The bonuses arising out of the quinquennium are again on
most generous scale, but it is not surprising that as regards the future the Chairman should have uttered a word of
(Continued on page 524.) Financial Notes (Continued from page 523.) warning. We have left behind us a period of high interest rates, a circumstance which has been largely responsible for a great increase in the bonus rates of all offices. It is rash, said the Chairman, " to prophesy, but if as some high authorities predict, we have now entered on a period of lower interest rates, it is obvious that bonuses must also fall, and sooner or later drop to their pre-War level or even lower if the burden of Income Tax should not be lightened." "But," he added, " whatever change may take place is bonus rates the Institution's position under its distinctive system for whole life assurances will be a strong one, since it offers in its low premiums the immediate advantage of the largest possible cover for a given outlay, without sacrifice of the right to such ultimate additions as those premiums may earn."
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