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The Pamphlet Collection of Sir Robert Stout: Volume 68

[introduction]

In considering the question of Capital, the first point is—How much is absolutely necessary?

As a basis on which to calculate this, we have taken Mr. A. Simmons's "Approximate cost of a family of five persons," as given in a "Table of Colonization Schemes," submitted to the Parliamentary Committee (1887), and we have added to his calculation £10 for outfit..

This gives a total of £160 for the more distant Colonies (for details see estimate on p. 5 for first year's expenses), which £160 the Pensioner must be in a position to expend during the first year of Colonization.

To meet this outlay he has—

1st. Any money he may have in the Savings' Bank.
  • Many soldiers have considerable sums of money in the Savings' Bank, but we do not think it would do to reckon on this, and savings are not considered in these calculations.
2nd. His deferred pay (after 21 years' Service).
  • A soldier discharged in 1888, after 21 years' service, will receive about £11 deferred pay, and each succeeding year this source of capital will increase by an additional £3, and interest thereon for nine years at 2½ per cent. In 1891 deferred pay, with interest, will be about £22. In the following years this sum will be increased yearly by and interest thereon at 2½ per cent, for fifteen years, till 1897, when a man's deferred pay, at the end of 21 years' service, will be worth about £46. It will continue at this till 1901, when men so discharged will have had no interest on their deferred pay, which will then be worth about £36.
3rd. His Pension.
  • At present the only way a soldier discharged to pension, after 21 years' service, can use his pension to raise a sum of money, is by obtaining a six months' advance, but this is quite inadequate for purposes of Colonization.
page 5

If, however, the Secretary of State for War would permit a Pensioner to commute, that is, capitalize, a portion of his pension on a fair basis, the necessary funds for Colonization would be forthcoming.

We should strongly urge only allowing as much pension to be capitalized as would produce the necessary amount, because, in cases of men failing as Colonists, they would then still have something left, and would be kept from actual starvation. Moreover, we should attach certain conditions, to prove the bonā fide intention to colonize, and to ensure the best application of the funds.

Pensions differ under circumstances of service, but average pensions, after 21 years may be taken as—
Private 1s. 0d. per diem
Rank and file N.C. Officer 1s. 6d. per diem
Sergeant 2s. od. per diem

By calculations founded on 300,000 pensioners' lives, it is found that a pensioner's life is not so good for insurance purposes as average life,—large numbers dying during the two or three years following discharge,—but the lives of those medically examined and passed fit for Colonization would undoubtedly be of at least equal value to average life, and therefore it might be hoped that if Government allowed pensioners to commute a portion of their pension, the tables would not be calculated on a basis of interest at 5 per cent, like that for officers, but on a basis like Government annuities.

A soldier enlists between 17 and 25, and completes 21 years' service between 38 and 46. We have taken 40 as an average age on discharge in following calculations.

A 1d. a day = £1 10s. 5d. per annum, which capitalized on Government annuity basis, gives about £26; 6d. a day capitalized gives £156.

Capitalized on basis of 5 per cent, interest in accordance with Tables for Commutation of Officers' Pensions, 1d. a day gives capital value of about £20; 7d. a day gives £140.

page 6

From above data an approximate estimate can be compiled for first year of Colonization as follows, for a family of five persons, to most distant Colonies:

Expenditure.
£
Passage 45
Implements, seeds, stock 25
Buildings 30
Maintenance for 1st year 50
Outfit 10
To meet under-estimate or unforsten expenses 16
£176
Capital.
£
Commuted Pension. 6d. on Annuity basis 156
Do., 7d. on 5 per cent. basis, £104 Deferred pay 11
Uncommuted pension, receivable during year 9
£176

We have not taken credit for a Colonial assisted passage, but as pensioners are small capitalists, and nearly all the Colonies at one time or another have given, and three Colonies are now giving, assisted passages to this class, there is little doubt but they would be granted.

With a view to the practical working out of the above, we would suggest that these and following proposals should be submitted to the Secretary of State for War, and that he should be requested to consider whether they, or some modification of them, cannot be carried out.