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—

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.

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.

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:

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.

Scheme.

A Royal Warrant or other necessary authority to be obtained for Army Pensioners, after 21 years' service, to be allowed to commute a portion of their pensions, as follows:—

In case of Private Soldiers, if on basis of Government Annuities, 6d. a day; if on basis of 5 per cent (like Officers), 7d a day.

• In case of Rank and File Non-Commissioned Officers, 6d. a day, or such sum as will leave them not less than is a day.
• In case of Sergeants, 9d. a day, or such sum as will leave them is. 3d. a day.
• In case of Senior Ranks, at same rate as Sergeants, viz., at rate of 9d. in every 2s.
• In 1894, deferred pay will be larger by about £20 than in 1888. If £180 has been found sufficient, we should suggest the amounts allowed to be commuted by Private Soldiers should become either 5d. or 6d., according to basis of commutation.

Above privileges to be granted only to men registering their names for Colonization, and signing a paper authorising sum resulting from said commutation of pension and their deferred pay to be applied to expenses of passage, etc.; residue to be paid them in Colony selected by them, under certain conditions proposed below.

Men wishing to avail themselves of the above privilege, to send in their application through their Commanding Officers, stating what Colony they wish to go to, a given number of months before date of discharge, and the Commanding Officer to insert thereon whether he considers the men fit candidates. (Number of months would depend on where their Regiment was serving, and how long it took to make arrangements. It is most desirable that men should go straight from their Regiment to port of embarkation.;

That Department having checked record of service, and noted data for commuting pension, to forward the papers to the Colonial Office.

Colonial Office to forward to Agent-General of Colony selected by intending emigrant.

Agent-General, if satisfied with the case, to arrange for passage as soon as possible after date of discharge, and to send notification to port of disembarkation; returning papers, with date and port of embarkation and name of ship noted thereon, to Pension Department, who, adding necessary information of pension and commutation, would return the papers to the Regiment

Authority to be given by Secretary of State for War for page 8 soldiers about to Colonize to remain on, and be discharged just in time for them to proceed to port of embarkation.

The natural wish to see their relations before leaving England to be met by granting the furloughs generally given before discharge.

Contracts to be arranged whereby outfits, in accordance with voyage and Colony, should be supplied to men and families; payment being made by Regimental Paymasters.

Money for passage to be paid by Paymaster; money equal to cost of sending the man to his place of enlistment, whatever that might be, being credited towards it.

Surplus from commutation and deferred pay to be transmitted (telegraphic transfer, if necessary) to Department in Colony charged with payment of pensions.

Authority to be given Colonial Pension Department to advance six months of reduced pension from date of arrival, if necessary.

The reduced pension accumulated during voyage to be also in hands of Colonial Pension Department on arrival of pensioner.

For Men Already Discharged to Pension (Army).

In their cases there would be no deferred pay available, and it would be necessary to capitalize for them from 7d. to 9d. of their pension, according to basis of commutation and the man's age at date of application for permission to colonize.

The pensioner would have to forward his application and medical certificate through the District Pension Officers, who, in these cases, would do what the Commanding Officer and Paymaster do in the others. In all other particulars the action would be the same.

It would be a matter for grave consideration whether men who took their discharge after a Colonization of Pensioner Scheme was working, without availing themselves of it, should be allowed afterwards to have the privileges given to men already discharged, of commuting a larger portion of pension.

Pensioners from the Royal Navy & Marines.

The case of pensioners from the Royal Navy and Marines is much the same as that of pensioners from the Army.

With a very few exceptions, sailors join the Navy as boys between the ages of 15 and 16½ Their time begins to count towards pension at the age of 18, and they serve 22 years from that age to qualify; that is, they become entitled to pension at 40 years of age.

Their pensions vary from £18 to £54 a year, but very few are so low as £18; the average is said to be about £30.

Under these circumstances, we do not see any reason against commuting £10.

On the basis of Bank Annuities, at age of 40, £5 19s. 4d. per annum would produce £102.

Therefore, £1 would produce about £17, and £10 would produce about £170. This would leave the lowest pensioner only £8 a year, but men really fitted for Colonization would undoubtedly have more. £178 in the first year would meet all requirements, which would be precisely the same as given for soldiers.

The proceedings for commuting would be much the same as in the army.

The man would have to apply and sign necessary documents a given time before discharge, which documents would be forwarded by the Officer commanding the ship from which he was to be discharged, to the Naval Pension Department, who would forward to Colonial Office, as in case of Army pensioners.

The man would have to be kept on his own ship or a guard ship pending completion of transaction and date of his sailing for the Colony.

It is probable that, as a sailor, a man's passage money might be lowered in consideration of his services, but this would be a matter for arrangement.

Sailors already pensioned, like soldiers in a similar position, would have to arrange through their District Pension Officer.

All men, whether soldiers or sailors, discharged—or time expired abroad—should have the option of either returning to England or going straight to the Colony they select. This would not cost the country anything, and might save the men their passage money out to the Colony. If they choose to go to Colony direct, their families, if not sent out free, would be sent out to them with proceeds of commuted pension.