield a surplus (which I think it will), and provide one or both such funds, it should be so

explained; if anything is charged in another form, it should be stated.

The two properties referred to by Mr. Joyce in the September Number, are extremely favourable specimens of the advantages to be derived by borrowing members of such Societies; but although they may be equalled in some localities, the like are not to be met with in others, in consequence of the different value of property. Nevertheless, where the cost to the purchaser is greater than in these cases, it is still a great advantage to be able to make the purchase by such means; and it is in reference to this most important feature of the advantages of Building Societies, "A Member of the Council of the Institute of Actuaries" makes his first mistake, in his letter in the Number for October. He asks a question, "Had he better borrow from a Building Society or from a private capitalist ?" but this is a question which cannot be entertained by the majority of those who purchase property through the medium of such Societies. As to the increased interest and the expenses to be paid for by the borrower, these must be calculated, and he must " count the cost ere he begins to build," as all prudent persons do; and if he cannot afford to pay the increased monthly charge (if any) over and above the rent he has been accustomed to pay, or which he may have to receive if he lets the property, he must abstain from borrowing.

With respect to the other statements made by "A Member of the Council of the Institute of Actuaries," enough has been said in reply to most of them by other correspondents. I will therefore only add my astonishment, that a person so well acquainted with figures should neglect to consult the annual balance-sheet, or, if he did examine it, that he did not sooner detect the errors which had been committed by the Directors.

Mr. Potts' calculation is erroneous. Presuming the Society will terminate in twelve years, agreeable to Mr. Joyce's statement, (although how a perpetual Society can terminate in that time I do not understand, unless the term perpetual refers to the second Society only,) his statement is, I think, perfectly correct. Mr. Potts appears to have overlooked the fact, that the payment of £2 14s. per month covers the repayment of the money borrowed, and the payment of the interest for its use. As to the repairs, the purchaser must have paid for them under the lease.

Before I close, I wish to say a few words upon the construction of some of the rules of terminating Societies, which Societies, I suppose, will continue to be countenanced by both borrowers and investers of money. First, I advise those who intend to invest their money, to see that the rules secure for them a fixed rate of interest for the money invested, if withdrawn during the second, third, fourth, and fifth year. Secondly, the money is seldom lent to profit after that period;-to take care and have a rule obliging the Directors, at the end of the fifth year, not to advance any money on mortgage beyond the amount which any member can claim upon the number of advanced shares for which he is a subscriber. Thirdly, to have a rule obliging the Directors to calculate the profit realized up to the conclusion of the fifth year; and whatever amount of nonthly compound interest to the close of the Society that will pay

SIR,-Being unwilling to occupy too much space in my former communication, written in reply to Mr. G. P. Joyce's paper on Building Societies, and leaving my figures to speak for themselves, I certainly did hope, that if any reply appeared, my figures would have been controverted, and my conclusion proved a mere fiction. Judge of my surprise, when taking up the WITNESS for December, to see upwards of four columns occupied by another communication from Mr. Joyce, still calculated "to mislead honest and industrious men !" I would sincerely say, with Mr. Joyce, "Readers of the CHRISTIAN WITNESS, be awake!"

I am not one of "the little happy fraternity who may be identified with associations whose interests may be jeopardized by the Building Society System;" but I am one who acted as Secretary from the commencement to the conclusion of a Building Society in Sunderland, and though often requested to lend my aid and name to kindred Societies since, I have always refused,one who can balance his ledger,-one whose experience has given him some little knowledge of the Building Society system,-and one whose pen would not now have been put into requisition, except to correct the erroneous statements of Mr. Joyce.

Now I submit, that the question of Building Societies is neither more nor less than a question of pounds, shillings, and pence—of profit or loss; and that no individual ought to enter into or become a member of any Building or kindred Society ought not to listen to any argument, however specious, either for or against,-without calmly sitting down and calculating the cost. This Mr. Joyce professes to have done in page 430 of the WITNESS; he has there given his arithmetical calculations, and there can be no doubt Mr. Joyce felt himself able to enter into a long string of figures-no doubt he thought himself somewhat of an adept in arithmetic-or why did he send forth his calculations, which, in my opinion, are calculated to mislead; and what can I say to or of an individual, who, after appearing in manner aforesaid, should now, in page 596 of the WITNESS, say, "And even if I deemed it prudent, and had time, I could not go into a very long string of figures, as I should be compelled to do, to counteract the specious arguments of the gentlemen to whom I refer, as that would be eminently to confound, mislead, and puzzle, rather than inform, those who are not adepts in arithmetic, as I am not myself?" Now, if an individual cannot go into a long string of figures-be not an adept in arithmetic -then I submit that he is not the man to stand forth and counsel the honest and industrious to enter into any speculation or any Society whose business shall extend over a period of from twelve to fourteen years.

In page 595, Mr. Joyce refers to the investers and builders; and, as an incentive to the former, he promises 4 per cent. per annum, whilst the savings' banks only pay 3 per cent. Now there can be no doubt that a great many shares have been taken in Building Societies by persons for investment only; but what class of persons are they that invest, and for what purpose? They are generally those who have spare money, and are not satisfied with either 3 or 4, but want 6 per cent. for their money. A Society paying only 4 per cent. would last nearly eighteen years, whereas one paying 6 per cent. is calculated to close in twelve years; and such is the one to which Mr. Joyce refers not eighteen, but twelve years; that is, not 4, but 6 per cent. But in what position does the invester and builder stand in relation to each other, and in what relation does the solicitor stand to the Society?

Suppose a Building Society to be formed: the man of all work is the Secretary,-the man of all pay, the Solicitor. The members' names are enrolled, both investers and builders; rules, &c., all agreed on; the payments are made, and the Society is in a position to lend out money. The question occurs, who is to have it?-one and another wants it. This question can only be decided by ballot or sale; the latter mode is always adopted at the commencement of the Society, the former towards the conclusion. Notice is given of one or more shares for sale; there are then biddings by ticket, and the highest bidder at the last bidding obtains the pre-eminence, and is declared the purchaser. The same routine goes on afterwards, until there are no bidders at all. Then some step forward, and obtain their shares without paying any premium, this class are generally few. After these come the investers; there are no buyers, no takers, and the result is, the share or shares must be balloted upon those who have not already received their shares, i. e., the investers; and the invester upon whom the ballot falls must either find security for the money advanced, or pay the difference of interest between what is allowed by the bank and what the Society charge. Then the invester begins to feel the hardship, and would like to retire with his proportion of profits; but those who have had to pay a high premium for their money resist, and he must still remain a shareholder, or make a large sacrifice to get clear of the Society altogether.

When a share is sold, and the premium stated, it is divided into so many payments monthly, which, together with interest and principal, must be paid, failing which, the fines, which are now three times the amount, are charged, as the same fine for nonpayment of the principal is also charged on each of the other items sepa. rately; and if, through any disappointment in business, the borrower should miss payment for three or four nights, the accumulation of principal, interest, premium, and fines, is so great, that unless some friend steps in, he is rarely able to overcome it. And then comes the pay of the Solicitor; these are the cases they prefer. There is not only the first conveyance to the Society, but now sale by auction, conditions of sale drawing up, attendances, reconveyance by the vendors, and other et ceteras too numerous to mention; and the poor man, through an unguarded moment, is often strangled in his honest endeavours to raise a home. The most needy

that there are sinecures, jobbings, and extravagant pretensions in the history of both our naval and military board. But still, as the Peace Society could not protect England from Russia, where would be my loyalty or patriotism, were I to teach silence under the aggression, because the Admiralty and War-office are not what they ought to be? Joseph Hume, who knows their faults and defects well, would not make them a reason for not defending British Liberty. Now, I know of no Dissenter, who is not as loyal and patriotic as he is; nor, of any who would refuse to protest, until these boards of war shall be reformed. Is,

then, religious liberty less valuable than civil? Are the faults of State Episcopacy a valid reason for not opposing publicly, the stratagems and insolence of the Pope?

Besides, it is Protestantism itself, in all its forms and principles, that is now denounced by Rome. Although, therefore, neither Dissenters nor Methodists are named in the Bull, they are included in it, and would be equally affected by it. If it "smite the great house with breaches," it will also "smite the little house with clefts, from the entering in of Hemath unto the river of the wilderness," Amos vi. 11, 14. For, what could Nonconformists do, if Churchmen submit to the yoke of Rome? In my own case, therefore, it would be both treachery and treason against "the King of Zion,' were I not to petition and encourage the Queen of England, to assert the supremacy of her Protestant crown, in solemn defiance of the Papal tiara.

A PURITAN PATRIOT.

November 25th, 1850.

PLAIN HINTS ON CONGREGATIONAL SINGING.

THE question of congregational singing has long been an anomaly, and among the many minor questions arising out of it, is that of the class of tunes or style of music most fitted for the use of congregations, and the best adapted for the praise and worship of God. The music found in most places of worship is, generally speaking, of a very common order, in fact, emanations of a vulgar taste, and composed by those who would have done well to have studied compositions written a century before their time; this doubtless would have shamed them out of the poverty-stricken ideas of harmony they seem to have possessed, if we may judge from the tunes they have foisted on the public; nor can we wonder at the public accepting and adopting such tunes as favourites, since all will agree that unless they are painstaking they must of necessity be retrograding; and how far more is it in

accordance with the fallen nature of man, to revel in a tune that partakes more of the jig, or dance, than the grave, solemn, penitent, and soul-subsiding harmony, that should be found in the house of God.

Yet, while we view public taste in Psalmody at such a low ebb, we find after all, some redeeming points, in the love of such tunes as Bedford, Hanover, Old Hundredth, Abridge, and others; thus affording good ground for hope, and leading us to think it has rather been for want of material properly arranged, than an unwillingness to improve. Until lately this want has to a great extent remained unsupplied; but now indeed we have no cause of complaint, such obstacle being removed; one of our most enterprising music publishers having furnished the desideratum.* In referring to tunes of an objectionable class, among them may be found a variety of repeats, fugues, &c. Allusion need not be made to the ridiculous combination into which the words and music have entered; many will doubtless say this is done with all seriousness, and only ridiculous to those who feel disposed to turn it to ridicule; but may we not infer their taste must have become much vulgarized, to admit of such incongruities under any circumstances? Simplicity of worship is encouraged in the Bible, but even at that early period we find nothing as a precedent to such an exhibition of the ridiculous. It is an undeniable fact, that the aforesaid tunes, to be properly executed, are as difficult, nay, more so than some of the finest German chorales and the generality of ancient music. Compare for instance the tune Cranbrook with that known as the Old Hundredth, and we think an unqualified assent will be given that the latter is the school of music from which selections should be made for congregational purposes. Let us however refer to the unadvisable system universally found in places of worship, viz., that of trying to sing in unison; we say trying for we can prove the impossibility of a congregation singing in unison (of course an exception might be found, we treat of the rule.) The air of a tune is generally considered to include in its compass G above the stave; now the majority of men possess bass voices, and their compass seldom extends beyond C or Do,-all such falling short of the compass of the air by a fifth, or four notes; thus the impracticability is at once apparent. Now for the results of the attempt. Many delight to sing the words, and justly so, but it can only be accomplished by waiting till the high notes are passed. This is the wisest plan they could possibly adopt. But many like not to wait; thus they try to harmonize. Perchance they may stumble on a note that accords, but it is only one in a hundred discordant ones, and we venture to assert with safe ground for our assertion, that discord in congregational singing arises not so much from a want of science, a knowledge by the ear or otherwise of the tune, as it does from an attempt to harmonize during a passage out of bass compass.

We will however cast a glance at that part of the male voices which form the minority; we refer to those who possess a higher compass than the former, being in reality tenor voices. The compass of these will be found to vary from D to F, or E to G; the former being more The work we allude to is Warren's Psalmody,