Chapter IV: Part 4

In a judgment of the judicial committee of the privy council in 1899 (_Coote_ v. _Sprigg_, A.C. 572), Lord Chancellor Halsbury made an important distinction as regards the obligations of state succession. The case in question was a claim of title against the crown, represented by the government of Cape Colony. It was made by persons holding a concession of certain rights in eastern Pondoland from a native chief. Before the grantees had taken up their grant by acts of possession, Pondoland was annexed to Cape Colony. The colonial government refused to recognize the grant on different grounds, the chief of them being that the concession conferred no legal rights before the annexation and therefore could confer none afterwards, a sufficiently good ground in itself. The judicial committee, however, rested its decision chiefly on the allegation that the acquisition of the territory was an act of state and that "no municipal court had authority to enforce such an obligation" as the duty of the new government to respect existing titles. "It is no answer," said Lord Halsbury, "to say that by the ordinary principles of international law private property is respected by the sovereign which accepts the cession and assumes the duties and legal obligations of the former sovereign with respect to such private property within the ceded territory. All that can be meant by such a proposition is that according to the well-understood rules of international law a change of sovereignty by cession ought not to affect private property, but no municipal tribunal has authority to enforce such an obligation. And if there is either an express or a well-understood bargain between the ceding potentate and the government to which the cession is made that private property shall be respected, that is only a bargain which can be enforced by sovereign against sovereign in the ordinary course of diplomatic pressure." In an editorial note on this case the _Law Quarterly Review_ of Jan. 1900 (p. 1), dissenting from the view of the judicial committee that "no municipal tribunal has authority to enforce such an obligation," the writer observes that "we can read this only as meant to lay down that, on the annexation of territory even by peaceable cession, there is a total abeyance of justice until the will of the annexing power is expressly made known; and that, although the will of that power is commonly to respect existing private rights, there is no rule or presumption to that effect of which any court must or indeed can take notice." So construed the doctrine is not only contrary to international law, but according to so authoritative an exponent of the common law as Sir F. Pollock, there is no warrant for it in English common law.

An interesting point of American constitutional law has arisen out of the cession of the Philippines to the United States, through the fact that the federal constitution does not lend itself to the exercise by the federal congress of unlimited powers, such as are vested in the British parliament. The sole authority for the powers of the federal congress is a written constitution with defined powers. Anything done in excess of those powers is null and void. The Supreme Court of the United States, on the other hand, has declared that, by the constitution, a government is ordained and established "for the United States of America" and not for countries outside their limits (_Ross's Case_, 140 U.S. 453, 464), and that no such power to legislate for annexed territories as that vested in the British crown in council is enjoyed by the president of the United States (_Field_ v. _Clark_, 143 U.S. 649, 692). Every detail connected with the administration of the territories acquired from Spain under the treaty of Paris (December 10, 1898) has given rise to minute discussion.

See Carman F. Randolph, _Law and Policy of Annexation_ (New York and
London, 1901); Charles Henry Butler, _Treaty-making Power of the
United States_ (New York, 1902), vol. i. p. 79 et seq. (T. Ba.)

ANNICERIS, a Greek philosopher of the Cyrenaic school. There is no certain information as to his date, but from the statement that he was a disciple of Paraebates it seems likely that he was a contemporary of Alexander the Great. A follower of Aristippus, he denied that pleasure is the general end of human life. To each separate action there is a particular end, namely the pleasure which actually results from it. Secondly, pleasure is not merely the negation of pain, inasmuch as death ends all pain and yet cannot be regarded as pleasure. There is, however, an absolute pleasure in certain virtues such as belong to the love of country, parents and friends. In these relations a man will have pleasure, even though it may result in painful and even fatal consequences. Friendship is not merely for the satisfaction of our needs, but is in itself a source of pleasure. He maintains further, in opposition to most of the Cyrenaic school, that wisdom or prudence alone is an insufficient guarantee against error. The wise man is he who has acquired a habit of wise action; human wisdom is liable to lapses at any moment. Diogenes Laertius says that Anniceris ransomed Plato from Dionysius, tyrant of Syracuse, for twenty minas. If we are right in placing Anniceris in the latter half of the 4th century, it is clear that the reference here is to an earlier Anniceris, who, according to Aelian, was a celebrated charioteer.

ANNING, MARY (1799-1847), English fossil-collector, the daughter of Richard Anning, a cabinet-maker, was born at Lyme Regis in May 1799. Her father was one of the earliest collectors and dealers in fossils, obtained chiefly from the Lower Lias in that famous locality. When but a child in 1811 she discovered the first specimen of _Ichthyosaurus_ which was brought into scientific notice; in 1821 she found remains of a new saurian, the _Plesiosaurus_ and in 1828 she procured, for the first time in England, remains of a pterodactyl (_Dimorphodon_). She died on the 9th of March 1847.

ANNISTON, a city and the county seat of Calhoun county, Alabama, U.S.A., in the north-eastern part of the state, about 63 m. E. by N. of Birmingham. Pop. (1890) 9998; (1900), 9695, of whom 3669 were of negro descent; (1910 census) 12,794. Anniston is served by the Southern, the Seaboard Air Line, and the Louisville & Nashville railways. The city is situated on the slope of Blue Mountain, a chain of the Blue Ridge, and is a health resort. It is the seat of the Noble Institute (for girls), established in 1886 by Samuel Noble (1834-1888), a wealthy iron-founder, and of the Alabama Presbyterian College for Men (1905). There are vast quantities of iron ore in the vicinity of the city, the Coosa coal-fields being only 25 m. distant. Anniston is an important manufacturing city, the principal industries being the manufacture of iron, steel and cotton. In 1905 the city's factory products were valued at $2,525,455. An iron furnace was established on the site of Anniston during the Civil War, but it was destroyed by the federal troops in 1865; and in 1872 it was rebuilt on a much larger scale. The city was founded in 1872 as a private enterprise, by the Woodstock Iron Company, organized by Samuel Noble and Gen. Daniel Tyler (1799-1882); but it was not opened for general settlement until twelve years later. It was chartered as a city in 1879.

ANNO, or HANNO, SAINT (c. 1010-1075), archbishop of Cologne, belonged to a Swabian family, and was educated at Bamberg. He became confessor to the emperor Henry III., who appointed him archbishop of Cologne in 1056. He took a prominent part in the government of Germany during the minority of King Henry IV., and was the leader of the party which in 1062 seized the person of Henry, and deprived his mother, the empress Agnes, of power. For a short time Anno exercised the chief authority in the kingdom, but he was soon obliged to share this with Adalbert, archbishop of Bremen, retaining for himself the supervision of Henry's education and the title of _magister_. The office of chancellor of the kingdom of Italy was at this period regarded as an appanage of the archbishopric of Cologne, and this was probably the reason why Anno had a considerable share in settling the papal dispute in 1064. He declared Alexander II. to be the rightful pope at a synod held at Mantua in May 1064, and took other steps to secure his recognition. Returning to Germany, he found the chief power in the hands of Adalbert, and as he was disliked by the young king, he left the court but returned and regained some of his former influence when Adalbert fell from power in 1066. He succeeded in putting down a rising against his authority in Cologne in 1074, and it was reported he had allied himself with William the Conqueror, king of England, against the emperor. Having cleared himself of this charge, Anno took no further part in public business, and died at Cologne on the 4th of December 1075. He was buried in the monastery of Siegburg and was canonized in 1183 by Pope Lucius III. He was a founder of monasteries and a builder of churches, advocated clerical celibacy and was a strict disciplinarian. He was a man of great energy and ability, whose action in recognizing Alexander II. was of the utmost consequence for Henry IV. and for Germany.

There is a _Vita Annonis_, written about 1100, by a monk of Siegburg,
but this is of slight value. It appears in the _Monumenta Germaniae
historica: Scriptores_, Bd. xi. (Hanover and Berlin, 1826-1892). There
is an "Epistola ad monachos Malmundarienses" by Anno in the _Neues
Archiv der Gesellschaft fur altere deutsche Geschichtskunde_, Bd. xiv.
(Hanover, 1876 seq.). See also the _Annolied_, or _Incerti poetae
Teutonici rhythmus de S. Annone_, written about 1180, and edited by J.
Kehrein (Frankfort, 1865); Th. Lindner, _Anno II. der Heilige,
Erzbischof von Koln_ (Leipzig, 1869).

ANNOBON, or ANNO BOM, an island in the Gulf of Guinea, in 1 deg. 24' S. and 5 deg. 35' E., belonging to Spain. It is 110 m. S.W. of St Thomas. Its length is about 4 m., its breadth 2, and its area 6-3/4 sq. m. Rising in some parts nearly 3000 ft. above the sea, it presents a succession of beautiful valleys and steep mountains, covered with rich woods and luxuriant vegetation. The inhabitants, some 3000 in number, are negroes and profess belief in the Roman Catholic faith. The chief town and residence of the governor is called St Antony (San Antonio de Praia). The roadstead is tolerably safe, and passing vessels take advantage of it in order to obtain water and fresh provisions, of which Annobon contains an abundant supply. The island was discovered by the Portuguese on the 1st of January 1473, from which circumstance it received its name (= New Year). Annobon, together with Fernando Po, was ceded to Spain by the Portuguese in 1778. The islanders revolted against their new masters and a state of anarchy ensued, leading, it is averred, to an arrangement by which the island was administered by a body of five natives, each of whom held the office of governor during the period that elapsed till ten ships touched at the island. In the latter part of the 19th century the authority of Spain was re-established.

ANNONA (from Lat. _annus_, year), in Roman mythology, the personification of the produce of the year. She is represented in works of art, often together with Ceres, with a _cornucopia_ (horn of plenty) in her arm, and a ship's prow in the background, indicating the transport of grain over the sea. She frequently occurs on coins of the empire, standing between a _modius_ (corn-measure) and the prow of a galley, with ears of corn in one hand and a _cornucopia_ in the other; sometimes she holds a rudder or an anchor. The Latin word itself has various meanings: (1) the produce of the year's harvest; (2) all means of subsistence, especially grain stored in the public granaries for provisioning the city; (3) the market-price of commodities, especially corn; (4) a direct tax in kind, levied in republican times in several provinces, chiefly employed in imperial times for distribution amongst officials and the support of the soldiery.

In order to ensure a supply of corn sufficient to enable it to be sold at a very low price, it was procured in large quantities from Umbria, Etruria and Sicily. Almost down to the times of the empire, the care of the corn-supply formed part of the aedile's duties, although in 440 B.C. (if the statement in Livy iv. 12, 13 is correct, which is doubtful) the senate appointed a special officer, called _praefectus annonae_, with greatly extended powers. As a consequence of the second Punic War, Roman agriculture was at a standstill; accordingly, recourse was had to Sicily and Sardinia (the first two Roman provinces) in order to keep up the supply of corn; a tax of one-tenth was imposed on it, and its export to any country except Italy forbidden. The price at which the corn was sold was always moderate; the corn law of Gracchus (123 B.C.) made it absurdly low, and Clodius (58 B.C.) bestowed it gratuitously. The number of the recipients of this free gift grew so enormously, that both Caesar and Augustus were obliged to reduce it. From the time of Augustus to the end of the empire the number of those who were entitled to receive a monthly allowance of corn on presenting a ticket was 200,000. In the 3rd century, bread formed the dole. A _praefectus annonae_ was appointed by Augustus to superintend the corn-supply; he was assisted by a large staff in Rome and the provinces, and had jurisdiction in all matters connected with the corn-market. The office lasted till the latest times of the empire.

ANNONAY, a town of south-eastern France, in the north of the department of Ardeche, 50 m. S. of Lyons by the Paris-Lyons railway. Pop. (1906) 15,403. Annonay is built on the hill overlooking the meeting of the deep gorges of the Deome and the Cance, the waters of which supply power to the factories of the town. By means of a dam across the Ternay, an affluent of the Deome, to the north-west of the town, a reservoir is provided, in which an additional supply of water, for both industrial and domestic purposes, is stored. At Annonay there is an obelisk in honour of the brothers Montgolfier, inventors of the balloon, who were natives of the place. A tribunal of commerce, a board of trade-arbitrators, a branch of the Bank of France, and chambers of commerce and of arts and manufactures are among the public institutions. Annonay is the principal industrial centre of its department, the chief manufactures being those of leather, especially for gloves, paper, silk and silk goods, and flour. Chemical manures, glue, gelatine, brushes, chocolate and candles are also produced.

ANNOY (like the French _ennui_, a word traced by etymologists to a Lat. phrase, _in odio esse_, to be "in hatred" or hateful of someone), to vex or affect with irritation. In the sense of "nuisance," the noun "annoyance," apart from its obvious meaning, is found in the English "Jury of Annoyance" appointed by an act of 1754 to report upon obstructions in the highways.

ANNUITY (from Lat. _annus_, a year), a periodical payment, made annually, or at more frequent intervals, either for a fixed term of years, or during the continuance of a given life, or a combination of lives. In technical language an annuity is said to be payable for an assigned _status_, this being a general word chosen in preference to such words as "time," "term" or "period," because it may include more readily either a term of years certain, or a life or combination of lives. The magnitude of the annuity is the sum to be paid (and received) in the course of each year. Thus, if L100 is to be received each year by a person, he is said to have "an annuity of L100." If the payments are made half-yearly, it is sometimes said that he has "a half-yearly annuity of L100"; but to avoid ambiguity, it is more commonly said he has an annuity of L100, payable by half-yearly instalments. The former expression, if clearly understood, is preferable on account of its brevity. So we may have quarterly, monthly, weekly, daily annuities, when the annuity is payable by quarterly, monthly, weekly or daily instalments. An annuity is considered as accruing during each instant of the status for which it is enjoyed, although it is only payable at fixed intervals. If the enjoyment of an annuity is postponed until after the lapse of a certain number of years, the annuity is said to be deferred. If an annuity, instead of being payable at the end of each year, half-year, &c., is payable in advance, it is called an annuity-due.

If an annuity is payable for a term of years independent of any contingency, it is called an _annuity certain_; if it is to continue for ever, it is called a _perpetuity_; and if in the latter case it is not to commence until after a term of years, it is called a _deferred perpetuity_. An annuity depending on the continuance of an assigned life or lives, is sometimes called a life annuity; but more commonly the simple term "annuity" is understood to mean a life annuity, unless the contrary is stated. A life annuity, to cease in any event after a certain term of years, is called a _temporary annuity_. The holder of an annuity is called an annuitant, and the person on whose life the annuity depends is called the nominee.

If not otherwise stated, it is always understood that an annuity is payable yearly, and that the annual payment (or rent, as it is sometimes called) is L1. It is, however, customary to consider the annual payment to be, not L1, but simply 1, the reader supplying whatever monetary unit he pleases, whether pound, dollar, franc, Thaler, &c.

The annuity is the totality of the payments to be made (and received), and is so understood by all writers on the subject; but some have also used the word to denote an individual payment (or rent), speaking, for instance, of the first or second year's annuity,--a practice which is calculated to introduce confusion and should therefore be carefully avoided.

Instances of perpetuities are the dividends upon the public stocks in England, France and some other countries. Thus, although it is usual to speak of L100 consols, the reality is the yearly dividend which the government pays by quarterly instalments. The practice of the French in this, as in many other matters, is more logical. In speaking of their public funds (_rentes_) they do not mention the ideal capital sum, but speak of the annuity or annual payment that is received by the public creditor. Other instances of perpetuities are the incomes derived from the debenture stocks of railway companies, also the feu-duties commonly payable on house property in Scotland. The number of years' purchase which the perpetual annuities granted by a government or a railway company realize in the open market, forms a very simple test of the credit of the various governments or railways.

_Terminable Annuities_ are employed in the system of British public finance as a means of reducing the National Debt (q.v.). This result is attained by substituting for a perpetual annual charge (or one lasting until the capital which it represents can be paid off _en bloc_), an annual charge of a larger amount, but lasting for a short term. The latter is so calculated as to pay off, during its existence, the capital which it replaces, with interest at an assumed or agreed rate, and under specified conditions. The practical effect of the substitution of a terminable annuity for an obligation of longer currency is to bind the present generation of citizens to increase its own obligations in the present and near future in order to diminish those of its successors. This end might be attained in other ways; for instance, by setting aside out of revenue a fixed annual sum for the purchase and cancellation of debt (Pitt's method, in intention), or by fixing the annual debt charge at a figure sufficient to provide a margin for reduction of the principal of the debt beyond the amount required for interest (Sir Stafford Northcote's method), or by providing an annual surplus of revenue over expenditure (the "Old Sinking Fund"), available for the same purpose. All these methods have been tried in the course of British financial history, and the second and third of them are still employed; but on the whole the method of terminable annuities has been the one preferred by chancellors of the exchequer and by parliament.

Terminable annuities, as employed by the British government, fall under two heads:--(a) Those issued to, or held by private persons; (b) those held by government departments or by funds under government control. The important difference between these two classes is that an annuity under (a), once created, cannot be modified except with the holder's consent, i.e. is practically unalterable without a breach of public faith; whereas an annuity under (b) can, if necessary, be altered by interdepartmental arrangement under the authority of parliament. Thus annuities of class (a) fulfil most perfectly the object of the system as explained above; while those of class (b) have the advantage that in times of emergency their operation can be suspended without any inconvenience or breach of faith, with the result that the resources of government can on such occasions be materially increased, apart from any additional taxation. For this purpose it is only necessary to retain as a charge on the income of the year a sum equal to the (smaller) perpetual charge which was originally replaced by the (larger) terminable charge, whereupon the difference between the two amounts is temporarily released, while ultimately the increased charge is extended for a period equal to that for which it is suspended. Annuities of class (a) were first instituted in 1808, but are at present mainly regulated by an act of 1829. They may be granted either for a specified life, or two lives, or for an arbitrary term of years; and the consideration for them may take the form either of cash or of government stock, the latter being cancelled when the annuity is set up. Annuities (b) held by government departments date from 1863. They have been created in exchange for permanent debt surrendered for cancellation, the principal operations having been effected in 1863, 1867, 1870, 1874, 1883 and 1899. Annuities of this class do not affect the public at all, except of course in their effect on the market for government securities. They are merely financial operations between the government, in its capacity as the banker of savings banks and other funds, and itself, in the capacity of custodian of the national finances. Savings bank depositors are not concerned with the manner in which government invests their money, their rights being confined to the receipt of interest and the repayment of deposits upon specified conditions. The case is, however, different as regards forty millions of consols (included in the above figures), belonging to suitors in chancery, which were cancelled and replaced by a terminable annuity in 1883. As the liability to the suitors in that case was for a specified amount of stock, special arrangements were made to ensure the ultimate replacement of the precise amount of stock cancelled.

_Annuity Calculations._--The mathematical theory of life annuities is based upon a knowledge of the rate of mortality among mankind in general, or among the particular class of persons on whose lives the annuities depend. It involves a mathematical treatment too complicated to be dealt with fully in this place, and in practice it has been reduced to the form of tables, which vary in different places, but which are easily accessible. The history of the subject may, however, be sketched. Abraham Demoivre, in his _Annuities on Lives_, propounded a very simple law of mortality which is to the effect that, out of 86 children born alive, 1 will die every year until the last dies between the ages of 85 and 86. This law agreed sufficiently well at the middle ages of life with the mortality deduced from the best observations of his time; but, as observations became more exact, the approximation was found to be not sufficiently close. This was particularly the case when it was desired to obtain the value of joint life, contingent or other complicated benefits. Therefore Demoivre's law is entirely devoid of practical utility. No simple formula has yet been discovered that will represent the rate of mortality with sufficient accuracy.

The rate of mortality at each age is, therefore, in practice usually determined by a series of figures deduced from observation; and the value of an annuity at any age is found from these numbers by means of a series of arithmetical calculations. The mortality table here given is an example of modern use.

The first writer who is known to have attempted to obtain, on correct mathematical principles, the value of a life annuity, was Jan De Witt, grand pensionary of Holland and West Friesland. Our knowledge of his writings on the subject is derived from two papers contributed by Frederick Hendriks to the _Assurance Magazine_, vol. ii. p. 222, and vol. in. p. 93. The former of these contains a translation of De Witt's report upon the value of life annuities, which was prepared in consequence of the resolution passed by the states-general, on the 25th of April 1671, to negotiate funds by life annuities, and which was distributed to the members on the 30th of July 1671. The latter contains the translation of a number of letters addressed by De Witt to Burgomaster Johan Hudde, bearing dates from September 1670 to October 1671. The existence of De Witt's report was well known among his contemporaries, and Hendriks collected a number of extracts from various authors referring to it; but the report is not contained in any collection of his works extant, and had been entirely lost for 180 years, until Hendriks discovered it among the state archives of Holland in company with the letters to Hudde. It is a document of extreme interest, and (notwithstanding some inaccuracies in the reasoning) of very great merit, more especially considering that it was the very first document on the subject that was ever written.

TABLE OF MORTALITY--HM, HEALTHY LIVES--MALE.

_Number Living and Dying at each Age, out of 10,000 entering at Age 10._

+------+---------+--------+------+---------+--------+
| Age. | Living. | Dying. | Age. | Living. | Dying. |
+------+---------+--------+------+---------+--------+
| 10 | 10,000 | 79 | 54 | 6791 | 129 |
| 11 | 9,921 | 0 | 55 | 6662 | 153 |
| 12 | 9,921 | 40 | 56 | 6509 | 150 |
| 13 | 9,881 | 35 | 57 | 6359 | 152 |
| 14 | 9,846 | 40 | 58 | 6207 | 156 |
| 15 | 9,806 | 22 | 59 | 6051 | 153 |
| 16 | 9,784 | 0 | 60 | 5898 | 184 |
| 17 | 9,784 | 41 | 61 | 5714 | 186 |
| 18 | 9,743 | 59 | 62 | 5528 | 191 |
| 19 | 9,684 | 68 | 63 | 5337 | 200 |
| 20 | 9,616 | 56 | 64 | 5137 | 206 |
| 21 | 9,560 | 67 | 65 | 4931 | 215 |
| 22 | 9,493 | 59 | 66 | 4716 | 220 |
| 23 | 9,434 | 73 | 67 | 4496 | 220 |
| 24 | 9,361 | 64 | 68 | 4276 | 237 |
| 25 | 9,297 | 48 | 69 | 4039 | 246 |
| 26 | 9,249 | 64 | 70 | 3793 | 213 |
| 27 | 9,185 | 60 | 71 | 3580 | 222 |
| 28 | 9,125 | 71 | 72 | 3358 | 268 |
| 29 | 9,054 | 67 | 73 | 3090 | 243 |
| 30 | 8,987 | 74 | 74 | 2847 | 300 |
| 31 | 8,913 | 65 | 75 | 2547 | 241 |
| 32 | 8,848 | 74 | 76 | 2306 | 245 |
| 33 | 8,774 | 73 | 77 | 2061 | 224 |
| 34 | 8,701 | 76 | 78 | 1837 | 226 |
| 35 | 8,625 | 71 | 79 | 1611 | 219 |
| 36 | 8,554 | 75 | 80 | 1392 | 196 |
| 37 | 8,479 | 81 | 81 | 1196 | 191 |
| 38 | 8,398 | 87 | 82 | 1005 | 173 |
| 39 | 8,311 | 88 | 83 | 832 | 172 |
| 40 | 8,223 | 81 | 84 | 660 | 119 |
| 41 | 8,142 | 85 | 85 | 541 | 117 |
| 42 | 8,057 | 87 | 86 | 424 | 92 |
| 43 | 7,970 | 84 | 87 | 332 | 72 |
| 44 | 7,886 | 93 | 88 | 260 | 74 |
| 45 | 7,793 | 97 | 89 | 186 | 36 |
| 46 | 7,696 | 96 | 90 | 150 | 34 |
| 47 | 7,600 | 107 | 91 | 116 | 36 |
| 48 | 7,493 | 106 | 92 | 80 | 36 |
| 49 | 7,387 | 113 | 93 | 44 | 29 |
| 50 | 7,274 | 120 | 94 | 15 | 0 |
| 51 | 7,154 | 124 | 95 | 15 | 5 |
| 52 | 7,030 | 120 | 96 | 10 | 10 |
| 53 | 6,910 | 119 | | | |
+------+---------+--------+------+---------+--------+

It appears that it had long been the practice in Holland for life annuities to be granted to nominees of any age, in the constant proportion of double the rate of interest allowed on stock; that is to say, if the towns were borrowing money at 6%, they would be willing to grant a life annuity at 12%, and so on. De Witt states that "annuities have been sold, even in the present century, first at six years' purchase, then at seven and eight; and that the majority of all life annuities now current at the country's expense were obtained at nine years' purchase"; but that the price had been increased in the course of a few years from eleven years' purchase to twelve, and from twelve to fourteen. He also states that the rate of interest had been successively reduced from 6-1/4 to 5%, and then to 4%. The principal object of his report is to prove that, taking interest at 4%, a life annuity was worth at least sixteen years' purchase; and, in fact, that an annuitant purchasing an annuity for the life of a young and healthy nominee at sixteen years' purchase, made an excellent bargain. It may be mentioned that he argues that it is more to the advantage, both of the country and of the private investor, that the public loans should be raised by way of grant of life annuities rather than perpetual annuities. It appears conclusively from De Witt's correspondence with Hudde, that the rate of mortality assumed as the basis of his calculations was deduced from careful examination of the mortality that had actually prevailed among the nominees on whose lives annuities had been granted in former years. De Witt appears to have come to the conclusion that the probability of death is the same in any half-year from the age of 3 to 53 inclusive; that in the next ten years, from 53 to 63, the probability is greater in the ratio of 3 to 2; that in the next ten years, from 63 to 73, it is greater in the ratio of 2 to 1; and in the next seven years, from 73 to 80, it is greater in the ratio of 3 to 1; and he places the limit of human life at 80. If a mortality table of the usual form is deduced from these suppositions, out of 212 persons alive at the age of 3, 2 will die every year up to 53, 3 in each of the ten years from 53 to 63, 4 in each of the next ten years from 63 to 73, and 6 in each of the next seven years from 73 to 80, when all will be dead.

De Witt calculates the value of an annuity in the following way. Assume that annuities on 10,000 lives each ten years of age, which satisfy the Hm mortality table, have been purchased. Of these nominees 79 will die before attaining the age of 11, and no annuity payment will be made in respect of them; none will die between the ages of 11 and 12, so that annuities will be paid for one year on 9921 lives; 40 attain the age of 12 and die before 13, so that two payments will be made with respect to these lives. Reasoning in this way we see that the annuities on 35 of the nominees will be payable for three years; on 40 for four years, and so on. Proceeding thus to the end of the table, 15 nominees attain the age of 95, 5 of whom die before the age of 96, so that 85 payments will be paid in respect of these 5 lives. Of the survivors all die before attaining the age of 97, so that the annuities on these lives will be payable for 86 years. Having previously calculated a table of the values of annuities certain for every number of years up to 86, the value of all the annuities on the 10,000 nominees will be found by taking 40 times the value of an annuity for 2 years, 35 times the value of an annuity for 3 years, and so on--the last term being the value of 10 annuities for 86 years--and adding them together; and the value of an annuity on one of the nominees will then be found by dividing by 10,000. Before leaving the subject of De Witt, we may mention that we find in the correspondence a distinct suggestion of the law of mortality that bears the name of Demoivre. In De Witt's letter, dated the 27th of October 1671 (_Ass. Mag_. vol. iii. p. 107), he speaks of a "provisional hypothesis" suggested by Hudde, that out of 80 young lives (who, from the context, may be taken as of the age 6) about 1 dies annually. In strictness, therefore, the law in question might be more correctly termed Hudde's than Demoivre's.

De Witt's report being thus of the nature of an unpublished state paper, although it contributed to its author's reputation, did not contribute to advance the exact knowledge of the subject; and the author to whom the credit must be given of first showing how to calculate the value of an annuity on correct principles is Edmund Halley. He gave the first approximately correct mortality table (deduced from the records of the numbers of deaths and baptisms in the city of Breslau), and showed how it might be employed to calculate the value of an annuity on the life of a nominee of any age (see _Phil. Trans_. 1693; _Ass. Mag_. vol. xviii.).

Previously to Halley's time, and apparently for many years subsequently, all dealings with life annuities were based upon mere conjectural estimates. The earliest known reference to any estimate of the value of life annuities rose out of the requirements of the Falcidian law, which (40 B.C.) was adopted in the Roman empire, and which declared that a testator should not give more than three-fourths of his property in legacies, so that at least one-fourth must go to his legal representatives. It is easy to see how it would occasionally become necessary, while this law was in force, to value life annuities charged upon a testator's estate. Aemilius Macer (A.D. 230) states that the method which had been in common use at that time was as follows:--From the earliest age until 30 take 30 years' purchase, and for each age after 30 deduct 1 year. It is obvious that no consideration of compound interest can have entered into this estimate; and it is easy to see that it is equivalent to assuming that all persons who attain the age of 30 will certainly live to the age of 60, and then certainly die. Compared with this estimate, that which was propounded by the praetorian prefect Ulpian was a great improvement. His table is as follows:--

+-------------+-----------+------------+-----------+
| Age. | Years' | Age. | Years' |
| | Purchase. | | Purchase |
+-------------+-----------+------------+-----------+
| Birth to 20 | 30 | 45 to 46 | 14 |
| 20 " 25 | 28 | 46 " 47 | 13 |
| 25 " 30 | 25 | 47 " 48 | 12 |
| 30 " 35 | 22 | 48 " 49 | 11 |
| 35 " 40 | 20 | 49 " 50 | 10 |
| 40 " 41 | 19 | 50 " 55 | 9 |
| 41 " 42 | 18 | 55 " 60 | 7 |
| 42 " 43 | 17 | 60 and | |
| 43 " 44 | 16 | upwards | 5 |
| 44 " 45 | 15 | | |
+-------------+-----------+------------+-----------+

Here also we have no reason to suppose that the element of interest was taken into consideration; and the assumption, that between the ages of 40 and 50 each addition of a year to the nominee's age diminishes the value of the annuity by one year's purchase, is equivalent to assuming that there is no probability of the nominee dying between the ages of 40 and 50. Considered, however, simply as a table of the average duration of life, the values are fairly accurate. At all events, no more correct estimate appears to have been arrived at until the close of the 17th century.

The mathematics of annuities has been very fully treated in Demoivre's
_Treatise on Annuities_ (1725); Simpson's _Doctrine of Annuities and
Reversions_ (1742); P. Gray, _Tables and Formulae_; Baily's _Doctrine
of Life Annuities_; there are also innumerable compilations of
_Valuation Tables_ and _Interest Tables_, by means of which the value
of an annuity at any age and any rate of interest may be found. See
also the article INTEREST, and especially that on INSURANCE.

_Commutation tables_, aptly so named in 1840 by Augustus De Morgan (see his paper "On the Calculation of Single Life Contingencies," _Assurance Magazine_, xii. 328), show the proportion in which a benefit due at one age ought to be changed, so as to retain the same value and be due at another age. The earliest known specimen of a commutation table is contained in William Dale's _Introduction to the Study of the Doctrine of Annuities_, published in 1772. A full account of this work is given by F. Hendriks in the second number of the _Assurance Magazine_, pp. 15-17. William Morgan's _Treatise on Assurances_, 1779, also contains a commutation table. Morgan gives the table as furnishing a convenient means of checking the correctness of the values of annuities found by the ordinary process. It may be assumed that he was aware that the table might be used for the direct calculation of annuities; but he appears to have been ignorant of its other uses.

The first author who fully developed the powers of the table was John Nicholas Tetens, a native of Schleswig, who in 1785, while professor of philosophy and mathematics at Kiel, published in the German language an _Introduction to the Calculation of Life Annuities and Assurances_. This work appears to have been quite unknown in England until F. Hendriks gave, in the first number of the _Assurance Magazine_, pp. 1-20 (Sept. 1850), an account of it, with a translation of the passages describing the construction and use of the commutation table, and a sketch of the author's life and writings, to which we refer the reader who desires fuller information. It may be mentioned here that Tetens also gave only a specimen table, apparently not imagining that persons using his work would find it extremely useful to have a series of commutation tables, calculated and printed ready for use.

The use of the commutation table was independently developed in England-apparently between the years 1788 and 1811--by George Barrett, of Petworth, Sussex, who was the son of a yeoman farmer, and was himself a village schoolmaster, and afterwards farm steward or bailiff. It has been usual to consider Barrett as the originator in England of the method of calculating the values of annuities by means of a commutation table, and this method is accordingly sometimes called Barrett's method. (It is also called the commutation method and the columnar method.) Barrett's method of calculating annuities was explained by him to Francis Baily in the year 1811, and was first made known to the world in a paper written by the latter and read before the Royal Society in 1812.

By what has been universally considered an unfortunate error of judgment, this paper was not recommended by the council of the Royal Society to be printed, but it was given by Baily as an appendix to the second issue (in 1813) of his work on life annuities and assurances. Barrett had calculated extensive tables, and with Baily's aid attempted to get them published by subscription, but without success; and the only printed tables calculated according to his manner, besides the specimen tables given by Baily, are the tables contained in Babbage's _Comparative View of the various Institutions for the Assurance of Lives_, 1826.

In the year 1825 Griffith Davies published his _Tables of Life Contingencies_, a work which contains, among others, two tables, which are confessedly derived from Baily's explanation of Barrett's tables.

Those who desire to pursue the subject further can refer to the
appendix to Baily's _Life Annuities and Assurances_, De Morgan's paper
"On the Calculation of Single Life Contingencies," _Assurance
Magazine_, xii. 348-349; Gray's _Tables and Formulae_ chap. viii.; the
preface to Davies's _Treatise on Annuities_; also Hendriks's papers in
the _Assurance Magazine_, No. 1, p. 1, and No. 2, p. 12; and in
particular De Morgan's "Account of a Correspondence between Mr George
Barrett and Mr Francis Baily," in the _Assurance Magazine_, vol. iv.
p. 185.

The principal commutation tables published in England are contained in
the following works:--David Jones, _Value of Annuities and
Reversionary Payments_, issued in parts by the Useful Knowledge
Society, completed in 1843; Jenkin Jones, _New Rate of Mortality_,
1843; G. Davies, _Treatise on Annuities_, 1825 (issued 1855); David
Chisholm, _Commutation Tables_, 1858; Nelson's _Contributions to Vital
Statistics_, 1857; Jardine Henry, _Government Life Annuity Commutation
Tables_, 1866 and 1873; _Institute of Actuaries Life Tables_, 1872;
R.P. Hardy, _Valuation Tables_, 1873; and Dr William Farr's
contributions to the sixth (1844), twelfth (1849), and twentieth
(1857) _Reports_ of the Registrar General in England (English Tables,
I. 2), and to the _English Life Table_, 1864.

The theory of annuities may be further studied in the discussions in
the English _Journal of the Institute of Actuaries_. The institute was
founded in the year 1848, the first sessional meeting being held in
January 1849. Its establishment has contributed in various ways to
promote the study of the theory of life contingencies. Among these may
be specified the following:--Before it was formed, students of the
subject worked for the most part alone, and without any concert; and
when any person had made an improvement in the theory, it had little
chance of becoming publicly known unless he wrote a formal treatise on
the whole subject. But the formation of the institute led to much
greater interchange of opinion among actuaries, and afforded them a
ready means of making known to their professional associates any
improvements, real or supposed, that they thought they had made.
Again, the discussions which follow the reading of papers before the
institute have often served, first, to bring out into bold relief
differences of opinion that were previously unsuspected, and
afterwards to soften down those differences,--to correct extreme
opinions in every direction, and to bring about a greater agreement of
opinion on many important subjects. In no way, probably, have the
objects of the institute been so effectually advanced as by the
publication of its _Journal_. The first number of this work, which was
originally called the _Assurance Magazine_, appeared in September
1850, and it has been continued quarterly down to the present time. It
was originated by the public spirit of two well-known actuaries (Mr
Charles Jellicoe and Mr Samuel Brown), and was adopted as the organ of
the Institute of Actuaries in the year 1852, and called the _Assurance
Magazine and Journal of the Institute of Actuaries_, Mr Jellicoe
continuing to be the editor,--a post he held until the year 1867, when
he was succeeded by Mr T.B. Sprague (who contributed to the 9th
edition of this Encyclopaedia an elaborate article on "Annuities," on
which the above account is based). The name was again changed in 1866,
the words "Assurance Magazine" being dropped; but in the following
year it was considered desirable to resume these, for the purpose of
showing the continuity of the publication, and it is now called the
_Journal of the Institute of Actuaries and Assurance Magazine_. This
work contains not only the papers read before the institute (to which
have been appended of late years short abstracts of the discussions on
them), and many original papers which were unsuitable for reading,
together with correspondence, but also reprints of many papers
published elsewhere, which from various causes had become difficult of
access to the ordinary reader, among which may be specified various
papers which originally appeared in the _Philosophical Transactions_,
the _Philosophical Magazine_, the _Mechanics' Magazine_, and the
_Companion to the Almanac_; also translations of various papers from
the French, German, and Danish. Among the useful objects which the
continuous publication of the _Journal_ of the institute has served,
we may specify in particular two:--that any supposed improvement in
the theory was effectually submitted to the criticisms of the whole
actuarial profession, and its real value speedily discovered; and that
any real improvement, whether great or small, being placed on record,
successive writers have been able, one after the other, to take it up
and develop it, each commencing where the previous one had left off.

ANNULAR, ANNULATE, &c. (Lat. _annulus_, a ring), ringed. "Annulate" is used in botany and zoology in connexion with certain plants, worms, &c. (see ANNELIDA), either marked with rings or composed of ring-like segments. The word "annulated" is also used in, heraldry and architecture. An annulated cross is one with the points ending in an "annulet" (an heraldic ring, supposed to be taken from a coat of mail), while the annulet in architecture is a small fillet round a column, which encircles the lower part of the Doric capital immediately above the neck or trachelium. The word "annulus" (for "ring") is itself used technically in geometry, astronomy, &c., and the adjective "annular" corresponds. An _annular space_ is that between an inner and outer ring. The _annular finger_ is the ring finger. An _annular eclipse_ is an eclipse of the sun in which the visible part of the latter completely encircles the dark body of the moon; for this to happen, the centres of the sun and moon, and the point on the earth where the observer is situated, must be collinear. Certain nebulae having the form of a ring are also called "annular."

ANNUNCIATION, the announcement made by the angel Gabriel to the Virgin Mary of the incarnation of Christ (Luke i, 26-38). The Feast of the Annunciation in the Christian Church is celebrated on the 25th of March. The first authentic allusions to it are in a canon, of the council of Toledo (656), and another of the council of Constantinople "in Trullo" (692), forbidding the celebration of all festivals in Lent, excepting the Lord's day and the Feast of the Annunciation. An earlier origin has been claimed for it on the ground that it is mentioned in sermons of Athanasius and of Gregory Thaumaturgus, but both of these documents are now admitted to be spurious. A synod held at Worcester, England (1240), forbade all servile work on this feast day. See further LADY DAY.

ANNUNZIO, GABRIELE D' (1863- ), Italian novelist and poet, of Dalmatian extraction, was born at Pescara (Abruzzi) in 1863. The first years of his youth were spent in the freedom of the open fields; at sixteen he was sent to school in Tuscany. While still at school he published a small volume of verses called _Primo Vere_ (1879), in which, side by side with some almost brutal imitations of Lorenzo Stecchetti, the then fashionable poet of _Postuma_, were some translations from the Latin, distinguished by such agile grace that Giuseppe Chiarini on reading them brought the unknown youth before the public in an enthusiastic article. The young poet then went to Rome, where he was received as one of their own by the _Cronaca Bizantina_ group (see CARDUCCI). Here he published _Canto Nuovo_ (1882), _Terra Vergine_ (1882), _L' Intermezzo di Rime_ (1883), _Il Libro delle Vergini_ (1884), and the greater part of the short stories that were afterwards collected under the general title of _San Pantaleone_ (1886). In _Canto Nuovo_ we have admirable poems full of pulsating youth and the promise of power, some descriptive of the sea and some of the Abruzzi landscape, commented on and completed in prose by _Terra Vergine_, the latter a collection of short stories dealing in radiant language with the peasant life of the author's native province. With the _Intermezzo di Rime_ we have the beginning of d'Annunzio's second and characteristic manner. His conception of style was new, and he chose to express all the most subtle vibrations of voluptuous life. Both style and contents began to startle his critics; some who had greeted him as an _enfant prodige_--Chiarini amongst others--rejected him as a perverter of public morals, whilst others hailed him as one bringing a current of fresh air and the impulse of a new vitality into the somewhat prim, lifeless work hitherto produced.

Meanwhile the Review of Angelo Sommaruga perished in the midst of scandal, and his group of young authors found itself dispersed. Some entered the teaching career and were lost to literature, others threw themselves into journalism. Gabriele d'Annunzio took this latter course, and joined the staff of the _Tribuna_. For this paper, under the pseudonym of "Duca Minimo," he did some of his most brilliant work, and the articles he wrote during that period of originality and exuberance would well repay being collected. To this period of greater maturity and deeper culture belongs _Il Libro d' Isotta_ (1886), a love poem, in which for the first time he drew inspiration adapted to modern sentiments and passions from the rich colours of the Renaissance. _Il Libro d' Isotta_ is interesting also, because in it we find most of the germs of his future work, just as in _Intermezzo melico_ and in certain ballads and sonnets we find descriptions and emotions which later went to form the aesthetic contents of _Il Piacere_, _Il Trionfo della Morte_, and _Elegie Romane_ (1892).

D' Annunzio's first novel _Il Piacere_ (1889)--translated into English as _The Child of Pleasure_--was followed in 1891 by _L' Innocente_ (_The Intruder_), and in 1892 by _Giovanni Episcopo_. These three novels created a profound impression. _L' Innocente_, admirably translated into French by Georges Herelle, brought its author the notice and applause of foreign critics. His next work, _Il Trionfo della Morte_ (_The Triumph of Death_) (1894), was followed at a short distance by _La Vergini della Roccio_ (1896) and _Il Fuoco_ (1900), which in its descriptions of Venice is perhaps the most ardent glorification of a city existing in any language.

D' Annunzio's poetic work of this period, in most respects his finest, is represented by _Il Poema Paradisiaco_ (1893), the _Odi Navali_ (1893), a superb attempt at civic poetry, and _Laudi_ (1900).

A later phase of d' Annunzio's work is his dramatic production, represented by _Il Sogno di un mattino di primavera_ (1897), a lyrical fantasia in one act; his _Cilia Morta_ (1898), written for Sarah Bernhardt, which is certainly among the most daring and original of modern tragedies, and the only one which by its unity, persistent purpose, and sense of fate seems to continue in a measure the traditions of the Greek theatre. In 1898 he wrote his _Sogno di un Pomeriggio d' Autunno_ and _La Gioconda_; in the succeeding year _La Gloria_, an attempt at contemporary political tragedy which met with no success, probably through the audacity of the personal and political allusions in some of its scenes; and then _Francesca da Rimini_ (1901), a perfect reconstruction of medieval atmosphere and emotion, magnificent in style, and declared by one of the most authoritative Italian critics--Edoardo Boutet--to be the first real although not perfect tragedy which has ever been given to the Italian theatre.