consists of four parts. The first part is familiarly known by the name of the Marine Telegraph Signal Book; when this is used, it is designated with the indicator by the numbers denoting 6-4, which may be termed the numerical name of that part of the book. A brief exemplification will make this intelligible. When the observer at one station, wishes to communicate with the other, he places the indicator in a perpendicular position, in which it is kept during the whole time of the communication, except when changed to designate one of the books, as explained hereafter. Let it be supposed that the conductor of one of the stations should wish to converse, or inquire of the other, whether he had anything to communicate? tl is question will be found in the first part. Now, before asking the question, the observer puts the indicator first in position No. 6, and then changes it to No. 4, which is noted down upon a slate or paper thus, 6-4. The person inquired of, then knows he is to look into that book for the matter in question. The first observer then has recourse to the two arms of his telegraph, with which he makes the signals, denoting the numerals, 4-3-2-4; this makes the entire number 4324, against which number in the book, the person at the other station finds this question"Have you anything to communicate?" Being thus possessed of the question, he prepares to answer it either yes or no, which is to be found in the same part of the book. He also, in the first place, by means of his indicator, gives the numbers 6-4 to denote that book, and then immediately answers by the sign for the No. 4, which means "yes," or No. 1, which means 66 no." The second part is a very copious vocabulary. It embraces extensive and voluminous subjects of every description, arranged alphabetically. This second part is designated by the indicator, not by any one fixed and invariable number, but by several combinations of numbers, each of which at once directs the observer to a particular subdivision of the alphabet, where will be found the principal or important word, phrase or sentence. For instance, suppose the indicator should give the numbers 1-5, now, as the number does not denote the first part, or marine telegraph, which is 6-4, it follows that the observer is to look into the telegraph vocabulary. In this, it will accordingly be found that the numbers 1-5 denote the subdivision or letter D, under the principal word or subject, matter of inquiry will be seen. After this, if the following numbers were given by the arms of the telegraph, 2–6–4, “Is in great distress and requires immediate assistance," will be indicated. The third part contains the telegraph numbers of Marryat's code of signals, as adopted by the governments of England and France, for the use of the maritime commerce of these respective countries; the same system is used at Lloyd's coffee-house, London, and at the Holyhead and Liverpool telegraph stations. It embraces above twelve thousand designating telegraph numbers, which, together with two thousand numbers of the semaphoric system for American vessels, furnishes a signal book containing the names of nearly fourteen thousand sail of vessels. An essential and highly important auxiliary improvement, is attached to the semaphoric system, by means of flags, called the marine telegraph; their use rests upon the same principle as that of the semaphoric land telegraph; they are six in number only, and correspond to the six positions of the arms of the land telegraph, denoting the numerals 1, 2, 3, 4, 5, 6. They are each blue and white, and all of the same size, with the duplicate numbers of each flag. To these is added a conversation flag, which, like the indicator of the land telegraph, shows that the vessel making the signal wishes to converse. Many thousand changes can be made, designating the words, phrases and sentences, in the book abovementioned. By such means, vessels at sea can communicate to each other, even at the distance of ten miles, and when they approach the coast can hold communication with the semaphoric land telegraph. The very extended and increasing commerce of the United States, in continual intercourse with each other, as well as with the whole commercial world, should possess every facility of communication that can be devised for the purpose of diffusing information, and promoting the safety and comfort of those engaged in carrying it on. From the illustrations given of the uses and the extreme facility of communicating by telegraphs, an opinion may be formed of how much importance a line of telegraph communications upon our railroads, would tend to prevent the frequent collisions which take place, thereby saving a very great expense to the proprietors, and preventing the loss of life to individuals. The application of the art to other subjects, will naturally follow the progress of those rapid improvements which are the characteristics of the present age. We are all aware what a change has taken place in the transmission of intelligence relating to business, within a few years past; an additional impulse has rendered it necessary to add new energy to our means of communication. If there are now essential advantages to business, in obtaining intelligence by expresses, at the rate of ten and twelve miles per hour, any one must perceive that there must be a proportionate benefit, when information by telegraph can be transmitted throughout the country, at the rate of ten miles per minute. The rapidity of the public mail is not sufficient, in many instances, to supply the demands of a business community. Expresses, at an enormous expense, are employed to convey intelligence from the seat of government to the principal cities. When we witness the extraordinary resources of this growing countrywhen we observe the wonderful results of an intelligent and active population, incessantly occupied in developing their powers and resources, and stimulated by the circumstances in which they are placed, to greater and more intense exertion than the same number of people have probably ever been-when we see, too, that all ordinary calculations, founded upon the precedents of other nations, fall short of what is here actually accomplished-when we witness all this, we cannot believe that it is being too sanguine to expect the establishment of a line of telegraphs throughout the Union. In conclusion, we have directed our attention to the utility of telegraph communication, as applied to the practical concerns of the community, and, we may add, that it is of the highest importance, because it immediately concerns, not only the preservation of property, but of human lives. GRAPHO. ART. V.-MUTUAL LIFE INSURANCE.* THE result of the experience of the Mutual Life Insurance Company, of New York, and the New England Mutual Life Insurance Company, in Boston, shows that many prudent people in the community are aware that the insurance of life is, in many cases, quite as important as the insurance of a building, ship, cargo or other property, in others. It has been well remarked, if the inquiry were made in each case, it is probable that one man out of every four or five, would find that he can, by mutual insurance for his whole life, protect his family and the persons dependent upon him, against the disastrous effects of his premature decease, without any pecuniary sacrifice in so doing: for, whatever he pays, his family will be entitled to receive back again in due proportion; that is, with great addition, if he survive but a short time, and proportional deduction, in case of his surviving beyond expectation. This being so, a person in good health, of a sound life, insurable at the lowest rate of premium, if he reflect on the subject, will feel some compunction if he neglect such provision against the event of his premature decease; and on the other hand, if he make the provision, the satisfaction of his having done so is worth half of the premium, and has, in part, a tendency to promote his longevity. The statistics of life insurance show that it enhances the expectation of life. As people shall become acquainted with the subject, the matter of life insurance will pretty soon be as familiar as that of property now is. Information respecting it, is rapidly spreading, by means of the operation of the life offices now in operation. The business of the Mutual Life Insurance Company, of New York, from the commencement of its operations, 1st of February, 1843, to the 31st of August, 1844, (nineteen months,) has been as follows:— Number of policies,.... Of which, were for life,..... 796 419 282 95 Total policies for nineteen months,.... 796 The number of policies issued by this company, to September 1st, 1844, was, as above stated, 796; of which were to merchants, clerks and agents, 396; brokers, 37; clergymen, 30; physicians, 26; lawyers, 46; manufacturers, 25; mechanics, 36; farmers, 14; officers of incorporated companies, 34; officers, army and navy, 16; professors in colleges and students, 26; other pursuits, 110. *For an elaborate article on Life Insurance in the United States, &c., see Merchants' Magazine for February, 1843, Vol. VIII., No. 2, pp. 109 to 131, and continued in same Vol., No. 3, for March, pp. 205 to 240. + Nathan Hale, Esq., editor of the Boston Daily Advertiser. The company, so far, has sustained, by the death of two persons whose lives were insured, a loss of only $7,000. The amount of premiums on original policies, received during the months of July and August, 1844, was nine thousand four hundred and fifty-eight dollars, seventy-three cents, which would give an annual increase to the capital of the company, of $56,752 38. The business of this company must, from the growing interest in the subject among all classes, and the high character of the gentlemen composing the board of trustees, continue, as it has from the commencement, to steadily augment. The business of the New England Mutual Life Insurance Company, during the first six months of its operation, beginning February 1st, and ending July 31st, has been as follows, viz: Number of policies,.... Premiums and deposits,. 205 $573,180 00 14,950 88 The business continued at the same rate in the month of August, and it has from the beginning been singularly regular and steady, indicating its firm and substantial character, and its tendency to spread and diffuse itself in the community; and it will do so more rapidly as its benefits shall be developed, and become palpably apparent on the occurrences of losses. As yet, no loss has occurred to the New England company. We find in a late number of Chambers' Edinburgh Journal, a work conducted with signal ability, and characterized for its liberal and impartial view of topics connected with the general progress of man, some so well-timed remarks on the comparative merits of the two modes of insurance-"the mutual, and the proprietary" or stock company-which now contend for notice, that we are induced to embrace them in the present paper. After a careful examination of the two plans, with some benefit from practical experience, the writer declares his conviction that the mutual system is the only one which the public at large are concerned to support. He says: "The proprietary system, originating only by favor of the darkness in which the subject was at first buried, could only, it appears to us, have since been supported by the efforts of interested individuals. It is, perhaps, to be considered by mercantile men as a legitimate mode of making money; but, examined more rigidly, and by persons like ourselves, perfectly disinterested, it seems by no means a blameless one. To illustrate this, let us see how a life insurance company generally proceeds. A set of speculators start it with a large apparition of capital, of which only a few thousand pounds need be paid up. By means of a handsome looking office, incessant advertising and active managers and agents, business is obtained. After a few years, this has generally increased considerably, and large dividends begin to be made amongst the shareholders. In one instance, under our immediate notice, £10,000 of paid up capital now stands, after seventeen years' business, at the value of £70,000 in the stock market, being £600 per cent of premium. What is it that has thus so much increased its value? Only those surplusages of payment, by the public, which, in a mutual office, would all come back to the insured. Generally, it is to be remarked, proprietary offices, besides their usual scales of rates, where, as in death's own list, there is no return, have a scale where the payments are somewhat higher, and the insured are to have periodical bonuses as in the mutual system; a concession much like the celebrated one which vice is said to pay to virtue. But here, the benefits sink far below what are to be usually obtained from a respectable mutual office; as they well may, seeing that the company looks for a profit to itself, which is just so much abstracted from the pockets of the insured without any equivalent. Were we to draw out tables contrasting the sums which individuals will realize in a course of years under the mutual system, with those which the same payments will obtain under the proprietary or trading system, even where shares of profits' are professedly divided among the insured, our readers would be startled at the difference of results. It would appear almost incomprehensible that the proprietary system should have contrived to exist so long, when a rival plan, free from all selfish principle, and securing to the public the utmost possible advantages, was daily contending with it for public favor. This, however, is no real mystery, when we consider the ignorance of most persons on the subject of life insurance, and what a powerful interest is concerned in maintaining the repute of the proprietary system, and bringing business to its bureaux. "The leading pretext of the proprietary system is, that the subscribed capital affords a guarantee or security for the payment of claims which the mutual system lacks, and that the insured is thus compensated in safety for what he wants in money.. But the hollowness of this pleading is seen in a moment, when we consider that a combination of insurers, each paying fully what science says is necessary to make good their mutual engagements, is a transaction free from all risk, in the ordinary sense of the word, and only can fail in the event of a change in the laws of nature, or such an alteration in the condition of the country (affecting the value of money) as no kind of security would gain-stand. Attempts have been made to liken the case of a life insurance company to a bank of deposit, and to make out from that analogy that a stock is necessary for the secur ity of the insurers. But the cases are totally diverse, secing that the insurance company has not, like a bank, to trade with its deposits, but only to lay them out to the best advantage in permanent investments, and thus hold them, till they fall, in the due course of time, to be returned. A bank which appropriated to itself half the ordinary rate of interest for deposits, on the pretence of its having a few thousand pounds of stock to afford a security, would be in strict analogy, but no other. In fact, the capital is a mere stalking-horse, there is no instance of its ever being called into requisition. Were such an instance to occur, it would probably prove a mere trifle in comparison with the extent of the obligations. We may go farther, and say that this capital is not only unnecessary, in consequence of the unavoidable formation of large funds from the mere payments of the insured, but, if on a large scale, it would be a positive disadvantage, as, if there is any real difficulty in the conducting of life insurance business, it is in the disposal of the funds. Capital for life insurance, can, at the most, only be needed at first, while the accumulated premiums of the insured are of slender amount; but admitting that it is ever so needed, it almost immediately becomes superfluous, and should be therefore withdrawn. There is an instance of an office, commenced on the proprietary system, with an arrangement for the gradual buying up of the shareholders, which is now effected, so that the office, after twenty years' existence, has made a transition to the mutual system. This is so |