For many years the officers of the Bengal army had been accustomed to procure the retirement of their seniors by the donation of a sum of money, varying in amount according to the value of the step and the abilities of the donors. The custom, it is true, was contrary to the orders of the Court of Directors, but they were aware of and permitted it. In the artillery the same custom prevailed; and this year it was systematized by the establishment of a fund by monthly contributions from all captains and subalterns to provide for two retirements annually. Its advantages have been most apparent in its working, and the principle of a mutual insurance tontine, on which it was formed, has rendered it more effective even than was expected. The other branches of the army were not successful in establishing funds of the sort; but the question being much agitated, led to a memorial, from Lieutenant-Colonel Powel, of the Bombay army, to the Court of Directors, praying that the system might be put a stop to, on the plea of its interfering with the seniority system of the Company’s army. It was met by several counter-memorials, and, on replying to the whole together, the Court gave the proceedings their sanction, by declaring that, although they would not cancel the orders forbidding purchase, they would hold them in abeyance, unless there appeared such a probability of the pension-list being overloaded, that their interference would be necessary, and that of this, due warning should be given.